Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37779 | ||
Entity Registrant Name | FGL HOLDINGS | ||
Entity Incorporation, State or Country Code | E9 | ||
Entity Tax Identification Number | 98-1354810 | ||
Entity Address, Address Line One | 4th Floor | ||
Entity Address, Address Line Two | Boundary Hall, Cricket Square | ||
Entity Address, City or Town | Grand Cayman | ||
Entity Address, Country | KY | ||
Entity Address, Postal Zip Code | KY1-1102 | ||
City Area Code | 800 | ||
Local Phone Number | 445-6758 | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,214 | ||
Entity Common Stock, Shares Outstanding | 221,807,598 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001668428 | ||
Current Fiscal Year End Date | --12-31 | ||
Ordinary shares, par value $.0001 per share | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Ordinary shares, par value $.0001 per share | ||
Trading Symbol | FG | ||
Warrants to purchase ordinary shares | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase ordinary shares | ||
Trading Symbol | FG WS |
Investments - Proceeds From The
Investments - Proceeds From The Sale of Fixed-maturity available for-sale-securities - Available-for-sale Securities - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Proceeds | $ 313 | $ 626 | $ 733 | $ 4,506 | $ 2,755 | $ 8,265 | |
Total fixed maturities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Proceeds | 125 | 151 | 97 | 2,848 | $ 6,260 | 703 | |
Gross gains | 0 | 6 | 2 | 91 | 12 | 25 | |
Gross losses | $ 0 | $ 0 | $ (2) | $ (27) | $ (171) | $ (20) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2019 - $22,914; December 31, 2018 - $22,219) | $ 23,726 | $ 21,109 |
Equity securities, at fair value (cost: December 31, 2019 - $1,069; December 31, 2018 - $1,526) | 1,071 | 1,382 |
Derivative investments | 587 | 97 |
Mortgage loans | 1,267 | 667 |
Other invested assets | 1,303 | 662 |
Total investments | 27,954 | 23,917 |
Cash and cash equivalents | 969 | 571 |
Accrued investment income | 228 | 216 |
Funds withheld for reinsurance receivables, at fair value | 2,172 | 757 |
Reinsurance recoverable | 3,213 | 3,190 |
Intangibles, net | 1,455 | 1,359 |
Deferred tax assets, net | 61 | 343 |
Goodwill | 467 | 467 |
Other assets | 195 | 125 |
Total assets | 36,714 | 30,945 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Contractholder funds | 25,684 | 23,387 |
Future policy benefits, including $1,953 and $725 at fair value at December 31, 2019 and December 31, 2018, respectively | 5,735 | 4,641 |
Funds withheld for reinsurance liabilities | 831 | 722 |
Liability for policy and contract claims | 71 | 64 |
Debt Instrument, Face Amount | 542 | 541 |
Other liabilities | 1,108 | 700 |
Total liabilities | 33,971 | 30,055 |
Shareholders' equity: | ||
Preferred stock ($.0001 par value, 100,000,000 shares authorized, 429,789 and 399,033 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively) | 0 | 0 |
Common stock ($.0001 par value, 800,000,000 shares authorized, 221,807,598 and 221,660,974 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 0 | 0 |
Additional paid-in capital | 2,031 | 1,998 |
Retained earnings (Accumulated deficit) | 300 | (167) |
Accumulated other comprehensive income (loss) | 481 | (937) |
Treasury stock, at cost (8,652,400 shares at December 31, 2019; 600,000 shares at December 31, 2018) | (69) | (4) |
Total shareholders' equity | 2,743 | 890 |
Total liabilities and shareholders' equity | $ 36,714 | $ 30,945 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 221,807,598 | 221,660,974 |
Common stock, shares outstanding (in shares) | 221,807,598 | 221,660,974 |
Preferred Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, shares issued (in shares) | 429,789 | 399,033 |
Preferred Stock, shares outstanding (in shares) | 429,789 | 399,033 |
Treasury Stock, shares (in shares) | 8,652,400 | 600,000 |
Fixed maturity securities, available-for-sale, at fair value (amortized cost) | $ 22,914 | $ 22,219 |
Equity securities, available-for-sale, at fair value (amortized cost) | 1,069 | 1,526 |
Future policy benefits. at fair value | $ 1,953 | $ 725 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2018 | |
Revenues: | ||||||
Premiums | $ 3 | $ 7 | $ 11 | $ 40 | $ 42 | $ 54 |
Net investment income | 92 | 174 | 240 | 1,229 | 1,005 | 1,107 |
Net investment gains (losses) | 42 | 146 | 51 | 674 | 316 | (629) |
Insurance and investment product fees and other | 28 | 35 | 38 | 170 | 167 | 179 |
Total revenues | 165 | 362 | 340 | 2,113 | 1,530 | 711 |
Benefits and expenses: | ||||||
Benefits and other changes in policy reserves | 124 | 227 | 20 | 1,057 | 843 | 423 |
Acquisition and operating expenses, net of deferrals | 16 | 51 | 28 | 330 | 137 | 181 |
Amortization of intangibles | 4 | 36 | 123 | 126 | 193 | 49 |
Total operating expenses | 144 | 314 | 171 | 1,513 | 1,173 | 653 |
Operating income | 21 | 48 | 169 | 600 | 357 | 58 |
Interest expense | (2) | (4) | (6) | (32) | (24) | (29) |
Income (loss) before income taxes | 19 | 44 | 163 | 568 | 333 | 29 |
Income tax (expense) benefit | (110) | (16) | (55) | (61) | (110) | (16) |
Net income (loss) | (91) | 28 | 108 | 507 | 223 | 13 |
Less Preferred stock dividend | 2 | 0 | 0 | 31 | 0 | 29 |
Net income (loss) available to common shareholders | $ (93) | $ 28 | $ 108 | $ 476 | $ 223 | $ (16) |
Net income (loss) per common share | ||||||
Basic (in USD per share) | $ (0.44) | $ 0.48 | $ 1.85 | $ 2.19 | $ 3.83 | |
Diluted (in USD per share) | $ (0.44) | $ 0.47 | $ 1.85 | $ 2.19 | $ 3.83 | |
Weighted average common shares used in computing net income (loss) per common share: | ||||||
Basic (in shares) | 214,370,000 | 58,341,112 | 58,280,532 | 216,591,908 | 58,319,517 | 216,018,629 |
Diluted (in shares) | 214,370,000 | 58,494,043 | 58,366,009 | 216,737,602 | 58,415,187 | 216,018,629 |
Cash dividend per common share (in dollars per share) | $ 0 | $ 0.07 | $ 0.07 | $ 0.04 | $ 0.26 | $ 0 |
Other-than-temporary impairments | $ 0 | $ 0 | $ (1) | $ (23) | $ (22) | $ (24) |
Gains (losses) on derivatives and embedded derivatives | 37 | 140 | 51 | 498 | 335 | (295) |
Other investment gains (losses) | 5 | 6 | 1 | 199 | 3 | (310) |
Net investment gains (losses) | $ 42 | $ 146 | $ 51 | $ 674 | $ 316 | $ (629) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $ (91) | $ 28 | $ 108 | $ 507 | $ 223 | $ 13 |
Debt and Equity Securities, Unrealized Gain (Loss) [Abstract] | ||||||
Net change in unrealized gains/losses on investments (net of intangibles and deferred tax asset) | 75 | 12 | (286) | 1,433 | 104 | (1,020) |
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | (15) | 4 | ||||
Net changes to derive comprehensive income (loss) for the period | 75 | 12 | (286) | 1,418 | 104 | (1,016) |
Comprehensive income (loss), net of tax | $ (16) | $ 40 | $ (178) | $ 1,925 | $ 327 | $ (1,003) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Preferred Stock | Preferred StockAdditional Paid-in Capital | Preferred StockRetained Earnings (Accumulated Deficit) | Common Stock | Common StockRetained Earnings (Accumulated Deficit) |
Beginning Balance at Sep. 30, 2016 | $ 1,934 | $ 0 | $ 1 | $ 714 | $ 792 | $ 439 | $ (12) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares purchased | (1) | (1) | ||||||||||
Dividends | (4) | (4) | ||||||||||
Net income (loss) | 108 | 108 | ||||||||||
Unrealized investment gains (losses), net | (286) | (286) | ||||||||||
Dividend, Share-based Payment Arrangement, Shares | $ 1 | 1 | ||||||||||
Warrants Tendered | 0 | |||||||||||
Ending Balance at Dec. 31, 2016 | $ 1,752 | 0 | 1 | 715 | 896 | 153 | (13) | |||||
Beginning Balance at Sep. 30, 2016 | 1,934 | 0 | 1 | 714 | 792 | 439 | (12) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares purchased | (1) | (1) | ||||||||||
Dividends | (15) | $ (15) | ||||||||||
Net income (loss) | 223 | 223 | ||||||||||
Unrealized investment gains (losses), net | 104 | 104 | ||||||||||
Dividend, Share-based Payment Arrangement, Shares | $ 2 | 2 | ||||||||||
Warrants Tendered | 0 | |||||||||||
Ending Balance at Sep. 30, 2017 | $ 2,247 | 0 | 1 | 716 | 1,000 | 543 | (13) | |||||
Beginning Balance at Dec. 31, 2016 | 1,752 | 0 | 1 | 715 | 896 | 153 | (13) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | 0 | |||||||||||
Ending Balance at Dec. 31, 2017 | 1,963 | 0 | 0 | 2,037 | (149) | 75 | 0 | |||||
Beginning Balance at Sep. 30, 2017 | 2,247 | 0 | 1 | 716 | 1,000 | 543 | (13) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends | (4) | (4) | ||||||||||
Net income (loss) | 28 | 28 | ||||||||||
Unrealized investment gains (losses), net | 12 | 12 | ||||||||||
Dividend, Share-based Payment Arrangement, Shares | $ 1 | 1 | ||||||||||
Warrants Tendered | 0 | |||||||||||
Ending Balance at Nov. 30, 2017 | $ 2,284 | 0 | 1 | 717 | 1,024 | 555 | (13) | |||||
Beginning Balance at Sep. 30, 2017 | 2,247 | 0 | 1 | 716 | 1,000 | 543 | (13) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 13 | |||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | $ 4 | |||||||||||
Warrants Tendered | 66 | |||||||||||
Ending Balance at Dec. 31, 2018 | $ 890 | 0 | 0 | 1,998 | (167) | (937) | (4) | |||||
Beginning Balance at Nov. 30, 2017 | 2,284 | 0 | 1 | 717 | 1,024 | 555 | (13) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends | (2) | $ (2) | ||||||||||
Net income (loss) | (91) | (91) | ||||||||||
Unrealized investment gains (losses), net | $ 75 | 75 | ||||||||||
Warrants Tendered | 0 | |||||||||||
Ending Balance at Dec. 31, 2017 | $ 1,963 | 0 | 0 | 2,037 | (149) | 75 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares purchased | (4) | (4) | ||||||||||
Dividends | (6) | $ 23 | (29) | |||||||||
Net income (loss) | 13 | 13 | ||||||||||
Unrealized investment gains (losses), net | (1,020) | (1,020) | ||||||||||
Dividend, Share-based Payment Arrangement, Shares | 4 | $ 4 | ||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | $ 4 | 4 | ||||||||||
Warrants Tendered | (66) | (66) | ||||||||||
Ending Balance at Dec. 31, 2018 | $ 890 | 0 | 0 | $ 1,998 | (167) | (937) | (4) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Treasury shares purchased | (65) | (65) | ||||||||||
Dividends | $ (2) | $ 29 | $ (31) | $ (9) | $ (9) | |||||||
Net income (loss) | 507 | 507 | ||||||||||
Unrealized investment gains (losses), net | 1,433 | 1,433 | ||||||||||
Dividend, Share-based Payment Arrangement, Shares | 4 | 4 | ||||||||||
Change in reinsurance liabilities held at fair value resulting from a change in the instrument-specific credit risk | $ (15) | (15) | ||||||||||
Warrants Tendered | 0 | |||||||||||
Ending Balance at Dec. 31, 2019 | $ 2,743 | $ 0 | $ 0 | $ 2,031 | $ 300 | $ 481 | $ (69) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | ||||||
Net income (loss) | $ (91) | $ 28 | $ 108 | $ 507 | $ 223 | $ 13 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Stock based compensation | (1) | 4 | 1 | 5 | 6 | 4 |
Amortization | 6 | (4) | (6) | 39 | (42) | 43 |
Deferred income taxes | 104 | (7) | 76 | 41 | (4) | (30) |
Interest credited/index credits to contractholder account balances | 124 | 206 | (13) | 985 | 701 | 347 |
Net recognized losses (gains) on investments and derivatives | (42) | (137) | (51) | (682) | (305) | 629 |
Charges assessed to contractholders for mortality and administration | (13) | (25) | (32) | (124) | (131) | (136) |
Intangibles, net | (29) | (12) | 23 | (336) | (144) | (390) |
Changes in operating assets and liabilities: | ||||||
Reinsurance recoverable | 17 | 3 | (8) | 13 | (18) | 24 |
Future policy benefits reflected in net income (loss) | 4 | (11) | (14) | 1,079 | (55) | (110) |
Funds withheld for reinsurers | (2) | (16) | (26) | (1,220) | (105) | 679 |
Collateral (returned) posted | 17 | 56 | 40 | 387 | 158 | (291) |
Other assets and other liabilities | (9) | (6) | (26) | (19) | (47) | 115 |
Net cash provided by (used in) operating activities | 85 | 79 | 72 | 675 | 237 | 897 |
Cash flows from investing activities: | ||||||
Proceeds from mortgage loans | 1 | 2 | 13 | 100 | 48 | 65 |
Costs of mortgage loans | 0 | 0 | 0 | (701) | 0 | (185) |
Capital expenditures | (1) | (1) | (2) | (11) | (4) | (7) |
Payment for Contingent Consideration Liability, Investing Activities | 0 | 0 | 0 | 0 | 0 | (57) |
Net cash provided by (used in) investing activities | (22) | (175) | (594) | (1,568) | (1,217) | (2,280) |
Cash flows from financing activities: | ||||||
Treasury stock | 0 | 0 | (1) | (65) | (1) | (4) |
Payments of Debt Issuance Costs | 0 | 0 | 0 | 0 | 0 | (6) |
Proceeds from (Repayments of) Debt | 0 | 0 | 0 | 0 | 0 | 547 |
Retirement and paydown on debt and revolving credit facility | (105) | 0 | 0 | (27) | 0 | (440) |
Draw on revolving credit facility | 105 | 0 | 0 | 27 | 5 | 30 |
Common stock dividends paid | $ 0 | $ (4) | $ (4) | $ (9) | $ (15) | $ 0 |
Warrants Tendered | 0 | 0 | 0 | 0 | 0 | (66) |
Contractholder account deposits | $ 217 | $ 443 | $ 698 | $ 4,124 | $ 2,890 | $ 3,352 |
Contractholder account withdrawals | (172) | (304) | (403) | (2,759) | (1,878) | (2,674) |
Net cash provided by (used in) financing activities | 45 | 135 | 290 | 1,291 | 1,001 | 739 |
Change in cash & cash equivalents | 108 | 39 | (232) | 398 | 21 | (644) |
Cash & cash equivalents, beginning of period | 924 | 885 | 864 | 571 | 864 | 885 |
Cash & cash equivalents, end of period | 1,215 | 924 | 632 | 969 | 885 | 571 |
Supplemental disclosures: | ||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 0 | 10 | 10 | 30 | 23 | 30 |
Income taxes (refunded) paid | (21) | 0 | 0 | (1) | 114 | 41 |
Deferred sales inducements | 10 | 3 | 0 | 130 | 20 | 138 |
Available-for-sale Securities | ||||||
Cash flows from investing activities: | ||||||
Proceeds from available-for-sale investments, sold, matured or repaid: | 313 | 626 | 733 | 4,506 | 2,755 | 8,265 |
Cost of available-for-sale investments: | (348) | (874) | (1,355) | (4,733) | (4,123) | (10,079) |
Derivative and other | ||||||
Cash flows from investing activities: | ||||||
Proceeds from available-for-sale investments, sold, matured or repaid: | 169 | 117 | 71 | 338 | 458 | 499 |
Cost of available-for-sale investments: | $ (156) | $ (45) | $ (54) | $ (1,067) | $ (351) | $ (781) |
Basis of Presentation and Natur
Basis of Presentation and Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Business | Basis of Presentation and Nature of Business FGL Holdings (the "Company"), formerly known as CF Corporation ("CF Corp"), a Cayman Islands exempted company, was originally incorporated in the Cayman Islands on February 26, 2016 as a Special Purpose Acquisition Company ("SPAC"). The Company’s primary business is the sale of individual life insurance products and annuities through independent agents, managing general agents, and specialty brokerage firms and in selected institutional markets. The Company’s principal products are deferred annuities (including fixed indexed annuity (“FIA”) contracts and fixed rate annuity contracts), immediate annuities and life insurance products. The Company markets products through its wholly-owned insurance subsidiaries, Fidelity & Guaranty Life Insurance Company (“FGL Insurance”) and Fidelity & Guaranty Life Insurance Company of New York (“FGL NY Insurance”), which together are licensed in all fifty states and the District of Columbia. F&G Reinsurance Ltd (“F&G Re”), an exempted company incorporated in Bermuda with limited liability, provides a platform for non-affiliated reinsurance business. Front Street Re Cayman Ltd (“FSRC”), an exempted company incorporated in the Cayman Islands with limited liability, has a license to carry on business as an Unrestricted Class “B” Insurer that permits FSRC to conduct offshore direct and reinsurance business. F&G Re and FSRC (together herein referred to as the “F&G Reinsurance Companies”), are indirect wholly owned subsidiaries of the Company and parties to reinsurance transactions. Prior to November 30, 2017, CF Corp. was a shell company with no operations. On November 30, 2017, CF Corp. consummated the acquisition of Fidelity & Guaranty Life ("FGL"), a Delaware corporation, and its subsidiaries, pursuant to the Agreement and Plan of Merger, dated as of May 24, 2017 (the “FGL Merger Agreement”). The transactions contemplated by the FGL Merger Agreement are referred to herein as the “Business Combination.” In addition to the Business Combination, on November 30, 2017, CF Corp bought all of the issued and outstanding shares of FSRC and F&G Re (formerly known as Front Street Re Ltd). As a result of the Business Combination, for accounting purposes, FGL Holdings is the acquirer and FGL is the acquired party and accounting predecessor. Our financial statement presentation includes the financial statements of FGL and its subsidiaries as “Predecessor” for the periods prior to the completion of the Business Combination, and FGL Holdings, including the consolidation of FGL and its subsidiaries and the F&G Reinsurance Companies, for periods from and after the Closing Date. FGL Holdings is the surviving company organized and existing under the laws of the United States of America, any State of the United States, the District of Columbia or any territory thereof (and in the case of the Company, Bermuda or the Cayman Islands). Prior to the acquisition, FGL Holdings reported under a fiscal year end of December 31, and the Predecessor companies reported under a fiscal year end of September 30. Subsequent to the acquisition, FGL Holdings reports under a fiscal year end of December 31. On February 7, 2020, FGL Holdings and Fidelity National Financial, Inc. (NYSE: FNF) (“FNF”) entered into a merger agreement pursuant to which FNF will acquire FGL Holdings for $12.50 per share, representing an equity value of approximately $2.7 billion . The transaction was approved by a Special Committee of FGL Holdings Directors, a Special Committee of FNF Directors and the FNF Board of Directors. FNF currently owns 7.9% of FGL Holdings outstanding ordinary shares and all of FGL Holdings Series B Preferred shares. In connection with and immediately prior to the closing of the proposed acquisition, FNF will acquire all outstanding FGL Holdings Series A preferred shares, with a face value of approximately $321 million as of December 31, 2019, and assume the $550 million of senior notes due 2025. Under the terms of the merger agreement, holders of FGL Holdings' ordinary shares (other than FNF and its subsidiaries) may elect to receive either (i) $12.50 per share in cash or (ii) 0.2558 of a share of FNF common stock for each ordinary share of F&G they own. This is subject to an election and proration mechanism such that the aggregate consideration paid to such holders of FGL Holdings' ordinary shares will consist of approximately 60% cash and 40% FNF common stock. The transaction is expected to close in the second or third quarter of 2020, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by FGL Holdings shareholders. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Dollar amounts in the accompanying sections are presented in millions, unless otherwise noted. We have one reporting segment, which is consistent with and reflects the manner by which our chief operating decision maker views and manages the business. We currently distribute and service primarily fixed rate annuities, including FIAs. Premiums and annuity deposits (net of reinsurance), which are not included as revenues (except for traditional premiums) in the accompanying Consolidated Statements of Operations, collected by product type were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Product Type Predecessor Predecessor Predecessor Fixed indexed annuities $ 2,800 $ 2,253 $ 178 $ 288 $ 556 $ 1,892 Fixed rate annuities 539 61 45 116 99 556 Single premium immediate annuities 14 24 — 1 2 15 Life insurance (a) 203 182 16 29 50 176 Total $ 3,556 $ 2,520 $ 239 $ 434 $ 707 $ 2,639 (a) Life insurance includes Universal Life (“UL”) and traditional life insurance products for FGL Insurance and FGL NY Insurance. |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Significant Accounting Policies and Practices Principles of Consolidation The accompanying audited consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. We are involved in certain entities that are considered variable interest entities ("VIEs") as defined under U.S. GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our relationships to determine if we have the ability to direct the activities, or otherwise exert control, to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our audited consolidated financial statements . See "Note 4. Investments" for additional information on the Company’s investments in VIEs. Revenue Recognition Insurance Premiums The Company’s insurance premiums for traditional life insurance products are recognized as revenue when due from the contractholder. The Company’s traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of term life insurance and certain annuities with life contingencies, net of premiums ceded under reinsurance. Premium collections for fixed indexed and fixed rate annuities, indexed universal life (“IUL”) policies and immediate annuities without life contingency are reported as an increase to deposit liabilities (i.e., contractholder funds) instead of as revenues. Similarly, cash payments to policyholders are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities are net investment income, surrender and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Surrender charges are earned when a policyholder withdraws funds from the contract early or cancels the contract. Other income related to riders is earned when elected by the policyholder. See a description of FSRC’s and F&G Re's accounting policy for its assumed reinsurance contracts as described under "Reinsurance". Net Investment Income Dividends and interest income are recorded in “Net investment income” and recognized when earned. Income or losses upon call or prepayment of available-for-sale fixed maturity securities are recognized in "Net investment income". Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in “Net investment income” based on the earliest call date of the investments in a manner that produces a constant effective yield. FSRC and F&G Re's dividends and interest income are recorded in "Net investment income" in the consolidated financial statements and are recognized on an accrual basis. Amortization of premiums and accretion of discounts on investment in debt securities are reflected in "Net investment income" over the contractual terms of the investments in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity available-for-sale (“AFS”) securities portfolios, the Company recognizes income using a constant effective yield based on anticipated cash flows and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the effective yield is generally recalculated prospectively to reflect actual payments to date plus anticipated future payments. Any adjustments resulting from changes in effective yield are reflected in “Net investment income’’. "Net investment income" is presented net of earned investment management fees. Net Investment Gains (Losses) Net investment gains (losses) include realized gains and losses from the sale of investments, unrealized gains and losses on equity securities at fair value, write-downs for other-than-temporary impairments (“OTTI”) of AFS investments, and realized and unrealized gains and losses on derivatives and embedded derivatives. FSRC and F&G Re's net investment gains (losses) include realized losses and gains from the sale of investments, changes in the fair value of funds withheld receivables and realized and unrealized gains and losses on derivative investments. Realized gains and losses on the sale of investments are determined using the specific identification method on the trade date. Insurance and Investment Product Fees and Other Product fee revenue from IUL products and annuities is comprised of policy and contract fees charged for the cost of insurance, policy administration and rider fees. Fees are assessed on a monthly basis and recognized as revenue when earned. Product fee revenue also includes surrender charges which are collected and recognized as revenue when the policy is surrendered. Some of the product fee revenue is not level by policy year. The unearned portion of the revenues are deferred and brought into income relative to the gross profits of the business. Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuity, FIA and IUL policies include index credits and interest credited to contractholder account balances and benefit claims in excess of contract account balances, net of reinsurance recoveries, are charged to expense in the period that they are earned by the policyholder based on their selected strategy. Interest crediting rates associated with funds invested in the general account of our insurance subsidiaries during 2017 through 2019 ranged from 0.5% to 6.0% for deferred annuities and FIA's, combined, and 3.0% to 4.8% for IUL's. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative and the change in the reserve for secondary guarantee benefit payments. Other changes in policy reserves also include the change in reserves for life insurance products. For traditional life and immediate annuities, policy benefit claims are charged to expense in the period that the claims are incurred, net of reinsurance recoveries. See a description of FSRC’s and F&G Re's accounting policy for its assumed reinsurance contracts as described under "Future Policy Benefits" in Note 2. Stock-Based Compensation We expense the fair value of stock awards included in our incentive compensation plans. The Company issues stock options with three different types of vesting conditions. As of the date that there is a mutual understanding between the Company and the grantee of key terms of the awards, the fair value of stock options that vest based on service or non-market based performance conditions are determined using a Black-Scholes options valuation methodology. The Company uses a Monte Carlo simulation to determine the fair value of stock awards that vest based upon market conditions. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to “Additional paid-in capital” in “Shareholders’ equity”. We classify certain stock awards settled in cash as liabilities. For these awards, the fair value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income (loss) at the end of each reporting period. Stock-based compensation expense is reflected in “Acquisition and operating expenses, net of deferrals” on our Consolidated Statements of Operations. Interest Expense Interest expense on our debt is recognized as due and any associated premiums, discounts, and issuance costs are amortized (accreted) over the term of the related borrowing utilizing the straight line method. Interest expense also includes non-use fees on the revolving line of credit facility. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of nonvested stock, stock options, warrants and performance share units outstanding during the year. The effect of a potential conversion of outstanding preferred shares to common shares is not considered in the diluted EPS calculation as the preferred shareholders do not yet have the right to convert. Stock options and warrants are excluded from the computation of diluted EPS, based on the application of the treasury stock method, if they are anti-dilutive. Cash Equivalents The Company considers money market funds and highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. As of December 31, 2019 and December 31, 2018 , the Company held cash equivalents of $38 and $84 respectively. Investments Investment Securities The Company’s investments in fixed maturity securities have been designated as AFS and are carried at fair value with unrealized gains and losses included in “Accumulated other comprehensive income” (“AOCI”), net of associated intangible asset and unearned revenue ("UREV") “shadow adjustments” (discussed in "Note 7. Intangibles") and deferred income taxes. The Company's investments in equity securities are carried at fair value with unrealized gains and losses included in “Realized gains (losses)”. Prior to the adoption of ASU 2016-01, effective January 1, 2018, unrealized gains and losses on equity securities were included in AOCI. Available-for-Sale Securities' Other-Than-Temporary Impairments The Company regularly reviews AFS securities for declines in fair value that it determines to be other-than-temporary. Prior to the adoption of ASU 2016-01, for an equity security, if the Company did not have the ability and intent to hold the security for a sufficient and reasonable period of time to allow for a recovery in value, it concluded that an OTTI had occurred and the amortized cost of the security was written down to the current fair value, with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations. Following the adoption of ASU 2016-01, equity securities are no longer reviewed for OTTI. When assessing its ability and intent to hold a security to recovery, the Company considers, among other things, the severity and duration of the decline in fair value of the security as well as the cause of the decline, business prospects and the overall financial condition of the issuer. When evaluating redeemable preferred stocks for OTTI the Company applies the accounting policy described above for fixed maturity securities (including an anticipated recovery period), provided there has been no evidence of a deterioration in credit of the issuer. For its fixed maturity AFS securities, the Company generally considers the following in determining whether its unrealized losses are other-than-temporary: • The estimated period until recovery; • The extent and the duration of the decline; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer’s current credit rating and the probability of full recovery of principal based upon the issuer’s financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. The Company recognizes OTTI on fixed maturity securities in an unrealized loss position when one of the following circumstances exists: • The Company does not expect full recovery of its amortized cost based on the present value of cash flows expected to be collected; • The Company intends to sell a security; or • It is more likely than not that the Company will be required to sell a security prior to recovery. If the Company intends to sell a fixed maturity AFS security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, the Company will conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations. If the Company does not intend to sell a fixed maturity security or it is more likely than not the Company will not be required to sell a fixed maturity security before recovery of its amortized cost basis and the present value of the cash flows expected to be collected is less than the amortized cost of the security (referred to as the credit loss), an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations, as this amount is deemed the credit loss portion of the OTTI. The remainder of the decline to fair value is recorded in AOCI as an unrealized loss on AFS securities, as this amount is considered a non-credit impairment. When assessing the Company’s intent to sell a fixed maturity security or if it is more likely than not the Company will be required to sell a fixed maturity security before recovery of its cost basis, the Company evaluates facts and circumstances at the individual security level based on facts and circumstances relevant to that security. Management also consider decisions to reposition the Company’s security portfolio, sale of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing and tax planning strategies. When evaluating mortgage-backed securities and asset-backed securities, the Company considers a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance. The Company uses this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include type of underlying collateral (e.g., prime, Alternative A-paper (“Alt-A”), or subprime), geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, the Company then makes assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected, including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on the Company’s tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the present value of expected future cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. The Company also considers the ability of monoline insurers to meet their contractual guarantees on wrapped mortgage-backed securities. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, then an OTTI is recognized. The Company includes the total OTTI recognized in "Net investment gains (losses)" in the Consolidated Statements of Operations , with an offset for the amount of non-credit impairments recognized in AOCI. See "Note 4. Investments" for additional disclosures related to OTTI, including the amount of OTTI recognized in AOCI. Mortgage Loans on Real Estate The Company’s investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or the loan is modified in a troubled debt restructuring), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan, discounted at the loan’s original purchase yield, or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing an allowance with the offset recorded in "Net investment gains (losses)" in the Consolidated Statements of Operations. Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. We establish mortgage loan valuation allowances both on a loan specific basis for those loans considered impaired where a property specific or market specific risk has been identified that could likely result in a future loss, as well as for pools of loans with similar risk characteristics where a property specific or market specific risk has not been identified, but for which we expect to incur a loss. Accordingly, a valuation allowance is provided to absorb these estimated probable credit losses. As of December 31, 2019 and 2018 , the Company did not identify any specific loans that were impaired. The determination of the amount of valuation allowances is based upon our periodic evaluation and assessment of inherent risks associated with our loan portfolios. Such evaluations and assessments are based upon several factors, including our experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. We evaluate and monitor LTV ratios and DSC ratios of our loans as indicators of potential risk of default in establishing our valuation allowance. Derivative Financial Instruments The Company hedges certain portions of its exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations . The Company purchases financial instruments and issues products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are 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 for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within “Benefits and other changes in policy reserves” in the accompanying Consolidated Statements of Operations . See a description of the fair value methodology used in "Note 6. Fair Value of Financial Instruments". Reinsurance Related Embedded Derivatives As discussed in “Note 13. Reinsurance”, FGL Insurance entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain MYGA and deferred annuity statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is reported in “Other assets” if in a net gain position, or “Other liabilities”, if in a net loss position on the Consolidated Balance Sheets and the related gains or losses are reported in “Net investment gains (losses)” on the Consolidated Statements of Operations . FGL Insurance has a funds withheld coinsurance arrangement with FSRC, which creates an embedded derivative similar to the embedded derivative described above related to the Kubera reinsurance agreement. Due to the acquisition of FSRC, the reinsurance related embedded derivative is eliminated in consolidation in the periods after December 1, 2017. Preferred Equity Remarketing Reimbursement Embedded Derivative Liability On November 30, 2017 the Company issued 275,000 Series A cumulative preferred shares and 100,000 Series B cumulative preferred shares (together the “Preferred Shares”). The Preferred Shares do not have a maturity date and are non-callable for the first five years . From and after November 30, 2022, the original holders of the Preferred Shares may request and thus require, the Company (subject to customary blackout provisions) to remarket the Preferred Shares on their existing terms. If the remarketing is successful and the original holders elect to sell their preferred shares at the remarketed price and proceeds from such sale are less than the outstanding balance of the applicable shares (including dividends paid in kind and accumulated but unpaid dividends), the Company will be required to reimburse the sellers, up to a maximum of 10% of the par value of the originally issued preferred shares (including dividends paid in kind and accumulated but unpaid dividends) with such amount payable either in cash, ordinary shares, or any combination thereof, at the Company's option (the “Reimbursement Feature”). The Reimbursement Feature represents an embedded derivative that is not clearly and closely related to the preferred stock host and must be bifurcated. The Reimbursement Feature liability is reported at fair value within “Other liabilities” in the accompanying Consolidated Balance Sheets using a Black Derman Toy model incorporating among other things the paid in kind dividend coupon rate and the Company’s call option. Funds withheld Receivable FSRC and F&G Re have entered into various reinsurance agreements on a funds withheld basis, meaning that the funds are withheld by the ceding company from the coinsurance premium owed to FSRC and F&G Re as collateral for FSRC's and F&G Re's payment obligations. Accordingly, the collateral assets remain under the ultimate ownership of the ceding company. FSRC and F&G Re manage the assets supporting the reserves in accordance with the internal investments policies of the ceding companies and applicable law. Limited Partnership Investments Our investments in limited partnerships are included in other invested assets on our Consolidated Balance Sheets. We account for our investments in limited partnerships using the equity method and use net asset value ("NAV") as a practical expedient to determine the carrying value. Income from the limited partnership is included within "Net investment income" in the accompanying Consolidated Statements of Operations. Recognition of income is delayed due to the availability of the related financial statements, which are obtained from the partnership’s general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the limited partnership are typically received during the second quarter of each calendar year. Accordingly, our investment income from the limited partnership investment for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. Intangible Assets The Company’s intangible assets include an intangible asset reflecting the value of insurance and reinsurance contracts acquired (hereafter referred to as “the value of business acquired” or (“VOBA”), deferred acquisition costs (“DAC”), deferred sales inducements (“DSI”), and trademarks and state licenses. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts in a life insurance company acquisition. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. DAC consists principally of commissions that are related directly to the successful sale of new or recoverable insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting bonuses to policyholder account values which may be deferred to the extent recoverable. The methodology for determining the amortization of DAC, DSI and VOBA varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities adjusted for emerging experience and expected trends. Amortization is reported within “Amortization of intangibles” in the accompanying Consolidated Statements of Operations. For all of the insurance intangibles (DAC, DSI and VOBA), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality net of reinsurance ceded, and expense margins. Recognized gains (losses) on investments and changes in fair value of the funds withheld coinsurance embedded derivative are included in actual gross profits in the period realized as described further below. Changes in assumptions, including th e Company’s earned rate, (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, the Company performs quarterly and annual analysis of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. The carrying amounts of VOBA, DAC and DSI are adjusted for the effects of unrealized gains and losses on fixed maturity securities classified as AFS. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI. Amortization expense of VOBA, DAC and DSI reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, the Company performs a retrospective unlocking of amortization for those intangibles as actual margins vary from expected margins. This unlocking is reflected in the accompanying Consolidated Statements of Operations. Reinsurance The Company’s insurance subsidiaries enter into reinsurance agreements with other companies in the normal course of business. The assets, liabilities, premiums and benefits of certain reinsurance contracts are presented on a net basis in the accompanying Consolidated Balance Sheets and Consolidated Statements of Operations , respectively, when there is a right of offset explicit in the reinsurance agreement. All other reinsurance agreements are reported on a gross basis in the Company’s Consolidated Balance Sheets as an asset for amounts recoverable from reinsurers or as a component of other liabilities for amounts, such as premiums, owed to the reinsurers, with the exception of amounts for which the right of offset also exists. Pr |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Significant Risks and Uncertainties Best Interest Regulation In March 2018, the United States Fifth Circuit Court of Appeals formally vacated the U. S. Department Labor “Fiduciary Rule” which would have imposed fiduciary duties upon insurance agents selling Individual Retirement Account (IRA) annuities and would have potentially had a material impact on the Company, its products, distribution, and business model. Since then, in June 2019, the U.S. Securities and Exchange Commission (SEC) adopted Regulation Best Interest imposing new sales practice standards on securities brokers, which does not directly impact the Company or its distributors, but gives impetus for the National Association of Insurance Commissioners (NAIC) and individual states to consider best interest proposals for insurance sales. The NAIC adopted an amended Suitability in Annuity Transactions Model Regulation in February 2020 incorporating a requirement that agents act in the best interest of consumers without putting their own financial interests or insurer’s interests ahead of consumer interests. It is expected individual states may soon begin to consider and adopt the NAIC model regulation. FGL NY Insurance already modified certain new business processes in response to the New York Department of Financial Services (NYDFS) best interest rule despite relatively low sales in New York. Management is following a legal challenge to nullify the NYDFS rule and will continue to monitor action by other state or federal agencies to implement sales practice rules affecting insurance agents selling fixed insurance or annuity products. Use of Estimates and Assumptions The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. The Company periodically, and at least annually, reviews the assumptions associated with reserves for policy benefits, product guarantees, and amortization of intangibles. As a result of the assumption review process that occurred in the year ended December 31, 2019 , the surrender rates, guaranteed minimum withdrawal benefit (“GMWB”) utilization, IUL premium persistency, maintenance expenses, and earned rate assumptions were updated to reflect the Company's current and expected future experience. These changes in assumptions resulted in a net decrease in future expected margins and a corresponding increase in amortization expense reported as a component of “unlocking” for the period ended December 31, 2019. This resulted in a decrease to intangible assets of $3 . These assumptions are used in the SOP 03-1 liability for GMWB benefits and resulted in a decrease in liability of $13 for the period ended December 31, 2019. The surrender rate assumptions are also used in the reserve calculation and resulted in an increase in embedded derivative liability of $1 for the period ended December 31, 2019. The change in assumptions as of December 31, 2018 resulted in a net increase in future expected margins and a corresponding decrease in amortization expense reported as a component of “unlocking”. This resulted in a decrease to intangible assets of $2 . These assumptions are also used in the reserve calculation and resulted in a decrease of $5 in the year ended December 31, 2018. As a result of the assumption review process at FSRC that occurred in the year ended December 31, 2019 , the premium rate, claim factor and IBNR assumptions were updated. This resulted in an increase to the future policy benefits of $10 . F&G Re periodically, and at least annually, reviews the assumptions associated with reserves for future policy benefits. As a result of the assumption review process that occurred in the year ended December 31, 2019 , the duration discount weighting and model demographics assumptions were updated to reflect the Company's current and expected future experience. This resulted in a decrease to future policy benefits of $14 . Concentrations of Financial Instruments As of December 31, 2019 and December 31, 2018 , the Company’s most significant investment in one industry, excluding United States ("U.S.") Government securities, was its investment securities in the Banking industry with a fair value of $2,414 or 9% and $2,491 or 10% , respectively, of the invested assets portfolio and an amortized cost of $2,325 and $2,691 , respectively. As of December 31, 2019 , the Company’s holdings in this industry include investments in 98 different issuers with the top ten investments accounting for 39% of the total holdings in this industry. As of December 31, 2019 , the Company had no investments in issuers that exceeded 10% of shareholders' equity. As of December 31, 2018 , the Company had sixteen investments in issuers that exceeded 10% of shareholders' equity, with a total fair value of $1,634 or 7% of the invested assets portfolio: JP Morgan Chase & Co, Metropolitan Transportation Authority (NY), AT&T Inc, HSBC Holdings, Wells Fargo & Company, General Motors Co, Nationwide Mutual Insurance Company, Goldman Sachs Group Inc, United Mexican States, Energy Transfer Partners, Prudential Financial Inc, Citigroup Inc, HP Enterprise Co, Viacom Inc, Kinder Morgan Energy Partners, and Fuel Trust. The Company's largest concentration in any single issuer as of December 31, 2019 and December 31, 2018 was HSBC Holdings with a total fair value of $132 or 1% , and JP Morgan Chase & Co , with a total fair value of $115 or 1% of the invested assets portfolio, respectively. Concentrations of Financial and Capital Markets Risk The Company is exposed to financial and capital markets risk, including changes in interest rates and credit spreads which can have an adverse effect on the Company’s results of operations, financial condition and liquidity. The Company’s exposure to such financial and capital markets risk relates primarily to the market price and cash flow variability associated with changes in interest rates. A rise in interest rates, in the absence of other countervailing changes, will increase the net unrealized loss position of the Company’s investment portfolio and, if long-term interest rates rise dramatically within a six to twelve month time period, certain of the Company’s products may be exposed to disintermediation risk. Disintermediation risk refers to the risk that policyholders surrender their contracts in a rising interest rate environment, requiring the Company to liquidate assets in an unrealized loss position. The Company attempts to mitigate the risk, including changes in interest rates by investing in less rate-sensitive investments, including senior tranches of collateralized loan obligations, non-agency residential mortgage-backed securities, and various types of asset backed securities. Management believes this risk is also mitigated to some extent by surrender charge protection provided by the Company’s products. The Company expects to continue to face these challenges and uncertainties that could adversely affect its results of operations and financial condition. Concentration of Reinsurance Risk The Company has a significant concentration of reinsurance risk with third party reinsurers, Wilton Reassurance Company (“Wilton Re”) and Kubera Insurance (SAC) Ltd. ("Kubera") that could have a material impact on the Company’s financial position in the event that either Wilton Re or Kubera fail to perform their obligations under the various reinsurance treaties. Wilton Re is a wholly-owned subsidiary of Canada Pension Plan Investment Board ("CPPIB"). CPPIB has an AAA issuer credit rating from Standard & Poor's Ratings Services ("S&P") as of December 31, 2019 . Kubera is not rated, however, management has attempted to mitigate the risk of non-performance through the funds withheld arrangement. As of December 31, 2019 , the net amount recoverable from Wilton Re was $1,496 and the net amount recoverable from Kubera was $842 . The Company monitors both the financial condition of individual reinsurers and risk concentration arising from similar activities and economic characteristics of reinsurers to attempt to reduce the risk of default by such reinsurers. The Company believes that all amounts due from Wilton Re and Kubera for periodic treaty settlements are collectible as of December 31, 2019 . On March 6, 2019, Scottish Re (U.S.), Inc. (“SRUS”), a Delaware domestic life and health reinsurer of FGL Insurance, was ordered into receivership for purposes of rehabilitation. As of December 31, 2019, the net amount recoverable from SRUS was $47 . The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. On July 9, 2019, Pavonia Life Insurance Company of Michigan ("Pavonia"), a Michigan domiciled life, accident, and health insurance company, was placed into rehabilitation. While the court order indicated that Pavonia had a stable financial condition and lack of non-insurance affiliated investments, the Director of the Michigan Department of Insurance and Financial Services ("MDIFS") has concerns relating to Pavonia's parent company. To insulate Pavonia from its parent until a pending acquisition transaction could be consummated, MDIFS placed Pavonia under supervision and rehabilitation. As of December 31, 2019, the net amount recoverable from Pavonia was $85 . The financial exposure related to these ceded reserves are substantially mitigated via a reinsurance agreement whereby Wilton Re assumes treaty non-performance including credit risk for this business. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.25 1.00 - 1.25 December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % The Company establishes a general mortgage loan allowance based upon the underlying risk and quality of the mortgage loan portfolio using the DSC ratio and LTV ratio. The Company believes that the LTV ratio is an indicator of the principal recovery risk for loans that default. A higher LTV ratio will result in a higher allowance. The Company believes that the DSC ratio is an indicator of default risk on loans. A higher DSC ratio will result in a lower allowance. The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2019 and December 31, 2018 , the Company had no CMLs that were delinquent in principal or interest payments. Mortgage loan workouts, refinances or restructures that are classified as debt restructurings ("TDRs") are individually evaluated and measured for impairment. As of December 31, 2019 and December 31, 2018 , our CML portfolio had no impairments, modifications or TDRs. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 3% and 1% of the Company’s total investments as of December 31, 2019 and December 31, 2018 , respectively. The Company's residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. The Company diversifies its RML portfolio by state to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration is reflected in the following tables at December 31, 2019 and December 31, 2018 : December 31, 2019 US State: Unpaid Principal Balance % of Total California $ 167 20 % Florida 141 17 % New Jersey 76 9 % All Other States (a) 447 54 % Total mortgage loans $ 831 100 % (a) The individual concentration of each state is less than 9% . December 31, 2018 US State: Unpaid Principal Balance % of Total Florida $ 25 14 % Illinois 24 13 % New Jersey 17 9 % All Other States (a) 114 64 % Total mortgage loans $ 180 100 % (a) The individual concentration of each state is less than 9% . Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines non-performing residential mortgage loans as those that are 90 or more days past due or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 December 31, 2018 Performance indicator: Carrying Value % of Total Carrying Value % of Total Performing $ 843 100 % $ 185 100 % Non-performing 2 — % — — % Total residential mortgage loans, gross of valuation allowance $ 845 100 % $ 185 100 % Allowance for loan loss — — % — — % Total residential mortgage loans $ 845 100 % $ 185 100 % Net Investment Income The major sources of “Net investment income” on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Fixed maturity securities, available-for-sale $ 1,054 $ 1,009 $ 80 $ 164 $ 228 $ 953 Equity securities 73 73 6 5 10 41 Mortgage loans 42 24 2 4 6 23 Invested cash and short-term investments 18 16 1 1 — 3 Funds withheld 65 28 2 — — — Limited partnerships 81 17 1 3 1 5 Other investments 12 10 1 1 — 2 Gross investment income 1,345 1,177 93 178 245 1,027 Investment expense (116 ) (70 ) (1 ) (4 ) (5 ) (22 ) Net investment income $ 1,229 $ 1,107 $ 92 $ 174 $ 240 $ 1,005 Net Investment Gains (Losses) Details underlying “Net investment gains (losses)” reported on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net realized gains (losses) on fixed maturity available-for-sale securities $ 46 $ (187 ) $ 5 $ 5 $ 2 $ (20 ) Net realized/unrealized gains (losses) on equity securities 127 (142 ) — 1 — 3 Realized gains (losses) on other invested assets 3 (5 ) — — (2 ) (2 ) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments (15 ) (2 ) 3 80 1 219 Unrealized gains (losses) on certain derivative instruments 449 (248 ) 34 58 38 129 Change in fair value of funds withheld for reinsurance receivables and reinsurance related embedded derivatives (a) 57 (42 ) — 1 12 (16 ) Change in fair value of other derivatives and embedded derivatives 7 (3 ) — 1 — 3 Realized gains (losses) on derivatives and embedded derivatives 498 (295 ) 37 140 51 335 Net investment gains (losses) $ 674 $ (629 ) $ 42 $ 146 $ 51 $ 316 (a) Change in fair value of reinsurance related embedded derivatives starting December 1, 2017 and after is due to F&G Re and FSRC unaffiliated third party business under the fair value option election. Starting January 1, 2019, the balance also includes activity related to the FGL Insurance and Kubera reinsurance treaty. The predecessor periods activity is due to the FGL Insurance and FSRC reinsurance treaty. See "Note 13. Reinsurance". The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Proceeds $ 2,848 $ 6,260 $ 125 $ 151 $ 97 $ 703 Gross gains 91 12 — 6 2 25 Gross losses (27 ) (171 ) — — (2 ) (20 ) Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements, and one investment in a VIE that is consolidated within the Company’s financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. VIE’s are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While FGL Insurance participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with FGL Insurance. It is for this reason that FGL Insurance is not considered the primary beneficiary for the VIE investments that are not consolidated. The Company has concluded it is the primary beneficiary of BISA Co-Invest Fund II L.P (“Co-Invest II”). The primary beneficiary conclusion was drawn given the fact that substantially all of Co-Invest II’s activities are conducted on behalf of the Company, its sole investor and limited partner. As the Company is considered the primary beneficiary, Co-Invest II is consolidated within the Company’s financial statements. As of December 31, 2019 , the Company has $22 of net assets recorded related to Co-Invest II. The Company previously executed a commitment of $83 to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. The initial capital call occurred June 30, 2015, with the remaining commitment expected to fund June 2020. The Company has funded $69 as of December 31, 2019 . The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in “Other invested assets” on the Company’s consolidated balance sheet. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's consolidated balance sheet in addition to any required unfunded commitments. As of December 31, 2019 and December 31, 2018, the Company's maximum exposure to loss was $1,010 and $510 in recorded carrying value, respectively, and $1,202 and $1,132" id="sjs-B4">Investments The Company’s fixed maturity securities investments have been designated as available-for-sale and are carried at fair value with unrealized gains and losses included in AOCI, net of associated adjustments for DAC, VOBA, DSI, UREV, and deferred income taxes. The Company's equity securities investments are carried at fair value with unrealized gains and losses included in net income. The Company’s consolidated investments at December 31, 2019 and December 31, 2018 are summarized as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for sale securities Asset-backed securities $ 5,720 $ 51 $ (77 ) $ 5,694 $ 5,694 Commercial mortgage-backed securities 2,788 140 (6 ) 2,922 2,922 Corporates 11,051 618 (72 ) 11,597 11,597 Hybrids 983 48 (4 ) 1,027 1,027 Municipals 1,284 64 (5 ) 1,343 1,343 Residential mortgage-backed securities 917 40 (3 ) 954 954 U.S. Government 33 1 — 34 34 Foreign Governments 138 17 — 155 155 Total available-for-sale securities 22,914 979 (167 ) 23,726 23,726 Equity securities 1,069 19 (17 ) 1,071 1,071 Derivative investments 336 261 (10 ) 587 587 Commercial mortgage loans 422 — — 435 422 Residential mortgage loans 845 — — 848 845 Other invested assets 1,306 — (3 ) 1,288 1,303 Total investments $ 26,892 $ 1,259 $ (197 ) $ 27,955 $ 27,954 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for sale securities Asset-backed securities $ 4,954 $ 15 $ (137 ) $ 4,832 $ 4,832 Commercial mortgage-backed securities 2,568 9 (40 ) 2,537 2,537 Corporates 11,213 16 (848 ) 10,381 10,381 Hybrids 992 — (91 ) 901 901 Municipals 1,216 3 (32 ) 1,187 1,187 Residential mortgage-backed securities 1,027 12 (8 ) 1,031 1,031 U.S. Government 120 — (1 ) 119 119 Foreign Governments 129 — (8 ) 121 121 Total available-for-sale securities 22,219 55 (1,165 ) 21,109 21,109 Equity securities 1,526 1 (145 ) 1,382 1,382 Derivative investments 330 2 (235 ) 97 97 Commercial mortgage loans 482 — — 483 482 Residential mortgage loans 185 — — 187 185 Other invested assets 662 — — 651 662 Total investments $ 25,404 $ 58 $ (1,545 ) $ 23,909 $ 23,917 Included in AOCI were cumulative gross unrealized gains of $0 and gross unrealized losses of $0 related to the non-credit portion of other-than-temporary-impairments ("OTTI") on non-agency residential mortgage backed securities ("RMBS") for both December 31, 2019 and December 31, 2018 . Securities held on deposit with various state regulatory authorities had a fair value of $17,591 and $19,930 at December 31, 2019 and December 31, 2018 , respectively. Under Iowa regulations, insurance companies are required to hold securities on deposit in an amount no less than the legal reserve. At December 31, 2019 and December 31, 2018 , the Company held no material investments that were non-income producing for a period greater than twelve months. In accordance with the Company's FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to the Company for general purposes. The collateral investments had a fair value of $1,472 and $1,401 at December 31, 2019 and December 31, 2018 , respectively. The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. December 31, 2019 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 85 $ 85 Due after one year through five years 888 914 Due after five years through ten years 2,020 2,082 Due after ten years 10,496 11,075 Subtotal 13,489 14,156 Other securities which provide for periodic payments: Asset-backed securities 5,720 5,694 Commercial mortgage-backed securities 2,788 2,922 Residential mortgage-backed securities 917 954 Subtotal 9,425 9,570 Total fixed maturity available-for-sale securities $ 22,914 $ 23,726 The Company's available-for-sale securities with unrealized losses are reviewed for potential OTTI. For factors considered in evaluating whether a decline in value is other-than-temporary, please refer to “Note 2. Significant Accounting Policies and Practices". Based on the results of our process for evaluating available-for-sale securities in unrealized loss positions for OTTI as discussed above, the Company determined the unrealized losses as of December 31, 2019 decreased due to lower interest rates during the year in conjunction with tighter credit spreads over Treasuries. The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost, were as follows: December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 719 $ (12 ) $ 2,453 $ (65 ) $ 3,172 $ (77 ) Commercial mortgage-backed securities 232 (4 ) 16 (2 ) 248 (6 ) Corporates 1,030 (25 ) 804 (47 ) 1,834 (72 ) Hybrids 23 (1 ) 60 (3 ) 83 (4 ) Municipals 123 (2 ) 60 (3 ) 183 (5 ) Residential mortgage-backed securities 41 — 107 (3 ) 148 (3 ) U.S. Government 6 — — — 6 — Total available-for-sale securities $ 2,174 $ (44 ) $ 3,500 $ (123 ) $ 5,674 $ (167 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 290 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 446 Total number of available-for-sale securities in an unrealized loss position 736 December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Asset-backed securities $ 2,924 $ (116 ) $ 643 $ (21 ) $ 3,567 $ (137 ) Commercial mortgage-backed securities 1,466 (34 ) 262 (6 ) 1,728 (40 ) Corporates 8,016 (772 ) 1,465 (76 ) 9,481 (848 ) Hybrids 858 (90 ) 7 (1 ) 865 (91 ) Municipals 850 (27 ) 172 (5 ) 1,022 (32 ) Residential mortgage-backed securities 139 (3 ) 190 (5 ) 329 (8 ) U.S. Government 69 — 50 (1 ) 119 (1 ) Foreign Government 47 (3 ) 68 (5 ) 115 (8 ) Total available-for-sale securities $ 14,369 $ (1,045 ) $ 2,857 $ (120 ) $ 17,226 $ (1,165 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,551 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 556 Total number of available-for-sale securities in an unrealized loss position 2,107 At December 31, 2019 and December 31, 2018 , securities with a fair value of $35 and $132 , respectively, had an unrealized loss greater than 20% of amortized cost (excluding U.S. Government and U.S. Government sponsored agency securities), which were insignificant to the carrying value of all investments, respectively. The following table provides a reconciliation of the beginning and ending balances of the credit loss portion of OTTI on fixed maturity available-for-sale securities held by the Company for the periods presented, for which a portion of the OTTI was recognized in AOCI: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Beginning balance $ — $ — $ — $ 3 $ 3 $ 3 Increases attributable to credit losses on securities: OTTI was previously recognized — — — — — — OTTI was not previously recognized — — — — — — Ending balance $ — $ — $ — $ 3 $ 3 $ 3 The following table breaks out the credit impairment loss type, the associated amortized cost and fair value of the investments at the balance sheet date and non-credit losses in relation to fixed maturity securities and other invested assets held by the Company for the periods presented: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Credit impairment losses in operations $ (21 ) $ (24 ) $ — $ — $ (1 ) $ (22 ) Change-of-intent losses in operations (2 ) — — — — — Amortized cost 37 64 — — 19 — Fair value 37 64 — — 19 — Non-credit losses in other comprehensive income for investments which experienced OTTI — — — — (1 ) — Details of OTTI that were recognized in "Net income (loss)" and included in net realized gains on securities were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Asset-backed securities $ — $ — $ — $ — $ (1 ) $ (2 ) Corporates (21 ) (24 ) — — — (20 ) Equity security (2 ) — — — — — Total $ (23 ) $ (24 ) $ — $ — $ (1 ) $ (22 ) Mortgage Loans The Company's mortgage loans are collateralized by commercial and residential properties. Commercial Mortgage Loans Commercial mortgage loans ("CMLs") represented approximately 2% of the Company’s total investments as of December 31, 2019 and December 31, 2018 , respectively. The Company primarily invests in mortgage loans on income producing properties including hotels, industrial properties, retail buildings, multifamily properties and office buildings. The Company diversifies its CML portfolio by geographic region and property type to reduce concentration risk. The Company continuously evaluates CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel 21 5 % 21 4 % Industrial - General 37 9 % 37 8 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 54 13 % 56 12 % Office 143 34 % 147 30 % Retail 147 35 % 201 42 % Total commercial mortgage loans, gross of valuation allowance $ 422 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 422 $ 482 U.S. Region: East North Central $ 64 15 % $ 98 20 % East South Central 19 5 % 19 4 % Middle Atlantic 77 18 % 79 17 % Mountain 51 12 % 65 13 % New England 4 1 % 10 2 % Pacific 113 27 % 116 24 % South Atlantic 56 13 % 57 12 % West North Central 13 3 % 13 3 % West South Central 25 6 % 25 5 % Total commercial mortgage loans, gross of valuation allowance $ 422 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 422 $ 482 All of the Company's investments in CMLs had a loan-to-value ("LTV") ratio of less than 75% at December 31, 2019 and December 31, 2018 , as measured at inception of the loans unless otherwise updated. As of December 31, 2019 , all CMLs are current and have not experienced credit or other events which would require the recording of an impairment loss. LTV and DSC ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25-year amortization period for purposes of our general loan allowance evaluation. The following table presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios at December 31, 2019 and December 31, 2018 : Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % The Company establishes a general mortgage loan allowance based upon the underlying risk and quality of the mortgage loan portfolio using the DSC ratio and LTV ratio. The Company believes that the LTV ratio is an indicator of the principal recovery risk for loans that default. A higher LTV ratio will result in a higher allowance. The Company believes that the DSC ratio is an indicator of default risk on loans. A higher DSC ratio will result in a lower allowance. The Company recognizes a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2019 and December 31, 2018 , the Company had no CMLs that were delinquent in principal or interest payments. Mortgage loan workouts, refinances or restructures that are classified as debt restructurings ("TDRs") are individually evaluated and measured for impairment. As of December 31, 2019 and December 31, 2018 , our CML portfolio had no impairments, modifications or TDRs. Residential Mortgage Loans Residential mortgage loans ("RMLs") represented approximately 3% and 1% of the Company’s total investments as of December 31, 2019 and December 31, 2018 , respectively. The Company's residential mortgage loans are closed end, amortizing loans and 100% of the properties are located in the United States. The Company diversifies its RML portfolio by state to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration is reflected in the following tables at December 31, 2019 and December 31, 2018 : December 31, 2019 US State: Unpaid Principal Balance % of Total California $ 167 20 % Florida 141 17 % New Jersey 76 9 % All Other States (a) 447 54 % Total mortgage loans $ 831 100 % (a) The individual concentration of each state is less than 9% . December 31, 2018 US State: Unpaid Principal Balance % of Total Florida $ 25 14 % Illinois 24 13 % New Jersey 17 9 % All Other States (a) 114 64 % Total mortgage loans $ 180 100 % (a) The individual concentration of each state is less than 9% . Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines non-performing residential mortgage loans as those that are 90 or more days past due or in nonaccrual status which is assessed monthly. The credit quality of RMLs as at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 December 31, 2018 Performance indicator: Carrying Value % of Total Carrying Value % of Total Performing $ 843 100 % $ 185 100 % Non-performing 2 — % — — % Total residential mortgage loans, gross of valuation allowance $ 845 100 % $ 185 100 % Allowance for loan loss — — % — — % Total residential mortgage loans $ 845 100 % $ 185 100 % Net Investment Income The major sources of “Net investment income” on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Fixed maturity securities, available-for-sale $ 1,054 $ 1,009 $ 80 $ 164 $ 228 $ 953 Equity securities 73 73 6 5 10 41 Mortgage loans 42 24 2 4 6 23 Invested cash and short-term investments 18 16 1 1 — 3 Funds withheld 65 28 2 — — — Limited partnerships 81 17 1 3 1 5 Other investments 12 10 1 1 — 2 Gross investment income 1,345 1,177 93 178 245 1,027 Investment expense (116 ) (70 ) (1 ) (4 ) (5 ) (22 ) Net investment income $ 1,229 $ 1,107 $ 92 $ 174 $ 240 $ 1,005 Net Investment Gains (Losses) Details underlying “Net investment gains (losses)” reported on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net realized gains (losses) on fixed maturity available-for-sale securities $ 46 $ (187 ) $ 5 $ 5 $ 2 $ (20 ) Net realized/unrealized gains (losses) on equity securities 127 (142 ) — 1 — 3 Realized gains (losses) on other invested assets 3 (5 ) — — (2 ) (2 ) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments (15 ) (2 ) 3 80 1 219 Unrealized gains (losses) on certain derivative instruments 449 (248 ) 34 58 38 129 Change in fair value of funds withheld for reinsurance receivables and reinsurance related embedded derivatives (a) 57 (42 ) — 1 12 (16 ) Change in fair value of other derivatives and embedded derivatives 7 (3 ) — 1 — 3 Realized gains (losses) on derivatives and embedded derivatives 498 (295 ) 37 140 51 335 Net investment gains (losses) $ 674 $ (629 ) $ 42 $ 146 $ 51 $ 316 (a) Change in fair value of reinsurance related embedded derivatives starting December 1, 2017 and after is due to F&G Re and FSRC unaffiliated third party business under the fair value option election. Starting January 1, 2019, the balance also includes activity related to the FGL Insurance and Kubera reinsurance treaty. The predecessor periods activity is due to the FGL Insurance and FSRC reinsurance treaty. See "Note 13. Reinsurance". The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Proceeds $ 2,848 $ 6,260 $ 125 $ 151 $ 97 $ 703 Gross gains 91 12 — 6 2 25 Gross losses (27 ) (171 ) — — (2 ) (20 ) Variable Interest Entities FGL Insurance owns investments in VIEs that are not consolidated within the Company’s financial statements, and one investment in a VIE that is consolidated within the Company’s financial statements. VIEs do not have sufficient equity to finance their own activities without additional financial support and certain of its investors lack certain characteristics of a controlling financial interest. VIE’s are consolidated by their ‘primary beneficiary’, a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While FGL Insurance participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with FGL Insurance. It is for this reason that FGL Insurance is not considered the primary beneficiary for the VIE investments that are not consolidated. The Company has concluded it is the primary beneficiary of BISA Co-Invest Fund II L.P (“Co-Invest II”). The primary beneficiary conclusion was drawn given the fact that substantially all of Co-Invest II’s activities are conducted on behalf of the Company, its sole investor and limited partner. As the Company is considered the primary beneficiary, Co-Invest II is consolidated within the Company’s financial statements. As of December 31, 2019 , the Company has $22 of net assets recorded related to Co-Invest II. The Company previously executed a commitment of $83 to purchase common shares in an unaffiliated private business development company ("BDC"). The BDC invests in secured and unsecured fixed maturity and equity securities of middle market companies in the United States. Due to the voting structure of the transaction, the Company does not have voting power. The initial capital call occurred June 30, 2015, with the remaining commitment expected to fund June 2020. The Company has funded $69 as of December 31, 2019 . The Company invests in various limited partnerships as a passive investor. These investments are in credit funds with a bias towards current income, real assets, or private equity. Limited partnership interests are accounted for under the equity method and are included in “Other invested assets” on the Company’s consolidated balance sheet. The Company's maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company's consolidated balance sheet in addition to any required unfunded commitments. As of December 31, 2019 and December 31, 2018, the Company's maximum exposure to loss was $1,010 and $510 in recorded carrying value, respectively, and $1,202 and $1,132 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, is as follows: December 31, 2019 December 31, 2018 Assets: Derivative investments: Call options $ 587 $ 97 Futures contracts — — Other invested assets: Other derivatives and embedded derivatives 21 14 Funds withheld: Call options 3 — $ 611 $ 111 Liabilities: Contractholder funds: FIA embedded derivative $ 3,235 $ 2,476 Other liabilities: Reinsurance related embedded derivative 33 — Preferred shares reimbursement feature embedded derivative 16 29 $ 3,284 $ 2,505 The change in fair value of derivative instruments included in the accompanying Consolidated Statements of Operations is as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net investment gains (losses): Call options $ 404 $ (244 ) $ 34 $ 129 $ 39 $ 338 Futures contracts 27 (8 ) 3 9 — 10 Foreign currency forward 3 2 — — — — Other derivatives and embedded derivatives 7 (3 ) — 1 — 3 Reinsurance related embedded derivatives (a) 57 (42 ) — 1 12 (16 ) Total net investment gains (losses) $ 498 $ (295 ) $ 37 $ 140 $ 51 $ 335 Benefits and other changes in policy reserves: FIA embedded derivatives $ 759 $ 199 $ (54 ) $ 123 $ (133 ) $ 244 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative (b) $ (13 ) $ 6 $ — $ — $ — $ — (a) Change in fair value of reinsurance related embedded derivatives starting December 1, 2017 and after is due to F&G Re and FSRC unaffiliated third party business under the fair value option election. Starting January 1, 2019, the balance also includes activity related to the FGL Insurance and Kubera reinsurance treaty. The predecessor periods activity is due to the FGL Insurance and FSRC reinsurance treaty. See "Note 13. Reinsurance". (b) Only applicable to periods after December 1, 2017. Additional Disclosures Other Derivatives and Embedded Derivatives The Company holds a fund-linked note issued by Nomura International Funding Pte. Ltd with a face value of $35 . The note provides for an additional payment at maturity based on the value of an embedded derivative in AnchorPath Dedicated Return Fund (the "AnchorPath Fund") which was based on the actual return of the fund. At December 31, 2019 , the fair value of the fund-linked note and embedded derivative were $29 and $21 , respectively. At December 31, 2018, the fair value of the fund-linked note and embedded derivative were $26 and $14 , respectively. At maturity of the fund-linked note, FGL Insurance will receive the $35 face value of the note plus the value of the embedded derivative in the AnchorPath Fund. The additional payment at maturity is an embedded derivative reported in "Other invested assets", while the host is an available-for-sale security reported in "Fixed maturities, available-for-sale". Fixed Index Annuity ("FIA") Embedded Derivative, and Call Options and Futures The Company has FIA Contracts that permit the holder to elect an interest rate return or an equity index linked component, where interest credited to the contracts is linked to the performance of various equity indices, primarily the S&P 500 Index. This feature represents an embedded derivative under GAAP. The FIA embedded derivative is valued at fair value and included in the liability for contractholder funds in the accompanying Consolidated Balance Sheets with changes in fair value included as a component of “Benefits and other changes in policy reserves” in the Consolidated Statements of Operations. See a description of the fair value methodology used in "Note 6. Fair Value of Financial Instruments". The Company purchases derivatives consisting of a combination of call options and futures contracts on the applicable market indices to fund the index credits due to FIA contractholders. The call options are one , two , three , and five year options purchased to match the funding requirements of the underlying policies. On the respective anniversary dates of the index policies, the index used to compute the interest credit is reset and the Company purchases new one , two , three , or five year call options to fund the next index credit. The Company manages the cost of these purchases through the terms of its FIA contracts, which permit the Company to change caps, spreads or participation rates, subject to guaranteed minimums, on each contract’s anniversary date. The change in the fair value of the call options and futures contracts is generally designed to offset the portion of the change in the fair value of the FIA embedded derivative related to index performance through the current credit period. The call options and futures contracts are marked to fair value with the change in fair value included as a component of “Net investment gains (losses).” The change in fair value of the call options and futures contracts includes the gains and losses recognized at the expiration of the instrument's term or upon early termination and the changes in fair value of open positions. Other market exposures are hedged periodically depending on market conditions and the Company’s risk tolerance. The Company’s FIA hedging strategy economically hedges the equity returns and exposes the Company to the risk that unhedged market exposures result in divergence between changes in the fair value of the liabilities and the hedging assets. The Company uses a variety of techniques, including direct estimation of market sensitivities, to monitor this risk daily. The Company intends to continue to adjust the hedging strategy as market conditions and the Company’s risk tolerance change. Credit Risk The Company is exposed to credit loss in the event of non-performance by its counterparties on the call options and assumptions regarding this non-performance risk are reflected in the fair value of the call options. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts less collateral held. The Company maintains a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. Information regarding the Company’s exposure to credit loss on the call options it holds is presented in the following table: December 31, 2019 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,718 $ 88 $ 43 $ 45 Deutsche Bank BBB/A3/BBB+ 157 7 7 — Morgan Stanley */A1/A+ 2,053 66 65 1 Barclay's Bank A+/A2/A 4,290 211 193 18 Canadian Imperial Bank of Commerce */Aa2/A+ 2,691 106 74 32 Wells Fargo A+/A2/A- 2,165 81 80 1 Goldman Sachs A/A3/BBB+ 1,065 31 27 4 Total $ 15,139 $ 590 $ 489 $ 101 December 31, 2018 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 3,952 $ 25 $ — $ 25 Deutsche Bank A-/A3/BBB+ 1,327 5 6 (1 ) Morgan Stanley */A1/A+ 1,648 9 6 3 Barclay's Bank A+/A2/A 2,205 27 20 7 Canadian Imperial Bank of Commerce */Aa2/A+ 1,716 11 8 3 Wells Fargo A+/A2/A- 1,635 17 16 1 Goldman Sachs A/A3/BBB+ 647 3 3 — Total $ 13,130 $ 97 $ 59 $ 38 (a) An * represents credit ratings that were not available. Collateral Agreements The Company is required to maintain minimum ratings as a matter of routine practice as part of its over-the-counter derivative agreements on ISDA forms. Under some ISDA agreements, the Company has agreed to maintain certain financial strength ratings. A downgrade below these levels provides the counterparty under the agreement the right to terminate the open option contracts between the parties, at which time any amounts payable by the Company or the counterparty would be dependent on the market value of the underlying option contracts. The Company’s current rating doesn't allow any counterparty the right to terminate ISDA agreements. In certain transactions, the Company and the counterparty have entered into a collateral support agreement requiring either party to post collateral when the net exposures exceed pre-determined thresholds. For all counterparties, except one, this threshold is set to zero. As of December 31, 2019 and December 31, 2018 , counterparties posted $489 and $59 of collateral, respectively, of which $446 and $59 , respectively, is included in "Cash and cash equivalents" with an associated payable for this collateral included in "Other liabilities" on the Consolidated Balance Sheets . The remaining $43 and $0 , respectively, of non-cash collateral was held by a third-party custodian and may not be sold or re-pledged, except in the event of default, and, therefore, is not included in the Company's Consolidated Balance Sheets at December 31, 2019 and December 31, 2018 , respectively. This collateral generally consists of U.S. treasury bonds and agency mortgage-backed securities ("Agency MBS"). Accordingly, the maximum amount of loss due to credit risk that the Company would incur if parties to the call options failed completely to perform according to the terms of the contracts was $101 and $38 at December 31, 2019 and December 31, 2018 , respectively. The Company is required to pay counterparties the effective federal funds rate each day for cash collateral posted to FGL for daily mark to market margin changes. The Company reinvests derivative cash collateral to reduce the interest cost. Cash collateral is invested in overnight investment sweep products which are included in "Cash and cash equivalents" in the Consolidated Balance Sheets . The Company held 879 and 664 futures contracts at December 31, 2019 and December 31, 2018 , respectively. The fair value of the futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements). The Company provides cash collateral to the counterparties for the initial and variation margin on the futures contracts which is included in "Cash and cash equivalents" in the Consolidated Balance Sheets . The amount of cash collateral held by the counterparties for such contracts was $5 and $3 at December 31, 2019 and December 31, 2018 , respectively. Preferred Equity Remarketing Reimbursement Embedded Derivative Liability On November 30, 2017 the Company issued 275,000 Series A cumulative preferred shares and 100,000 Series B cumulative preferred shares (together the “Preferred Shares”). The Preferred Shares do not have a maturity date and are non-callable for the first five years . From and after November 30, 2022, the original holders of the Preferred Shares may request and thus require, the Company (subject to customary blackout provisions) to remarket the Preferred Shares on their existing terms. If the remarketing is successful and the original holders elect to sell their preferred shares at the remarketed price and proceeds from such sale are less than the outstanding balance of the applicable shares (including dividends paid in kind and accumulated but unpaid dividends), the Company will be required to reimburse the sellers, up to a maximum of 10% of the par value of the originally issued preferred shares (including dividends paid in kind and accumulated but unpaid dividends) with such amount payable either in cash, ordinary shares, or any combination thereof, at the Company's option (the “Reimbursement Feature”). The Reimbursement Feature represents an embedded derivative that is not clearly and closely related to the preferred stock host and must be bifurcated. The Reimbursement Feature liability is held at fair value within “Other liabilities” in the accompanying Consolidated Balance Sheets and it is determined using a Black Derman Toy model incorporating among other things the paid in kind dividend coupon rate and the Company’s call option. Changes in fair value of this derivative are recognized within “Acquisition and operating expenses, net of deferrals” in the accompanying Consolidated Statements of Operations. Reinsurance Related Embedded Derivatives FGL Insurance entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain MYGA and deferred annuity statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. This arrangement creates an obligation for FGL Insurance to pay Kubera at a later date, which results in an embedded derivative. This embedded derivative is considered a total return swap with contractual returns that are attributable to the assets and liabilities associated with this reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, were passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. The reinsurance related embedded derivative is reported in “Other assets” if in a net gain position, or “Other liabilities”, if in a net loss position, on the Consolidated Balance Sheets and the related gains or losses are reported in “Net investment gains (losses)” on the Consolidated Statements of Operations . In the predecessor periods, FGL Insurance had a funds withheld coinsurance arrangement with FSRC, meaning that funds were withheld by FGL Insurance. This arrangement resulted in an embedded derivative in predecessor periods, similar to the embedded derivative described above related to the Kubera agreement. Due to the acquisition of FSRC, the reinsurance related embedded derivative is eliminated in consolidation in the periods after December 1, 2017. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or non-performance risk, which may include the Company’s own credit risk. The Company’s estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market for that asset or liability in the absence of a principal market as opposed to the price that would be paid to acquire the asset or assume a liability (“entry price”). The Company categorizes financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads, and yield curves. Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date based on the best information available in the circumstances. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. In addition to the unobservable inputs, Level 3 fair value investments may include observable components, which are components that are actively quoted or can be validated to market-based sources. The carrying amounts and estimated fair values of the Company’s financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, related party loans, portions of other invested assets and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows: December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 969 $ — $ — $ 969 $ 969 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,866 828 5,694 5,694 Commercial mortgage-backed securities — 2,895 27 2,922 2,922 Corporates — 10,305 1,292 11,597 11,597 Hybrids 299 718 10 1,027 1,027 Municipals — 1,301 42 1,343 1,343 Residential mortgage-backed securities — 408 546 954 954 U.S. Government 28 6 — 34 34 Foreign Governments — 137 18 155 155 Equity securities 387 614 1 1,002 1,002 Derivative investments — 587 — 587 587 Other invested assets — — 46 46 46 Funds withheld for reinsurance receivables, at fair value 314 1,856 1 2,171 2,171 Total financial assets at fair value $ 1,997 $ 23,693 $ 2,811 $ 28,501 $ 28,501 Liabilities Fair value of future policy benefits — — 1,953 1,953 1,953 Derivatives: FIA embedded derivatives, included in contractholder funds $ — $ — $ 3,235 $ 3,235 $ 3,235 Reinsurance related embedded derivative, included in other liabilities — 33 — 33 33 Preferred shares reimbursement feature embedded derivative — — 16 16 16 Total financial liabilities at fair value $ — $ 33 $ 5,204 $ 5,237 $ 5,237 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 571 $ — $ — $ 571 $ 571 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,388 444 4,832 4,832 Commercial mortgage-backed securities — 2,470 67 2,537 2,537 Corporates — 9,150 1,231 10,381 10,381 Hybrids 265 626 10 901 901 Municipals — 1,150 37 1,187 1,187 Residential mortgage-backed securities — 417 614 1,031 1,031 U.S. Government 114 5 — 119 119 Foreign Governments — 105 16 121 121 Equity securities 454 874 4 1,332 1,332 Derivative investments — 97 — 97 97 Other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value 177 576 4 757 757 Total financial assets at fair value $ 1,581 $ 19,858 $ 2,466 $ 23,905 $ 23,905 Liabilities Fair value of future policy benefits — — 725 725 725 Derivatives: FIA embedded derivatives, included in contractholder funds — — 2,476 2,476 2,476 Preferred shares reimbursement feature embedded derivative — — 29 29 29 Total financial liabilities at fair value $ — $ — $ 3,230 $ 3,230 $ 3,230 Valuation Methodologies Fixed Maturity Securities & Equity Securities The Company measures the fair value of its securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and the Company will then consistently apply the valuation methodology to measure the security’s fair value. The Company's fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations, or pricing matrices. The Company uses observable and unobservable inputs in its valuation methodologies. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. In addition, market indicators and industry and economic events are monitored and further market data will be acquired when certain thresholds are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. The significant input used in the fair value measurement of equity securities for which the market approach valuation technique is employed is yield for comparable securities. Increases or decreases in the yields would result in lower or higher, respectively, fair value measurements. To estimate the fair value of fixed maturity securities classified as level 3 in the fair value hierarchy the Company primarily uses prices from independent broker quotes. For broker-quoted only securities, quotes from market makers or broker-dealers are obtained from sources recognized to be market participants. Management believes the broker quotes are prices at which trades could be executed based on historical trades executed at broker-quoted or slightly higher prices. The Company does analyze the third-party valuation methodologies and related inputs to perform assessments and to determine the appropriate level within the fair value hierarchy. The Company did not adjust prices received from third parties as of December 31, 2019 or December 31, 2018 . The Company has an equity investment in a private business development company which is not traded on an exchange or valued by other sources such as analytics or brokers. The Company based the fair value of this investment on an estimated net asset value provided by the investee. Management did not make any adjustments to this valuation. Derivative Financial Instruments The fair value of call option assets represents what the Company would expect to receive or pay at the balance sheet date if it canceled the options, entered into offsetting positions, or exercised the options. Fair values for these instruments are determined internally, based on industry accepted valuation pricing models which use market-observable inputs, including interest rates, yield curve volatilities, and other factors. The fair value of futures contracts represents the cumulative unsettled variation margin (open trade equity, net of cash settlements) which represents what the Company would expect to receive or pay at the balance sheet date if it canceled the contracts or entered into offsetting positions. These contracts are classified as Level 1. The fair value measurement of the FIA embedded derivatives included in contractholder funds is determined through a combination of market observable information and significant unobservable inputs using the option budget method. The market observable inputs are the market value of option and interest swap rates. The significant unobservable inputs are the budgeted option cost (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature), surrender rates, mortality multiplier, and non-performance spread. The mortality multiplier at December 31, 2019 and December 31, 2018 was applied to the Annuity 2000 mortality tables. Increases or decreases in the market value of an option in isolation would result in a higher or lower, respectively, fair value measurement. Increases or decreases in interest swap rates, mortality multiplier, surrender rates, or non-performance spread in isolation would result in a lower or higher fair value measurement, respectively. Generally, a change in any one unobservable input would not directly result in a change in any other unobservable input. The fair value of the reinsurance-related embedded derivative in the funds withheld reinsurance agreement with Kubera is estimated based upon the fair value of the assets supporting the funds withheld from reinsurance liabilities. The fair value of the assets is based on a quoted market price of similar assets (Level 2), and therfore the fair value of the embedded derivative is based on market-observable inputs and classified as Level 2. The fair value of the Reimbursement Feature is determined using a Black Derman Toy model, incorporating the paid in kind dividend coupon, the Company's redemption option and the preferred shareholder's remarketing feature. The remarketing feature allows the shareholder to put the preferred shares to the Company for a value of par after five years and, if after a successful remarketing event the amount is less than 90% par, up to a maximum of 10% of liquidation price defined. Fair value of this derivative liability decreased $13 during the year ended December 31, 2019 and increased $6 during the year ended December 31, 2018, due primarily to changes in the credit spread applied in the discount rate. Other Invested Assets Fair value of the AnchorPath embedded derivative is based on an unobservable input, the net asset value of the AnchorPath fund at the balance sheet date. The embedded derivative is similar to a call option on the net asset value of the AnchorPath fund with a strike price of zero since FGL Insurance will not be required to make any additional payments at maturity of the fund-linked note in order to receive the net asset value of the AnchorPath fund on the maturity date. A Black-Scholes model determines the net asset value of the AnchorPath fund as the fair value of the call option regardless of the values used for the other inputs to the option pricing model. The net asset value of the AnchorPath fund is provided by the fund manager at the end of each calendar month and represents the value an investor would receive if it withdrew its investment on the balance sheet date. Therefore, the key unobservable input used in the Black-Scholes model is the value of the AnchorPath fund. As the value of the AnchorPath fund increases or decreases, the fair value of the embedded derivative will increase or decrease. FSRC and F&G Re Funds Withheld for Reinsurance Receivables and Future Policy Benefits FSRC and F&G Re elected to apply the Fair Value Option to account for its funds withheld receivables and future policy benefits liability related to its assumed reinsurance. FSRC and F&G Re measures the fair value of the Funds Withheld for Reinsurance Receivables based on the fair values of the securities in the underlying funds withheld portfolio held by the cedant. FSRC and F&G Re use a discounted cash flows approach to measure the fair value of the Future Policy Benefits Reserve. The cash flows associated with future policy premiums and benefits are generated using best estimate assumptions. Included in the cash flows within the fair value for the reinsurance liabilities is a risk premium, which represents compensation a market participant would demand for uncertainty. The significant unobservable inputs used in the fair value measurement of the FSRC and F&G Re future policy benefit liability are undiscounted cash flows (which are determined using actuarial assumptions related to lapses, surrenders, mortality, partial withdrawals and morbidity), non-performance risk spread and risk margin to reflect uncertainty. Undiscounted cash flows used in our December 31, 2019 and December 31, 2018 discounted cash flow models equaled $ 2,569 and $1,199 , respectively. Increases or decreases in non-performance risk spread and risk margin to reflect uncertainty would result in a lower or higher fair value measurement, respectively. Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2019 and December 31, 2018 are as follows: Fair Value at Range (Weighted average) December 31, 2019 Valuation Technique Unobservable Input(s) December 31, 2019 Assets Asset-backed securities $ 801 Broker-quoted Offered quotes 98.65% - 119.35% Asset-backed securities 27 Third-Party Valuation Offered quotes 0.00% - 99.43% Commercial mortgage-backed securities 27 Broker-quoted Offered quotes 100.15% - 127.60% Corporates 346 Broker-quoted Offered quotes 83.51% - 106.73% Corporates 946 Third-Party Valuation Offered quotes 98.58% - 119.44% Hybrids 10 Third-Party Valuation Offered quotes 104.72% - 104.72% Municipals 42 Third-Party Valuation Offered quotes 127.68% - 127.68% Residential mortgage-backed securities 546 Broker-quoted Offered quotes 0.00% - 106.50% Foreign governments 18 Third-Party Valuation Offered quotes 110.12% - 118.09% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.47% Other invested assets: Available-for-sale embedded derivative (AnchorPath) 21 Black Scholes model Market value of AnchorPath fund 100.00% Credit linked note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables at fair value 1 Broker-quoted Offered quotes 100.00% Total $ 2,811 Liabilities Future policy benefits $ 1,953 Discounted cash flow Market value of option 0.00% - 11.20% (2.50%) Mortality multiplier 80.00% - 120.00% (95.46%) Surrender rates 0.00% - 55.00% (21.18%) Partial withdrawals 0.00% - 4.00% (2.28%) Non-performance spread 0.00% - 0.08% (0.03%) Option cost 0.00% - 5.02% (1.28%) Risk margin to reflect uncertainty 0.23% - 0.96% (0.34%) Morbidity risk margin 0.00% - 2.00% (0.07%) Derivatives: FIA embedded derivatives included in contractholder funds 3,235 Discounted cash flow Market value of option 0.00% - 32.54% SWAP rates 1.73% - 1.90% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.18% - 16.61% Preferred shares reimbursement feature embedded derivative 16 Black Derman Toy model Credit Spread 3.81% Yield Volatility 20.00% Total liabilities at fair value $ 5,204 Fair Value at Range (Weighted average) December 31, 2018 Valuation Technique Unobservable Input(s) December 31, 2018 Assets Asset-backed securities $ 405 Broker-quoted Offered quotes 97.00% - 102.00% (99.77%) Asset-backed securities 24 Matrix Pricing Quoted prices 96.07% - 96.07% (96.07%) Asset-backed securities 15 Third-Party Valuation Offered quotes 0.00% - 99.29% (23.05%) Commercial mortgage-backed securities 43 Broker-quoted Offered quotes 77.12% - 100.08% (85.46%) Commercial mortgage-backed securities 24 Matrix Pricing Quoted prices 117.72% - 117.72% (117.72%) Corporates 577 Broker-quoted Offered quotes 74.63% - 104.62% (97.80%) Corporates 654 Matrix Pricing Quoted prices 91.74% - 113.25% (98.86%) Hybrids 10 Matrix Pricing Quoted prices 96.60% - 96.60% (96.60%) Municipals 37 Broker-quoted Offered quotes 111.23% - 111.23% (111.23%) Residential mortgage-backed securities 614 Broker-quoted Offered quotes 89.80% - 100.99% (100.73%) Foreign governments 16 Broker-quoted Offered quotes 98.38% - 99.01% (98.58%) Equity securities (Salus preferred equity) 4 Income-Approach Yield 7.15% Other invested assets: Available-for-sale embedded derivative (AnchorPath) 14 Black Scholes model Market value of AnchorPath fund 100.00% Credit linked note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables, at fair value 4 Matrix pricing Calculated prices 100.00% Total $ 2,466 Liabilities Future policy benefits $ 725 Discounted cash flow Non-Performance risk spread 0.00% - 0.22% (0.18%) Risk margin to reflect uncertainty 0.35% - 0.71% (0.68%) Derivatives: FIA embedded derivatives included in contractholder funds $ 2,476 Discounted cash flow Market value of option 0.00% - 31.06% (0.94%) SWAP rates 2.57% - 2.71% (2.63%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.90%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.11% - 16.61% (2.18%) Preferred shares reimbursement feature embedded derivative $ 29 Black Derman Toy model Credit Spread 5.14% Yield Volatility 20.00% Total liabilities at fair value $ 3,230 The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, Predecessor period from October 1, 2017 to November 30, 3017, Predecessor period from October 1, 2016 to December 31, 2016, and the Predecessor year ended September 30, 2017, respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 19 $ 675 $ — $ (128 ) $ (182 ) $ 828 Commercial mortgage-backed securities 67 — 5 1 — (10 ) (36 ) 27 Corporates 1,231 — 69 221 (106 ) (133 ) 10 1,292 Hybrids 10 — — — — — — 10 Municipals 37 — 5 — — — — 42 Residential mortgage-backed securities 614 — 27 25 — (91 ) (29 ) 546 Foreign governments 16 — 2 — — — — 18 Equity securities 4 (2 ) (1 ) — — — — 1 Other invested assets: Available-for-sale embedded derivative 14 7 — — — — — 21 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 20 (1 ) — (22 ) 1 Total assets at Level 3 fair value $ 2,466 $ 5 $ 126 $ 942 $ (107 ) $ (362 ) $ (259 ) $ 2,811 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 759 $ — $ — $ — $ — $ — $ 3,235 Future policy benefits (F&G Re and FSRC) 725 123 15 — — 1,090 — 1,953 Preferred shares reimbursement feature embedded derivative 29 (13 ) — — — — — 16 Total liabilities at Level 3 fair value $ 3,230 $ 869 $ 15 $ — $ — $ 1,090 $ — $ 5,204 (a) The net transfers out of Level 3 during the year ended December 31, 2019 were exclusively to Level 2. Year ended December 31, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (4 ) $ 476 $ — $ (28 ) $ (412 ) $ 444 Commercial mortgage-backed securities 49 — (3 ) 46 — (6 ) (19 ) 67 Corporates 1,169 — (29 ) 288 — (126 ) (71 ) 1,231 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 5 560 (1 ) (15 ) (1 ) 614 Foreign governments 17 — (1 ) — — — — 16 Equity securities 3 1 — — — — — 4 Other invested assets: Available-for-sale embedded derivative 17 (3 ) — — — — — 14 Credit linked note — — — 25 — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 6 — (4 ) (2 ) 4 Total assets at Level 3 fair value $ 1,785 $ (2 ) $ (33 ) $ 1,401 $ (1 ) $ (179 ) $ (505 ) $ 2,466 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 199 $ — $ — $ — $ — $ — $ 2,476 Future policy benefits (F&G Re and FSRC) 728 (45 ) (4 ) — — 46 — 725 Preferred shares reimbursement feature embedded derivative 23 6 — — — — — 29 Total liabilities at Level 3 fair value $ 3,028 $ 160 $ (4 ) $ — $ — $ 46 $ — $ 3,230 (a) The net transfers out of Level 3 during the year ended December 31, 2018 were exclusively to Level 2. Period from December 1 to December 31, 2017 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 225 $ — $ — $ 143 $ — $ (1 ) $ 45 $ 412 Commercial mortgage-backed securities 49 — — — — — — 49 Corporates 1,163 — 2 30 (10 ) (16 ) — 1,169 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 67 — — — — (1 ) — 66 Foreign governments 17 — — — — — — 17 Equity securities 38 — — — — — (35 ) 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 HGI Energy Note 20 — — — (20 ) — — — Funds withheld for reinsurance receivables, at fair value 4 — — — — — — 4 Total assets at Level 3 fair value $ 1,648 $ — $ 2 $ 173 $ (30 ) $ (18 ) $ 10 $ 1,785 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,331 $ (54 ) $ — $ — $ — $ — $ — $ 2,277 Future policy benefits (FSRC) 723 9 — — — (4 ) — 728 Preferred shares reimbursement feature embedded derivative 23 — — — — — — 23 Total liabilities at Level 3 fair value $ 3,077 $ (45 ) $ — $ — $ — $ (4 ) $ — $ 3,028 (a) The net transfers out of Level 3 during the period from December 1 to December 31, 2017 were exclusively to Level 2. Period from October 1 to November 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 159 $ — $ — $ 95 $ — $ — $ (29 ) $ 225 Commercial mortgage-backed securities 95 — (1 ) — — — (45 ) 49 Corporates 1,097 — — 67 — (19 ) 18 1,163 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 15 — 1 51 — — — 67 Foreign governments 17 — — — — — — 17 Equity securities 2 — — — — — 35 37 Other invested assets: Available-for-sale embedded derivative 16 1 — — — — — 17 Total assets at Level 3 fair value $ 1,449 $ 1 $ — $ 213 $ — $ (19 ) $ (21 ) $ 1,623 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 Total liabilities at Level 3 fair value $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to November 30, 2017 were exclusively to Level 2. Period from October 1 to December 31, 2016 (Unaudited) Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (1 ) $ (1 ) $ 63 $ — $ (7 ) $ (29 ) $ 197 Commercial mortgage-backed securities 79 — (2 ) 8 — — — 85 Corporates 1,104 (1 ) (41 ) 51 (5 ) (48 ) 1 1,061 Hybrids — — — 10 — — — 10 Municipals 41 — (3 ) — — (1 ) — 37 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) — — — — — 1 Other invested assets: Available-for-sale embedded derivative 13 — — — — — — 13 Loan participations 21 (1 ) — — — (14 ) — 6 Total assets at Level 3 fair value $ 1,450 $ (5 ) $ (47 ) $ 132 $ (5 ) $ (70 ) $ (28 ) $ 1,427 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 Total liabilities at Level 3 fair value $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to December 30, 2016 (unaudited) were exclusively to Level 2. Year ended September 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (2 ) $ 2 $ 152 $ — $ (40 ) $ (125 ) $ 159 Commercial mortgage-backed securities 79 — 1 18 — (1 ) (2 ) 95 Corporates 1,104 (1 ) (29 ) 189 (20 ) (109 ) (37 ) 1,097 Hybrids — — — 10 — — — 10 Municipals 41 — (2 ) — — (1 ) — 38 Residential mortgage-backed securities — — 1 — — — 14 15 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) 1 — — — — 2 Other invested assets: Available-for-sale embedded derivative 13 3 — — — — — 16 Loan participations 21 (2 ) 1 — — (20 ) — — Total assets at Level 3 fair value $ 1,450 $ (4 ) $ (25 ) $ 369 $ (20 ) $ (171 ) $ (150 ) $ 1,449 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 Total liabilities at Level 3 fair value $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 (a) The net transfers out of Level 3 during the Predecessor year ended September 30, 2017 were exclusively to Level 2. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value. Judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange. FHLB Common Stock The fair value of FHLB common stock is based on cost. Mortgage Loans The fair value of mortgage loans is established using a discounted cash flow method based on credit rating, maturity and contractual cash flows. This yield-based approach is sourced from our third-party vendor. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt service coverage, loan-to-value, quality of tenancy, borrower, and payment record. In the event of an impairment, the carrying value is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral-dependent. The inputs used to measure the fair value of our mortgage loans are classified as Level 3 within the fair value hierarchy. Policy Loans (included within Other Invested Assets) Fair values for policy loans are estimated from a discounted cash flow analysis, using interest rates currently being offered for loans with similar credit risk. Loans with similar characteristics are aggregated for purposes of the calculations. Company Owned Life Insurance Company owned life insurance (COLI) is a life insurance program used to finance certain employee benefit expenses. The fair value of COLI is based on net realizable value, which is generally cash surrender value. Affiliated Bank Loan The fair value of the affiliated bank loan is estimated using a discounted cash flow method based on the weighted average cost of capital ("WACC"). This yield-based approach is sourced from a third-party vendor and the WACC establishes a market participant discount rate by determining the hypothetical capital structure for the asset should it be underwritten as of each period end. Investment Contracts Investment contracts include deferred annuities, FIAs, indexed universal life policies ("IULs") and immediate annuities. The fair value of deferred annuity, FIA, and IUL contracts is based on their cash surrender value (i.e. the cost the Company would incur to extinguish the liability) as these contracts are generally issued without an annuitization date. The fair value of immediate annuities contracts is derived by calculating a new fair value interest rate using the updated yield curve and treasury spreads as of the respective reporting date. At December 31, 2019 and December 31, 2018 , this resulted in lower fair value reserves relative to the carrying value. The Company is not required to, and has not, estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Debt The fair value of debt is based on quoted market prices. The inputs used to measure the fair value of our outstanding debt are classified as Level 2 within the fair value hierarchy. Our revolving credit facility debt is classified as Level 3 within the fair value hierarchy, and the estimated fair value reflects the carrying value as the revolver has no maturity date. The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 62 $ — $ 62 $ 62 Commercial mortgage loans — — 435 435 422 Residential mortgage loans — — 848 848 845 Policy loans, included in other invested assets — — 14 14 28 Company-owned life insurance — — 129 129 129 Affiliated bank loan — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 1 1 1 Total $ — $ 62 $ 1,455 $ 1,517 $ 1,515 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 19,285 $ 19,285 $ 22,449 Debt — 578 — 578 542 Total $ — $ 578 $ 19,285 $ 19,863 $ 22,991 December 31, 2018 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 52 $ — $ 52 $ 52 Commercial mortgage loans — — 483 483 482 Residential mortgage loans — — 187 187 185 Policy loans, included in other invested assets — — 11 11 22 Affiliated other invested assets — — 39 39 39 Total $ — $ 52 $ 720 $ 772 $ 780 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 18,358 $ 18,358 $ 20,911 Debt — 520 — 520 541 Total $ — $ 520 $ 18,358 $ 18,878 $ 21,452 The following table includes assets that have not been classified in the fair value hierarchy as the fair value of these investments is measured using the net asset value per share practical expedient. For further discussion about this adoption see “Note 2. Significant Accounting Policies and Practices”. Carrying Value After Measurement December 31, 2019 December 31, 2018 Equity securities available-for-sale $ 69 $ 50 Limited partnership investment, included in other invested assets 1,010 510 For investments for which NAV is used as a practical expedient for fair value, the Company does not have any significant restrictions in their ability to liquidate their positions in these investments, other than obtaining general partner approval, nor does the Company believe it is probable a price less than NAV would be received in the event of a liquidation. The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuati |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows: VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 379 130 509 Amortization (106 ) (30 ) (20 ) (156 ) Interest 18 13 4 35 Unlocking (2 ) (2 ) (1 ) (5 ) Adjustment for net unrealized investment (gains) losses (183 ) (74 ) (30 ) (287 ) Balance at December 31, 2019 $ 593 $ 630 $ 232 $ 1,455 VOBA DAC DSI Total Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Deferrals — 317 138 455 Amortization (58 ) (4 ) (2 ) (64 ) Interest 19 4 1 24 Unlocking (9 ) — — (9 ) Adjustment for net unrealized investment (gains) losses 93 5 2 100 Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 VOBA DAC DSI Total Balance at December 1, 2017 $ 844 $ — $ — $ 844 Deferrals — 23 10 33 Amortization (7 ) (1 ) — (8 ) Interest 2 — — 2 Unlocking — — — — Adjustment for net unrealized investment (gains) losses (18 ) — — (18 ) Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Predecessor VOBA DAC DSI Total Balance at October 1, 2017 $ — $ 1,023 $ 106 $ 1,129 Deferrals — 40 8 48 Amortization (12 ) (39 ) (5 ) (56 ) Interest 2 7 1 10 Unlocking 7 4 (1 ) 10 Adjustment for net unrealized investment (gains) losses 3 (4 ) — (1 ) Balance at November 30, 2017 $ — $ 1,031 $ 109 $ 1,140 VOBA DAC DSI Total Balance at October 1, 2016 $ 19 $ 921 $ 86 $ 1,026 Deferrals — 88 12 100 Amortization (31 ) (103 ) (2 ) (136 ) Interest 2 22 (11 ) 13 Unlocking 6 (7 ) 1 — Adjustment for unrealized investment losses (gains) 122 103 — 225 Balance at December 31, 2016 $ 118 $ 1,024 $ 86 $ 1,228 Predecessor VOBA DAC DSI Total Balance at September 30, 2016 $ 19 $ 921 $ 86 $ 1,026 Deferrals — 293 43 336 Amortization (65 ) (192 ) (23 ) (280 ) Interest 11 42 4 57 Unlocking 32 2 (4 ) 30 Adjustment for net unrealized investment (gains) losses 3 (43 ) — (40 ) Balance at September 30, 2017 $ — $ 1,023 $ 106 $ 1,129 Amortization of VOBA, DAC, and DSI is based on the historical, current and future expected gross margins or profits recognized, including investment gains and losses. The interest accrual rate utilized to calculate the accretion of interest on VOBA ranged from 0.05% to 4.01% . The adjustment for net unrealized investment losses (gains) represents the amount of VOBA, DAC, and DSI that would have been amortized if such unrealized gains and losses had been recognized. This is referred to as the “shadow adjustments” as the additional amortization is reflected in AOCI rather than the Consolidated Statements of Operations. As of December 31, 2019 and 2018 , the VOBA balances included cumulative adjustments for net unrealized investment (gains) losses of $(108) , and $75 , respectively, the DAC balances included cumulative adjustments for net unrealized investment (gains) losses of $(70) and $5 , respectively, and the DSI balances included net unrealized investment (gains) losses of $(28) and $2 respectively. Estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year 2020 62 2021 85 2022 80 2023 72 2024 65 Thereafter 337 The Company had an unearned revenue balance of $(43) as of December 31, 2019 , including deferrals of $(41) , amortization of $(4) , interest of $(2) , unlocking of $1 , and adjustment for net unrealized investment gains (losses) of $44 . The Company had an unearned revenue balance of $(41) as of December 31, 2018, including deferrals of $(37) , amortization of $18 , unlocking of $4 , and adjustment for net unrealized investment gains (losses) of $(26) . Definite and Indefinite Lived Intangible Assets On November 30, 2017, $467 of goodwill was recognized as a result of the FGL and FSR acquisitions. These transactions were accounted for separately using the acquisition method under which the Company recorded the identifiable assets acquired, including indefinite-lived and definite-lived intangible assets, and liabilities assumed, at their acquisition date fair values. Other identifiable intangible assets as of December 31, 2019 consist of the following: December 31, 2019 Cost Accumulated amortization Net carrying amount Weighted average useful life (years) Trade marks / trade names $ 16 $ 4 $ 12 10 State insurance licenses 6 N/A 6 Indefinite Total $ 18 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On November 30, 2017, FGLH and CF Bermuda, together as borrowers and each as a borrower, entered into a credit agreement with certain financial institutions party thereto, as lenders, and Royal Bank of Canada, as administrative agent and letter of credit issuer, which provides for a $250 senior unsecured revolving credit facility with a maturity of three years (the “Credit Agreement”). Various financing options are available within the Credit Agreement, including overnight and term based borrowing. In each case, a margin is ascribed based on the Debt to Capitalization ratio of CF Bermuda. The loan proceeds from the Credit Agreement may be used for working capital and general corporate purposes. On April 20, 2018, FGLH completed a debt offering of $550 aggregate principal amount of 5.50% senior notes due 2025, issued at 99.5% for proceeds of $547 . The Company used the net proceeds of the offering (i) to repay $135 of borrowings under its revolving credit facility and related expenses and (ii) to redeem in full and satisfy and discharge all of the outstanding $300 aggregate principal amount of FGLH's outstanding 6.375% Senior Notes due 2021. The remaining proceeds of the offering were used for general corporate purposes, including additional capital contributions to the Company's insurance subsidiaries. This exchange of debt instruments constituted an extinguishment. As a result, the Company recognized a $2 gain on the extinguishment of the 6.375% Senior Notes. The Company capitalized $7 of debt issuance costs in connection with the 5.50% Senior Notes offering, which are classified as an offset within the "Debt" line on the Company's Consolidated Balance Sheets, and are being amortized from the date of issue to the redemption date using the straight-line method. The carrying amount of the Company's outstanding debt as of December 31, 2019 and December 31, 2018 is as follows: December 31, 2019 December 31, 2018 Debt $ 542 $ 541 Revolving credit facility — — Interest rates on the revolving credit facility were equal to 4.55% and 5.27% as of December 31, 2019 and December 31, 2018 , respectively. As of December 31, 2019 and December 31, 2018 , the amount available to be drawn on the revolver was $250 . The interest expense and amortization of debt issuance costs for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017, were as follows: Year ended Period from December 1 to December 31, 2017 December 31, 2019 December 31, 2018 Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Debt $ 30 $ 2 $ 28 $ 1 $ 2 $ — Revolving credit facility — — 2 — — — Gain on extinguishment of debt — — (2 ) — — — |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity General The Company is a Cayman Islands exempted company and our affairs are governed by the Companies Law, the common law of the Cayman Islands and our Charter. Pursuant to our Charter, our authorized share capital is $90 thousand divided into 800,000 thousand ordinary shares and 100,000 thousand preferred shares, par value $0.0001 per share. Common Stock Ordinary shareholders of record are entitled to one vote for each share held on all matters to be voted on by shareholders. Unless specified in our Charter, or as required by applicable provisions of the Companies Law or applicable stock exchange rules, the affirmative vote of a majority of ordinary shares that are voted is required to approve any matter voted on by our shareholders. Approval of certain actions will require a special resolution under Cayman Islands law, being the affirmative vote of at least two-thirds of ordinary shares that are voted and, pursuant to our Charter, such actions include amending our Charter and approving a statutory merger or consolidation with another company. The Company consummated the initial public offering ("IPO") of 60,000 thousand ordinary shares for $10.00 per share on May 25, 2016. On June 29, 2016, the Company consummated the closing of the sale of 9,000 thousand ordinary shares pursuant to the exercise in full of the underwriter’s over-allotment option. An additional 145,370 thousand ordinary shares were issued for $10.00 per share on November 30, 2017 in advance of the Business Combination. In accordance with the Merger Agreement, FGL’s common stock outstanding as of the date of the business combination were retired and ceased to exist upon conversion. Preferred Stock On November 30, 2017, the Company issued 275 thousand shares of Series A Cumulative Preferred Shares ("Series A Preferred Shares"), $1,000 liquidation preference per share for $275 , and 100 thousand Series B Cumulative Convertible Preferred Shares ("Series B Preferred Shares"), $1,000 liquidation per share for $100 . In connection with offering of the Series A Preferred Shares and Series B Preferred Shares, the Company incurred $12 of issuance costs which have been recorded as a reduction of additional paid-in-capital. The Series A Preferred Shares and the Series B Preferred Shares (together, the "preferred shares") do not have a maturity date and are non-callable for the first five years . The dividend rate of the preferred shares is 7.5% per annum, payable quarterly in cash or additional preferred shares, at the Company's option, subject to increase beginning 10 years after issuance based on the then-current three-month LIBOR rate plus 5.5% . In addition, commencing 10 years after issuance of the preferred shares, and following a failed remarketing event, the holders of the preferred shares will have the right to convert their preferred shares into ordinary shares of the Company as determined by dividing (i) the aggregate par value (including dividends paid in kind and unpaid accrued dividends) of the preferred shares that the holders of the preferred shares wish to convert by (ii) the higher of (a) 5% discount to the 30-day volume weighted average of the ordinary shares following the conversion notice, and (b) the then-current floor price. The floor price will be $8.00 per share during the 11th year post-funding, $7.00 per share during the 12th year post funding, and $6.00 during the 13th year post-funding and thereafter. Warrants The Company issued 34,500 thousand warrants as part of the units sold in the IPO. The Company issued 15,800 thousand and 1,500 thousand warrants to CF Capital Growth, LLC, at $1.00 per private placement warrant in a private placement consummated simultaneously with the closing of the IPO and upon conversion of working capital loans at the time of the business combination, respectively. In connection with forward purchase agreements, at the closing of the business combination the Company issued 19,083 thousand forward purchase warrants to the anchor investors. The forward purchase warrants have identical terms as the public warrants. Each whole warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per share, subject to adjustment as described below, at any time commencing December 30, 2017, provided that the Company has an effective registration statement under the Securities Act covering the ordinary shares issuable upon exercise of the warrants and a current prospectus relating to them is available (or we permit holders to exercise their warrants on a cashless basis under the circumstances specified in the warrant agreement governing the warrants (the “warrant agreement”)) and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of ordinary shares. This means only a whole warrant may be exercised at a given time by a warrant holder. No fractional warrants will be issued and only whole warrants trade. The warrants will expire on November 30, 2022, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. We have the ability to redeem outstanding warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant, provided that the last reported sales price of our ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30 trading-day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. If and when the warrants become redeemable by us, the Company may exercise our redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws. The Company conducted an offer to exchange its outstanding warrants for 0.11 ordinary shares of the Company, par value $0.0001 (the "Exchange Shares") and $0.98 , in cash without interest, per warrant, which expired on October 4, 2018. A total of 65,374 thousand warrants were properly tendered prior to the expiration of the offer to exchange. On October 9, 2018 the Company issued 7,191 thousand shares and paid $64 in cash in exchange for the warrants tendered. After completion of the Offer to Exchange, 5,510 thousand warrants still remain outstanding, which will expire on November 30, 2022, or upon earlier redemption or liquidation. Share Repurchases On December 19, 2018, the Company's Board of Directors authorized a share repurchase program of up to $150 of the Company's outstanding common stock. This program will expire on December 15, 2020 , and may be modified at any time. Under the share repurchase program, the Company may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. The extent to which the Company repurchases its shares, and the timing of such purchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other considerations, as determined by the Company. During the years ended December 31, 2019 and December 31, 2018 , the Company purchased 8,052 and 600 thousand shares, respectively, for a total cost of $ 65 and $4 , respectively. As of December 31, 2019 , the Company had repurchased 8,652 thousand shares for a total cost of $69 . Dividends The Company declared the following cash dividends to its common shareholders during the year ended December 31, 2019 : Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 27, 2019 April 1, 2019 March 18, 2019 221,661 $0.01 $2 May 7, 2019 June 10, 2019 May 28, 2019 221,661 $0.01 $2 August 7, 2019 September 9, 2019 August 26, 2019 221,661 $0.01 $2 November 6, 2019 December 9, 2019 November 25, 2019 221,661 $0.01 $2 On February 26, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share. The dividend will be paid on March 30, 2020 to shareholders of record as of the close of business on March 16, 2020. The Company declared the following dividends to its preferred shareholders during the years ended December 31, 2019 and December 31, 2018 : Type of Preferred Share Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Method of Payment Total cash paid Total shares paid in kind (in thousands) Series A Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 277 Paid in kind $— 5 Series B Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 101 Paid in kind $— 1 Series A Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 282 Paid in kind $— 5 Series B Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 102 Paid in kind $— 2 Series A Preferred Shares September 28, 2018 October 1, 2018 September 15, 2018 287 Paid in kind $— 5 Series B Preferred Shares September 28, 2018 October 1, 2018 September 15, 2018 104 Paid in kind $— 2 Series A Preferred Shares December 31, 2018 January 1, 2019 December 15, 2018 293 Paid in kind $— 6 Series B Preferred Shares December 31, 2018 January 1, 2019 December 15, 2018 106 Paid in kind $— 2 Series A Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 298 Paid in kind $— 6 Series B Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 108 Paid in kind $— 2 Series A Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 304 Paid in kind $— 6 Series B Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 110 Paid in kind $— 2 Series A Preferred Shares September 30, 2019 October 1, 2019 September 15, 2019 310 Paid in kind $— 6 Series B Preferred Shares September 30, 2019 October 1, 2019 September 15, 2019 112 Paid in kind $— 2 Series A Preferred Shares December 31, 2019 January 1, 2020 December 15, 2019 316 Paid in kind $— 5 Series B Preferred Shares December 31, 2019 January 1, 2020 December 15, 2019 114 Paid in kind $— 3 Restricted Net Assets of Subsidiaries CF Bermuda’s equity in restricted net assets of consolidated subsidiaries was approximately $2,501 as of December 31, 2019 representing 91% of CF Bermuda’s consolidated stockholder’s equity as of December 31, 2019 |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation On August 8, 2017, the Company adopted a stock-based incentive plan (the “FGL Incentive Plan”) that permits the granting of awards in the form of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, unrestricted stock, performance-based awards, dividend equivalents, cash awards and any combination of the foregoing. The Company’s Compensation Committee is authorized to grant up to 15,006 thousand equity awards under the Incentive Plan. At December 31, 2019 , 5,712 thousand equity awards are available for future issuance. FGL Incentive Plan The Company granted 7,749 thousand and 17,255 thousand stock options to certain officers during the twelve months ended December 31, 2019 and 2018 that vest based on continued service with the Company or a combination of continued service and Company performance (adjusted operating income return on equity or stock price performance). The total fair value of the awards granted during twelve months ended December 31, 2019 and 2018 was $12 and $32 , respectively. The fair value of the options is expensed over the requisite service period, which generally corresponds to the vesting period. To value the options granted with service and adjusted operating income return on equity performance vesting conditions, a Black Scholes valuation model was used. To value the options granted with stock price performance vesting conditions, a Monte Carlo simulation was used. A summary of the Company’s outstanding stock options as of December 31, 2019 , and related activity during the twelve months ended December 31, 2019 , is as follows (share amount in thousands): Stock Option Awards Options Weighted Average Exercise Price Stock options outstanding at December 31, 2018 13,007 $ 9.68 Granted 7,749 9.18 Exercised — — Forfeited or expired (5,542 ) 10.00 Stock options outstanding at December 31, 2019 15,214 9.30 Exercisable at December 31, 2019 1,009 9.16 Vested or projected to vest at December 31, 2019 15,214 $ 9.30 The Company granted 147 thousand and 112 thousand restricted shares to directors in the twelve months ended December 31, 2019 and 2018, which vested on December 31, 2019 and 2018, respectively. The total fair value of the restricted shares granted in the twelve months ended December 31, 2019 and 2018 was $1 and $1 , respectively. A summary of the Company’s nonvested restricted shares outstanding as of December 31, 2019 , and related activity during the twelve months ended , is as follows (share amount in thousands): Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Restricted shares outstanding at December 31, 2018 — $ — Granted 147 6.82 Vested (147 ) 6.82 Vested or expected to vest at December 31, 2019 — — Management Incentive Plan In the twelve months ended December 31, 2019 and 2018, the Company granted 541 thousand and 374 thousand phantom units to members of management under a management incentive plan (the "Management Incentive Plan"). The phantom units are settled in cash, and therefore the Management Incentive Plan is classified as a liability plan. The value of this plan is classified within "Other liabilities" on the Consolidated Balance Sheets and is adjusted each period, with a corresponding adjustment to “Acquisition and operating expenses, net of deferrals”, to reflect changes in the Company’s stock price. See "Note 2. Significant Accounting Policies and Practices" for a more detailed discussion of stock-based compensation. The total fair value of the phantom units granted in the twelve months ended December 31, 2019 and 2018 was $5 and $3 , respectively. One half of the phantom units vest in three equal installments on each March 15 th from 2019 to 2021, subject to awardees continued service with the Company. The other half will begin vesting on March 15, 2020 and cliff vest on March 15, 2021 based on continued service and attainment of a performance metric: adjusted operating income return on equity for the fiscal year 2020. At December 31, 2019 , the liability for phantom units of $1 was based on the number of units granted, the elapsed portion of the service period and the fair value of the Company’s common stock on that date which was $10.65 . A summary of the Management Incentive Plan nonvested phantom units outstanding as of December 31, 2019 , and related activity during the twelve months ended is as follows (share amount in thousands): Phantom units Shares Weighted Average Grant Date Fair Value Phantom units outstanding at December 31, 2018 356 $ 8.95 Granted 541 8.54 Vested (59 ) 10.00 Forfeited or expired (93 ) 9.33 Phantom units outstanding at December 31, 2019 745 $ 9.02 The Company recognized total stock compensation expense related to the FGL Incentive Plan and Management Incentive Plan is as follows: Year ended December 31, 2019 December 31, 2018 Total stock compensation expense 5 4 Related tax benefit 1 1 Net stock compensation expense $ 4 $ 3 The stock compensation expense is included in "Acquisition and operating expenses, net of deferrals" in the Company's Consolidated Statements of Operations. Total compensation expense related to the FGL Incentive Plan and Management Incentive Plan not yet recognized as of December 31, 2019 and the weighted-average period over which this expense will be recognized are as follows: Unrecognized Compensation Weighted Average Recognition FGL Incentive Plan $ 18 3 Management Incentive Plan 4 2 Total unrecognized stock compensation expense $ 22 3 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a Cayman-domiciled corporation that has operations in Bermuda and the U.S. Neither the Cayman Islands nor Bermuda impose a corporate income tax. The Company’s U.S. non-life subsidiaries file a consolidated non-life U.S. Federal income tax return. For tax years prior to December 1, 2017, the non-life members were included in the consolidated U.S. Federal income tax return of HRG, the majority owner of FGL prior to the execution of the FGL Merger Agreement on November 30, 2017. The income tax liabilities of the Company as former members of the consolidated HRG return were calculated using the separate return method as prescribed in ASC 740. The Company’s US life insurance subsidiaries file a separate life subgroup consolidated U.S. Federal income tax return. The life insurance companies will be eligible to join in a consolidated filing with the U.S. non-life companies in 2022. On May 24, 2017, the Company, HRG Group, Inc. ("HRG"), the majority owner of FGL prior to the execution of the FGL merger agreement on November 30, 2017, and CF Corp executed a letter agreement (the “side letter”) which set forth the settlement provisions between the parties related to the Section 338(h)(10) transaction. The Section 338(h)(10) election treated the merger as an asset acquisition for U.S. tax purposes resulting in stub period tax yearends for both the life and non-life subsidiaries within the target group acquired as part of the acquisition. The side letter agreement between the parties specified that the purchase price would be adjusted for incremental tax costs attributable to the election. As such, the Company made two payments to HRG totaling $57 in March and May of 2018. The target 338(h)(10) group did not include FSRC, a 953(d) election U.S. tax payer. Any tax liability of the non-life entities’ arising from the deemed asset sale were reflected on HRG’s consolidated return, with the Companies’ non-life entities retaining successor liability. The life entities filed a separate final short-period return reflecting gain (or loss) from the deemed asset sale. The Company’s U.S. subsidiaries are taxed at corporate rates on taxable income based on existing U.S. tax laws. Current income taxes are charged or credited to net income based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income taxes are provided for the tax effect of temporary differences in the financial reporting and income tax bases of assets and liabilities, net operating loss carryforwards and tax credit carryforwards using enacted income tax rates and laws. The effect on deferred income tax assets and deferred income tax liabilities of a change in tax rates is recognized in net income in the period in which the change is enacted. A valuation allowance is required if it is more likely than not that a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we considered the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxable income from prior years available for recovery and tax planning strategies. Based on the available positive and negative evidence regarding future sources of taxable income, we have determined that the establishment of a valuation allowance was necessary for the U.S. non-life companies at December 31, 2019. The valuation allowance reflects a history of cumulative losses for the US nonlife subgroup. In addition, due to the debt structure of the US non-life entities, particularly at the holding company level, it is unlikely the US non-life subgroup will be in a net cumulative taxable income position in a near term projection window. During the quarter ended September 30, 2019, Management determined that a valuation allowance was no longer needed for the ordinary deferred tax assets of FSRC based on positive evidence including: cumulative three-year income, future projected earnings, and management’s ability to implement a future tax planning strategy if needed. Therefore, the valuation allowance against the FSRC deferred tax assets at that date was released and the Company recorded an $18 million gain in operating income during that quarter related to the release. The Company still maintains a valuation allowance against FSRC’s capital deferred tax assets due to lack of sufficient sources of income in which to recognize them. All other deferred tax assets were more likely than not to be realized based on expectations regarding future taxable income and considering all other available evidence, both positive and negative. The Tax Cut and Jobs Act (“TCJA”) was enacted on December 22, 2017, and it amended many provisions of the Internal Revenue Code that have effects on the Company. Because the TCJA reduced the statutory tax rate from 35% to 21% , the Company was required to remeasure its deferred tax assets and liabilities using the lower rate at the December 22, 2017, date of enactment. This remeasurement resulted in a reduction of net deferred tax assets of $131 , which includes a $0 benefit related to deferred taxes previously recognized in accumulated other comprehensive income. The Company evaluated whether or not to make a Section 953(d) election with respect to F&G Life Re Ltd. which would have resulted in F&G Life Re Ltd. being treated as if it were a US Tax Payer. Ultimately, the Company chose to be subject to the Base Erosion and Anti-Abuse Tax ("BEAT") through September 30, 2018 and then recapture the business that was subject to the Modco Agreement. The Modco Agreement was terminated effective September 30, 2018. The SEC’s Staff Accounting Bulletin No. 118 (“SAB 118”) provides guidance on accounting for the effects of U.S. tax reform in circumstances in which an exact calculation cannot be made, but for which a reasonable estimate can be determined. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, we have completed our analysis based on the legislative updates relating to TCJA currently available. The only provision amount utilized in the preparation of the Company's December 31, 2017 financial statements was tax reserves. There are no provisional amounts utilized in the preparation of the Company’s December 31, 2018 or 2019 financial statements. Income tax (expense) benefit is calculated based upon the following components of income before income taxes: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Pretax income (loss): United States $ 467 $ (271 ) $ (55 ) $ 44 $ 163 $ 333 Outside the United States 101 300 74 — — — Total pretax income $ 568 $ 29 $ 19 $ 44 $ 163 $ 333 The components of income tax (expense) benefit are as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Current: Federal $ (22 ) $ (42 ) $ (5 ) $ (23 ) $ 21 $ (114 ) State — — — — — — Total current $ (22 ) $ (42 ) $ (5 ) $ (23 ) $ 21 $ (114 ) Deferred: Federal $ (39 ) $ 26 $ (105 ) $ 7 $ (76 ) $ 4 State — — — — — — Total deferred $ (39 ) $ 26 $ (105 ) $ 7 $ (76 ) $ 4 Income tax (expense)/benefit $ (61 ) $ (16 ) $ (110 ) $ (16 ) $ (55 ) $ (110 ) The difference between income taxes expected at the U.S. Federal statutory income tax rate of 21% and reported income tax (expense) benefit is summarized as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Expected income tax (expense)/benefit at Federal statutory rate $ (119 ) $ (6 ) $ (7 ) $ (15 ) $ (57 ) $ (117 ) Valuation allowance for deferred tax assets 39 (38 ) 13 (2 ) — 1 Amortization of low income housing tax credits (8 ) (4 ) (1 ) (1 ) — (4 ) Benefit on LIHTC under proportional amortization method 9 5 — 1 — 5 Write off of expired capital loss carryforward — — — — — — Remeasurement of deferred taxes under U.S. tax reform — — (131 ) — — — Dividends received deduction 4 5 — 1 — 4 Benefit on Outside of United States Income taxed at 0% 21 63 26 — — — Withholding Tax on 0% Taxed Jurisdictions (5 ) — — — — — Write off of 382 Limited NOL — — (12 ) — — — Base Erosion & Antiabuse Tax "BEAT" — (44 ) — — — — Other (2 ) 3 2 — 2 1 Reported income tax (expense)/benefit $ (61 ) $ (16 ) $ (110 ) $ (16 ) $ (55 ) $ (110 ) Effective tax rate 11 % 55 % 579 % 37 % 34 % 33 % For the year ended December 31, 2019 , the Company’s effective tax rate was 11% . The effective tax rate was positively impacted by the valuation allowance release on the US life companies’ prior year unrealized capital losses and the FSRC ordinary deferred tax assets, as well as the benefit of low taxed international income in excess of withholding taxes, and favorable permanent adjustments, including low income housing tax credits ("LIHTC") and the dividends received deduction ("DRD"). For the year ended December 31, 2018, the Company’s effective tax rate was 55% . The effective tax rate was negatively impacted by the valuation allowance expense on the US life companies’ unrealized capital losses and the FSRC and non-life insurance companies’ deferred tax assets. The negative impacts of the valuation allowance were partially offset by the benefit of low taxed international income in excess of the BEAT, and favorable permanent adjustments, including LIHTC and the DRD. For the period December 1, 2017 to December 31, 2017, the Company’s effective tax rate includes the effects of rate change from 35% to 21% in connection with TCJA as well as certain reinsurance effects between the Companies' onshore and offshore insurance entities. Reversing out the effects of the tax reform rate change and impacts of FAS 133/DIGB36, (i.e. Embedded Derivatives impacts under Modified Coinsurance Arrangements) in regards to US/offshore reinsurance treatment of unrealized gains on funds withheld assets, results in an adjusted effective rate for the period of approximately 34% and is a more useful comparative to prior period rates reflected in the schedule above. The effective tax rate was impacted by tax expense recorded related to the remeasurement of deferred tax assets and liabilities as a result of tax reform. Additionally, the tax rate was positively impacted by income earned by foreign companies that is taxed at 0% . For the Predecessor period October 1, 2017 to November 30, 2017, the Company’s effective tax rate was 37% (for Predecessor periods, references to “the Company” are to its predecessor). The negative impact of the valuation allowance expense of the non-life companies was partially offset by the net impact of positive permanent adjustments, including LIHTC and the DRD. For the Predecessor period October 1, 2016 to December 31, 2016 (unaudited), the Company’s effective tax rate was 34% . The effective tax rate was impacted by favorable permanent adjustments, including LIHTC. For the Predecessor year ended September 30, 2017, the Company’s effective tax rate was 33% . The effective tax rate was positively impacted by a valuation allowance release within the non-life companies and favorable permanent adjustments, including LIHTC and the DRD. For the year ended December 31, 2019 , the Company recorded a net valuation allowance release of $39 (comprised of a full year valuation allowance release of $14 related to the U.S. life insurance companies' unrealized capital losses on equity securities that are recorded through net income and $31 related to FSRC ordinary deferred tax assets, partially offset by a net increase to valuation allowance of $6 related to the Company's non-life companies). For the year ended December 31, 2018 , the company recorded a net valuation allowance expense of $38 (comprised of a net increase to valuation allowance of $3 related to the Company’s non-life companies, a net increase to valuation allowance of $21 related to FSRC, and a net increase to valuation allowance of $14 related to the US life insurance companies unrealized capital losses on equity securities that are recorded through net income). For the period from December 1, 2017 to December 31, 2017, the Company recorded a net valuation allowance release of $ 13 primarily related to the DTA write off of the Net Operating Loss ("NOL") on FSRC that would not be able to be utilized as a result of the Section 382 limitation created by the merger with CF Corporation. For the Predecessor period from October 1, 2017 to November 30, 2017, the Company recorded a net valuation allowance expense of $ 2 related to the Company’s non-life companies. For the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), the Company recorded a net valuation allowance release of $ 0 . For the Predecessor year ended September 30, 2017, the Company recorded a net valuation allowance release of $1 related to the Company's non-life companies. The Company records tax expense (benefit) that results from a change in Other Comprehensive Income (“OCI”) directly to OCI. Tax expense recorded directly to OCI includes deferred tax expense arising from a change in unrealized gain (loss) on available-for-sale securities and the tax-effects of other income items that are recorded to OCI. Changes in valuation allowance that are solely due to a deferred tax asset related to the unrealized gain on an available-for-sale security are allocated to other comprehensive income in accordance with ASC 740-10-45-20, "Income Taxes: Other Presentation Matters". The Company recorded the following deferred tax expense to OCI: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Deferred Tax Expense in OCI $ (242 ) $ 132 $ (19 ) $ (7 ) $ 154 $ (56 ) An excess tax benefit is the realized tax benefit related to the amount of deductible compensation cost reported on an employer’s tax return for equity instruments in excess of the compensation cost for those instruments recognized for financial reporting purposes. The Company adopted ASU-2016-09 (Stock Compensation) effective October 1, 2015. ASU-2016-09 eliminates the requirement for excess tax benefits to be recorded as additional paid-in capital when realized. For the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017, the Company recorded all excess tax benefits in the Consolidated Statements of Operations as a component of current income tax expense in accordance with the newly adopted guidance. The following table is a summary of the components of deferred income tax assets and liabilities: December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss, credit and capital loss carryforwards $ 35 $ 94 Insurance reserves and claim related adjustments 716 620 Unrealized Investment Losses — 201 Derivatives — 36 Deferred acquisition costs — — Funds held under Reinsurance Agreements 11 — Other 37 30 Valuation allowance (14 ) (154 ) Total deferred tax assets $ 785 $ 827 Deferred tax liabilities: Value of business acquired $ (124 ) $ (181 ) Unrealized Investment Gains (221 ) — Investments (121 ) (133 ) Derivatives (45 ) — Deferred acquisition costs (139 ) (76 ) Transition reserve on new reserve method (63 ) (75 ) Funds held under Reinsurance Agreements — (11 ) Other (11 ) (8 ) Total deferred tax liabilities $ (724 ) $ (484 ) Net deferred tax assets and (liabilities) $ 61 $ 343 For the year ended December 31, 2019 , the Company's valuation allowance of $ 14 consisted of a full valuation allowance on the Company's non-life insurance net deferred taxes, and a full valuation allowance on FSRC's capital net deferred taxes. For the year ended December 31, 2018 , the Company's valuation allowance of $154 consisted of a valuation allowance of $115 on US life company unrealized capital loss deferred tax assets, a full valuation allowance on the Company's non-life insurance net deferred taxes, and a full valuation allowance on FSRC's net deferred taxes. For the period from December 1, 2017 to December 31, 2017, the Company’s valuation allowance of $15 consisted of a valuation allowance of $0 on US life company deferred tax assets, a full valuation allowance on the Company’s non-life insurance net deferred taxes, and a full valuation allowance on FSRC's net deferred taxes. As of December 31, 2019 , the Company has NOL carryforwards of $165 , consisting of NOL carryforwards of $113 on the US life companies and $52 on FSRC. A portion of the FSRC losses existed prior to the November 30, 2017 acquisition and are therefore subject to Section 382 limitations. The FSRC NOL carryforwards that existed prior to January 1, 2018 of $31 will expire in years 2031 - 2032, if unused. The remaining NOLs are not subject to any limitation and have an indefinite carryforward period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has unfunded investment commitments as of December 31, 2019 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class are included below: December 31, 2019 Asset Type Other invested assets $ 1,202 Equity securities 14 Fixed maturity securities, available-for-sale 48 Other assets 78 Residential mortgage loans 16 Total $ 1,358 As of December 31, 2019 , the Company had unfunded commitments in affiliated investments which are included in the table above. See "Note 14. Related Party Transactions" for further information. Lease Commitments The Company leases office space under non-cancelable operating leases that expire in May 2021 and January 2031. Rent expense and minimum rental commitments under non-cancelable leases are immaterial. Contingencies Regulatory and Litigation Matters The Company is involved in various pending or threatened legal proceedings, including purported class actions, arising in the ordinary course of business. In some instances, these proceedings include claims for unspecified or substantial punitive damages and similar types of relief in addition to amounts for alleged contractual liability or requests for equitable relief. In the opinion of the Company's management and in light of existing insurance and other potential indemnification, reinsurance and established accruals, such litigation is not expected to have a material adverse effect on the Company's financial position, although it is possible that the results of operations and cash flows could be materially affected by an unfavorable outcome in any one period. The Company is assessed amounts by state guaranty funds to cover losses to policyholders of insolvent or rehabilitated insurance companies. Those mandatory assessments may be partially recovered through a reduction in future premium taxes in certain states. At December 31, 2019 , the Company has accrued $2 for guaranty fund assessments that is expected to be offset by estimated future premium tax deductions of $2 . The Company has received inquiries from a number of state regulatory authorities regarding our use of the U.S. Social Security Administration’s Death Master File (“Death Master File”) and compliance with state claims practices regulations and unclaimed property or escheatment laws. We have established procedures to periodically compare our in-force life insurance and annuity policies against the Death Master File or similar databases; investigate any identified potential matches to confirm the death of the insured; determine whether benefits are due, and attempt to locate the beneficiaries of any benefits due or, if no beneficiary can be located, escheat the benefit to the state as unclaimed property. We believe we have established sufficient reserves with respect to these matters; however, it is possible that third parties could dispute these amounts and additional payments or additional unreported claims or liabilities could be identified which could be significant and could have a material adverse effect on our results of operations. On June 30, 2017, a putative class action complaint was filed against FGL Insurance, FGL, and FS Holdco II Ltd in the United States District Court for the District of Maryland, captioned Brokerage Insurance Partners v. Fidelity & Guaranty Life Insurance Company, Fidelity & Guaranty Life, FS Holdco II Ltd, and John Doe, No. 17-cv-1815. The complaint alleges that FGL Insurance breached the terms of its agency agreement with Brokerage Insurance Partners (“BIP”) and other agents by changing certain compensation terms. The complaint asserts, among other causes of action, breach of contract, defamation, tortious interference with contract, negligent misrepresentation, and violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The complaint seeks to certify a class composed of all persons who entered into an agreement with FGL Insurance to sell life insurance and who sold at least one life insurance policy between January 1, 2015 and January 1, 2017. The complaint seeks unspecified compensatory, consequential, and punitive damages in an amount not presently determinable, among other forms of relief. On September 1, 2017, FGL Insurance filed a counterclaim against BIP and John and Jane Does 1-10, asserting, among other causes of action, breach of contract, fraud, civil conspiracy and violations of RICO. On September 22, 2017, Plaintiff filed an Amended Complaint, and on October 16, 2017, FGL Insurance filed an Amended Counterclaim against BIP, Agent Does 1-10, and Other Person Does 1-10. The parties also filed cross-Motions to Dismiss in Part. On August 17, 2018, the Court in the BIP Litigation denied all pending Motions to Dismiss filed by all parties without prejudice, pending a decision as to whether the BIP Litigation will be consolidated into related litigation, captioned Fidelity & Guaranty Life Insurance Company v. Network Partners, et al., Case No. 17-cv-1508. On August 31, 2018, FGL Insurance filed its Answer to BIP’s Amended Complaint. Also on that date, FGL Insurance filed its Answer to Amended Complaint, Affirmative Defenses, and Counterclaim, Filed Pursuant to Fed. R. Civ. P. 12(a)(4)(A). On October 15, 2019, BIP filed with the Court an Unopposed Motion for Preliminary Approval of Settlement and Class Certification, along with a copy of the Class Action Settlement Agreement signed by all parties. A Fairness Hearing on Plaintiff’s Motion for Preliminary Approval of Class Settlement was held on Monday, January 13, 2020. On January 15, 2020, the Court issued the Modified Findings and Order Preliminarily Approving Class Settlement Between Plaintiff and Defendants, Granting Conditional Certification of Settlement Class, Directing Issuance of Notice to the Class, and Setting of Final Approval Hearing. In preliminarily approving the Class Settlement, the Court also approved the Settlement Schedule that had been filed by Class Counsel on January 10, 2020. Final settlement is subject to, among other requirements, satisfactory completion of confirmatory discovery by the Defendants and the Class Representative and final approval by the Court after Court-approved Notice has been provided to the absent members of the putative class. As of the date of this report, the Company does not have sufficient information to determine whether it has exposure to any losses that would be either probable or reasonably estimable. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company reinsures portions of its policy risks with other insurance companies. The use of indemnity reinsurance does not discharge an insurer from liability on the insurance ceded. The insurer is required to pay in full the amount of its insurance liability regardless of whether it is entitled to or able to receive payment from the reinsurer. The portion of risks exceeding the Company's retention limit is reinsured. The Company primarily seeks reinsurance coverage in order to limit its exposure to mortality losses and enhance capital management. The Company follows reinsurance accounting when there is adequate risk transfer. Otherwise, the deposit method of accounting is followed. The Company also assumes policy risks from other insurance companies. The effect of reinsurance on net premiums earned and net benefits incurred (benefits incurred and reserve changes) for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017 were as follows: Year ended Period from December 1 to December 31, 2017 December 31, 2019 December 31, 2018 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 204 $ 1,277 $ 223 $ 646 $ 17 $ 142 Assumed — (19 ) — (13 ) — 7 Ceded (164 ) (201 ) (169 ) (210 ) (14 ) (25 ) Net $ 40 $ 1,057 $ 54 $ 423 $ 3 $ 124 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) Year ended September 30, 2017 Predecessor Predecessor Predecessor Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 36 $ 267 $ 57 $ 69 $ 233 $ 1,097 Assumed — — — — — — Ceded (29 ) (40 ) (46 ) (49 ) (191 ) (254 ) Net $ 7 $ 227 $ 11 $ 20 $ 42 $ 843 Amounts payable or recoverable for reinsurance on paid and unpaid claims are not subject to periodic or maximum limits. The Company did not write off any significant reinsurance balances during the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, or the Predecessor year ended September 30, 2017. The Company did not commute any ceded reinsurance during the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, or the Predecessor year ended September 30, 2017. No policies issued by the Company have been reinsured with any foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company has not entered into any reinsurance agreements in which the reinsurer may unilaterally cancel any reinsurance for reasons other than non-payment of premiums or other similar credit issues. Effective January 1, 2017, FGL Insurance entered into an indemnity reinsurance agreement with Hannover Re, a third party reinsurer, to reinsure an inforce block of its FIA and fixed deferred annuity contracts with GMWB and Guaranteed Minimum Death Benefit (“GMDB”) guarantees. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of the net retention of guarantee payments in excess of account value for GMWB and GMDB guarantees. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. Effective July 1, 2017, FGL Insurance extended this agreement to include new business issued during 2017. Effective January 1, 2018, FGL Insurance extended this agreement to include new business issued during 2018 and extended the recapture period from 8 to 12 years. Effective January 1, 2019, FGL Insurance extended this agreement to include new business issued during 2019. FGL Insurance incurred risk charge fees of $17 , $11 , $2 , $2 and $4 during the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, and the Predecessor year ended September 30, 2017, respectively, in relation to this reinsurance agreement. Effective December 31, 2018, FGL Insurance entered into a reinsurance agreement with Kubera to cede approximately $758 of certain MYGA and deferred annuity GAAP reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of MYGA and deferred annuity policies for certain issue years to Kubera. Effective June 30, 2019, FGL Insurance and Kubera executed a letter of intent to amend this agreement and cede an additional $185 of MYGA GAAP reserves on a coinsurance funds withheld basis via a quota share percentage of certain issue years. The amended reinsurance agreement was executed on July 31, 2019. Effective December 31, 2018, FGL Insurance entered into a reinsurance agreement with Kubera to cede approximately $4 billion of certain FIA statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. In accordance with the terms of this agreement, FGL Insurance cedes a quota share percentage of FIA policies for certain issue years to Kubera. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP, since it is not “reasonably possible” that the reinsurer may realize significant loss from assuming the insurance risk. Effective June 30, 2019, FGL Insurance and Kubera executed a letter of intent to amend this agreement and cede an additional $1 billion of FIA statutory reserves on a coinsurance funds withheld basis via a quota share percentage of certain issue years. The amended reinsurance agreement was executed on July 31, 2019. The effects of the amendment are also not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP. Intercompany Reinsurance Agreements A description of significant intercompany reinsurance agreements appears below. All intercompany balances have been eliminated in the preparation of the Company’s consolidated financial statements. However, these agreements have a material impact on the regulatory capital position of FGL Insurance and the effective tax rate of the Company. Effective December 31, 2012, FGL Insurance entered into a reinsurance treaty with FSRC, an affiliated reinsurer, whereby FGL Insurance ceded 10% of its June 30, 2012 in-force annuity block of business not already reinsured on a funds withheld basis. Effective September 17, 2014, FGL Insurance entered into a second reinsurance treaty with FSRC whereby FGL Insurance ceded 30% of any new business of its MYGA issued effective September 17, 2014 and later on a funds withheld basis. The September 17, 2014 treaty was subsequently terminated as to new business effective April 30, 2015, but will remain in effect for policies ceded to FSRC with an effective date between September 17, 2014 and April 30, 2015. Accordingly, MYGA policies issued with an effective date of May 1, 2015 and later will not be ceded to FSRC. In anticipation of the merger of CF Corp. and FGL, a new Bermuda based reinsurance entity, F&G Life Re Ltd. (“F&G Life Re”) was formed as an indirect wholly owned subsidiary of the Company. Effective December 1, 2017, FGL Insurance entered into an indemnity modified coinsurance agreement with F&G Life Re to reinsure up to 80% of its in-force FIA business and 40% of its in-force deferred annuity business on a net retained basis. Effective October 1, 2018, FGL Insurance and F&G Life Re mutually agreed to terminate this reinsurance agreement. Upon termination of the reinsurance agreement, F&G Life Re made a $1,094 extraordinary dividend to its sole shareholder, CF Bermuda of which $830 was contributed to FGL Insurance to support the recapture of the insurance liabilities and to allow FGL Insurance to maintain appropriate solvency ratios. The $1,094 extraordinary dividend included $750 return of capital which was approved by the Bermuda Monetary Authority (“BMA”). Effective October 1, 2012, FGL Insurance entered into a reinsurance treaty with Raven Reinsurance Company ("Raven Re"), its wholly-owned captive reinsurance company, to cede the Commissioners Annuity Reserve Valuation Method (CARVM) liability for annuity benefits where surrender charges are waived. In connection with the CARVM reinsurance agreement, FGL Insurance and Raven Re entered into an agreement with Nomura Bank International plc (“NBI”) to establish a $295 reserve financing facility in the form of a letter of credit issued by NBI. Effective January 1, 2019, the letter of credit facility was amended to reduce the available amount to $100 and extend the termination date to October 1, 2022, although the facility may terminate earlier, in accordance with the terms of the Reimbursement Agreement. Under the terms of the reimbursement agreement, in the event the letter of credit is drawn upon, Raven Re is required to repay the amounts utilized, and FGLH is obligated to repay the amounts utilized if Raven Re fails to make the required reimbursement. FGLH also is required to make capital contributions to Raven Re in the event that Raven Re’s statutory capital and surplus falls below certain defined levels. As of December 31, 2019 and 2018, Raven Re’s statutory capital and surplus was $33 and $20 , respectively, in excess of the minimum level required under the Reimbursement Agreement. As this letter of credit is provided by an unaffiliated financial institution, Raven Re is permitted to carry the letter of credit as an admitted asset on the Raven Re statutory balance sheet. F&G Reinsurance Companies FSRC has entered into various reinsurance agreements on a funds withheld basis, meaning that funds are withheld by the ceding company from the coinsurance premium owed to FSRC as collateral for FSRC's payment obligations. Accordingly, the collateral assets remain under the ultimate ownership of the ceding company. FSRC manages the assets supporting the reserves assumed in accordance with the internal investment policy of the ceding companies and applicable law. At December 31, 2019 and 2018 , FSRC had $307 and $275 of funds withheld receivables and $285 and $254 of insurance reserves related to these reinsurance treaties, respectively. F&G Re has entered into multiple reinsurance agreements on a funds withheld basis with unaffiliated parties. At December 31, 2019 and December 31, 2018 , F&G Re had $1,865 and $482 of funds withheld receivables, respectively, and $1,668 and $471 , respectively, of insurance reserves related to these reinsurance treaties. Effective April 1, 2019, F&G Re entered into a reinsurance agreement with an unaffiliated company to reinsure an inforce block of fixed deferred annuity contracts on a 100% coinsurance funds withheld basis. In accordance with the terms of this agreement, F&G Re established a fair value of funds withheld asset and future policy benefits liability of $983 and $896 , respectively. See a description of FSRC’s and F&G Re's accounting policy for its assumed reinsurance contracts as described under the section titled "Reinsurance" in Note 2. Significant Accounting Policies and Practices. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Affiliated Investments The Company has determined that related parties would fall into the following categories; (i) affiliates of the entity, (ii) entities for which investments in their equity securities would be required to be accounted for by the equity method by the investing entity, (iii) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management, (iv) principal owners (>10% equity stake) of the entity and members of their immediate families, (v) management (including BOD, CEO, and other persons responsible for achieving the objectives of the entity and who have the authority to establish policies and make decisions) of the entity and other members of their immediate families, (vi) other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests (vii) other parties that can significantly influence management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate business, (viii) attorney in fact of a reciprocal reporting entity or any affiliate of the attorney in fact, and (ix) a U.S. manager of a U.S. branch or any affiliate of the U.S. manager of a U.S. branch. The Company has determined that for the years ended December 31, 2019 and December 31, 2018 , the Blackstone Group LP ("Blackstone") and its affiliates as well as the FGL Holdings’ directors and officers (along with their immediate family members) are FGL Holdings' related parties. FGL Insurance, and certain subsidiaries of the Company, entered into investment management agreements (“IMAs”) with Blackstone ISG-I Advisors LLC (“BISGA”), a wholly-owned subsidiary of Blackstone on December 1, 2017. On December 31, 2019, to be effective as of October 31, 2019, FGL Insurance and certain subsidiaries of the Company entered into amended and restated IMAs (the “Restated IMAs”) with BISGA, pursuant to which BISGA was appointed as investment manager of the Company’s general accounts (the “F&G Accounts”). Pursuant to the terms of the IMAs, BISGA may delegate any or all of its discretionary investment, advisory and other rights, powers, functions and obligations under the IMAs to one or more sub-managers, including its affiliates. BISGA delegated certain investment services to its affiliates, Blackstone Real Estate Special Situations Advisors L.L.C. (“BRESSA”) and GSO Capital Advisors II LLC (“GSO Capital Advisors”), pursuant to sub-management agreements executed between BISGA and each of BRESSA and GSO Capital Advisors. For the year ended December 31, 2019, the fees paid to BISGA under the Restated IMAs and the IMAs were approximately $95 . As of December 31, 2019 and 2018 , the Company has a net liability of $47 and $20 , respectively, for the services consumed under the Restated IMAs, the IMAs and related sub-management agreements, partially offset by fees received and expense reimbursements from BISGA. During the years ended December 31, 2019 and December 31, 2018 , the Company received expense reimbursements from BISGA for the services consumed under these agreements. Fees received for these types of services are $10 and $9 for years ended December 31, 2019 and December 31, 2018 . The Company holds certain fixed income security interests, limited partnerships and bank loans issued by portfolio companies that are affiliates of Blackstone Tactical Opportunities, an affiliate of Blackstone Tactical Opportunities LR Associates-B (Cayman) Ltd (the “Blackstone Fixed Income Securities”) both on a direct and indirect basis. Indirect investments include an investment made in an affiliates’ asset backed fund while direct investments are an investment in affiliates' equity or debt securities. As of December 31, 2019 and December 31, 2018 , the Company held $2,001 and $1,461 in affiliated investments, respectively, which includes foreign exchange unrealized loss of $ (3) and $ (2) , respectively. As of December 31, 2019 and December 31, 2018 , the Company had unfunded commitments relating to affiliated investments of $993 and $990 , respectively. The Company purchased $89 and $185 of residential loans from Finance of America Holdings LLC, a Blackstone affiliate, during the year ended December 31, 2019 and on December 17, 2018, respectively. The Company earned $ 112 , $ 33 and $ 1 net investment income for the years ended December 31, 2019 and December 31, 2018 , and the period from December 1, 2017 to December 31, 2017, respectively, on affiliated investments. The Company had no gross realized gains (losses) and realized impairment losses on related party investments during the years ended December 31, 2019 and December 31, 2018 and the period from December 1, 2017 to December 31, 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Year Ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net income (loss) $ 507 $ 13 $ (91 ) $ 28 $ 108 $ 223 Less Preferred stock dividend 31 29 2 — — — Net income (loss) available to common shares 476 (16 ) (93 ) 28 108 223 Weighted-average common shares outstanding - basic 216,592 216,019 214,370 58,341 58,281 58,320 Dilutive effect of unvested restricted stock & PRSU 86 — — 61 57 43 Dilutive effect of stock options 59 — — 92 28 52 Weighted-average shares outstanding - diluted 216,738 216,019 214,370 58,494 58,366 58,415 Net income (loss) per common share: Basic $ 2.19 $ (0.07 ) $ (0.44 ) $ 0.48 $ 1.85 $ 3.83 Diluted $ 2.19 $ (0.07 ) $ (0.44 ) $ 0.47 $ 1.85 $ 3.83 The number of shares of common stock outstanding used in calculating the weighted average thereof reflects the actual number of FGL Holdings shares of common stock outstanding, excluding unvested restricted stock and shares held in treasury. The calculation of diluted earnings per share excludes the incremental effect of warrants, preferred shares and options due to their anti-dilutive effect for the following periods: Year Ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 (in thousands) Predecessor Predecessor Predecessor Warrants 5,510 55,838 70,883 — — — Preferred shares 430 399 375 — — — Options and restricted shares 1,346 863 — — 31 — Under applicable accounting guidance, companies in a loss position are required to use basic weighted average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss for the year ended December 31, 2018 , we were required to use basic weighted-average common shares outstanding in the calculation of the year ended December 31, 2018 diluted loss per share, as the inclusion of shares for restricted stock of 35 thousand would have been antidilutive to the calculation. If we had not incurred a net loss in the year ended December 31, 2018 , dilutive potential common shares would have been 216 million . The preferred stock shares outstanding as of December 31, 2019 and December 31, 2018 |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Insurance Subsidiary Financial Information and Regulatory Matters | Insurance Subsidiary Financial Information and Regulatory Matters The Company’s U.S. insurance subsidiaries file financial statements with state insurance regulatory authorities and the National Association of Insurance Commissioners (“NAIC”) that are prepared in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by such authorities, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the NAIC as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between SAP financial statements and financial statements prepared in accordance with GAAP are that SAP financial statements do not reflect DAC, DSI and VOBA, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contractholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Accordingly, SAP operating results and SAP capital and surplus may differ substantially from amounts reported in the GAAP basis financial statements for comparable items. FSRC (Cayman), F&G Re (Bermuda) and F&G Life Re (Bermuda) file financial statements based on U.S. GAAP with their respective regulators. The Company’s principal insurance subsidiaries’ statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of the Company’s wholly-owned insurance subsidiaries were as follows: Subsidiary (state/country of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) F&G Life Re (Bermuda) Statutory Net Income (loss): Year ended December 31, 2019 $ 152 $ (1 ) $ 3 Year ended December 31, 2018 (151 ) (3 ) 319 Statutory Capital and Surplus: December 31, 2019 $ 1,513 $ 95 $ 2 December 31, 2018 1,545 85 2 (a) FGL NY Insurance is a subsidiary of FGL Insurance, and the columns should not be added together. Subsidiary (state/country of domicile) FSR (Cayman) F&G Re (Bermuda) Statutory Net Income (loss): Year ended December 31, 2019 $ (29 ) $ 69 Year ended December 31, 2018 (29 ) (14 ) Statutory Capital and Surplus: December 31, 2019 $ 73 $ 295 December 31, 2018 73 38 Capital Requirements and Restrictions on Dividends and Distribution U.S. Companies The amount of statutory capital and surplus necessary to satisfy the applicable regulatory requirements is less than FGL Insurance’s and FGL NY Insurance’s respective statutory capital and surplus. Life insurance companies domiciled in the U.S. are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. The RBC is used to evaluate the adequacy of capital and surplus maintained by an insurance company in relation to risks associated with: (i) asset risk, (ii) insurance risk, (iii) interest rate risk and (iv) business risk. The Company monitors the RBC of FGLH’s insurance subsidiaries. As of December 31, 2019 and December 31, 2018 , each of FGLH's insurance subsidiaries had exceeded the minimum RBC requirements. The Company’s insurance subsidiaries domiciled in the U.S. are restricted by state laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders, depositors or investors. Any dividends in excess of limits are deemed “extraordinary” and require regulatory approval. In addition, and pursuant to an order issued in connection with the approval of the Merger Agreement by the Iowa Commissioner on November 28, 2017, FGL Insurance shall not pay any dividend or other distribution to shareholders prior to November 28, 2021 without the prior approval of the Iowa Commissioner. In September 2019 and December 2019, upon approval by the Iowa Commissioner, FGL Insurance declared and paid, respectively, extraordinary dividends of $100 to its Parent, FGLH. FGL Insurance applies Iowa-prescribed accounting practices that permit Iowa-domiciled insurers to report equity call options used to economically hedge FIA index credits at amortized cost for statutory accounting purposes and to calculate FIA statutory reserves such that index credit returns will be included in the reserve only after crediting to the annuity contract. This resulted in a $110 decrease and $30 increase to statutory capital and surplus at December 31, 2019 and December 31, 2018 , respectively. Raven Re is also permitted to follow Iowa prescribed statutory accounting practice for its reserves on reinsurance assumed from FGL Insurance which increased Raven Re’s statutory capital and surplus by $6 and $0 at December 31, 2019 and December 31, 2018 , respectively. Without such permitted statutory accounting practices Raven Re’s statutory capital and (deficit) surplus would be $(19) and $(16) at December 31, 2019 and December 31, 2018 , respectively, and its risk-based capital would fall below the minimum regulatory requirements. The letter of credit facility is collateralized by NAIC 1 rated debt securities. If the permitted practice was revoked, the letter of credit could be replaced by the collateral assets with Nomura’s consent. FGL Insurance’s statutory carrying value of Raven Re at December 31, 2019 and December 31, 2018 was $87 and $94 , respectively. Effective April 1, 2019, Raven Re and FGL Insurance executed the third amended and restated Reinsurance Agreement (the "CARVM treaty"). The amendment allowed Raven Re to declare and pay a one-time dividend of up to $30 to FGL Insurance provided that the dividend was paid on or before June 30, 2020 and subject to other provisions outlined in the amendment. The Vermont Department of Financial Regulation approved the amendment on April 15, 2019. Pursuant to the provisions of the amended CARVM treaty, Raven Re paid a $20 dividend to FGL Insurance in June 2019. FGL Insurance’s statutory carrying value of Raven Re reflects the effect of permitted practices Raven Re received to treat the available amount of a letter of credit as an admitted asset which increased Raven Re’s statutory capital and surplus by $100 and $110 at December 31, 2019 and December 31, 2018 , respectively. Pursuant to an order issued in connection with the Merger agreements, F&G Life Re will not, for a period of three (3) years from November 28, 2017, declare, set aside or distribute any dividends or distributions other than solely (a) dividends or distributions that would be permitted in accordance with Section 521A.5(3) of the Iowa Code if F&G Life Re were a life insurance company domesticated in Iowa, upon prior written notice to the Iowa Commissioner, but limited only to the amount necessary to service interest payments on outstanding indebtedness and other obligations of CF Bermuda and FGLH, and (b) dividends or distributions upon written notice to, and with the prior written approval of, the Iowa Commissioner. The prescribed and permitted statutory accounting practices have no impact on the Company’s unaudited condensed consolidated financial statements which are prepared in accordance with GAAP. As of December 31, 2019 , FGL NY Insurance did not follow any prescribed or permitted statutory accounting practices that differ from the NAIC's statutory accounting practices. On May 14, 2018, FGLH made a dividend payment of $27 to FGL US Holdings, Inc. ("FGL US Holdings"). On June 28, 2018, FGL US Holdings issued a $65 intercompany note to F&G Life Re and subsequently approved a $65 capital contribution to its wholly owned subsidiary, FGLH. On June 28, 2018, FGLH made a capital contribution for $125 to FGL Insurance. On July 3, 2018, CF Bermuda issued a $50 intercompany note to F&G Life Re and subsequently approved a $50 capital contribution to its wholly owned subsidiary, F&G Re. On April 3, 2019, CF Bermuda made a capital contribution of $2 to Freestone. In 2019, CF Bermuda made capital contributions of $198 to F&G Re. Non-U.S. companies As licensed class C insurers in Bermuda, F&G Life Re and F&G Re are required to maintain available capital and surplus at a level equal to or in excess of the applicable enhanced capital requirement ("ECR"), which is established by reference to either the applicable Bermuda Solvency Capital Requirements ("BSCR") model or an approved internal capital model. Furthermore, to enable the Bermuda Monetary Authority ("BMA") to better assess the quality of the insurer’s capital resources, a Class C insurer is required to disclose the makeup of its capital in accordance with its 3-tiered capital system. An insurer may file an application under the Insurance Act to have the aforementioned ECR requirements waived. In addition to the requirements under the Companies Act (as discussed below), the Insurance Act limits the maximum amount of annual dividends and distributions that may be paid or distributed by F&G Life Re and F&G Re without prior regulatory approval. F&G Life Re and F&G Re are prohibited from declaring or paying a dividend if it fails to meet its minimum solvency margin, or ECR, or if the declaration or payment of such dividend would cause such breach. Additionally, annual distributions that would result in a reduction of the insurer’s prior year-end balance of statutory capital and surplus by more than 25% also requires the prior approval of the BMA. If F&G Life Re or F&G Re were to fail to meet its minimum solvency margin on the last day of any financial year, it would be prohibited from declaring or paying any dividends during the next financial year without the approval of the BMA. In addition, as Class C insurers, each of F&G Life Re and F&G Re must: (i) not make any payment from its long-term business fund for any purpose other than a purpose of the insurer’s long-term business, except in so far as such payment can be made out of any surplus certified by the insurer’s approved actuary to be available for distribution otherwise than to policyholders; and (ii) not declare or pay a dividend to any person other than a policyholder unless the value of the assets of its long-term business fund, as certified by the insurer’s approved actuary, exceeds the extent (as to certified) of the liabilities of the insurer’s long-term business. In the event a dividend complies with the above, each of F&G Life Re and F&G Re must ensure the amount of any such dividend does not exceed the aggregate of (i) that excess and (ii) any other funds properly available for the payment of dividend, being funds arising out of business of the insurer other than long-term business. The Companies Act also limits F&G Life Re’s and F&G Re’s ability to pay dividends and make distributions to its shareholders. Each of F&G Life Re and F&G Re is not permitted to declare or pay a dividend, or make a distribution out of its contributed surplus, if it is, or would after the payment be, unable to pay its liabilities as they become due or if the realizable value of its assets would be less than its liabilities. The laws and regulations of the Cayman Islands require that, among other things, FSRC maintain minimum levels of statutory capital, surplus and liquidity, meet solvency standards, submit to periodic examinations of its financial condition and restrict payments of dividends and reductions of capital. Statutes, regulations and policies that FSRC is subject to may also restrict the ability of FSRC to write insurance and reinsurance policies, make certain investments and distribute funds. Any failure to meet the applicable requirements or minimum statutory capital requirements could subject it to further examination or corrective action by Cayman Islands Monetary Authority ("CIMA"), including restrictions on dividend payments, limitations on our writing of additional business or engaging in finance activities, supervision or liquidation. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consisted of the following: December 31, 2019 December 31, 2018 Amounts payable for investment purchases $ 11 $ 39 Retained asset account 141 162 Option collateral liabilities 446 59 Remittances and items not allocated 119 101 Accrued expenses 116 72 Deferred reinsurance revenue 17 39 Unearned revenue liability 43 41 Preferred shares reimbursement feature embedded derivative 17 29 Negative cash liability 69 126 Commissions payable 13 9 Funds withheld embedded derivative 33 — Rabbi trust investment 36 26 Other 47 (3 ) Total $ 1,108 $ 700 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) Unaudited quarterly results of operations are summarized below. Quarter ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in millions, except per share data) Premiums $ 7 $ 9 $ 8 $ 16 Net investment income 324 301 315 289 Net investment gains (losses) 196 103 135 240 Insurance and investment product fees and other 36 42 37 55 Total revenues 563 455 495 600 Total benefits and expenses 282 391 428 412 Net income (loss) 225 65 46 171 Net income (loss) per common share - basic 1.02 0.26 0.17 0.74 Net income (loss) per common share - diluted 1.02 0.26 0.17 0.74 Quarter ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 (Dollars in millions, except per share data) Premiums $ 9 $ 12 $ 15 $ 18 Net investment income 295 267 282 263 Net investment gains (losses) (555 ) 119 (2 ) (191 ) Insurance and investment product fees and other 40 46 45 48 Total revenues (211 ) 444 340 138 Total expenses (20 ) 365 280 28 Net income (loss) (148 ) 56 40 65 Net income (loss) per common share - basic (0.70 ) 0.23 0.15 0.27 Net income (loss) per common share - diluted (0.70 ) 0.23 0.15 0.27 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 2 Months Ended |
Mar. 02, 2020 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Note 19. Subsequent Events The equity market volatility subsequent to December 31, 2019 has the potential to materially impact the fair value of the Company’s invested assets, including derivatives, and policyholder liabilities. In addition, a disruption in the financial and credit markets increases the risk of credit defaults. As of the date of this filing, the Company has not quantified the impact of such equity market volatility on its consolidated financial statements. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments | Summary of Investments - Other than Investments in Related Parties December 31, 2019 (in millions) Amortized Cost Fair Value Amount at which shown on the balance sheet Fixed Maturities: Bonds: United States Government and government agencies and authorities $ 166 $ 168 $ 168 States, municipalities and political subdivisions 1,284 1,343 1,343 Foreign governments 138 155 155 Public utilities 2,345 2,453 2,453 All other corporate bonds 18,981 19,607 19,607 Total fixed maturities 22,914 23,726 23,726 Equity securities: Common stocks: Banks, trust, and insurance companies 70 68 68 Industrial, miscellaneous and all other 2 2 2 Nonredeemable preferred stock 997 1,001 1,001 Total equity securities 1,069 1,071 1,071 Derivative investments 336 587 587 Mortgage loans 1,267 1,283 1,267 Other long-term investments 1,306 1,288 1,303 Total investments $ 26,892 $ 27,955 $ 27,954 See Report of Independent Registered Public Accounting Firm. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information | 1 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | ||
Schedule II - Condensed Financial Information | CONDENSED STATEMENT OF OPERATIONS (in millions) Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Revenues $ 34 $ 2 $ 12 $ — $ — $ (1 ) 34 2 12 — — (1 ) Operating expenses: — General and administrative expenses (14 ) 6 1 1 1 2 Total operating expenses (14 ) 6 1 1 1 2 Operating income (loss) 48 (4 ) 11 (1 ) (1 ) (3 ) Other income: Equity in net income of subsidiaries 459 17 (102 ) 29 109 227 Income (loss) before income taxes 507 13 (91 ) 28 108 224 Income tax expense — — — — — 1 Net income (loss) $ 507 $ 13 $ (91 ) $ 28 $ 108 $ 223 See Report of Independent Registered Public Accounting Firm. CONDENSED STATEMENT OF CASH FLOWS (in millions) Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Cash flows from operating activities Net income (loss) $ 507 $ 13 $ (91 ) $ 28 $ 108 $ 223 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Realized capital and other gains on investments — — — — 2 5 Equity in net income of subsidiaries (459 ) (17 ) 102 (29 ) (109 ) (227 ) Stock based compensation 5 4 — 1 1 2 Changes in assets and liabilities: Other assets and other liabilities (48 ) 4 1 2 — 3 Net cash provided by (used in) operating activities 5 4 12 2 2 6 Cash flows from investing activities: Proceeds from available-for-sale investments, sold, matured or repaid: Proceeds from available-for-sale investments, sold, matured or repaid: 41 — — — 5 12 Cost of available-for-sale investments: — (54 ) — — — — Net cash provided by (used in) investing activities 41 (54 ) — — 5 12 Cash flows from financing activities: Cash paid upon warrant tender and capitalized warrant tender costs — (66 ) — — — — Dividends payments (9 ) — — (4 ) (4 ) (15 ) Treasury stock (65 ) (4 ) — — (1 ) (1 ) Distribution to CF Bermuda and subsidiaries 26 57 (97 ) — — (2 ) Net cash provided by (used in) financing activities (48 ) (13 ) (97 ) (4 ) (5 ) (18 ) Change in cash and cash equivalents (2 ) (63 ) (85 ) (2 ) 2 — Cash and cash equivalents at beginning of period 7 70 155 2 2 2 Cash and cash equivalents at end of period $ 5 $ 7 $ 70 $ — $ 4 $ 2 See Report of Independent Registered Public Accounting Firm. | CONDENSED BALANCE SHEETS (in millions) December 31, 2019 December 31, 2018 ASSETS Investments in consolidated subsidiaries $ 2,750 $ 900 Fixed maturity securities, available for sale 14 54 Cash and cash equivalents 5 7 Total assets $ 2,769 $ 961 LIABILITIES AND SHAREHOLDERS' EQUITY Other liabilities 26 71 Total liabilities 26 71 Shareholders' equity Preferred stock — — Common stock — — Additional paid in capital 2,031 1,998 Retained earnings (accumulated deficit) 300 (167 ) Accumulated other comprehensive income (loss) 481 (937 ) Treasury stock (69 ) (4 ) Total shareholder's equity 2,743 890 Total liabilities and shareholder's equity $ 2,769 $ 961 See Report of Independent Registered Public Accounting Firm. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Supplementary Insurance Information (in millions) Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Life Insurance (single segment): Deferred acquisition costs $ 630 $ 344 $ 22 $ 1,140 $ 697 $ 1,129 Future policy benefits, losses, claims and loss expenses 5,735 4,641 4,751 3,401 3,453 3,412 Other policy claims and benefits payable 71 64 78 69 53 67 Premium revenue 40 54 3 7 11 42 Net investment income 1,229 1,107 92 174 240 1,005 Benefits, claims, losses and settlement expenses (1,057 ) (423 ) (124 ) (227 ) (20 ) (843 ) Amortization, interest, and unlocking of deferred acquisition costs (19 ) — (1 ) (33 ) (100 ) (171 ) Acquisition and operating expenses, net of deferrals (330 ) (181 ) (16 ) (51 ) (28 ) (137 ) See Report of Independent Registered Public Accounting Firm. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | Reinsurance (In millions) For the year ended December 31, 2019 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Life insurance in force $ 3,631 $ (2,060 ) $ — $ 1,571 — % Premiums and other considerations: Traditional life insurance premiums 204 (164 ) — 40 — % Annuity product charges 209 (54 ) — 155 — % Total premiums and other considerations $ 413 $ (218 ) $ — $ 195 — % For the year ended December 31, 2018 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Life insurance in force $ 3,541 $ (2,111 ) $ 1 $ 1,431 — % Premiums and other considerations: Traditional life insurance premiums 223 (169 ) — 54 — % Annuity product charges 237 (57 ) — 180 — % Total premiums and other considerations $ 460 $ (226 ) $ — $ 234 — % For the period from December 1 to December 31, 2017 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Life insurance in force $ 3,516 $ (2,163 ) $ 1 $ 1,354 — % Premiums and other considerations: Traditional life insurance premiums 17 (14 ) — 3 — % Annuity product charges 21 (5 ) — 16 — % Total premiums and other considerations $ 38 $ (19 ) $ — $ 19 — % For the period from October 1 to November 30, 2017 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Predecessor Life insurance in force $ 3,212 $ (2,031 ) $ — $ 1,181 — % Premiums and other considerations: Traditional life insurance premiums 36 (29 ) — 7 — % Annuity product charges 44 (10 ) — 34 — % Total premiums and other considerations $ 80 $ (39 ) $ — $ 41 — % (Continued) For the period from October 1 to December 31, 2016 (Unaudited) Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Predecessor Life insurance in force $ 3,123 $ (2,033 ) $ — $ 1,090 — % Premiums and other considerations: Traditional life insurance premiums 57 (46 ) — 11 — % Annuity product charges 54 (16 ) — 38 — % Total premiums and other considerations $ 111 $ (62 ) $ — $ 49 — % For the year ended September 30, 2017 Gross Amount Ceded to other companies Assumed from other companies Net Amount Percentage of amount assumed of net Predecessor Life insurance in force $ 3,207 $ (2,036 ) $ — $ 1,171 — % Premiums and other considerations: Traditional life insurance premiums 233 (191 ) — 42 — % Annuity product charges 229 (64 ) — 165 — % Total premiums and other considerations $ 462 $ (255 ) $ — $ 207 — % See Report of Independent Registered Public Accounting Firm. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying audited consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. |
VIE | We are involved in certain entities that are considered variable interest entities ("VIEs") as defined under U.S. GAAP. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our relationships to determine if we have the ability to direct the activities, or otherwise exert control, to evaluate if we are the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our audited consolidated financial statements . See "Note 4. Investments" for additional information on the Company’s investments in VIEs. |
Revenue Recognition | Revenue Recognition Insurance Premiums The Company’s insurance premiums for traditional life insurance products are recognized as revenue when due from the contractholder. The Company’s traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of term life insurance and certain annuities with life contingencies, net of premiums ceded under reinsurance. Premium collections for fixed indexed and fixed rate annuities, indexed universal life (“IUL”) policies and immediate annuities without life contingency are reported as an increase to deposit liabilities (i.e., contractholder funds) instead of as revenues. Similarly, cash payments to policyholders are reported as decreases in the liability for contractholder funds and not as expenses. Sources of revenues for products accounted for as deposit liabilities are net investment income, surrender and other charges deducted from contractholder funds, and net realized gains (losses) on investments. Surrender charges are earned when a policyholder withdraws funds from the contract early or cancels the contract. Other income related to riders is earned when elected by the policyholder. See a description of FSRC’s and F&G Re's accounting policy for its assumed reinsurance contracts as described under "Reinsurance". Net Investment Income Dividends and interest income are recorded in “Net investment income” and recognized when earned. Income or losses upon call or prepayment of available-for-sale fixed maturity securities are recognized in "Net investment income". Amortization of premiums and accretion of discounts on investments in fixed maturity securities are reflected in “Net investment income” based on the earliest call date of the investments in a manner that produces a constant effective yield. FSRC and F&G Re's dividends and interest income are recorded in "Net investment income" in the consolidated financial statements and are recognized on an accrual basis. Amortization of premiums and accretion of discounts on investment in debt securities are reflected in "Net investment income" over the contractual terms of the investments in a manner that produces a constant effective yield. For mortgage-backed and asset-backed securities, included in the fixed maturity available-for-sale (“AFS”) securities portfolios, the Company recognizes income using a constant effective yield based on anticipated cash flows and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the effective yield is generally recalculated prospectively to reflect actual payments to date plus anticipated future payments. Any adjustments resulting from changes in effective yield are reflected in “Net investment income’’. "Net investment income" is presented net of earned investment management fees. Net Investment Gains (Losses) Net investment gains (losses) include realized gains and losses from the sale of investments, unrealized gains and losses on equity securities at fair value, write-downs for other-than-temporary impairments (“OTTI”) of AFS investments, and realized and unrealized gains and losses on derivatives and embedded derivatives. FSRC and F&G Re's net investment gains (losses) include realized losses and gains from the sale of investments, changes in the fair value of funds withheld receivables and realized and unrealized gains and losses on derivative investments. Realized gains and losses on the sale of investments are determined using the specific identification method on the trade date. Insurance and Investment Product Fees and Other |
Benefits and Other Changes in Policy Reserves | Benefits and Other Changes in Policy Reserves Benefit expenses for deferred annuity, FIA and IUL policies include index credits and interest credited to contractholder account balances and benefit claims in excess of contract account balances, net of reinsurance recoveries, are charged to expense in the period that they are earned by the policyholder based on their selected strategy. Interest crediting rates associated with funds invested in the general account of our insurance subsidiaries during 2017 through 2019 ranged from 0.5% to 6.0% for deferred annuities and FIA's, combined, and 3.0% to 4.8% for IUL's. Other changes in policy reserves include the change in the fair value of the FIA embedded derivative and the change in the reserve for secondary guarantee benefit payments. Other changes in policy reserves also include the change in reserves for life insurance products. For traditional life and immediate annuities, policy benefit claims are charged to expense in the period that the claims are incurred, net of reinsurance recoveries. |
Stock-Based Compensation | Stock-Based Compensation We expense the fair value of stock awards included in our incentive compensation plans. The Company issues stock options with three different types of vesting conditions. As of the date that there is a mutual understanding between the Company and the grantee of key terms of the awards, the fair value of stock options that vest based on service or non-market based performance conditions are determined using a Black-Scholes options valuation methodology. The Company uses a Monte Carlo simulation to determine the fair value of stock awards that vest based upon market conditions. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to “Additional paid-in capital” in “Shareholders’ equity”. We classify certain stock awards settled in cash as liabilities. For these awards, the fair value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income (loss) at the end of each reporting period. Stock-based compensation expense is reflected in “Acquisition and operating expenses, net of deferrals” on our Consolidated Statements of Operations. |
Interest Expense | Interest Expense |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of nonvested stock, stock options, warrants and performance share units outstanding during the year. The effect of a potential conversion of outstanding preferred shares to common shares is not considered in the diluted EPS calculation as the preferred shareholders do not yet have the right to convert. Stock options and warrants are excluded from the computation of diluted EPS, based on the application of the treasury stock method, if they are anti-dilutive. |
Cash and Cash Equivalents | Cash Equivalents The Company considers money market funds and highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. As of December 31, 2019 and December 31, 2018 , the Company held cash equivalents of $38 and $84 respectively. |
Investments | Investments Investment Securities The Company’s investments in fixed maturity securities have been designated as AFS and are carried at fair value with unrealized gains and losses included in “Accumulated other comprehensive income” (“AOCI”), net of associated intangible asset and unearned revenue ("UREV") “shadow adjustments” (discussed in "Note 7. Intangibles") and deferred income taxes. The Company's investments in equity securities are carried at fair value with unrealized gains and losses included in “Realized gains (losses)”. Prior to the adoption of ASU 2016-01, effective January 1, 2018, unrealized gains and losses on equity securities were included in AOCI. Available-for-Sale Securities' Other-Than-Temporary Impairments The Company regularly reviews AFS securities for declines in fair value that it determines to be other-than-temporary. Prior to the adoption of ASU 2016-01, for an equity security, if the Company did not have the ability and intent to hold the security for a sufficient and reasonable period of time to allow for a recovery in value, it concluded that an OTTI had occurred and the amortized cost of the security was written down to the current fair value, with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations. Following the adoption of ASU 2016-01, equity securities are no longer reviewed for OTTI. When assessing its ability and intent to hold a security to recovery, the Company considers, among other things, the severity and duration of the decline in fair value of the security as well as the cause of the decline, business prospects and the overall financial condition of the issuer. When evaluating redeemable preferred stocks for OTTI the Company applies the accounting policy described above for fixed maturity securities (including an anticipated recovery period), provided there has been no evidence of a deterioration in credit of the issuer. For its fixed maturity AFS securities, the Company generally considers the following in determining whether its unrealized losses are other-than-temporary: • The estimated period until recovery; • The extent and the duration of the decline; • The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); • The financial condition of and near-term prospects of the issuer (including issuer’s current credit rating and the probability of full recovery of principal based upon the issuer’s financial strength); • Current delinquencies and nonperforming assets of underlying collateral; • Expected future default rates; • Collateral value by vintage, geographic region, industry concentration or property type; • Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and • Contractual and regulatory cash obligations and the issuer's plans to meet such obligations. The Company recognizes OTTI on fixed maturity securities in an unrealized loss position when one of the following circumstances exists: • The Company does not expect full recovery of its amortized cost based on the present value of cash flows expected to be collected; • The Company intends to sell a security; or • It is more likely than not that the Company will be required to sell a security prior to recovery. If the Company intends to sell a fixed maturity AFS security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, the Company will conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations. If the Company does not intend to sell a fixed maturity security or it is more likely than not the Company will not be required to sell a fixed maturity security before recovery of its amortized cost basis and the present value of the cash flows expected to be collected is less than the amortized cost of the security (referred to as the credit loss), an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations, as this amount is deemed the credit loss portion of the OTTI. The remainder of the decline to fair value is recorded in AOCI as an unrealized loss on AFS securities, as this amount is considered a non-credit impairment. When assessing the Company’s intent to sell a fixed maturity security or if it is more likely than not the Company will be required to sell a fixed maturity security before recovery of its cost basis, the Company evaluates facts and circumstances at the individual security level based on facts and circumstances relevant to that security. Management also consider decisions to reposition the Company’s security portfolio, sale of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing and tax planning strategies. When evaluating mortgage-backed securities and asset-backed securities, the Company considers a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance. The Company uses this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include type of underlying collateral (e.g., prime, Alternative A-paper (“Alt-A”), or subprime), geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, the Company then makes assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected, including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on the Company’s tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the present value of expected future cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. The Company also considers the ability of monoline insurers to meet their contractual guarantees on wrapped mortgage-backed securities. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, then an OTTI is recognized. The Company includes the total OTTI recognized in "Net investment gains (losses)" in the Consolidated Statements of Operations |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate The Company’s investment in mortgage loans consists of commercial and residential mortgage loans on real estate, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or the loan is modified in a troubled debt restructuring), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan, discounted at the loan’s original purchase yield, or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing an allowance with the offset recorded in "Net investment gains (losses)" in the Consolidated Statements of Operations. Commercial mortgage loans are continuously monitored by reviewing appraisals, operating statements, rent revenues, annual inspection reports, loan specific credit quality, property characteristics, market trends and other factors. Commercial mortgage loans are rated for the purpose of quantifying the level of risk. Loans are placed on a watch list when the debt service coverage ("DSC") ratio falls below and the loan-to-value ("LTV") ratios exceeds certain thresholds. Loans on the watchlist are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans as 30 days past due, consistent with industry practice. Residential mortgage loans have a primary credit quality indicator of either a performing or nonperforming loan. The Company defines nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. We establish mortgage loan valuation allowances both on a loan specific basis for those loans considered impaired where a property specific or market specific risk has been identified that could likely result in a future loss, as well as for pools of loans with similar risk characteristics where a property specific or market specific risk has not been identified, but for which we expect to incur a loss. Accordingly, a valuation allowance is provided to absorb these estimated probable credit losses. As of December 31, 2019 and 2018 , the Company did not identify any specific loans that were impaired. The determination of the amount of valuation allowances is based upon our periodic evaluation and assessment of inherent risks associated with our loan portfolios. Such evaluations and assessments are based upon several factors, including our experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. We evaluate and monitor LTV ratios and DSC ratios of our loans as indicators of potential risk of default in establishing our valuation allowance. |
Derivative Financial Instruments | Derivative Financial Instruments The Company hedges certain portions of its exposure to product related equity market risk by entering into derivative transactions (primarily call options). All such derivative instruments are recognized as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. The changes in fair value are reported within “Net investment gains (losses)” in the accompanying Consolidated Statements of Operations . The Company purchases financial instruments and issues products that may contain embedded derivative instruments. If it is determined that the embedded derivative possesses economic characteristics that are 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 for measurement purposes. The embedded derivative is carried at fair value, which is determined through a combination of market observable inputs such as market value of option and interest swap rates and unobservable inputs such as the mortality multiplier, surrender and withdrawal rates and non-performance spread. The changes in fair value are reported within “Benefits and other changes in policy reserves” in the accompanying Consolidated Statements of Operations . See a description of the fair value methodology used in "Note 6. Fair Value of Financial Instruments". Reinsurance Related Embedded Derivatives As discussed in “Note 13. Reinsurance”, FGL Insurance entered into a reinsurance agreement with Kubera effective December 31, 2018, to cede certain MYGA and deferred annuity statutory reserve on a coinsurance funds withheld basis, net of applicable existing reinsurance. Funds withheld arrangements allow the Company to retain legal ownership of assets backing reinsurance arrangements until they are earned by the reinsurer while passing credit risk associated with the assets in the funds withheld account to the reinsurer. These arrangements create embedded derivatives considered total return swaps with contractual returns that are attributable to the assets and liabilities associated with the reinsurance arrangement. The fair value of the total return swap is based on the change in fair value of the underlying assets held in the funds withheld portfolio. Investment results for the assets that support the coinsurance with funds withheld reinsurance arrangement, including gains and losses from sales, are passed directly to the reinsurer pursuant to contractual terms of the reinsurance arrangement. These total return swaps are not clearly and closely related to the underlying reinsurance contract and thus require bifurcation. The reinsurance related embedded derivative is reported in “Other assets” if in a net gain position, or “Other liabilities”, if in a net loss position on the Consolidated Balance Sheets and the related gains or losses are reported in “Net investment gains (losses)” on the Consolidated Statements of Operations . FGL Insurance has a funds withheld coinsurance arrangement with FSRC, which creates an embedded derivative similar to the embedded derivative described above related to the Kubera reinsurance agreement. Due to the acquisition of FSRC, the reinsurance related embedded derivative is eliminated in consolidation in the periods after December 1, 2017. |
Limited Partnership Investment | Limited Partnership Investments Our investments in limited partnerships are included in other invested assets on our Consolidated Balance Sheets. We account for our investments in limited partnerships using the equity method and use net asset value ("NAV") as a practical expedient to determine the carrying value. Income from the limited partnership is included within "Net investment income" in the accompanying Consolidated Statements of Operations. Recognition of income is delayed due to the availability of the related financial statements, which are obtained from the partnership’s general partner generally on a one to three-month delay. Management meets quarterly with the general partner to determine whether any credit or other market events have occurred since prior quarter financial statements to ensure any material events are properly included in current quarter valuation and investment income. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the limited partnership are typically received during the second quarter of each calendar year. Accordingly, our investment income from the limited partnership investment for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. |
Intangible Assets | Intangible Assets The Company’s intangible assets include an intangible asset reflecting the value of insurance and reinsurance contracts acquired (hereafter referred to as “the value of business acquired” or (“VOBA”), deferred acquisition costs (“DAC”), deferred sales inducements (“DSI”), and trademarks and state licenses. VOBA is an intangible asset that reflects the amount recorded as insurance contract liabilities less the estimated fair value of in-force contracts in a life insurance company acquisition. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. DAC consists principally of commissions that are related directly to the successful sale of new or recoverable insurance contracts, which may be deferred to the extent recoverable. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. DSI represents up front bonus credits and vesting bonuses to policyholder account values which may be deferred to the extent recoverable. The methodology for determining the amortization of DAC, DSI and VOBA varies by product type. For all insurance contracts accounted for under long-duration contract deposit accounting, amortization is based on assumptions consistent with those used in the development of the underlying contract liabilities adjusted for emerging experience and expected trends. Amortization is reported within “Amortization of intangibles” in the accompanying Consolidated Statements of Operations. For all of the insurance intangibles (DAC, DSI and VOBA), the balances are generally amortized over the lives of the policies in relation to the expected emergence of estimated gross profits (“EGPs”) from investment income, surrender charges and other product fees, less policy benefits, maintenance expenses, mortality net of reinsurance ceded, and expense margins. Recognized gains (losses) on investments and changes in fair value of the funds withheld coinsurance embedded derivative are included in actual gross profits in the period realized as described further below. Changes in assumptions, including th e Company’s earned rate, (i.e., long term assumptions of the Company’s expected earnings on related investments), budgeted option costs (i.e., the expected cost to purchase call options in future periods to fund the equity indexed linked feature) and surrender rates can have a significant impact on VOBA, DAC and DSI balances and amortization rates. Due to the relative size and sensitivity to minor changes in underlying assumptions of those intangible balances, the Company performs quarterly and annual analysis of the VOBA, DAC and DSI balances for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected with the impact on the intangibles reported as “unlocking” as a component of amortization expense, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised (“unlocking”) retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. The carrying amounts of VOBA, DAC and DSI are adjusted for the effects of unrealized gains and losses on fixed maturity securities classified as AFS. For investment-type products, the VOBA, DAC and DSI assets are adjusted for the impact of unrealized gains (losses) on investments as if these gains (losses) had been realized, with corresponding credits or charges included in AOCI. Amortization expense of VOBA, DAC and DSI reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, the Company performs a retrospective unlocking of amortization for those intangibles as actual margins vary from expected margins. This unlocking is reflected in the accompanying Consolidated Statements of Operations. |
Reinsurance | Reinsurance The Company’s insurance subsidiaries enter into reinsurance agreements with other companies in the normal course of business. The assets, liabilities, premiums and benefits of certain reinsurance contracts are presented on a net basis in the accompanying Consolidated Balance Sheets and Consolidated Statements of Operations , respectively, when there is a right of offset explicit in the reinsurance agreement. All other reinsurance agreements are reported on a gross basis in the Company’s Consolidated Balance Sheets |
Income Taxes | Income Taxes The Company’s life insurance subsidiaries file a consolidated life insurance income tax return. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company assesses the recoverability of its deferred tax assets in each reporting period under the guidance outlined within Accounting Standards Codification (“ASC”) Topic 740, “Income Taxes”. The guidance requires an assessment of both positive and negative evidence in determining the realizability of deferred tax assets. A valuation allowance is required to reduce the Company’s deferred tax asset to an amount that is more likely than not to be realized. In determining the net deferred tax asset and valuation allowance, management is required to make judgments and estimates related to projections of future profitability. These judgments include the following: the timing and extent of the utilization of net operating loss carry-forwards, the reversals of temporary differences, and tax planning strategies. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has the ability and intent to recover in a tax-free manner assets (or liabilities) with book/tax basis differences for which no deferred taxes have been provided, in accordance with ASC 740. The Company applies the accounting guidance for uncertain tax positions which prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. The guidance also provides information on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Accrued interest expense and penalties related to uncertain tax positions are recorded in “Income tax (expense) benefit” in the Company’s Consolidated Statements of Operations . The Company had no unrecognized tax benefits related to uncertain tax positions as of December 31, 2019 . |
Contractholder Funds | Contractholder Funds The liabilities for contractholder funds for deferred annuities, IUL and UL policies consist of contract account balances that accrue to the benefit of the contractholders. The liabilities for FIA policies consist of the value of the host contract plus the fair value of the embedded derivative. The embedded derivative is carried at fair value in “Contractholder funds” in the accompanying Consolidated Balance Sheets with changes in fair value reported in "Benefits and other changes in policy reserves" in the accompanying Consolidated Statements of Operations . See a description of the fair value methodology used in "Note 6. Fair Value of Financial Instruments". Liabilities for immediate annuities with life contingencies are recorded at the present value of future benefits. Liabilities for the secondary guarantees on UL-type products or Investment-type contracts are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. The benefit ratio is the ratio of the present value of future secondary guarantees to the present value of the assessments used to provide the secondary guarantees using the same assumptions as the Company uses for its intangible assets. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, DSI and VOBA. The accounting for secondary guarantee benefits impact EGPs used to calculate amortization of DAC, DSI and VOBA. |
Future Policy Benefits | Future Policy Benefits The liabilities for future policy benefits and claim reserves for traditional life policies and life contingent pay-out annuity policies are computed using assumptions for investment yields, mortality and withdrawals based on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumption for traditional direct life reserves for all contracts is 5.7% . The investment yield assumptions for life contingent pay-out annuities range from 0.1% to 5.5% . |
Federal Home Loan Bank of Atlanta Agreements | Federal Home Loan Bank of Atlanta Agreements |
Commitments and Contingencies | Commitments and Contingencies |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued new guidance on revenue recognition (ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ), effective for fiscal years beginning after December 15, 2016 and interim periods within those years. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 by one year. The FASB also issued the following ASUs which clarify the guidance in ASU 2014-09: • ASU 2016-08 - Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net) issued in March 2016 • ASU 2016-10 - Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing issued in April 2016 • ASU 2016-11 - Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) - Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting issued in May 2016 • ASU 2016-12 - Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients issued in May 2016 The guidance in ASU 2014-09 and the related ASUs supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance unless the contracts are within the scope of other standards (for example, financial instruments, insurance contracts or lease contracts). The core principle of the guidance is 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. The guidance establishes a five-step process to achieve this core principle. The Company adopted these standards effective January 1, 2018. The adoption of these standards has had no impact on the Company's consolidated financial statements as the Company’s primary sources of revenue, insurance contracts and financial instruments, are excluded from the scope of these standards. Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued new guidance (ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments) , effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Notable amendments in this update change the classification of certain cash receipts and cash payments in the Statement of Cash Flows in the following ways: • cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities • the settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing should be classified as follows: the portion of the cash payment attributable to the accreted interest related to the debt discount as cash outflows for operating activities, and the portion of the cash payment attributable to the principal as cash outflows for financing activities • a reporting entity must make an accounting policy election to classify distributions received from equity method investees using either: ◦ the cumulative earnings approach, which considers distributions received as returns on the investment and are classified as cash inflows from operating activities (with an exception when cumulative distributions received less distributions received in prior periods that were classified as returns of investment exceeds cumulative equity in earnings, in which case the current period distribution up to this excess amount will be considered a return of investment and classified as cash inflows from investing activities); or ◦ the nature of the distribution approach, which classifies distributions received based on the nature of the activity or activities of the investee that generated the distribution (would be considered either a return on investment and classified as cash inflows from operating activities or a return of investment and classified as cash inflows from investing activities) • in the absence of specific GAAP guidance, an entity should classify cash receipts and payments that have aspects of more than one class of cash flows by determining and appropriately classifying each separately identifiable source or use within the cash receipts and cash payments on the basis of the underlying cash flows. If cash receipts and payments have aspects of more than one class of cash flows and cannot be separated by source or use, the activity that is likely to be the predominant source or use of cash flows for the item will determine the classification. The amendments in this ASU were adopted by the Company effective January 1, 2018 as required, using a retrospective transition method to each period presented (except where impracticable to apply retrospectively; those specific amendments will be applied prospectively as of the earliest date practicable). The Company has elected to use the nature of distribution approach to classify distributions received from equity method investees. The adoption of this standard had an immaterial impact on the Company's Consolidated Statements of Cash Flows. Amendments to Recognition and Measurement of Financial Assets and Financial Liabilities In March 2018, February 2018 and January 2016, the FASB issued amended guidance on the measurement of financial assets and financial liabilities (ASU 2018-04 , Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273; ASU 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities; and ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, respectively), effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Notable amendments in these updates: • require all equity securities (other than equity investments accounted for under the equity method of accounting or requiring the consolidation of the investee) to be measured at fair value with changes in fair value recognized through net income. Equity securities that do not have readily determinable fair values may be measured at cost minus impairment • require qualitative assessment for impairment of equity investments without readily determinable fair values at each reporting period and, if the qualitative assessment indicates that impairment exists, to measure the investment at fair value • eliminate the requirement to disclose the methods and significant assumptions used to estimate fair value (which is currently required to be disclosed, for financial instruments measured at amortized cost on the balance sheet) • require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments The amendments in these ASUs were applied via a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, and the amendments related to equity securities without readily determinable fair values were applied prospectively to equity investments that exist as of the date of adoption. The Company adopted ASUs 2016-01, 2018-03, and 2018-04 effective January 1, 2018, with a cumulative-effect adjustment to decrease retained earnings and increase AOCI by $4 . Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued new guidance on the amortization of callable securities (ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities) , effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU requires premiums paid on purchased debt securities with an explicit call option to be amortized to the earliest call date, as opposed to the maturity date. The updated guidance is applicable to instruments that are callable based on explicit, non-contingent call features that are callable at fixed prices on preset dates. The amendments in this update were to be applied using the modified retrospective method through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this new accounting guidance effective January 1, 2019, as required, and it had an immaterial impact on its consolidated financial statements. Amendments to Lease Accounting In February 2016, the FASB issued amended guidance (ASU 2016-02, Leases (Topic 842) ), effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Notable amendments in this update: • require entities to recognize the rights and obligations resulting from all leases or lease components of contracts, including operating leases, as lease assets and lease liabilities, with an exception allowed for leases with a term of 12 months or less • create a distinction between finance leases and operating leases, with classification criteria substantially similar to that for distinguishing between capital leases and operating leases under previous guidance • not retain the accounting model for leveraged leases under previous guidance for leases that commence after the effective date of ASU 2016-02 • provide additional guidance on separating the lease components from the nonlease components of a contract • require qualitative disclosures along with specific quantitative disclosures to provide information regarding the amount, timing, and uncertainty of cash flows arising from leases • include modifications to align lessor accounting with the changes to lessee accounting, as well as changes to the requirements of recognizing a transaction as a sale and leaseback transaction, however, these changes will have no impact on the Company's current lease arrangements The amendments were required to be applied at the beginning of the earliest period presented using a modified retrospective approach (including several optional practical expedients related to leases commenced before the effective date). The Company adopted this standard effective January 1, 2019, as required, and it had an immaterial impact on its consolidated financial statements. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to the Accounting for Hedging Activities, effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Under this update: • removes previous limitations on designation of hedged risk in certain cash flow and fair value hedging relationships • permits different measurements when accounting for hedged items in fair value hedges of interest rate risk • the entity must present the hedging instrument earnings and hedged item earnings in the same income statement line • in addition to exclusion of option premiums and forward points, also permits exclusion of the cross-currency basis spread portion of the change in fair value of a currency swap in assessment of hedge effectiveness The Company adopted this standard effective January 1, 2019, as required, and it did not impact its consolidated financial statements. Future Adoption of Accounting Pronouncements New Credit Loss Standard In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Since its release, certain targeted improvements and transition relief amendments have been made to ASU 2016-13 and have been published in ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-11. Collectively, these ASUs will change the accounting for impairment of most financial assets and certain other instruments in the following ways: • financial assets (or a group of financial assets) measured at amortized cost will be required to be presented at the net amount expected to be collected, with an allowance for credit losses deducted from the amortized cost basis, resulting in a net carrying value that reflects the amount the entity expects to collect on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. • credit losses relating to AFS fixed maturity securities generally will be recorded through an allowance for credit losses, rather than reductions in the amortized cost of the securities. The allowance methodology recognizes that value may be realized either through collection of contractual cash flows or through the sale of the security. Therefore, the amount of the allowance for credit losses for AFS fixed maturity securities will be limited to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value • the income statement will reflect the measurement of expected credit losses for newly recognized financial assets as well as the expected increases or decreases (including the reversal of previously recognized losses) of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount • disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for AFS fixed maturity securities as well as an aging analysis for securities that are past due |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Premiums and Annuity Deposits, net of Coinsurance, Not Included as Revenue [Table Text Block] | Premiums and annuity deposits (net of reinsurance), which are not included as revenues (except for traditional premiums) in the accompanying Consolidated Statements of Operations, collected by product type were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Product Type Predecessor Predecessor Predecessor Fixed indexed annuities $ 2,800 $ 2,253 $ 178 $ 288 $ 556 $ 1,892 Fixed rate annuities 539 61 45 116 99 556 Single premium immediate annuities 14 24 — 1 2 15 Life insurance (a) 203 182 16 29 50 176 Total $ 3,556 $ 2,520 $ 239 $ 434 $ 707 $ 2,639 (a) Life insurance includes Universal Life (“UL”) and traditional life insurance products for FGL Insurance and FGL NY Insurance. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Consolidated Investments | The Company’s consolidated investments at December 31, 2019 and December 31, 2018 are summarized as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for sale securities Asset-backed securities $ 5,720 $ 51 $ (77 ) $ 5,694 $ 5,694 Commercial mortgage-backed securities 2,788 140 (6 ) 2,922 2,922 Corporates 11,051 618 (72 ) 11,597 11,597 Hybrids 983 48 (4 ) 1,027 1,027 Municipals 1,284 64 (5 ) 1,343 1,343 Residential mortgage-backed securities 917 40 (3 ) 954 954 U.S. Government 33 1 — 34 34 Foreign Governments 138 17 — 155 155 Total available-for-sale securities 22,914 979 (167 ) 23,726 23,726 Equity securities 1,069 19 (17 ) 1,071 1,071 Derivative investments 336 261 (10 ) 587 587 Commercial mortgage loans 422 — — 435 422 Residential mortgage loans 845 — — 848 845 Other invested assets 1,306 — (3 ) 1,288 1,303 Total investments $ 26,892 $ 1,259 $ (197 ) $ 27,955 $ 27,954 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for sale securities Asset-backed securities $ 4,954 $ 15 $ (137 ) $ 4,832 $ 4,832 Commercial mortgage-backed securities 2,568 9 (40 ) 2,537 2,537 Corporates 11,213 16 (848 ) 10,381 10,381 Hybrids 992 — (91 ) 901 901 Municipals 1,216 3 (32 ) 1,187 1,187 Residential mortgage-backed securities 1,027 12 (8 ) 1,031 1,031 U.S. Government 120 — (1 ) 119 119 Foreign Governments 129 — (8 ) 121 121 Total available-for-sale securities 22,219 55 (1,165 ) 21,109 21,109 Equity securities 1,526 1 (145 ) 1,382 1,382 Derivative investments 330 2 (235 ) 97 97 Commercial mortgage loans 482 — — 483 482 Residential mortgage loans 185 — — 187 185 Other invested assets 662 — — 651 662 Total investments $ 25,404 $ 58 $ (1,545 ) $ 23,909 $ 23,917 |
Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities | The amortized cost and fair value of fixed maturity available-for-sale securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. December 31, 2019 Amortized Cost Fair Value Corporates, Non-structured Hybrids, Municipal and Government securities: Due in one year or less $ 85 $ 85 Due after one year through five years 888 914 Due after five years through ten years 2,020 2,082 Due after ten years 10,496 11,075 Subtotal 13,489 14,156 Other securities which provide for periodic payments: Asset-backed securities 5,720 5,694 Commercial mortgage-backed securities 2,788 2,922 Residential mortgage-backed securities 917 954 Subtotal 9,425 9,570 Total fixed maturity available-for-sale securities $ 22,914 $ 23,726 |
Fair Value and Gross Unrealized Losses of Available-for-Sale-Securities | The fair value and gross unrealized losses of available-for-sale securities, aggregated by investment category and duration of fair value below amortized cost, were as follows: December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale securities Asset-backed securities $ 719 $ (12 ) $ 2,453 $ (65 ) $ 3,172 $ (77 ) Commercial mortgage-backed securities 232 (4 ) 16 (2 ) 248 (6 ) Corporates 1,030 (25 ) 804 (47 ) 1,834 (72 ) Hybrids 23 (1 ) 60 (3 ) 83 (4 ) Municipals 123 (2 ) 60 (3 ) 183 (5 ) Residential mortgage-backed securities 41 — 107 (3 ) 148 (3 ) U.S. Government 6 — — — 6 — Total available-for-sale securities $ 2,174 $ (44 ) $ 3,500 $ (123 ) $ 5,674 $ (167 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 290 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 446 Total number of available-for-sale securities in an unrealized loss position 736 December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Gross Unrealized Fair Value Gross Unrealized Fair Value Gross Unrealized Available-for-sale securities Asset-backed securities $ 2,924 $ (116 ) $ 643 $ (21 ) $ 3,567 $ (137 ) Commercial mortgage-backed securities 1,466 (34 ) 262 (6 ) 1,728 (40 ) Corporates 8,016 (772 ) 1,465 (76 ) 9,481 (848 ) Hybrids 858 (90 ) 7 (1 ) 865 (91 ) Municipals 850 (27 ) 172 (5 ) 1,022 (32 ) Residential mortgage-backed securities 139 (3 ) 190 (5 ) 329 (8 ) U.S. Government 69 — 50 (1 ) 119 (1 ) Foreign Government 47 (3 ) 68 (5 ) 115 (8 ) Total available-for-sale securities $ 14,369 $ (1,045 ) $ 2,857 $ (120 ) $ 17,226 $ (1,165 ) Total number of available-for-sale securities in an unrealized loss position less than twelve months 1,551 Total number of available-for-sale securities in an unrealized loss position twelve months or longer 556 Total number of available-for-sale securities in an unrealized loss position 2,107 |
Reconciliation of Other-than-Temporary Impairment on Fixed Maturity | The following table provides a reconciliation of the beginning and ending balances of the credit loss portion of OTTI on fixed maturity available-for-sale securities held by the Company for the periods presented, for which a portion of the OTTI was recognized in AOCI: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Beginning balance $ — $ — $ — $ 3 $ 3 $ 3 Increases attributable to credit losses on securities: OTTI was previously recognized — — — — — — OTTI was not previously recognized — — — — — — Ending balance $ — $ — $ — $ 3 $ 3 $ 3 The following table breaks out the credit impairment loss type, the associated amortized cost and fair value of the investments at the balance sheet date and non-credit losses in relation to fixed maturity securities and other invested assets held by the Company for the periods presented: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Credit impairment losses in operations $ (21 ) $ (24 ) $ — $ — $ (1 ) $ (22 ) Change-of-intent losses in operations (2 ) — — — — — Amortized cost 37 64 — — 19 — Fair value 37 64 — — 19 — Non-credit losses in other comprehensive income for investments which experienced OTTI — — — — (1 ) — Details of OTTI that were recognized in "Net income (loss)" and included in net realized gains on securities were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Asset-backed securities $ — $ — $ — $ — $ (1 ) $ (2 ) Corporates (21 ) (24 ) — — — (20 ) Equity security (2 ) — — — — — Total $ (23 ) $ (24 ) $ — $ — $ (1 ) $ (22 ) |
Schedule of Accounts, Notes, Loans and Financing Receivable | The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables: December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Property Type: Hotel 21 5 % 21 4 % Industrial - General 37 9 % 37 8 % Industrial - Warehouse 20 4 % 20 4 % Multifamily 54 13 % 56 12 % Office 143 34 % 147 30 % Retail 147 35 % 201 42 % Total commercial mortgage loans, gross of valuation allowance $ 422 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 422 $ 482 U.S. Region: East North Central $ 64 15 % $ 98 20 % East South Central 19 5 % 19 4 % Middle Atlantic 77 18 % 79 17 % Mountain 51 12 % 65 13 % New England 4 1 % 10 2 % Pacific 113 27 % 116 24 % South Atlantic 56 13 % 57 12 % West North Central 13 3 % 13 3 % West South Central 25 6 % 25 5 % Total commercial mortgage loans, gross of valuation allowance $ 422 100 % $ 482 100 % Allowance for loan loss — — Total commercial mortgage loans $ 422 $ 482 |
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios | Debt-Service Coverage Ratios Total Amount % of Total Estimated Fair Value % of Total >1.25 1.00 - 1.25 December 31, 2019 LTV Ratios: Less than 50% $ 346 $ 6 $ 352 83 % $ 363 83 % 50% to 60% 70 — 70 17 % 72 17 % Commercial mortgage loans $ 416 $ 6 $ 422 100 % $ 435 100 % December 31, 2018 LTV Ratios: Less than 50% $ 296 $ 6 $ 302 63 % $ 302 63 % 50% to 60% 169 — 169 35 % 170 35 % 60% to 75% 11 — 11 2 % 11 2 % Commercial mortgage loans $ 476 $ 6 $ 482 100 % $ 483 100 % |
Past Due Financing Receivables | |
Net Investment Income | The major sources of “Net investment income” on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Fixed maturity securities, available-for-sale $ 1,054 $ 1,009 $ 80 $ 164 $ 228 $ 953 Equity securities 73 73 6 5 10 41 Mortgage loans 42 24 2 4 6 23 Invested cash and short-term investments 18 16 1 1 — 3 Funds withheld 65 28 2 — — — Limited partnerships 81 17 1 3 1 5 Other investments 12 10 1 1 — 2 Gross investment income 1,345 1,177 93 178 245 1,027 Investment expense (116 ) (70 ) (1 ) (4 ) (5 ) (22 ) Net investment income $ 1,229 $ 1,107 $ 92 $ 174 $ 240 $ 1,005 |
Net Investment Gains | Details underlying “Net investment gains (losses)” reported on the accompanying Consolidated Statements of Operations were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net realized gains (losses) on fixed maturity available-for-sale securities $ 46 $ (187 ) $ 5 $ 5 $ 2 $ (20 ) Net realized/unrealized gains (losses) on equity securities 127 (142 ) — 1 — 3 Realized gains (losses) on other invested assets 3 (5 ) — — (2 ) (2 ) Derivatives and embedded derivatives: Realized gains (losses) on certain derivative instruments (15 ) (2 ) 3 80 1 219 Unrealized gains (losses) on certain derivative instruments 449 (248 ) 34 58 38 129 Change in fair value of funds withheld for reinsurance receivables and reinsurance related embedded derivatives (a) 57 (42 ) — 1 12 (16 ) Change in fair value of other derivatives and embedded derivatives 7 (3 ) — 1 — 3 Realized gains (losses) on derivatives and embedded derivatives 498 (295 ) 37 140 51 335 Net investment gains (losses) $ 674 $ (629 ) $ 42 $ 146 $ 51 $ 316 |
Schedule of Realized Gain (Loss) | The proceeds from the sale of fixed-maturity available for-sale-securities and the gross gains and losses associated with those transactions were as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Proceeds $ 2,848 $ 6,260 $ 125 $ 151 $ 97 $ 703 Gross gains 91 12 — 6 2 25 Gross losses (27 ) (171 ) — — (2 ) (20 ) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Outstanding Derivative Contracts in Condensed Consolidated Balance Sheets | The carrying amounts of derivative instruments, including derivative instruments embedded in FIA contracts, is as follows: December 31, 2019 December 31, 2018 Assets: Derivative investments: Call options $ 587 $ 97 Futures contracts — — Other invested assets: Other derivatives and embedded derivatives 21 14 Funds withheld: Call options 3 — $ 611 $ 111 Liabilities: Contractholder funds: FIA embedded derivative $ 3,235 $ 2,476 Other liabilities: Reinsurance related embedded derivative 33 — Preferred shares reimbursement feature embedded derivative 16 29 $ 3,284 $ 2,505 |
Schedule of Change in Fair Value of Derivative Instruments | The change in fair value of derivative instruments included in the accompanying Consolidated Statements of Operations is as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net investment gains (losses): Call options $ 404 $ (244 ) $ 34 $ 129 $ 39 $ 338 Futures contracts 27 (8 ) 3 9 — 10 Foreign currency forward 3 2 — — — — Other derivatives and embedded derivatives 7 (3 ) — 1 — 3 Reinsurance related embedded derivatives (a) 57 (42 ) — 1 12 (16 ) Total net investment gains (losses) $ 498 $ (295 ) $ 37 $ 140 $ 51 $ 335 Benefits and other changes in policy reserves: FIA embedded derivatives $ 759 $ 199 $ (54 ) $ 123 $ (133 ) $ 244 Acquisition and operating expenses, net of deferrals: Preferred shares reimbursement feature embedded derivative (b) $ (13 ) $ 6 $ — $ — $ — $ — (a) Change in fair value of reinsurance related embedded derivatives starting December 1, 2017 and after is due to F&G Re and FSRC unaffiliated third party business under the fair value option election. Starting January 1, 2019, the balance also includes activity related to the FGL Insurance and Kubera reinsurance treaty. The predecessor periods activity is due to the FGL Insurance and FSRC reinsurance treaty. See "Note 13. Reinsurance". (b) Only applicable to periods after December 1, 2017. |
FGL's Exposure to Credit Loss on Call Options Held | Information regarding the Company’s exposure to credit loss on the call options it holds is presented in the following table: December 31, 2019 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 2,718 $ 88 $ 43 $ 45 Deutsche Bank BBB/A3/BBB+ 157 7 7 — Morgan Stanley */A1/A+ 2,053 66 65 1 Barclay's Bank A+/A2/A 4,290 211 193 18 Canadian Imperial Bank of Commerce */Aa2/A+ 2,691 106 74 32 Wells Fargo A+/A2/A- 2,165 81 80 1 Goldman Sachs A/A3/BBB+ 1,065 31 27 4 Total $ 15,139 $ 590 $ 489 $ 101 December 31, 2018 Counterparty Credit Rating (Fitch/Moody's/S&P) (a) Notional Amount Fair Value Collateral Net Credit Risk Merrill Lynch A+/*/A+ $ 3,952 $ 25 $ — $ 25 Deutsche Bank A-/A3/BBB+ 1,327 5 6 (1 ) Morgan Stanley */A1/A+ 1,648 9 6 3 Barclay's Bank A+/A2/A 2,205 27 20 7 Canadian Imperial Bank of Commerce */Aa2/A+ 1,716 11 8 3 Wells Fargo A+/A2/A- 1,635 17 16 1 Goldman Sachs A/A3/BBB+ 647 3 3 — Total $ 13,130 $ 97 $ 59 $ 38 (a) An * represents credit ratings that were not available. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carrying at Fair Value on Recurring Basis | December 31, 2019 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 969 $ — $ — $ 969 $ 969 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,866 828 5,694 5,694 Commercial mortgage-backed securities — 2,895 27 2,922 2,922 Corporates — 10,305 1,292 11,597 11,597 Hybrids 299 718 10 1,027 1,027 Municipals — 1,301 42 1,343 1,343 Residential mortgage-backed securities — 408 546 954 954 U.S. Government 28 6 — 34 34 Foreign Governments — 137 18 155 155 Equity securities 387 614 1 1,002 1,002 Derivative investments — 587 — 587 587 Other invested assets — — 46 46 46 Funds withheld for reinsurance receivables, at fair value 314 1,856 1 2,171 2,171 Total financial assets at fair value $ 1,997 $ 23,693 $ 2,811 $ 28,501 $ 28,501 Liabilities Fair value of future policy benefits — — 1,953 1,953 1,953 Derivatives: FIA embedded derivatives, included in contractholder funds $ — $ — $ 3,235 $ 3,235 $ 3,235 Reinsurance related embedded derivative, included in other liabilities — 33 — 33 33 Preferred shares reimbursement feature embedded derivative — — 16 16 16 Total financial liabilities at fair value $ — $ 33 $ 5,204 $ 5,237 $ 5,237 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Carrying Amount Assets Cash and cash equivalents $ 571 $ — $ — $ 571 $ 571 Fixed maturity securities, available-for-sale: Asset-backed securities — 4,388 444 4,832 4,832 Commercial mortgage-backed securities — 2,470 67 2,537 2,537 Corporates — 9,150 1,231 10,381 10,381 Hybrids 265 626 10 901 901 Municipals — 1,150 37 1,187 1,187 Residential mortgage-backed securities — 417 614 1,031 1,031 U.S. Government 114 5 — 119 119 Foreign Governments — 105 16 121 121 Equity securities 454 874 4 1,332 1,332 Derivative investments — 97 — 97 97 Other invested assets — — 39 39 39 Funds withheld for reinsurance receivables, at fair value 177 576 4 757 757 Total financial assets at fair value $ 1,581 $ 19,858 $ 2,466 $ 23,905 $ 23,905 Liabilities Fair value of future policy benefits — — 725 725 725 Derivatives: FIA embedded derivatives, included in contractholder funds — — 2,476 2,476 2,476 Preferred shares reimbursement feature embedded derivative — — 29 29 29 Total financial liabilities at fair value $ — $ — $ 3,230 $ 3,230 $ 3,230 The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described. December 31, 2019 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 62 $ — $ 62 $ 62 Commercial mortgage loans — — 435 435 422 Residential mortgage loans — — 848 848 845 Policy loans, included in other invested assets — — 14 14 28 Company-owned life insurance — — 129 129 129 Affiliated bank loan — — 28 28 28 Funds withheld for reinsurance receivables, at fair value — — 1 1 1 Total $ — $ 62 $ 1,455 $ 1,517 $ 1,515 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 19,285 $ 19,285 $ 22,449 Debt — 578 — 578 542 Total $ — $ 578 $ 19,285 $ 19,863 $ 22,991 December 31, 2018 Level 1 Level 2 Level 3 Total Estimated Fair Value Carrying Amount Assets FHLB common stock $ — $ 52 $ — $ 52 $ 52 Commercial mortgage loans — — 483 483 482 Residential mortgage loans — — 187 187 185 Policy loans, included in other invested assets — — 11 11 22 Affiliated other invested assets — — 39 39 39 Total $ — $ 52 $ 720 $ 772 $ 780 Liabilities Investment contracts, included in contractholder funds $ — $ — $ 18,358 $ 18,358 $ 20,911 Debt — 520 — 520 541 Total $ — $ 520 $ 18,358 $ 18,878 $ 21,452 |
Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis | Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of December 31, 2019 and December 31, 2018 are as follows: Fair Value at Range (Weighted average) December 31, 2019 Valuation Technique Unobservable Input(s) December 31, 2019 Assets Asset-backed securities $ 801 Broker-quoted Offered quotes 98.65% - 119.35% Asset-backed securities 27 Third-Party Valuation Offered quotes 0.00% - 99.43% Commercial mortgage-backed securities 27 Broker-quoted Offered quotes 100.15% - 127.60% Corporates 346 Broker-quoted Offered quotes 83.51% - 106.73% Corporates 946 Third-Party Valuation Offered quotes 98.58% - 119.44% Hybrids 10 Third-Party Valuation Offered quotes 104.72% - 104.72% Municipals 42 Third-Party Valuation Offered quotes 127.68% - 127.68% Residential mortgage-backed securities 546 Broker-quoted Offered quotes 0.00% - 106.50% Foreign governments 18 Third-Party Valuation Offered quotes 110.12% - 118.09% Equity securities (Salus preferred equity) 1 Income-Approach Yield 2.47% Other invested assets: Available-for-sale embedded derivative (AnchorPath) 21 Black Scholes model Market value of AnchorPath fund 100.00% Credit linked note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables at fair value 1 Broker-quoted Offered quotes 100.00% Total $ 2,811 Liabilities Future policy benefits $ 1,953 Discounted cash flow Market value of option 0.00% - 11.20% (2.50%) Mortality multiplier 80.00% - 120.00% (95.46%) Surrender rates 0.00% - 55.00% (21.18%) Partial withdrawals 0.00% - 4.00% (2.28%) Non-performance spread 0.00% - 0.08% (0.03%) Option cost 0.00% - 5.02% (1.28%) Risk margin to reflect uncertainty 0.23% - 0.96% (0.34%) Morbidity risk margin 0.00% - 2.00% (0.07%) Derivatives: FIA embedded derivatives included in contractholder funds 3,235 Discounted cash flow Market value of option 0.00% - 32.54% SWAP rates 1.73% - 1.90% Mortality multiplier 80.00% - 80.00% Surrender rates 0.50% - 75.00% Partial withdrawals 2.00% - 3.50% Non-performance spread 0.25% - 0.25% Option cost 0.18% - 16.61% Preferred shares reimbursement feature embedded derivative 16 Black Derman Toy model Credit Spread 3.81% Yield Volatility 20.00% Total liabilities at fair value $ 5,204 Fair Value at Range (Weighted average) December 31, 2018 Valuation Technique Unobservable Input(s) December 31, 2018 Assets Asset-backed securities $ 405 Broker-quoted Offered quotes 97.00% - 102.00% (99.77%) Asset-backed securities 24 Matrix Pricing Quoted prices 96.07% - 96.07% (96.07%) Asset-backed securities 15 Third-Party Valuation Offered quotes 0.00% - 99.29% (23.05%) Commercial mortgage-backed securities 43 Broker-quoted Offered quotes 77.12% - 100.08% (85.46%) Commercial mortgage-backed securities 24 Matrix Pricing Quoted prices 117.72% - 117.72% (117.72%) Corporates 577 Broker-quoted Offered quotes 74.63% - 104.62% (97.80%) Corporates 654 Matrix Pricing Quoted prices 91.74% - 113.25% (98.86%) Hybrids 10 Matrix Pricing Quoted prices 96.60% - 96.60% (96.60%) Municipals 37 Broker-quoted Offered quotes 111.23% - 111.23% (111.23%) Residential mortgage-backed securities 614 Broker-quoted Offered quotes 89.80% - 100.99% (100.73%) Foreign governments 16 Broker-quoted Offered quotes 98.38% - 99.01% (98.58%) Equity securities (Salus preferred equity) 4 Income-Approach Yield 7.15% Other invested assets: Available-for-sale embedded derivative (AnchorPath) 14 Black Scholes model Market value of AnchorPath fund 100.00% Credit linked note 25 Broker-quoted Offered quotes 100.00% Funds withheld for reinsurance receivables, at fair value 4 Matrix pricing Calculated prices 100.00% Total $ 2,466 Liabilities Future policy benefits $ 725 Discounted cash flow Non-Performance risk spread 0.00% - 0.22% (0.18%) Risk margin to reflect uncertainty 0.35% - 0.71% (0.68%) Derivatives: FIA embedded derivatives included in contractholder funds $ 2,476 Discounted cash flow Market value of option 0.00% - 31.06% (0.94%) SWAP rates 2.57% - 2.71% (2.63%) Mortality multiplier 80.00% - 80.00% (80.00%) Surrender rates 0.50% - 75.00% (5.90%) Partial withdrawals 1.00% - 2.50% (2.00%) Non-performance spread 0.25% - 0.25% (0.25%) Option cost 0.11% - 16.61% (2.18%) Preferred shares reimbursement feature embedded derivative $ 29 Black Derman Toy model Credit Spread 5.14% Yield Volatility 20.00% Total liabilities at fair value $ 3,230 |
Changes in Fair Value of Financial Instruments - Assets | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, Predecessor period from October 1, 2017 to November 30, 3017, Predecessor period from October 1, 2016 to December 31, 2016, and the Predecessor year ended September 30, 2017, respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 19 $ 675 $ — $ (128 ) $ (182 ) $ 828 Commercial mortgage-backed securities 67 — 5 1 — (10 ) (36 ) 27 Corporates 1,231 — 69 221 (106 ) (133 ) 10 1,292 Hybrids 10 — — — — — — 10 Municipals 37 — 5 — — — — 42 Residential mortgage-backed securities 614 — 27 25 — (91 ) (29 ) 546 Foreign governments 16 — 2 — — — — 18 Equity securities 4 (2 ) (1 ) — — — — 1 Other invested assets: Available-for-sale embedded derivative 14 7 — — — — — 21 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 20 (1 ) — (22 ) 1 Total assets at Level 3 fair value $ 2,466 $ 5 $ 126 $ 942 $ (107 ) $ (362 ) $ (259 ) $ 2,811 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 759 $ — $ — $ — $ — $ — $ 3,235 Future policy benefits (F&G Re and FSRC) 725 123 15 — — 1,090 — 1,953 Preferred shares reimbursement feature embedded derivative 29 (13 ) — — — — — 16 Total liabilities at Level 3 fair value $ 3,230 $ 869 $ 15 $ — $ — $ 1,090 $ — $ 5,204 (a) The net transfers out of Level 3 during the year ended December 31, 2019 were exclusively to Level 2. Year ended December 31, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (4 ) $ 476 $ — $ (28 ) $ (412 ) $ 444 Commercial mortgage-backed securities 49 — (3 ) 46 — (6 ) (19 ) 67 Corporates 1,169 — (29 ) 288 — (126 ) (71 ) 1,231 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 5 560 (1 ) (15 ) (1 ) 614 Foreign governments 17 — (1 ) — — — — 16 Equity securities 3 1 — — — — — 4 Other invested assets: Available-for-sale embedded derivative 17 (3 ) — — — — — 14 Credit linked note — — — 25 — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 6 — (4 ) (2 ) 4 Total assets at Level 3 fair value $ 1,785 $ (2 ) $ (33 ) $ 1,401 $ (1 ) $ (179 ) $ (505 ) $ 2,466 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 199 $ — $ — $ — $ — $ — $ 2,476 Future policy benefits (F&G Re and FSRC) 728 (45 ) (4 ) — — 46 — 725 Preferred shares reimbursement feature embedded derivative 23 6 — — — — — 29 Total liabilities at Level 3 fair value $ 3,028 $ 160 $ (4 ) $ — $ — $ 46 $ — $ 3,230 (a) The net transfers out of Level 3 during the year ended December 31, 2018 were exclusively to Level 2. Period from December 1 to December 31, 2017 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 225 $ — $ — $ 143 $ — $ (1 ) $ 45 $ 412 Commercial mortgage-backed securities 49 — — — — — — 49 Corporates 1,163 — 2 30 (10 ) (16 ) — 1,169 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 67 — — — — (1 ) — 66 Foreign governments 17 — — — — — — 17 Equity securities 38 — — — — — (35 ) 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 HGI Energy Note 20 — — — (20 ) — — — Funds withheld for reinsurance receivables, at fair value 4 — — — — — — 4 Total assets at Level 3 fair value $ 1,648 $ — $ 2 $ 173 $ (30 ) $ (18 ) $ 10 $ 1,785 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,331 $ (54 ) $ — $ — $ — $ — $ — $ 2,277 Future policy benefits (FSRC) 723 9 — — — (4 ) — 728 Preferred shares reimbursement feature embedded derivative 23 — — — — — — 23 Total liabilities at Level 3 fair value $ 3,077 $ (45 ) $ — $ — $ — $ (4 ) $ — $ 3,028 (a) The net transfers out of Level 3 during the period from December 1 to December 31, 2017 were exclusively to Level 2. Period from October 1 to November 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 159 $ — $ — $ 95 $ — $ — $ (29 ) $ 225 Commercial mortgage-backed securities 95 — (1 ) — — — (45 ) 49 Corporates 1,097 — — 67 — (19 ) 18 1,163 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 15 — 1 51 — — — 67 Foreign governments 17 — — — — — — 17 Equity securities 2 — — — — — 35 37 Other invested assets: Available-for-sale embedded derivative 16 1 — — — — — 17 Total assets at Level 3 fair value $ 1,449 $ 1 $ — $ 213 $ — $ (19 ) $ (21 ) $ 1,623 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 Total liabilities at Level 3 fair value $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to November 30, 2017 were exclusively to Level 2. Period from October 1 to December 31, 2016 (Unaudited) Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (1 ) $ (1 ) $ 63 $ — $ (7 ) $ (29 ) $ 197 Commercial mortgage-backed securities 79 — (2 ) 8 — — — 85 Corporates 1,104 (1 ) (41 ) 51 (5 ) (48 ) 1 1,061 Hybrids — — — 10 — — — 10 Municipals 41 — (3 ) — — (1 ) — 37 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) — — — — — 1 Other invested assets: Available-for-sale embedded derivative 13 — — — — — — 13 Loan participations 21 (1 ) — — — (14 ) — 6 Total assets at Level 3 fair value $ 1,450 $ (5 ) $ (47 ) $ 132 $ (5 ) $ (70 ) $ (28 ) $ 1,427 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 Total liabilities at Level 3 fair value $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to December 30, 2016 (unaudited) were exclusively to Level 2. Year ended September 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (2 ) $ 2 $ 152 $ — $ (40 ) $ (125 ) $ 159 Commercial mortgage-backed securities 79 — 1 18 — (1 ) (2 ) 95 Corporates 1,104 (1 ) (29 ) 189 (20 ) (109 ) (37 ) 1,097 Hybrids — — — 10 — — — 10 Municipals 41 — (2 ) — — (1 ) — 38 Residential mortgage-backed securities — — 1 — — — 14 15 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) 1 — — — — 2 Other invested assets: Available-for-sale embedded derivative 13 3 — — — — — 16 Loan participations 21 (2 ) 1 — — (20 ) — — Total assets at Level 3 fair value $ 1,450 $ (4 ) $ (25 ) $ 369 $ (20 ) $ (171 ) $ (150 ) $ 1,449 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 Total liabilities at Level 3 fair value $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 (a) The net transfers out of Level 3 during the Predecessor year ended September 30, 2017 were exclusively to Level 2. |
Changes in Fair Value of Financial Instruments - Liabilities | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, Predecessor period from October 1, 2017 to November 30, 3017, Predecessor period from October 1, 2016 to December 31, 2016, and the Predecessor year ended September 30, 2017, respectively. This summary excludes any impact of amortization of VOBA and DAC. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. Year ended December 31, 2019 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 444 $ — $ 19 $ 675 $ — $ (128 ) $ (182 ) $ 828 Commercial mortgage-backed securities 67 — 5 1 — (10 ) (36 ) 27 Corporates 1,231 — 69 221 (106 ) (133 ) 10 1,292 Hybrids 10 — — — — — — 10 Municipals 37 — 5 — — — — 42 Residential mortgage-backed securities 614 — 27 25 — (91 ) (29 ) 546 Foreign governments 16 — 2 — — — — 18 Equity securities 4 (2 ) (1 ) — — — — 1 Other invested assets: Available-for-sale embedded derivative 14 7 — — — — — 21 Credit linked note 25 — — — — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 20 (1 ) — (22 ) 1 Total assets at Level 3 fair value $ 2,466 $ 5 $ 126 $ 942 $ (107 ) $ (362 ) $ (259 ) $ 2,811 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,476 $ 759 $ — $ — $ — $ — $ — $ 3,235 Future policy benefits (F&G Re and FSRC) 725 123 15 — — 1,090 — 1,953 Preferred shares reimbursement feature embedded derivative 29 (13 ) — — — — — 16 Total liabilities at Level 3 fair value $ 3,230 $ 869 $ 15 $ — $ — $ 1,090 $ — $ 5,204 (a) The net transfers out of Level 3 during the year ended December 31, 2019 were exclusively to Level 2. Year ended December 31, 2018 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 412 $ — $ (4 ) $ 476 $ — $ (28 ) $ (412 ) $ 444 Commercial mortgage-backed securities 49 — (3 ) 46 — (6 ) (19 ) 67 Corporates 1,169 — (29 ) 288 — (126 ) (71 ) 1,231 Hybrids 10 — — — — — — 10 Municipals 38 — (1 ) — — — — 37 Residential mortgage-backed securities 66 — 5 560 (1 ) (15 ) (1 ) 614 Foreign governments 17 — (1 ) — — — — 16 Equity securities 3 1 — — — — — 4 Other invested assets: Available-for-sale embedded derivative 17 (3 ) — — — — — 14 Credit linked note — — — 25 — — — 25 Funds withheld for reinsurance receivables, at fair value 4 — — 6 — (4 ) (2 ) 4 Total assets at Level 3 fair value $ 1,785 $ (2 ) $ (33 ) $ 1,401 $ (1 ) $ (179 ) $ (505 ) $ 2,466 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,277 $ 199 $ — $ — $ — $ — $ — $ 2,476 Future policy benefits (F&G Re and FSRC) 728 (45 ) (4 ) — — 46 — 725 Preferred shares reimbursement feature embedded derivative 23 6 — — — — — 29 Total liabilities at Level 3 fair value $ 3,028 $ 160 $ (4 ) $ — $ — $ 46 $ — $ 3,230 (a) The net transfers out of Level 3 during the year ended December 31, 2018 were exclusively to Level 2. Period from December 1 to December 31, 2017 Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 225 $ — $ — $ 143 $ — $ (1 ) $ 45 $ 412 Commercial mortgage-backed securities 49 — — — — — — 49 Corporates 1,163 — 2 30 (10 ) (16 ) — 1,169 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 67 — — — — (1 ) — 66 Foreign governments 17 — — — — — — 17 Equity securities 38 — — — — — (35 ) 3 Other invested assets: Available-for-sale embedded derivative 17 — — — — — — 17 HGI Energy Note 20 — — — (20 ) — — — Funds withheld for reinsurance receivables, at fair value 4 — — — — — — 4 Total assets at Level 3 fair value $ 1,648 $ — $ 2 $ 173 $ (30 ) $ (18 ) $ 10 $ 1,785 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,331 $ (54 ) $ — $ — $ — $ — $ — $ 2,277 Future policy benefits (FSRC) 723 9 — — — (4 ) — 728 Preferred shares reimbursement feature embedded derivative 23 — — — — — — 23 Total liabilities at Level 3 fair value $ 3,077 $ (45 ) $ — $ — $ — $ (4 ) $ — $ 3,028 (a) The net transfers out of Level 3 during the period from December 1 to December 31, 2017 were exclusively to Level 2. Period from October 1 to November 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 159 $ — $ — $ 95 $ — $ — $ (29 ) $ 225 Commercial mortgage-backed securities 95 — (1 ) — — — (45 ) 49 Corporates 1,097 — — 67 — (19 ) 18 1,163 Hybrids 10 — — — — — — 10 Municipals 38 — — — — — — 38 Residential mortgage-backed securities 15 — 1 51 — — — 67 Foreign governments 17 — — — — — — 17 Equity securities 2 — — — — — 35 37 Other invested assets: Available-for-sale embedded derivative 16 1 — — — — — 17 Total assets at Level 3 fair value $ 1,449 $ 1 $ — $ 213 $ — $ (19 ) $ (21 ) $ 1,623 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 Total liabilities at Level 3 fair value $ 2,627 $ (296 ) $ — $ — $ — $ — $ — $ 2,331 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to November 30, 2017 were exclusively to Level 2. Period from October 1 to December 31, 2016 (Unaudited) Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (1 ) $ (1 ) $ 63 $ — $ (7 ) $ (29 ) $ 197 Commercial mortgage-backed securities 79 — (2 ) 8 — — — 85 Corporates 1,104 (1 ) (41 ) 51 (5 ) (48 ) 1 1,061 Hybrids — — — 10 — — — 10 Municipals 41 — (3 ) — — (1 ) — 37 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) — — — — — 1 Other invested assets: Available-for-sale embedded derivative 13 — — — — — — 13 Loan participations 21 (1 ) — — — (14 ) — 6 Total assets at Level 3 fair value $ 1,450 $ (5 ) $ (47 ) $ 132 $ (5 ) $ (70 ) $ (28 ) $ 1,427 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 Total liabilities at Level 3 fair value $ 2,383 $ (133 ) $ — $ — $ — $ — $ — $ 2,250 (a) The net transfers out of Level 3 during the Predecessor period from October 1 to December 30, 2016 (unaudited) were exclusively to Level 2. Year ended September 30, 2017 Predecessor Balance at Beginning Total Gains (Losses) Purchases Sales Settlements Net transfer In (Out) of Balance at End of Included in Included in Assets Fixed maturity securities available-for-sale: Asset-backed securities $ 172 $ (2 ) $ 2 $ 152 $ — $ (40 ) $ (125 ) $ 159 Commercial mortgage-backed securities 79 — 1 18 — (1 ) (2 ) 95 Corporates 1,104 (1 ) (29 ) 189 (20 ) (109 ) (37 ) 1,097 Hybrids — — — 10 — — — 10 Municipals 41 — (2 ) — — (1 ) — 38 Residential mortgage-backed securities — — 1 — — — 14 15 Foreign governments 17 — — — — — — 17 Equity securities 3 (2 ) 1 — — — — 2 Other invested assets: Available-for-sale embedded derivative 13 3 — — — — — 16 Loan participations 21 (2 ) 1 — — (20 ) — — Total assets at Level 3 fair value $ 1,450 $ (4 ) $ (25 ) $ 369 $ (20 ) $ (171 ) $ (150 ) $ 1,449 Liabilities FIA embedded derivatives, included in contractholder funds $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 Total liabilities at Level 3 fair value $ 2,383 $ 244 $ — $ — $ — $ — $ — $ 2,627 (a) The net transfers out of Level 3 during the Predecessor year ended September 30, 2017 were exclusively to Level 2. |
Schedule of Net Asset Value | The following table includes assets that have not been classified in the fair value hierarchy as the fair value of these investments is measured using the net asset value per share practical expedient. For further discussion about this adoption see “Note 2. Significant Accounting Policies and Practices”. Carrying Value After Measurement December 31, 2019 December 31, 2018 Equity securities available-for-sale $ 69 $ 50 Limited partnership investment, included in other invested assets 1,010 510 |
Gross Transfers Into and Out of Certain Fair Value Levels by Asset Class | The Company’s assessment resulted in gross transfers into and gross transfers out of certain fair value levels by asset class for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017 , are as follows: Transfers Between Fair Value Levels Level 1 Level 2 Level 3 In Out In Out In Out Year ended December 31, 2019 Asset-backed securities $ — $ — $ 233 $ 51 $ 51 $ 233 Commercial mortgage-backed securities — — 37 1 1 37 Corporates — — 1 11 11 1 Residential mortgage-backed securities — — 29 — — 29 Equity securities 7 29 29 7 16 16 Funds withheld for reinsurance receivables — — 22 — — 22 Total transfers $ 7 $ 29 $ 351 $ 70 $ 79 $ 338 Year ended December 31, 2018 Asset-backed securities $ — $ — $ 425 $ 13 $ 13 $ 425 Commercial mortgage-backed securities — — 28 9 9 28 Corporates — — 75 4 4 75 Hybrids 20 — — 20 — — Residential mortgage-backed securities — — 36 35 35 36 Equity securities 25 30 30 25 — — Funds withheld for reinsurance receivables — — 2 — — 2 Total transfers $ 45 $ 30 $ 596 $ 106 $ 61 $ 566 Period from December 1 to December 31, 2017 Asset-backed securities $ — $ — $ 1 $ 46 $ 46 $ 1 Commercial mortgage-backed securities — — 1 — — 1 Hybrids 27 15 15 27 — — Equity securities 53 26 61 53 — 35 Total transfers $ 80 $ 41 $ 78 $ 126 $ 46 $ 37 Predecessor Period from October 1 to November 30, 2017 Asset-backed securities $ — $ — $ 29 $ — $ — $ 29 Commercial mortgage-backed securities — — 46 1 1 46 Corporates — — — 18 18 — Hybrids 244 — — 244 — — Equity securities 374 — — 409 35 — Total transfers $ 618 $ — $ 75 $ 672 $ 54 $ 75 Predecessor Period from October 1 to December 31, 2016 (Unaudited) Asset-backed securities $ — $ — $ 68 $ 39 $ 39 $ 68 Corporates — — 4 5 5 4 Total transfers $ — $ — $ 72 $ 44 $ 44 $ 72 Predecessor Year ended September 30, 2017 Asset-backed securities $ — $ — $ 222 $ 112 $ 112 $ 222 Commercial mortgage-backed securities — — 7 6 6 7 Corporates — — 49 10 10 49 Total transfers $ — $ — $ 278 $ 128 $ 128 $ 278 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Intangible Assets, VOBA and DAC | A summary of the changes in the carrying amounts of the Company's VOBA, DAC and DSI intangible assets are as follows: VOBA DAC DSI Total Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 Deferrals — 379 130 509 Amortization (106 ) (30 ) (20 ) (156 ) Interest 18 13 4 35 Unlocking (2 ) (2 ) (1 ) (5 ) Adjustment for net unrealized investment (gains) losses (183 ) (74 ) (30 ) (287 ) Balance at December 31, 2019 $ 593 $ 630 $ 232 $ 1,455 VOBA DAC DSI Total Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Deferrals — 317 138 455 Amortization (58 ) (4 ) (2 ) (64 ) Interest 19 4 1 24 Unlocking (9 ) — — (9 ) Adjustment for net unrealized investment (gains) losses 93 5 2 100 Balance at December 31, 2018 $ 866 $ 344 $ 149 $ 1,359 VOBA DAC DSI Total Balance at December 1, 2017 $ 844 $ — $ — $ 844 Deferrals — 23 10 33 Amortization (7 ) (1 ) — (8 ) Interest 2 — — 2 Unlocking — — — — Adjustment for net unrealized investment (gains) losses (18 ) — — (18 ) Balance at December 31, 2017 $ 821 $ 22 $ 10 $ 853 Predecessor VOBA DAC DSI Total Balance at October 1, 2017 $ — $ 1,023 $ 106 $ 1,129 Deferrals — 40 8 48 Amortization (12 ) (39 ) (5 ) (56 ) Interest 2 7 1 10 Unlocking 7 4 (1 ) 10 Adjustment for net unrealized investment (gains) losses 3 (4 ) — (1 ) Balance at November 30, 2017 $ — $ 1,031 $ 109 $ 1,140 VOBA DAC DSI Total Balance at October 1, 2016 $ 19 $ 921 $ 86 $ 1,026 Deferrals — 88 12 100 Amortization (31 ) (103 ) (2 ) (136 ) Interest 2 22 (11 ) 13 Unlocking 6 (7 ) 1 — Adjustment for unrealized investment losses (gains) 122 103 — 225 Balance at December 31, 2016 $ 118 $ 1,024 $ 86 $ 1,228 Predecessor VOBA DAC DSI Total Balance at September 30, 2016 $ 19 $ 921 $ 86 $ 1,026 Deferrals — 293 43 336 Amortization (65 ) (192 ) (23 ) (280 ) Interest 11 42 4 57 Unlocking 32 2 (4 ) 30 Adjustment for net unrealized investment (gains) losses 3 (43 ) — (40 ) Balance at September 30, 2017 $ — $ 1,023 $ 106 $ 1,129 |
Estimated Amortization Expense for VOBA in Future Fiscal Periods | Estimated amortization expense for VOBA in future fiscal periods is as follows: Estimated Amortization Expense Fiscal Year 2020 62 2021 85 2022 80 2023 72 2024 65 Thereafter 337 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying amount of the Company's outstanding debt as of December 31, 2019 and December 31, 2018 is as follows: December 31, 2019 December 31, 2018 Debt $ 542 $ 541 Revolving credit facility — — Interest rates on the revolving credit facility were equal to 4.55% and 5.27% as of December 31, 2019 and December 31, 2018 , respectively. As of December 31, 2019 and December 31, 2018 , the amount available to be drawn on the revolver was $250 . The interest expense and amortization of debt issuance costs for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017, were as follows: Year ended Period from December 1 to December 31, 2017 December 31, 2019 December 31, 2018 Interest Expense Amortization Interest Expense Amortization Interest Expense Amortization Debt $ 30 $ 2 $ 28 $ 1 $ 2 $ — Revolving credit facility — — 2 — — — Gain on extinguishment of debt — — (2 ) — — — The interest expense and amortization of debt issuance costs for the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017, were not material. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | The Company declared the following cash dividends to its common shareholders during the year ended December 31, 2019 : Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Cash Dividend declared (per share) Total cash paid February 27, 2019 April 1, 2019 March 18, 2019 221,661 $0.01 $2 May 7, 2019 June 10, 2019 May 28, 2019 221,661 $0.01 $2 August 7, 2019 September 9, 2019 August 26, 2019 221,661 $0.01 $2 November 6, 2019 December 9, 2019 November 25, 2019 221,661 $0.01 $2 On February 26, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share. The dividend will be paid on March 30, 2020 to shareholders of record as of the close of business on March 16, 2020. The Company declared the following dividends to its preferred shareholders during the years ended December 31, 2019 and December 31, 2018 : Type of Preferred Share Date Declared Date Paid Date Shareholders of record Shareholders of record (in thousands) Method of Payment Total cash paid Total shares paid in kind (in thousands) Series A Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 277 Paid in kind $— 5 Series B Preferred Shares March 29, 2018 April 1, 2018 March 15, 2018 101 Paid in kind $— 1 Series A Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 282 Paid in kind $— 5 Series B Preferred Shares June 29, 2018 July 1, 2018 June 15, 2018 102 Paid in kind $— 2 Series A Preferred Shares September 28, 2018 October 1, 2018 September 15, 2018 287 Paid in kind $— 5 Series B Preferred Shares September 28, 2018 October 1, 2018 September 15, 2018 104 Paid in kind $— 2 Series A Preferred Shares December 31, 2018 January 1, 2019 December 15, 2018 293 Paid in kind $— 6 Series B Preferred Shares December 31, 2018 January 1, 2019 December 15, 2018 106 Paid in kind $— 2 Series A Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 298 Paid in kind $— 6 Series B Preferred Shares March 29, 2019 April 1, 2019 March 15, 2019 108 Paid in kind $— 2 Series A Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 304 Paid in kind $— 6 Series B Preferred Shares June 28, 2019 July 1, 2019 June 15, 2019 110 Paid in kind $— 2 Series A Preferred Shares September 30, 2019 October 1, 2019 September 15, 2019 310 Paid in kind $— 6 Series B Preferred Shares September 30, 2019 October 1, 2019 September 15, 2019 112 Paid in kind $— 2 Series A Preferred Shares December 31, 2019 January 1, 2020 December 15, 2019 316 Paid in kind $— 5 Series B Preferred Shares December 31, 2019 January 1, 2020 December 15, 2019 114 Paid in kind $— 3 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Outstanding Stock Option Activity | A summary of the Company’s outstanding stock options as of December 31, 2019 , and related activity during the twelve months ended December 31, 2019 , is as follows (share amount in thousands): Stock Option Awards Options Weighted Average Exercise Price Stock options outstanding at December 31, 2018 13,007 $ 9.68 Granted 7,749 9.18 Exercised — — Forfeited or expired (5,542 ) 10.00 Stock options outstanding at December 31, 2019 15,214 9.30 Exercisable at December 31, 2019 1,009 9.16 Vested or projected to vest at December 31, 2019 15,214 $ 9.30 |
Schedule of Nonvested Restricted Shares Outstanding | A summary of the Company’s nonvested restricted shares outstanding as of December 31, 2019 , and related activity during the twelve months ended , is as follows (share amount in thousands): Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Restricted shares outstanding at December 31, 2018 — $ — Granted 147 6.82 Vested (147 ) 6.82 Vested or expected to vest at December 31, 2019 — — |
Schedule of Nonvested Performance | A summary of the Management Incentive Plan nonvested phantom units outstanding as of December 31, 2019 , and related activity during the twelve months ended is as follows (share amount in thousands): Phantom units Shares Weighted Average Grant Date Fair Value Phantom units outstanding at December 31, 2018 356 $ 8.95 Granted 541 8.54 Vested (59 ) 10.00 Forfeited or expired (93 ) 9.33 Phantom units outstanding at December 31, 2019 745 $ 9.02 |
Schedule of Stock Based Compensation | The Company recognized total stock compensation expense related to the FGL Incentive Plan and Management Incentive Plan is as follows: Year ended December 31, 2019 December 31, 2018 Total stock compensation expense 5 4 Related tax benefit 1 1 Net stock compensation expense $ 4 $ 3 |
Schedule of Incentive Plans | Total compensation expense related to the FGL Incentive Plan and Management Incentive Plan not yet recognized as of December 31, 2019 and the weighted-average period over which this expense will be recognized are as follows: Unrecognized Compensation Weighted Average Recognition FGL Incentive Plan $ 18 3 Management Incentive Plan 4 2 Total unrecognized stock compensation expense $ 22 3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income tax (expense) benefit is calculated based upon the following components of income before income taxes: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Pretax income (loss): United States $ 467 $ (271 ) $ (55 ) $ 44 $ 163 $ 333 Outside the United States 101 300 74 — — — Total pretax income $ 568 $ 29 $ 19 $ 44 $ 163 $ 333 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax (expense) benefit are as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Current: Federal $ (22 ) $ (42 ) $ (5 ) $ (23 ) $ 21 $ (114 ) State — — — — — — Total current $ (22 ) $ (42 ) $ (5 ) $ (23 ) $ 21 $ (114 ) Deferred: Federal $ (39 ) $ 26 $ (105 ) $ 7 $ (76 ) $ 4 State — — — — — — Total deferred $ (39 ) $ 26 $ (105 ) $ 7 $ (76 ) $ 4 Income tax (expense)/benefit $ (61 ) $ (16 ) $ (110 ) $ (16 ) $ (55 ) $ (110 ) |
Schedule of Effective Income Tax Rate Reconciliation | The difference between income taxes expected at the U.S. Federal statutory income tax rate of 21% and reported income tax (expense) benefit is summarized as follows: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Expected income tax (expense)/benefit at Federal statutory rate $ (119 ) $ (6 ) $ (7 ) $ (15 ) $ (57 ) $ (117 ) Valuation allowance for deferred tax assets 39 (38 ) 13 (2 ) — 1 Amortization of low income housing tax credits (8 ) (4 ) (1 ) (1 ) — (4 ) Benefit on LIHTC under proportional amortization method 9 5 — 1 — 5 Write off of expired capital loss carryforward — — — — — — Remeasurement of deferred taxes under U.S. tax reform — — (131 ) — — — Dividends received deduction 4 5 — 1 — 4 Benefit on Outside of United States Income taxed at 0% 21 63 26 — — — Withholding Tax on 0% Taxed Jurisdictions (5 ) — — — — — Write off of 382 Limited NOL — — (12 ) — — — Base Erosion & Antiabuse Tax "BEAT" — (44 ) — — — — Other (2 ) 3 2 — 2 1 Reported income tax (expense)/benefit $ (61 ) $ (16 ) $ (110 ) $ (16 ) $ (55 ) $ (110 ) Effective tax rate 11 % 55 % 579 % 37 % 34 % 33 % |
Schedule Of Deferred Tax Expense To Other Comprehensive Income [Table Text Block] | The Company recorded the following deferred tax expense to OCI: Year ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Deferred Tax Expense in OCI $ (242 ) $ 132 $ (19 ) $ (7 ) $ 154 $ (56 ) |
Schedule of Deferred Tax Assets and Liabilities | The following table is a summary of the components of deferred income tax assets and liabilities: December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss, credit and capital loss carryforwards $ 35 $ 94 Insurance reserves and claim related adjustments 716 620 Unrealized Investment Losses — 201 Derivatives — 36 Deferred acquisition costs — — Funds held under Reinsurance Agreements 11 — Other 37 30 Valuation allowance (14 ) (154 ) Total deferred tax assets $ 785 $ 827 Deferred tax liabilities: Value of business acquired $ (124 ) $ (181 ) Unrealized Investment Gains (221 ) — Investments (121 ) (133 ) Derivatives (45 ) — Deferred acquisition costs (139 ) (76 ) Transition reserve on new reserve method (63 ) (75 ) Funds held under Reinsurance Agreements — (11 ) Other (11 ) (8 ) Total deferred tax liabilities $ (724 ) $ (484 ) Net deferred tax assets and (liabilities) $ 61 $ 343 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unfunded Commitments | The Company has unfunded investment commitments as of December 31, 2019 based upon the timing of when investments are executed compared to when the actual investments are funded, as some investments require that funding occur over a period of months or years. A summary of unfunded commitments by invested asset class are included below: December 31, 2019 Asset Type Other invested assets $ 1,202 Equity securities 14 Fixed maturity securities, available-for-sale 48 Other assets 78 Residential mortgage loans 16 Total $ 1,358 As of December 31, 2019 , the Company had unfunded commitments in affiliated investments which are included in the table above. See "Note 14. Related Party Transactions" for further information. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes | The effect of reinsurance on net premiums earned and net benefits incurred (benefits incurred and reserve changes) for the years ended December 31, 2019 and December 31, 2018 , the period from December 1, 2017 to December 31, 2017, the Predecessor period from October 1, 2017 to November 30, 2017, the Predecessor period from October 1, 2016 to December 31, 2016 (unaudited), and the Predecessor year ended September 30, 2017 were as follows: Year ended Period from December 1 to December 31, 2017 December 31, 2019 December 31, 2018 Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 204 $ 1,277 $ 223 $ 646 $ 17 $ 142 Assumed — (19 ) — (13 ) — 7 Ceded (164 ) (201 ) (169 ) (210 ) (14 ) (25 ) Net $ 40 $ 1,057 $ 54 $ 423 $ 3 $ 124 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) Year ended September 30, 2017 Predecessor Predecessor Predecessor Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Net Premiums Earned Net Benefits Incurred Direct $ 36 $ 267 $ 57 $ 69 $ 233 $ 1,097 Assumed — — — — — — Ceded (29 ) (40 ) (46 ) (49 ) (191 ) (254 ) Net $ 7 $ 227 $ 11 $ 20 $ 42 $ 843 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company earned $ 112 , $ 33 and $ 1 net investment income for the years ended December 31, 2019 and December 31, 2018 , and the period from December 1, 2017 to December 31, 2017, respectively, on affiliated investments. The Company had no gross realized gains (losses) and realized impairment losses on related party investments during the years ended December 31, 2019 and December 31, 2018 and the period from December 1, 2017 to December 31, 2017. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted earnings per share (share amounts in thousands): Year Ended Year ended December 31, 2019 December 31, 2018 Period from December 1 to December 31, 2017 Period from October 1 to November 30, 2017 Period from October 1 to December 31, 2016 (Unaudited) September 30, 2017 Predecessor Predecessor Predecessor Net income (loss) $ 507 $ 13 $ (91 ) $ 28 $ 108 $ 223 Less Preferred stock dividend 31 29 2 — — — Net income (loss) available to common shares 476 (16 ) (93 ) 28 108 223 Weighted-average common shares outstanding - basic 216,592 216,019 214,370 58,341 58,281 58,320 Dilutive effect of unvested restricted stock & PRSU 86 — — 61 57 43 Dilutive effect of stock options 59 — — 92 28 52 Weighted-average shares outstanding - diluted 216,738 216,019 214,370 58,494 58,366 58,415 Net income (loss) per common share: Basic $ 2.19 $ (0.07 ) $ (0.44 ) $ 0.48 $ 1.85 $ 3.83 Diluted $ 2.19 $ (0.07 ) $ (0.44 ) $ 0.47 $ 1.85 $ 3.83 |
Insurance Subsidiary Financia_2
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | The Company’s principal insurance subsidiaries’ statutory (SAP and GAAP) financial statements are based on a December 31 year end. Statutory net income and statutory capital and surplus of the Company’s wholly-owned insurance subsidiaries were as follows: Subsidiary (state/country of domicile) (a) FGL Insurance (IA) FGL NY Insurance (NY) F&G Life Re (Bermuda) Statutory Net Income (loss): Year ended December 31, 2019 $ 152 $ (1 ) $ 3 Year ended December 31, 2018 (151 ) (3 ) 319 Statutory Capital and Surplus: December 31, 2019 $ 1,513 $ 95 $ 2 December 31, 2018 1,545 85 2 (a) FGL NY Insurance is a subsidiary of FGL Insurance, and the columns should not be added together. Subsidiary (state/country of domicile) FSR (Cayman) F&G Re (Bermuda) Statutory Net Income (loss): Year ended December 31, 2019 $ (29 ) $ 69 Year ended December 31, 2018 (29 ) (14 ) Statutory Capital and Surplus: December 31, 2019 $ 73 $ 295 December 31, 2018 73 38 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Other Liabilities | Other liabilities consisted of the following: December 31, 2019 December 31, 2018 Amounts payable for investment purchases $ 11 $ 39 Retained asset account 141 162 Option collateral liabilities 446 59 Remittances and items not allocated 119 101 Accrued expenses 116 72 Deferred reinsurance revenue 17 39 Unearned revenue liability 43 41 Preferred shares reimbursement feature embedded derivative 17 29 Negative cash liability 69 126 Commissions payable 13 9 Funds withheld embedded derivative 33 — Rabbi trust investment 36 26 Other 47 (3 ) Total $ 1,108 $ 700 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | uarterly results of operations are summarized below. Quarter ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 (Dollars in millions, except per share data) Premiums $ 7 $ 9 $ 8 $ 16 Net investment income 324 301 315 289 Net investment gains (losses) 196 103 135 240 Insurance and investment product fees and other 36 42 37 55 Total revenues 563 455 495 600 Total benefits and expenses 282 391 428 412 Net income (loss) 225 65 46 171 Net income (loss) per common share - basic 1.02 0.26 0.17 0.74 Net income (loss) per common share - diluted 1.02 0.26 0.17 0.74 Quarter ended December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 (Dollars in millions, except per share data) Premiums $ 9 $ 12 $ 15 $ 18 Net investment income 295 267 282 263 Net investment gains (losses) (555 ) 119 (2 ) (191 ) Insurance and investment product fees and other 40 46 45 48 Total revenues (211 ) 444 340 138 Total expenses (20 ) 365 280 28 Net income (loss) (148 ) 56 40 65 Net income (loss) per common share - basic (0.70 ) 0.23 0.15 0.27 Net income (loss) per common share - diluted (0.70 ) 0.23 0.15 0.27 |
Basis of Presentation and Nat_3
Basis of Presentation and Nature of Business - Narrative (Details) $ / shares in Units, $ in Millions | Feb. 07, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)segment |
Effects of Reinsurance [Line Items] | ||
Reporting segments | segment | 1 | |
FGL | ||
Effects of Reinsurance [Line Items] | ||
Preferred shares Acquired Through Acquisition, Value | $ 321 | |
Subsequent Event [Member] | FGL | ||
Effects of Reinsurance [Line Items] | ||
Acquisition share price (in USD per share) | $ / shares | $ 12.50 | |
Business Combination, Consideration Transferred | $ 2,700 | |
Business Acquisition, Percentage of Voting Interests Acquired | 7.90% | |
Subsequent Event [Member] | Fidelity national Financial, Inc [Member] | ||
Effects of Reinsurance [Line Items] | ||
Shareholders equity Convertible Basis ,in cash | $ / shares | $ 12.50 | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.2558 | |
Consideration Paid In Cash, Percent | 60.00% | |
Consideration Paid In Common Stock, Percent | 40.00% | |
Senior Notes | FGL | ||
Effects of Reinsurance [Line Items] | ||
Debt Assumed Through Acquisition | $ 550 |
Basis of Presentation and Nat_4
Basis of Presentation and Nature of Business - Schedule of Premiums and Annuity Deposits, net of Coinsurance, Not Included in Revenue (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Premiums and annuity deposits, net of coinsurance, not included as revenue, excluding traditional premiums | $ 239 | $ 434 | $ 707 | $ 3,556 | $ 2,520 | $ 2,639 |
Fixed indexed annuities | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Premiums and annuity deposits, net of coinsurance, not included as revenue, excluding traditional premiums | 178 | 288 | 556 | 2,800 | 2,253 | 1,892 |
Fixed rate annuities | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Premiums and annuity deposits, net of coinsurance, not included as revenue, excluding traditional premiums | 45 | 116 | 99 | 539 | 61 | 556 |
Single premium immediate annuities | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Premiums and annuity deposits, net of coinsurance, not included as revenue, excluding traditional premiums | 0 | 1 | 2 | 14 | 24 | 15 |
Traditional life insurance premiums | ||||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | ||||||
Premiums and annuity deposits, net of coinsurance, not included as revenue, excluding traditional premiums | $ 16 | $ 29 | $ 50 | $ 203 | $ 182 | $ 176 |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 4,000,000 | ||||||||||
Available-for-sale Securities | $ 23,726,000,000 | $ 21,109,000,000 | $ 23,726,000,000 | $ 21,109,000,000 | |||||||
Future policy benefits, including $1,953 and $725 at fair value at December 31, 2019 and December 31, 2018, respectively | 5,735,000,000 | 4,641,000,000 | 5,735,000,000 | 4,641,000,000 | |||||||
Cash and cash equivalents | 38,000,000 | 84,000,000 | 38,000,000 | 84,000,000 | |||||||
Unrecognized tax benefits | 0 | 0 | $ 0 | 0 | 0 | ||||||
Reserves for funding agreements | 1,096,000,000 | 878,000,000 | 1,096,000,000 | 878,000,000 | |||||||
FHLB collateral pledged | 1,472,000,000 | 1,401,000,000 | 1,472,000,000 | 1,401,000,000 | |||||||
Preferred Stock, Call Features, Minimum Term | 5 years | ||||||||||
Preferred stock dividend rate | 10.00% | ||||||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 1,000,000 | $ 12,000,000 | 57,000,000 | (42,000,000) | (16,000,000) | |||||
Federal home Loan Bank, Advances, General Debt Obligations, Disclosures, Cash and Collateral Pledged | 1,521,000,000 | 1,414,000,000 | 1,521,000,000 | $ 1,414,000,000 | |||||||
Other Assets, Miscellaneous | 1,000,000 | 1,000,000 | |||||||||
Minimum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Available-for-sale Securities | 29,000,000 | 29,000,000 | |||||||||
Reinsurance Recoverables, Gross | 20,000,000 | 20,000,000 | |||||||||
Proceeds from Mortgage Deposits | 7,000,000 | ||||||||||
Maximum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Available-for-sale Securities | 39,000,000 | 39,000,000 | |||||||||
Reinsurance Recoverables, Gross | 24,000,000 | $ 24,000,000 | |||||||||
Proceeds from Mortgage Deposits | $ 14,000,000 | ||||||||||
Fixed indexed annuities | Minimum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Interest crediting rates associated with subsidiaries | 0.50% | ||||||||||
Fixed indexed annuities | Maximum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Interest crediting rates associated with subsidiaries | 6.00% | ||||||||||
Indexed Universal Life | Minimum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Interest crediting rates associated with subsidiaries | 3.00% | ||||||||||
Indexed Universal Life | Maximum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Interest crediting rates associated with subsidiaries | 4.80% | ||||||||||
Traditional life insurance premiums | Minimum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Estimated investment yield | 5.70% | 5.70% | |||||||||
Life Contingent Payout Annuity | Minimum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Estimated investment yield | 0.10% | 0.10% | |||||||||
Life Contingent Payout Annuity | Maximum | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Estimated investment yield | 5.50% | 5.50% | |||||||||
Royal Bank Of Canada | Revolving Credit Facility | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
senior unsecured revolving credit facility | $ 250,000,000 | 250,000,000 | |||||||||
Debt term | 3 years | ||||||||||
Preferred Stock | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Preferred Stock, Call Features, Minimum Term | 5 years | ||||||||||
Preferred stock dividend rate | 10.00% | ||||||||||
Series A Cumulative Preferred Stock | Preferred Stock | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 275,000 | ||||||||||
Series B Cumulative Preferred Stock | Preferred Stock | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues | 100,000 | ||||||||||
Contractholder funds | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 17,000,000 | ||||||||||
Indefinite-lived Intangible Assets [Member] | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 3,000,000 | ||||||||||
Deferred Tax Asset [Domain] | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 3,000,000 | ||||||||||
Net investment (losses) gains | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Change in fair value of other derivatives and embedded derivatives | 37,000,000 | 140,000,000 | 51,000,000 | $ 498,000,000 | (295,000,000) | 335,000,000 | |||||
Benefits and Other Changes in Policy Reserves [Member] | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 17,000,000 | ||||||||||
Amortization of Intangible Assets [Member] | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 3,000,000 | ||||||||||
income tax expense [Member] | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 3,000,000 | ||||||||||
Preferred shares reimbursement feature embedded derivative | |||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 0 | $ 0 | $ (13,000,000) | $ 6,000,000 | $ 0 |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties - Narrative (Details) | Dec. 31, 2019USD ($)issuer | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($)issuer | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($)issuer |
Concentration Risk [Line Items] | |||||||
Change in DAC and VOBA amortization | $ 3,000,000 | $ 2,000,000 | |||||
Increase/(decrease) in liability for annuity contracts | (13,000,000) | 5,000,000 | |||||
Liability for Future Policy Benefits, Life | $ 14,000,000 | 14,000,000 | |||||
Increase (decrease) in derivative liabilities | 1,000,000 | ||||||
Increase (decrease) in future policy benefit reserves | $ 4,000,000 | $ (11,000,000) | $ (14,000,000) | 1,079,000,000 | $ (55,000,000) | $ (110,000,000) | |
Exposure of FGL's invested assets | 7.00% | ||||||
Fair Value In Investments | $ 1,634,000,000 | ||||||
Number of issuers in investment | issuer | 16 | ||||||
Wilton Reassurance Company | |||||||
Concentration Risk [Line Items] | |||||||
Net amount recoverable | 1,496,000,000 | ||||||
Kubera Reassurance Company | |||||||
Concentration Risk [Line Items] | |||||||
Net amount recoverable | 842,000,000 | ||||||
Scottish Re | |||||||
Concentration Risk [Line Items] | |||||||
Net amount recoverable | 47,000,000 | ||||||
Pavonia Life Insurance Company | |||||||
Concentration Risk [Line Items] | |||||||
Net amount recoverable | 85 | ||||||
All Financial Instruments | |||||||
Concentration Risk [Line Items] | |||||||
FGL's investment securities in the banking industry | $ 2,414,000,000 | $ 2,414,000,000 | $ 2,491,000,000 | ||||
Exposure of FGL's invested assets | 9.00% | 9.00% | 10.00% | ||||
Single Issuer | |||||||
Concentration Risk [Line Items] | |||||||
FGL's investment securities in the banking industry | $ 132,000,000 | $ 132,000,000 | $ 115,000,000 | ||||
Exposure of FGL's invested assets | 1.00% | 1.00% | 1.00% | ||||
Banking Industry | All Financial Instruments | |||||||
Concentration Risk [Line Items] | |||||||
Investment securities held by subsidiaries subject to specialized industry accounting principles, amortized cost | $ 2,325,000,000 | $ 2,325,000,000 | $ 2,691,000,000 | ||||
Top Ten Holdings | |||||||
Concentration Risk [Line Items] | |||||||
Exposure of FGL's invested assets | 39.00% | 39.00% | |||||
Number of issuers in investment | issuer | 98 | 98 | |||||
JP MORGAN - JPMI MARKET | |||||||
Concentration Risk [Line Items] | |||||||
Exposure of FGL's invested assets | 10.00% | 10.00% | |||||
Minimum | |||||||
Concentration Risk [Line Items] | |||||||
Exposure of FGL's invested assets | 10.00% | ||||||
FGL | |||||||
Concentration Risk [Line Items] | |||||||
Liability for Future Policy Benefits, Life | $ 10,000,000 | $ 10,000,000 |
Investments - Available-for-Sa
Investments - Available-for-Sale Securities Table (Details) $ in Millions | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Available-for sale securities | ||
Amortized cost | $ 22,914 | $ 22,219 |
Gross Unrealized Gains | 979 | 55 |
Gross Unrealized Losses | (167) | (1,165) |
Fair Value | 23,726 | 21,109 |
Carrying Value | 23,726 | 21,109 |
Derivative investments | ||
Amortized Cost | 336 | 330 |
Gross Unrealized Gains | 261 | 2 |
Gross Unrealized Losses | (10) | (235) |
Fair Value | 587 | 97 |
Carrying Value | 587 | 97 |
Commercial mortgage loans | ||
Carrying Value | 1,267 | 667 |
Total investments | ||
Amortized Cost | 26,892 | 25,404 |
Gross Unrealized Gains | 1,259 | 58 |
Gross Unrealized Losses | (197) | (1,545) |
Fair Value | 27,955 | 23,909 |
Carrying Value | 27,954 | 23,917 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (44) | (1,045) |
Available-for-sale securities, Fair Value, 12 months or longer | 3,500 | 2,857 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (123) | (120) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,674 | 17,226 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (167) | $ (1,165) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 290 | 1,551 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 446 | 556 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Security | 736 | 2,107 |
Equity Securities, Amortized Cost Basis | $ 1,069 | $ 1,526 |
Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 19 | 1 |
Equity Securities, Accumulated Gross Unrealized Loss, before tax | 17 | 145 |
Equity Securities, Fair Value | 1,071 | 1,382 |
Equity Securities, Carrying Value | 1,071 | 1,382 |
Asset-backed securities | ||
Available-for sale securities | ||
Amortized cost | 5,720 | 4,954 |
Gross Unrealized Gains | 51 | 15 |
Gross Unrealized Losses | (77) | (137) |
Fair Value | 5,694 | 4,832 |
Carrying Value | 5,694 | 4,832 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (12) | (116) |
Available-for-sale securities, Fair Value, 12 months or longer | 2,453 | 643 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (65) | (21) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,172 | 3,567 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (77) | (137) |
Commercial mortgage-backed securities | ||
Available-for sale securities | ||
Amortized cost | 2,788 | 2,568 |
Gross Unrealized Gains | 140 | 9 |
Gross Unrealized Losses | (6) | (40) |
Fair Value | 2,922 | 2,537 |
Carrying Value | 2,922 | 2,537 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (4) | (34) |
Available-for-sale securities, Fair Value, 12 months or longer | 16 | 262 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 248 | 1,728 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (6) | (40) |
Corporates | ||
Available-for sale securities | ||
Amortized cost | 11,051 | 11,213 |
Gross Unrealized Gains | 618 | 16 |
Gross Unrealized Losses | (72) | (848) |
Fair Value | 11,597 | 10,381 |
Carrying Value | 11,597 | 10,381 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (25) | (772) |
Available-for-sale securities, Fair Value, 12 months or longer | 804 | 1,465 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (47) | (76) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,834 | 9,481 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (72) | (848) |
Hybrids | ||
Available-for sale securities | ||
Amortized cost | 983 | 992 |
Gross Unrealized Gains | 48 | 0 |
Gross Unrealized Losses | (4) | (91) |
Fair Value | 1,027 | 901 |
Carrying Value | 1,027 | 901 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (1) | (90) |
Available-for-sale securities, Fair Value, 12 months or longer | 60 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 83 | 865 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (4) | (91) |
Municipals | ||
Available-for sale securities | ||
Amortized cost | 1,284 | 1,216 |
Gross Unrealized Gains | 64 | 3 |
Gross Unrealized Losses | (5) | (32) |
Fair Value | 1,343 | 1,187 |
Carrying Value | 1,343 | 1,187 |
Residential mortgage-backed securities | ||
Available-for sale securities | ||
Amortized cost | 917 | 1,027 |
Gross Unrealized Gains | 40 | 12 |
Gross Unrealized Losses | (3) | (8) |
Fair Value | 954 | 1,031 |
Carrying Value | 954 | 1,031 |
U.S. Government | ||
Available-for sale securities | ||
Amortized cost | 33 | 120 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 34 | 119 |
Carrying Value | 34 | 119 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | 0 | |
Available-for-sale securities, Fair Value, 12 months or longer | 0 | 50 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6 | 119 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | (1) |
Debt Security, Government, Non-US | ||
Available-for sale securities | ||
Amortized cost | 138 | 129 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 17 | 0 |
Gross Unrealized Losses | 0 | (8) |
Fair Value | 155 | 121 |
Carrying Value | 155 | 121 |
Total investments | ||
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (3) | |
Available-for-sale securities, Fair Value, 12 months or longer | 68 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (5) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 115 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (8) | |
Other invested assets | ||
Available-for sale securities | ||
Amortized cost | 1,306 | 662 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | 0 |
Fair Value | 1,288 | 651 |
Carrying Value | 1,303 | 662 |
Commercial Portfolio Segment | ||
Commercial mortgage loans | ||
Amortized Cost | 422 | 482 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 435 | 483 |
Carrying Value | 422 | 482 |
Residential Portfolio Segment | ||
Commercial mortgage loans | ||
Carrying Value | 845 | 185 |
Investment, Residential Mortgage Loans, Amortized Cost | 845 | 185 |
Investments, Residential Mortgage Loans, Accumulated Gross Unrealized Gain before Tax | 0 | 0 |
Investments, Residential Mortgage Loans, Fair Value Disclosure | $ 848 | $ 187 |
Investments - Amortized Cost a
Investments - Amortized Cost and Fair Value of Fixed Maturity Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 85 | |
Due after one year through five years, Amortized Cost | 888 | |
Due after five years through ten years, Amortized Cost | 2,020 | |
Due after ten years, Amortized Cost | 10,496 | |
Subtotal, Amortized Cost | 13,489 | |
Other securities which provide for periodic payments, Amortized Cost | 9,425 | |
Total fixed maturity available-for-sale securities, Amortized Cost | 22,914 | $ 22,219 |
Due in one year or less, Fair Value | 85 | |
Due after one year through five years, Fair Value | 914 | |
Due after five years through ten years, Fair Value | 2,082 | |
Due after ten years, Fair Value | 11,075 | |
Subtotal, Fair Value | 14,156 | |
Other securities which provide for periodic payments, Fair Value | 9,570 | |
Total fixed maturity available-for-sale securities, Fair Value | 23,726 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 5,720 | |
Other securities which provide for periodic payments, Fair Value | 5,694 | |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 2,788 | |
Other securities which provide for periodic payments, Fair Value | 2,922 | |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities which provide for periodic payments, Amortized Cost | 917 | |
Other securities which provide for periodic payments, Fair Value | $ 954 |
Investments - Fair Value and G
Investments - Fair Value and Gross Unrealized Losses of Available-for-Sale Securities (Details) $ in Millions | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | $ 2,174 | $ 14,369 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (44) | (1,045) |
Available-for-sale securities, Fair Value, 12 months or longer | 3,500 | 2,857 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (123) | (120) |
Available-for-sale securities, Fair Value, Total | 5,674 | 17,226 |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ (167) | $ (1,165) |
Total number of available-for-sale securities in an unrealized loss position less than twelve months | Security | 290 | 1,551 |
Total number of available-for-sale securities in an unrealized loss position twelve months or longer | Security | 446 | 556 |
Total number of available-for-sale securities in an unrealized loss position | Security | 736 | 2,107 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | $ 719 | $ 2,924 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (12) | (116) |
Available-for-sale securities, Fair Value, 12 months or longer | 2,453 | 643 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (65) | (21) |
Available-for-sale securities, Fair Value, Total | 3,172 | 3,567 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (77) | (137) |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 232 | 1,466 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (4) | (34) |
Available-for-sale securities, Fair Value, 12 months or longer | 16 | 262 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (2) | (6) |
Available-for-sale securities, Fair Value, Total | 248 | 1,728 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (6) | (40) |
Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 1,030 | 8,016 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (25) | (772) |
Available-for-sale securities, Fair Value, 12 months or longer | 804 | 1,465 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (47) | (76) |
Available-for-sale securities, Fair Value, Total | 1,834 | 9,481 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (72) | (848) |
Hybrids | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 23 | 858 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (1) | (90) |
Available-for-sale securities, Fair Value, 12 months or longer | 60 | 7 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (3) | (1) |
Available-for-sale securities, Fair Value, Total | 83 | 865 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (4) | (91) |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 123 | 850 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (2) | (27) |
Available-for-sale securities, Fair Value, 12 months or longer | 60 | 172 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (3) | (5) |
Available-for-sale securities, Fair Value, Total | 183 | 1,022 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (5) | (32) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 41 | 139 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (3) | |
Available-for-sale securities, Fair Value, 12 months or longer | 107 | 190 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (3) | (5) |
Available-for-sale securities, Fair Value, Total | 148 | 329 |
Available-for-sale Securities, Gross Unrealized Losses, Total | (3) | (8) |
U.S. Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 6 | 69 |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | 0 | |
Available-for-sale securities, Fair Value, 12 months or longer | 0 | 50 |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | 0 | (1) |
Available-for-sale securities, Fair Value, Total | 6 | 119 |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ 0 | (1) |
Debt Security, Government, Non-US | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Fair Value, Less than 12 months | 47 | |
Available-for-sale securities, Gross Unrealized Losses, Less than 12 months | (3) | |
Available-for-sale securities, Fair Value, 12 months or longer | 68 | |
Available-for-sale Securities, Gross Unrealized Losses, 12 months or longer | (5) | |
Available-for-sale securities, Fair Value, Total | 115 | |
Available-for-sale Securities, Gross Unrealized Losses, Total | $ (8) |
Investments - Reconciliation o
Investments - Reconciliation of Other than Temporary Impairment on Fixed Maturity (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||||
Balance at the beginning of the period | $ 3 | $ 3 | $ 0 | $ 0 | ||
Increases attributable to credit losses on securities: | ||||||
OTTI was previously recognized | 0 | 0 | $ 0 | 0 | 0 | $ 0 |
OTTI was not previously recognized | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at the end of the period | $ 0 | $ 3 | $ 3 | $ 0 | $ 0 | $ 3 |
Investments - Credit Impairment
Investments - Credit Impairment Loss Type (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Schedule of Investments [Line Items] | ||||||
Credit impairment losses in operations | $ 0 | $ 0 | $ (1) | $ (21) | $ (24) | $ (22) |
Change-of-intent losses in operations | 0 | 0 | 0 | (2) | 0 | 0 |
Non-credit losses in other comprehensive income for investments which experienced OTTI | 0 | 0 | (1) | 0 | 0 | 0 |
Asset Backed Securities and Corporate Securities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Amortized cost | 0 | 0 | 19 | 37 | 64 | 0 |
Fair value | $ 0 | $ 0 | $ 19 | $ 37 | $ 64 | $ 0 |
Investments - Other-than-Tempo
Investments - Other-than-Temporary Impairments (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Schedule of Investments [Line Items] | ||||||
Total other-than-temporary impairments | $ 0 | $ 0 | $ (1) | $ (23) | $ (24) | $ (22) |
Asset-backed securities | ||||||
Schedule of Investments [Line Items] | ||||||
Total other-than-temporary impairments | 0 | 0 | (1) | 0 | 0 | (2) |
Corporates | ||||||
Schedule of Investments [Line Items] | ||||||
Total other-than-temporary impairments | 0 | 0 | 0 | (21) | (24) | (20) |
Equity security | ||||||
Schedule of Investments [Line Items] | ||||||
Total other-than-temporary impairments | $ 0 | $ 0 | $ 0 | $ (2) | $ 0 | $ 0 |
Investments - Schedule of Comm
Investments - Schedule of Commercial Mortgage Loan Investment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 482 | |
Loans and Leases Receivable, Gross | $ 422 | $ 482 |
Commercial Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Commercial mortgage loans, % of total | 2.00% | 2.00% |
Carrying Value | $ 1,267 | $ 667 |
LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 352 | $ 302 |
Commercial Mortgage Receivable, Percentage of Total | 83.00% | 63.00% |
LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 70 | $ 169 |
Commercial Mortgage Receivable, Percentage of Total | 17.00% | 35.00% |
LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 11 | |
Commercial Mortgage Receivable, Percentage of Total | 2.00% | |
East North Central | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 64 | $ 98 |
Commercial Mortgage Receivable, Percentage of Total | 15.00% | 20.00% |
East South Central | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 19 | $ 19 |
Commercial Mortgage Receivable, Percentage of Total | 5.00% | 4.00% |
Middle Atlantic | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 77 | $ 79 |
Commercial Mortgage Receivable, Percentage of Total | 18.00% | 17.00% |
Mountain | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 51 | $ 65 |
Commercial Mortgage Receivable, Percentage of Total | 12.00% | 13.00% |
New England | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 4 | $ 10 |
Commercial Mortgage Receivable, Percentage of Total | 1.00% | 2.00% |
Pacific | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 113 | $ 116 |
Commercial Mortgage Receivable, Percentage of Total | 27.00% | 24.00% |
South Atlantic | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 56 | $ 57 |
Commercial Mortgage Receivable, Percentage of Total | 13.00% | 12.00% |
West North Central | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 13 | $ 13 |
Commercial Mortgage Receivable, Percentage of Total | 3.00% | 3.00% |
West South Central | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 25 | $ 25 |
Commercial Mortgage Receivable, Percentage of Total | 6.00% | 5.00% |
Hotel | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 21 | $ 21 |
Commercial Mortgage Receivable, Percentage of Total | 5.00% | 4.00% |
Industrial - General | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 37 | $ 37 |
Commercial Mortgage Receivable, Percentage of Total | 9.00% | 8.00% |
Industrial - Warehouse | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 20 | $ 20 |
Commercial Mortgage Receivable, Percentage of Total | 4.00% | 4.00% |
Multifamily | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 54 | $ 56 |
Commercial Mortgage Receivable, Percentage of Total | 13.00% | 12.00% |
Office | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 143 | $ 147 |
Commercial Mortgage Receivable, Percentage of Total | 34.00% | 30.00% |
Retail | ||
Schedule of Investments [Line Items] | ||
Loans and Leases Receivable, Gross | $ 147 | $ 201 |
Commercial Mortgage Receivable, Percentage of Total | 35.00% | 42.00% |
Greater than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 416 | $ 476 |
Greater than 1.25 | LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 346 | 296 |
Greater than 1.25 | LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 70 | 169 |
Greater than 1.25 | LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 11 | |
Greater than 1.00 but less than 1.25 | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 6 | 6 |
Greater than 1.00 but less than 1.25 | LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 6 | 6 |
Greater than 1.00 but less than 1.25 | LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 0 | 0 |
Greater than 1.00 but less than 1.25 | LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | 0 | |
Fair Value | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 435 | $ 483 |
Commercial Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Fair Value | LTV Less Than 50 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 363 | $ 302 |
Commercial Mortgage Receivable, Percentage of Total | 83.00% | 63.00% |
Fair Value | LTV 50 to 60 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 72 | $ 170 |
Commercial Mortgage Receivable, Percentage of Total | 17.00% | 35.00% |
Fair Value | LTV 60 to 75 Percent | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 11 | |
Commercial Mortgage Receivable, Percentage of Total | 2.00% | |
Commercial Portfolio Segment | ||
Schedule of Investments [Line Items] | ||
Loans Receivable, Gross, Residential, Mortgage | $ 422 | |
Loans and Leases Receivable, Gross | $ 422 | $ 482 |
Commercial Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Loans and Leases Receivable, Allowance | $ 0 | $ 0 |
Carrying Value | $ 422 | $ 482 |
Investments - Schedule of Resi
Investments - Schedule of Residential Mortgage Loan Investment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loans Receivable, Gross, Residential, Mortgage | $ 482 | |
Residential Mortgage | ||
Residential Mortgage Receivable, Percentage of Total | 3.00% | 1.00% |
California | ||
Loans Receivable, Gross, Residential, Mortgage | $ 167 | $ 25 |
Residential Mortgage Receivable, Percentage of Total | 20.00% | 14.00% |
Florida | ||
Loans Receivable, Gross, Residential, Mortgage | $ 141 | $ 24 |
Residential Mortgage Receivable, Percentage of Total | 17.00% | 13.00% |
New Jersey | ||
Loans Receivable, Gross, Residential, Mortgage | $ 76 | $ 17 |
Residential Mortgage Receivable, Percentage of Total | 9.00% | 9.00% |
All Other States | ||
Loans Receivable, Gross, Residential, Mortgage | $ 447 | $ 114 |
Residential Mortgage Receivable, Percentage of Total | 54.00% | 64.00% |
Total Mortgage Loans | ||
Loans Receivable, Gross, Residential, Mortgage | $ 831 | $ 180 |
Residential Portfolio Segment | ||
Loans Receivable, Gross, Residential, Mortgage | 845 | 185 |
Loans and Leases Receivable, Allowance | $ 0 | $ 0 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Performing | ||
Loans Receivable, Gross, Residential, Mortgage | $ 843 | $ 185 |
Residential Mortgage Receivable, Percentage of Total | 100.00% | 100.00% |
Non-performing | ||
Loans Receivable, Gross, Residential, Mortgage | $ 2 | $ 0 |
Residential Mortgage Receivable, Percentage of Total | 0.00% | 0.00% |
Investments - Net Investment I
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Schedule of Investments [Line Items] | ||||||
Gross investment income | $ 93 | $ 178 | $ 245 | $ 1,345 | $ 1,177 | $ 1,027 |
Investment expense | (1) | (4) | (5) | (116) | (70) | (22) |
Net investment income | 92 | 174 | 240 | 1,229 | 1,107 | 1,005 |
Fixed maturity securities, available-for-sale | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 80 | 164 | 228 | 1,054 | 1,009 | 953 |
Equity securities | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 6 | 5 | 10 | 73 | 73 | 41 |
Mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 2 | 4 | 6 | 42 | 24 | 23 |
Invested cash and short-term investments | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 1 | 1 | 18 | 16 | 3 | |
Funds withheld | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 2 | 0 | 0 | 65 | 28 | 0 |
Limited partnerships | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | 1 | 3 | 1 | 81 | 17 | 5 |
Other investments | ||||||
Schedule of Investments [Line Items] | ||||||
Gross investment income | $ 1 | $ 1 | $ 0 | $ 12 | $ 10 | $ 2 |
Investments - Net Investment G
Investments - Net Investment Gains (Losses) (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||||||||||||||
Net realized gains (losses) on fixed maturity available-for-sale securities | $ 5 | $ 5 | $ 2 | $ 46 | $ (187) | $ (20) | |||||||||
Net realized/unrealized gains (losses) on equity securities | 0 | 1 | 0 | 127 | (142) | 3 | |||||||||
Realized gains (losses) on other invested assets | 0 | 0 | (2) | 3 | (5) | (2) | |||||||||
Net realized gains on securities | 3 | 80 | 1 | (15) | (2) | 219 | |||||||||
Unrealized gains (losses) on certain derivative instruments | 34 | 58 | 38 | 449 | (248) | 129 | |||||||||
Change in fair value of funds withheld for reinsurance receivables and reinsurance related embedded derivatives (a) | 0 | 1 | 12 | 57 | (42) | (16) | |||||||||
Change in fair value of other derivatives and embedded derivatives | 0 | 1 | 0 | 7 | (3) | 3 | |||||||||
Realized gains (losses) on derivatives and embedded derivatives | 37 | 140 | 51 | 498 | (295) | 335 | |||||||||
Net investment gains (losses) | $ 42 | $ 146 | $ 196 | $ 103 | $ 135 | $ 240 | $ (555) | $ 119 | $ (2) | $ (191) | $ 51 | $ 674 | $ (629) | $ 316 | $ (629) |
Investments - Narrative (Detai
Investments - Narrative (Details) $ in Millions | Sep. 30, 2019loan | Dec. 31, 2017loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Debt Securities, Available-for-sale [Line Items] | ||||
FHLB collateral pledged | $ 1,472 | $ 1,401 | ||
Available for sale depressed securities fair value disclosure | $ 35 | $ 132 | ||
Percentage of available for sale depressed securities above amortized cost | 20.00% | 20.00% | ||
Number of delinquent CMLs | loan | 0 | 0 | ||
Impaired loans, number | loan | 0 | 0 | ||
Unfunded investment commitment | $ 83 | |||
Available-for-sale Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Assets held by insurance regulators | $ 17,591 | $ 19,930 | ||
Mortgage loans | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Ratio of performing loans to all loans | 100.00% | |||
Loan to value, threshold | 75.00% | 75.00% | ||
Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unfunded investment commitment | $ 1,358 | |||
Crescent Capital BDC Inc. | Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other Investments | 69 | |||
Golub Capital Partners 10, L.P. | Commitment to Invest | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unfunded investment commitment | 1,010 | $ 510 | ||
Other Investments | 1,202 | $ 1,132 | ||
Mortgage-backed Securities, Issued by Private Enterprises | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Unrealized Gain Related To Non Credit Portion Of Other Than Temporary Impairments Included In Accumulated Other Comprehensive Income | 0 | |||
Unrealized losses related to non-credit portion of OTTI included in AOCI | 0 | |||
Variable Interest Entity, Primary Beneficiary [Member] | BISA Co-Invest Fund II L.P. [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other Investments | $ 22 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total asset derivatives | $ 611 | $ 111 |
Total liability derivatives | 3,284 | 2,505 |
Other Liabilities | ||
Derivative [Line Items] | ||
Total liability derivatives | 33 | 0 |
Funds withheld | ||
Derivative [Line Items] | ||
Total asset derivatives | 3 | 0 |
Call options | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 587 | 97 |
Futures contracts | Derivative investments | ||
Derivative [Line Items] | ||
Total asset derivatives | 0 | 0 |
Other derivatives and embedded derivatives | Other invested assets | ||
Derivative [Line Items] | ||
Total asset derivatives | 21 | 14 |
FIA embedded derivative | Contractholder funds | ||
Derivative [Line Items] | ||
Total liability derivatives | 3,235 | 2,476 |
Preferred shares reimbursement feature embedded derivative | Other Liabilities | ||
Derivative [Line Items] | ||
Total liability derivatives | $ 16 | $ 29 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 1 | $ 12 | $ 57 | $ (42) | $ (16) |
Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 37 | 140 | 51 | 498 | (295) | 335 |
Call options | Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 34 | 129 | 39 | 404 | (244) | 338 |
Futures contracts | Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 3 | 9 | 0 | 27 | (8) | 10 |
Currency Forward | Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 0 | 0 | 0 | 3 | 2 | 0 |
Other derivatives and embedded derivatives | Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 0 | 1 | 0 | 7 | (3) | 3 |
Reinsurance related embedded derivative | Net investment (losses) gains | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | 0 | 1 | 12 | 57 | (42) | (16) |
FIA embedded derivative | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | (54) | 123 | (133) | 759 | 199 | 244 |
Preferred shares reimbursement feature embedded derivative | ||||||
Derivative [Line Items] | ||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 0 | $ 0 | $ (13) | $ 6 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - FGL's Exposure to Credit Loss on Call Options Held (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 611 | $ 111 |
Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | A+/*/A+ | A+/*/A+ |
Deutsche Bank | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | BBB/A3/BBB+ | A-/A3/BBB+ |
Notional Amount | $ 157 | $ 1,327 |
Fair Value | 7 | 5 |
Collateral | 7 | 6 |
Net Credit Risk | $ 0 | $ (1) |
Morgan Stanley | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | */A1/A+ | */A1/A+ |
Notional Amount | $ 2,053 | $ 1,648 |
Fair Value | 66 | 9 |
Collateral | 65 | 6 |
Net Credit Risk | $ 1 | $ 3 |
Barclay's Bank | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | A+/A2/A | A+/A2/A |
Notional Amount | $ 4,290 | $ 2,205 |
Fair Value | 211 | 27 |
Collateral | 193 | 20 |
Net Credit Risk | $ 18 | $ 7 |
Canadian Imperial Bank of Commerce | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | */Aa2/A+ | */Aa2/A+ |
Notional Amount | $ 2,691 | $ 1,716 |
Fair Value | 106 | 11 |
Collateral | 74 | 8 |
Net Credit Risk | $ 32 | $ 3 |
Wells Fargo | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | A+/A2/A- | A+/A2/A- |
Notional Amount | $ 2,165 | $ 1,635 |
Fair Value | 81 | 17 |
Collateral | 80 | 16 |
Net Credit Risk | $ 1 | $ 1 |
Goldman Sachs | ||
Derivatives, Fair Value [Line Items] | ||
Credit Rating (Fitch/Moody's/S&P) | A/A3/BBB+ | A/A3/BBB+ |
Notional Amount | $ 1,065 | $ 647 |
Fair Value | 31 | 3 |
Collateral | 27 | 3 |
Net Credit Risk | 4 | 0 |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 15,139 | 13,130 |
Fair Value | 590 | 97 |
Collateral | 489 | 59 |
Net Credit Risk | 101 | 38 |
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | Merrill Lynch | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,718 | 3,952 |
Fair Value | 88 | 25 |
Collateral | 43 | 0 |
Net Credit Risk | $ 45 | $ 25 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) $ in Millions | Nov. 30, 2017shares | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Jun. 16, 2014USD ($) |
Derivative [Line Items] | ||||
Fair Value | $ 611 | $ 111 | ||
Preferred Stock, Call Features, Minimum Term | 5 years | |||
Preferred stock dividend rate | 10.00% | |||
Other derivatives and embedded derivatives | ||||
Derivative [Line Items] | ||||
Term of contract, term one | 1 year | |||
Term of contract, term two | 2 years | |||
Term of contract, term three | 3 years | |||
Term of contract, term four | 5 years | |||
Futures contracts | ||||
Derivative [Line Items] | ||||
Number of instruments held | contract | 879,000,000 | 664,000,000 | ||
Collateral held | $ 5 | $ 3 | ||
Other invested assets | Other derivatives and embedded derivatives | ||||
Derivative [Line Items] | ||||
Fair Value | 21 | 14 | ||
Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||||
Derivative [Line Items] | ||||
Fair Value | 590 | 97 | ||
Collateral posted | 489 | 59 | ||
Maximum amount of loss due to credit risk | 101 | 38 | ||
Cash and Cash Equivalents | Not Designated as Hedging Instrument | Call options | ||||
Derivative [Line Items] | ||||
Collateral posted | 446 | 59 | ||
Other Investments Asset | Other invested assets | ||||
Derivative [Line Items] | ||||
Fixed maturities securities, available-for-sale, at fair value | 29 | 26 | $ 35 | |
Merrill Lynch | Derivatives For Trading And Investment | Not Designated as Hedging Instrument | Call options | ||||
Derivative [Line Items] | ||||
Fair Value | 88 | 25 | ||
Collateral posted | 43 | 0 | ||
Maximum amount of loss due to credit risk | $ 45 | $ 25 | ||
Preferred Stock | ||||
Derivative [Line Items] | ||||
Preferred Stock, Call Features, Minimum Term | 5 years | |||
Preferred stock dividend rate | 10.00% | |||
Series A Cumulative Preferred Stock | Preferred Stock | ||||
Derivative [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | shares | 275,000 | |||
Series B Cumulative Preferred Stock | Preferred Stock | ||||
Derivative [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | shares | 100,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Carrying at Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | $ 23,726 | $ 21,109 | ||
Derivative investments | 587 | 97 | ||
Total financial assets at fair value | 2,811 | 2,466 | ||
Funds withheld for reinsurance receivables, at fair value | 2,172 | 757 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 969 | 571 | ||
FHLB Common Stock, Fair Value | 0 | 0 | ||
Equity securities | 387 | 454 | ||
Derivative investments | 0 | 0 | ||
Other invested assets | 0 | |||
Total financial assets at fair value | 1,997 | 1,581 | ||
Commercial mortgage loans | 0 | 0 | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 0 | |||
Residential mortgage loans | 0 | 0 | ||
Bank Owned Life Insurance | 0 | |||
Investments, Affiliated Bank Loan, Fair Value Disclosure | 0 | |||
Funds withheld for reinsurance receivables, at fair value | 0 | |||
Total assets carried on balance sheet at amounts other than fair value | 0 | 0 | ||
Total liabilities carried on balance sheet at amounts other than fair value | 0 | 0 | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
FHLB Common Stock, Fair Value | 62 | 52 | ||
Equity securities | 614 | 874 | ||
Derivative investments | 587 | 97 | ||
Other invested assets | 0 | |||
Total financial assets at fair value | 23,693 | 19,858 | ||
Commercial mortgage loans | 0 | 0 | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 0 | |||
Residential mortgage loans | 0 | 0 | ||
Bank Owned Life Insurance | 0 | |||
Investments, Affiliated Bank Loan, Fair Value Disclosure | 0 | |||
Funds withheld for reinsurance receivables, at fair value | 0 | |||
Total assets carried on balance sheet at amounts other than fair value | 62 | 52 | ||
Total liabilities carried on balance sheet at amounts other than fair value | 578 | 520 | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 | ||
Debt Instrument, Fair Value Disclosure | 578 | 520 | ||
Financial Liabilities Fair Value Disclosure | 33 | 0 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
FHLB Common Stock, Fair Value | 0 | 0 | ||
Equity securities | 1 | 4 | ||
Derivative investments | 0 | 0 | ||
Other invested assets | 39 | |||
Total financial assets at fair value | 2,811 | 2,466 | ||
Commercial mortgage loans | 435 | 483 | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 848 | |||
Residential mortgage loans | 14 | 187 | ||
Bank Owned Life Insurance | 129 | |||
Investments, Affiliated Bank Loan, Fair Value Disclosure | 28 | |||
Funds withheld for reinsurance receivables, at fair value | 1 | |||
Total assets carried on balance sheet at amounts other than fair value | 1,455 | 720 | ||
Total liabilities carried on balance sheet at amounts other than fair value | 19,285 | 18,358 | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 19,285 | 18,358 | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Financial Liabilities Fair Value Disclosure | 5,204 | 3,230 | ||
Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 969 | 571 | ||
FHLB Common Stock, Fair Value | 62 | 52 | ||
Equity securities | 1,002 | 1,332 | ||
Derivative investments | 587 | 97 | ||
Other invested assets | 39 | |||
Total financial assets at fair value | 28,501 | 23,905 | ||
Commercial mortgage loans | 435 | 483 | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 848 | |||
Residential mortgage loans | 14 | 187 | ||
Bank Owned Life Insurance | 129 | |||
Investments, Affiliated Bank Loan, Fair Value Disclosure | 28 | |||
Funds withheld for reinsurance receivables, at fair value | 1 | |||
Total assets carried on balance sheet at amounts other than fair value | 1,517 | 772 | ||
Total liabilities carried on balance sheet at amounts other than fair value | 19,863 | 18,878 | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 19,285 | 18,358 | ||
Debt Instrument, Fair Value Disclosure | 578 | 520 | ||
Financial Liabilities Fair Value Disclosure | 5,237 | 3,230 | ||
Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 969 | 571 | ||
FHLB Common Stock, Fair Value | 62 | 52 | ||
Equity securities | 1,002 | 1,332 | ||
Derivative investments | 587 | 97 | ||
Other invested assets | 39 | |||
Total financial assets at fair value | 28,501 | 23,905 | ||
Commercial mortgage loans | 422 | 482 | ||
Investments, Residential Mortgage Loans, Fair Value Disclosure | 845 | |||
Residential mortgage loans | 28 | 185 | ||
Bank Owned Life Insurance | 129 | |||
Investments, Affiliated Bank Loan, Fair Value Disclosure | 28 | |||
Funds withheld for reinsurance receivables, at fair value | 1 | |||
Total assets carried on balance sheet at amounts other than fair value | 1,515 | 780 | ||
Total liabilities carried on balance sheet at amounts other than fair value | 22,991 | 21,452 | ||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 22,449 | 20,911 | ||
Debt Instrument, Fair Value Disclosure | 542 | 541 | ||
Financial Liabilities Fair Value Disclosure | 5,237 | 3,230 | ||
Reinsurance related embedded derivative | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Reinsurance related embedded derivative | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 33 | |||
Reinsurance related embedded derivative | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Reinsurance related embedded derivative | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 33 | |||
Reinsurance related embedded derivative | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 33 | |||
Fixed indexed annuities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fixed indexed annuities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fixed indexed annuities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,235 | 2,476 | ||
Fixed indexed annuities | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,235 | 2,476 | ||
Fixed indexed annuities | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 3,235 | 2,476 | ||
Future Policy Benefits | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Future Policy Benefits | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Future Policy Benefits | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,953 | 725 | ||
Future Policy Benefits | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,953 | 725 | ||
Future Policy Benefits | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,953 | 725 | ||
Preferred shares reimbursement feature embedded derivative | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Preferred shares reimbursement feature embedded derivative | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Preferred shares reimbursement feature embedded derivative | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 16 | 29 | ||
Preferred shares reimbursement feature embedded derivative | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 16 | 29 | $ 23 | $ 23 |
Preferred shares reimbursement feature embedded derivative | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 16 | 29 | ||
Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 5,694 | 4,832 | ||
Asset-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Asset-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 4,866 | 4,388 | ||
Asset-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 828 | 444 | ||
Asset-backed securities | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 5,694 | 4,832 | ||
Asset-backed securities | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 5,694 | 4,832 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 2,922 | 2,537 | ||
Commercial mortgage-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Commercial mortgage-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 2,895 | 2,470 | ||
Commercial mortgage-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 27 | 67 | ||
Commercial mortgage-backed securities | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 2,922 | 2,537 | ||
Commercial mortgage-backed securities | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 2,922 | 2,537 | ||
Corporates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 11,597 | 10,381 | ||
Corporates | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Corporates | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 10,305 | 9,150 | ||
Corporates | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,292 | 1,231 | ||
Corporates | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 11,597 | 10,381 | ||
Corporates | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 11,597 | 10,381 | ||
Hybrids | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,027 | 901 | ||
Hybrids | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 299 | 265 | ||
Hybrids | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 718 | 626 | ||
Hybrids | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 10 | 10 | ||
Hybrids | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,027 | 901 | ||
Hybrids | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,027 | 901 | ||
States, municipalities and political subdivisions | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
States, municipalities and political subdivisions | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,301 | 1,150 | ||
States, municipalities and political subdivisions | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 42 | 37 | ||
States, municipalities and political subdivisions | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,343 | 1,187 | ||
States, municipalities and political subdivisions | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,343 | 1,187 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 954 | 1,031 | ||
Residential mortgage-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Residential mortgage-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 408 | 417 | ||
Residential mortgage-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 546 | 614 | ||
Residential mortgage-backed securities | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 954 | 1,031 | ||
Residential mortgage-backed securities | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 954 | 1,031 | ||
U.S. Government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 34 | 119 | ||
U.S. Government | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 28 | 114 | ||
U.S. Government | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 6 | 5 | ||
U.S. Government | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
U.S. Government | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 34 | 119 | ||
U.S. Government | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 34 | 119 | ||
Debt Security, Government, Non-US | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 155 | 121 | ||
Debt Security, Government, Non-US | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Debt Security, Government, Non-US | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 137 | 105 | ||
Debt Security, Government, Non-US | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 18 | 16 | ||
Debt Security, Government, Non-US | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 155 | 121 | ||
Debt Security, Government, Non-US | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 155 | 121 | ||
Other invested assets | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Other invested assets | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Other invested assets | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 46 | |||
Other invested assets | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 46 | |||
Other invested assets | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 46 | |||
Reinsurance Receivables, Funds Withheld | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 314 | 177 | ||
Reinsurance Receivables, Funds Withheld | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1,856 | 576 | ||
Reinsurance Receivables, Funds Withheld | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 1 | 4 | ||
Reinsurance Receivables, Funds Withheld | Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | 2,171 | 757 | ||
Reinsurance Receivables, Funds Withheld | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale Securities | $ 2,171 | 757 | ||
Income Approach Valuation Technique | Corporates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets at fair value | 654 | |||
Income Approach Valuation Technique | Hybrids | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total financial assets at fair value | $ 10 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2017 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 2,811,000,000 | $ 2,466,000,000 | ||
Future Policy Benefit | 725,000,000 | |||
Liabilities, fair value | 5,204,000,000 | 3,230,000,000 | ||
Credit Spread | $ 0.0381 | |||
Yield Volatility | 0.00% | |||
Available-for-sale Securities | $ 23,726,000,000 | 21,109,000,000 | ||
Derivative investments | 587,000,000 | 97,000,000 | ||
Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 5,694,000,000 | 4,832,000,000 | ||
Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,922,000,000 | 2,537,000,000 | ||
Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 11,597,000,000 | 10,381,000,000 | ||
Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,027,000,000 | 901,000,000 | ||
Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 954,000,000 | 1,031,000,000 | ||
U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 34,000,000 | 119,000,000 | ||
Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 155,000,000 | 121,000,000 | ||
Market Approach | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 801,000,000 | 405,000,000 | ||
Market Approach | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 27,000,000 | 43,000,000 | ||
Market Approach | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 346,000,000 | 577,000,000 | ||
Market Approach | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 42,000,000 | 37,000,000 | ||
Market Approach | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 546,000,000 | |||
Market Approach | Equity securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Estimated recovery value percentage | 2.47% | |||
Market Approach | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 100.00% | |||
Market Approach | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 18,000,000 | 16,000,000 | ||
Income Approach Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 654,000,000 | |||
Income Approach Valuation Technique | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 10,000,000 | |||
Income Approach Valuation Technique | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 100.00% | |||
Matrix Pricing Valuation | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 24,000,000 | |||
Matrix Pricing Valuation | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | 24,000,000 | |||
Matrix Pricing Valuation | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 946,000,000 | |||
Matrix Pricing Valuation | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 10,000,000 | |||
Matrix Pricing Valuation | Funds withheld for reinsurance liabilities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 100.00% | |||
Loan Recovery Valuation | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 1,000,000 | |||
Fixed indexed annuities | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Liabilities, fair value | 3,235,000,000 | 2,476,000,000 | ||
Preferred shares reimbursement feature embedded derivative | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Liabilities, fair value | 16,000,000 | $ 29,000,000 | ||
Minimum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk Margin To Reflect Uncertainty | 0.00% | |||
Available-for-sale Securities | $ 29,000,000 | |||
Minimum | Market Approach | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 98.65% | 97.00% | ||
Minimum | Market Approach | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 74.63% | |||
Minimum | Market Approach | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.60% | |||
Minimum | Market Approach | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 127.68% | 111.23% | ||
Minimum | Market Approach | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 0.00% | 89.80% | ||
Minimum | Market Approach | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 110.12% | 98.38% | ||
Minimum | Third Party Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 0.00% | 0.00% | ||
Minimum | Income Approach Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.07% | |||
Minimum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 100.15% | 117.72% | ||
Minimum | Income Approach Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 83.51% | 91.74% | ||
Minimum | Income Approach Valuation Technique | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 104.72% | |||
Minimum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 0.00% | 0.00% | ||
Minimum | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 0.00% | |||
Minimum | Future Policy Benefits, Mortality Multiplier [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 80.00% | |||
Minimum | Future Policy Benefits | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, swap rates | 0.00% | |||
Fair value inputs, mortality multiplier | 0.00% | |||
Fair value inputs, non performance spread | 0.00% | |||
Risk Margin To Reflect Uncertainty | 0.23% | |||
Mortality, Morbidity and Surrender Rate Assumption | 0 | |||
Minimum | Fixed indexed annuities | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 0.00% | 0.00% | ||
Fair value inputs, swap rates | 1.73% | 2.57% | ||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||
Fair value inputs, surrender rates | 0.50% | 0.50% | ||
Fair value inputs, non performance spread | 0.25% | 0.25% | ||
Minimum | Fixed indexed annuities | Partial Withdrawls | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, surrender rates | 2.00% | 1.00% | ||
Minimum | Fixed indexed annuities | Option Cost [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, non performance spread | 0.18% | 0.01% | ||
Maximum | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk Margin To Reflect Uncertainty | 0.00% | |||
Available-for-sale Securities | $ 39,000,000 | |||
Maximum | Market Approach | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 119.35% | 102.00% | ||
Maximum | Market Approach | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 104.62% | |||
Maximum | Market Approach | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.60% | |||
Maximum | Market Approach | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 127.68% | 111.23% | ||
Maximum | Market Approach | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 106.50% | 100.99% | ||
Maximum | Market Approach | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 118.09% | 99.01% | ||
Maximum | Third Party Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 99.43% | 99.29% | ||
Maximum | Income Approach Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.07% | |||
Maximum | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 127.60% | 117.72% | ||
Maximum | Income Approach Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 106.73% | 113.25% | ||
Maximum | Income Approach Valuation Technique | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 104.72% | |||
Maximum | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 0.08% | 0.22% | ||
Maximum | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 11.20% | |||
Maximum | Future Policy Benefits, Mortality Multiplier [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 120.00% | |||
Maximum | Future Policy Benefits | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, swap rates | 55.00% | |||
Fair value inputs, mortality multiplier | 4.00% | |||
Fair value inputs, non performance spread | 5.02% | |||
Risk Margin To Reflect Uncertainty | 0.96% | |||
Mortality, Morbidity and Surrender Rate Assumption | 0.02 | |||
Maximum | Fixed indexed annuities | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 32.54% | 31.06% | ||
Fair value inputs, swap rates | 1.90% | 2.71% | ||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||
Fair value inputs, surrender rates | 75.00% | 75.00% | ||
Fair value inputs, non performance spread | 0.25% | 0.25% | ||
Maximum | Fixed indexed annuities | Partial Withdrawls | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, surrender rates | 3.50% | 2.50% | ||
Maximum | Fixed indexed annuities | Option Cost [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, non performance spread | 16.61% | 16.61% | ||
Weighted Average | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Risk Margin To Reflect Uncertainty | 0.00% | |||
Credit Spread | $ 0.0514 | |||
Yield Volatility | 0.00% | |||
Weighted Average | Market Approach | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 102.02% | 99.77% | ||
Weighted Average | Market Approach | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 97.80% | |||
Weighted Average | Market Approach | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.60% | |||
Weighted Average | Market Approach | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 127.68% | 111.23% | ||
Weighted Average | Market Approach | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 106.28% | 100.73% | ||
Weighted Average | Market Approach | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 100.00% | |||
Estimated recovery value percentage | 7.15% | |||
Weighted Average | Market Approach | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 112.61% | 98.58% | ||
Weighted Average | Third Party Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 35.96% | 23.05% | ||
Weighted Average | Third Party Valuation Technique | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 85.46% | |||
Weighted Average | Third Party Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 85.46% | |||
Weighted Average | Income Approach Valuation Technique | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 96.07% | |||
Weighted Average | Income Approach Valuation Technique | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 126.82% | 117.72% | ||
Weighted Average | Income Approach Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 99.56% | 98.86% | ||
Weighted Average | Income Approach Valuation Technique | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, quoted prices | 104.72% | |||
Weighted Average | Income Approach Valuation Technique | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 100.00% | |||
Weighted Average | Income Approach Valuation Technique | Future Policy Benefits, Nonperformance Risk Spread | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 0.03% | 0.18% | ||
Weighted Average | Matrix Pricing Valuation | Funds withheld for reinsurance liabilities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, black scholes model | 100.00% | |||
Weighted Average | Future Policy Benefits, Market Value of Option [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 2.50% | |||
Weighted Average | Future Policy Benefits, Mortality Multiplier [Member] | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 95.46% | |||
Weighted Average | Future Policy Benefits | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, swap rates | 21.18% | |||
Fair value inputs, mortality multiplier | 2.28% | |||
Fair value inputs, non performance spread | 1.28% | |||
Risk Margin To Reflect Uncertainty | 0.34% | |||
Mortality, Morbidity and Surrender Rate Assumption | 0.0007 | |||
Weighted Average | Fixed indexed annuities | Income Approach Valuation Technique | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, market value of option | 3.64% | 94.00% | ||
Fair value inputs, swap rates | 1.81% | 2.63% | ||
Fair value inputs, mortality multiplier | 80.00% | 80.00% | ||
Fair value inputs, surrender rates | 5.64% | 5.90% | ||
Fair value inputs, non performance spread | 0.25% | 0.25% | ||
Weighted Average | Fixed indexed annuities | Partial Withdrawls | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, surrender rates | 2.53% | 2.00% | ||
Weighted Average | Fixed indexed annuities | Option Cost [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, non performance spread | 2.12% | 2.18% | ||
Insurance Subsidiary | Market Approach | Equity securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 4,000,000 | |||
Insurance Subsidiary | Income Approach Valuation Technique | Equity securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 1,000,000 | |||
Insurance Subsidiary | Income Approach Valuation Technique | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Assets, fair value | $ 14,000,000 | |||
Insurance Subsidiary | Minimum | Market Approach | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, other loan recoveries | 77.12% | |||
Insurance Subsidiary | Minimum | Third Party Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, other loan recoveries | 98.58% | |||
Insurance Subsidiary | Maximum | Market Approach | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, other loan recoveries | 100.08% | |||
Insurance Subsidiary | Maximum | Third Party Valuation Technique | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value inputs, other loan recoveries | 119.44% | |||
Loan Participation - JSN Jewelry, Inc. | Market Approach | Funds withheld for reinsurance liabilities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Reinsurance Receivables, Funds Withheld | $ 4,000,000 | |||
Fair Value, Inputs, Level 1 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | $ 969,000,000 | 571,000,000 | ||
Assets, fair value | 1,997,000,000 | 1,581,000,000 | ||
Equity securities | 387,000,000 | 454,000,000 | ||
Derivative investments | 0 | 0 | ||
Other invested assets | 0 | |||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 299,000,000 | 265,000,000 | ||
Fair Value, Inputs, Level 1 | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Fair Value, Inputs, Level 1 | U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 28,000,000 | 114,000,000 | ||
Fair Value, Inputs, Level 1 | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 314,000,000 | 177,000,000 | ||
Fair Value, Inputs, Level 1 | Future Policy Benefits | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Embedded Derivatives in Reinsurance Contracts | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Fair Value, Inputs, Level 1 | Fixed indexed annuities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Assets, fair value | 23,693,000,000 | 19,858,000,000 | ||
Equity securities | 614,000,000 | 874,000,000 | ||
Derivative investments | 587,000,000 | 97,000,000 | ||
Other invested assets | 0 | |||
Financial Liabilities Fair Value Disclosure | 33,000,000 | 0 | ||
Level 2 | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 4,866,000,000 | 4,388,000,000 | ||
Level 2 | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,895,000,000 | 2,470,000,000 | ||
Level 2 | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 10,305,000,000 | 9,150,000,000 | ||
Level 2 | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 718,000,000 | 626,000,000 | ||
Level 2 | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,301,000,000 | 1,150,000,000 | ||
Level 2 | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 408,000,000 | 417,000,000 | ||
Level 2 | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Level 2 | U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 6,000,000 | 5,000,000 | ||
Level 2 | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 137,000,000 | 105,000,000 | ||
Level 2 | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,856,000,000 | 576,000,000 | ||
Level 2 | Future Policy Benefits | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Level 2 | Embedded Derivatives in Reinsurance Contracts | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 33,000,000 | |||
Level 2 | Fixed indexed annuities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Level 2 | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Assets, fair value | 2,811,000,000 | 2,466,000,000 | ||
Equity securities | 1,000,000 | 4,000,000 | ||
Derivative investments | 0 | 0 | ||
Other invested assets | 39,000,000 | |||
Financial Liabilities Fair Value Disclosure | 5,204,000,000 | 3,230,000,000 | ||
Fair Value, Inputs, Level 3 | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 828,000,000 | 444,000,000 | ||
Fair Value, Inputs, Level 3 | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 27,000,000 | 67,000,000 | ||
Fair Value, Inputs, Level 3 | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,292,000,000 | 1,231,000,000 | ||
Fair Value, Inputs, Level 3 | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 10,000,000 | 10,000,000 | ||
Fair Value, Inputs, Level 3 | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 42,000,000 | 37,000,000 | ||
Fair Value, Inputs, Level 3 | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 546,000,000 | 614,000,000 | ||
Fair Value, Inputs, Level 3 | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 46,000,000 | |||
Fair Value, Inputs, Level 3 | U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | ||
Fair Value, Inputs, Level 3 | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 18,000,000 | 16,000,000 | ||
Fair Value, Inputs, Level 3 | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,000,000 | 4,000,000 | ||
Fair Value, Inputs, Level 3 | Future Policy Benefits | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,953,000,000 | 725,000,000 | ||
Fair Value, Inputs, Level 3 | Embedded Derivatives in Reinsurance Contracts | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 0 | |||
Fair Value, Inputs, Level 3 | Fixed indexed annuities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 3,235,000,000 | 2,476,000,000 | ||
Fair Value, Inputs, Level 3 | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 16,000,000 | 29,000,000 | ||
Reported Value Measurement | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | 969,000,000 | 571,000,000 | ||
Assets, fair value | 28,501,000,000 | 23,905,000,000 | ||
Equity securities | 1,002,000,000 | 1,332,000,000 | ||
Derivative investments | 587,000,000 | 97,000,000 | ||
Other invested assets | 39,000,000 | |||
Financial Liabilities Fair Value Disclosure | 5,237,000,000 | 3,230,000,000 | ||
Reported Value Measurement | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 5,694,000,000 | 4,832,000,000 | ||
Reported Value Measurement | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,922,000,000 | 2,537,000,000 | ||
Reported Value Measurement | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 11,597,000,000 | 10,381,000,000 | ||
Reported Value Measurement | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,027,000,000 | 901,000,000 | ||
Reported Value Measurement | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,343,000,000 | 1,187,000,000 | ||
Reported Value Measurement | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 954,000,000 | 1,031,000,000 | ||
Reported Value Measurement | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 46,000,000 | |||
Reported Value Measurement | U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 34,000,000 | 119,000,000 | ||
Reported Value Measurement | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 155,000,000 | 121,000,000 | ||
Reported Value Measurement | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,171,000,000 | 757,000,000 | ||
Reported Value Measurement | Future Policy Benefits | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,953,000,000 | 725,000,000 | ||
Reported Value Measurement | Embedded Derivatives in Reinsurance Contracts | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 33,000,000 | |||
Reported Value Measurement | Fixed indexed annuities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 3,235,000,000 | 2,476,000,000 | ||
Reported Value Measurement | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 16,000,000 | 29,000,000 | ||
Fair Value | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Cash and cash equivalents | 969,000,000 | 571,000,000 | ||
Assets, fair value | 28,501,000,000 | 23,905,000,000 | ||
Equity securities | 1,002,000,000 | 1,332,000,000 | ||
Derivative investments | 587,000,000 | 97,000,000 | ||
Other invested assets | 39,000,000 | |||
Financial Liabilities Fair Value Disclosure | 5,237,000,000 | 3,230,000,000 | ||
Fair Value | Asset-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 5,694,000,000 | 4,832,000,000 | ||
Fair Value | Commercial mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,922,000,000 | 2,537,000,000 | ||
Fair Value | Corporates | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 11,597,000,000 | 10,381,000,000 | ||
Fair Value | Hybrids | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,027,000,000 | 901,000,000 | ||
Fair Value | States, municipalities and political subdivisions | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,343,000,000 | 1,187,000,000 | ||
Fair Value | Residential mortgage-backed securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 954,000,000 | 1,031,000,000 | ||
Fair Value | Other invested assets | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 46,000,000 | |||
Fair Value | U.S. Government | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 34,000,000 | 119,000,000 | ||
Fair Value | Debt Security, Government, Non-US | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 155,000,000 | 121,000,000 | ||
Fair Value | Reinsurance Receivables, Funds Withheld | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 2,171,000,000 | 757,000,000 | ||
Fair Value | Future Policy Benefits | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 1,953,000,000 | 725,000,000 | ||
Fair Value | Embedded Derivatives in Reinsurance Contracts | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 33,000,000 | |||
Fair Value | Fixed indexed annuities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | 3,235,000,000 | 2,476,000,000 | ||
Fair Value | Preferred shares reimbursement feature embedded derivative | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Available-for-sale Securities | $ 16,000,000 | $ 29,000,000 | $ 23,000,000 | $ 23,000,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Changes to Fair Value of Financial Instruments Level 3 (Detail) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | $ 2,811 | $ 2,466 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | $ 1,623 | $ 1,449 | 2,466 | 1,785 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 1 | $ (5) | 5 | (2) | $ (4) |
Assets, Total Gains (Losses) Included in AOCI | 2 | 0 | (47) | 126 | (33) | (25) |
Assets, Purchases | 173 | 213 | 132 | 942 | 1,401 | 369 |
Assets, Sales | (30) | 0 | (5) | (107) | (1) | (20) |
Assets, Settlements | (18) | (19) | (70) | (362) | (179) | (171) |
Assets, Net transfer In (Out) of Level 3 | 10 | (21) | (28) | (259) | (505) | (150) |
Balance at End of Period | 1,785 | 1,623 | 1,427 | 2,811 | 2,466 | 1,449 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 2,331 | 2,627 | 3,230 | 3,028 | ||
Liabilities, Total Gains (Losses) Included in Earnings | (45) | (296) | (133) | 869 | 160 | 244 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 15 | (4) | 0 |
Liabilities, Purchases | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Settlements | (4) | 0 | 0 | (1,090) | (46) | 0 |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at End of Period | 3,028 | 2,331 | 2,250 | 5,204 | 3,230 | 2,627 |
Future Policy Benefit | 725 | |||||
Liabilities, fair value | 5,204 | 3,230 | ||||
Other invested assets | 1,303 | 662 | ||||
Funds withheld for reinsurance receivables, at fair value | 2,172 | 757 | ||||
FIA embedded derivatives, included in contractholder funds | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 2,331 | 2,627 | 2,476 | 2,277 | ||
Liabilities, Total Gains (Losses) Included in Earnings | (54) | (296) | (133) | 759 | 199 | 244 |
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Purchases | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Settlements | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at End of Period | 2,277 | 2,331 | 2,250 | 3,235 | 2,476 | 2,627 |
Future Policy Benefits | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 725 | 728 | ||||
Liabilities, Total Gains (Losses) Included in Earnings | 9 | 123 | (45) | |||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 15 | (4) | |||
Liabilities, Purchases | 0 | 0 | 0 | |||
Liabilities, Sales | 0 | 0 | 0 | |||
Liabilities, Settlements | (4) | 1,090 | 46 | |||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | |||
Balance at End of Period | 728 | 1,953 | 725 | |||
Preferred Shares Reimbursement Feature Embedded Derivative [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 29 | |||||
Liabilities, Total Gains (Losses) Included in Earnings | (13) | 6 | ||||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | 0 | ||||
Liabilities, Purchases | 0 | 0 | ||||
Liabilities, Sales | 0 | 0 | ||||
Liabilities, Settlements | 0 | 0 | ||||
Liabilities, Net transfer In (Out) of Level 3 | 0 | 0 | ||||
Balance at End of Period | 16 | 29 | ||||
Asset-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 225 | 159 | 444 | 412 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (1) | 0 | 0 | (2) |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | (1) | 19 | (4) | 2 |
Assets, Purchases | 143 | 95 | 63 | 675 | 476 | 152 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | (1) | 0 | (7) | (128) | (28) | (40) |
Assets, Net transfer In (Out) of Level 3 | 45 | (29) | (29) | (182) | (412) | (125) |
Balance at End of Period | 412 | 225 | 197 | 828 | 444 | 159 |
Commercial mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 49 | 95 | 67 | 49 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | (1) | (2) | 5 | (3) | 1 |
Assets, Purchases | 0 | 0 | 8 | 1 | 46 | 18 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | (10) | (6) | (1) |
Assets, Net transfer In (Out) of Level 3 | 0 | (45) | 0 | (36) | (19) | (2) |
Balance at End of Period | 49 | 49 | 85 | 27 | 67 | 95 |
Corporates | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 1,163 | 1,097 | 1,231 | 1,169 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (1) | 0 | 0 | (1) |
Assets, Total Gains (Losses) Included in AOCI | 2 | 0 | (41) | 69 | (29) | (29) |
Assets, Purchases | 30 | 67 | 51 | 221 | 288 | 189 |
Assets, Sales | (10) | 0 | (5) | 106 | 0 | (20) |
Assets, Settlements | (16) | (19) | (48) | (133) | (126) | (109) |
Assets, Net transfer In (Out) of Level 3 | 0 | 18 | 1 | 10 | (71) | (37) |
Balance at End of Period | 1,169 | 1,163 | 1,061 | 1,292 | 1,231 | 1,097 |
Hybrids | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 10 | 10 | 10 | 10 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Purchases | 0 | 0 | 10 | 0 | 0 | 10 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at End of Period | 10 | 10 | 10 | 10 | 10 | 10 |
Municipals | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 38 | 38 | 37 | 38 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | (3) | 5 | (1) | (2) |
Assets, Purchases | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | (1) | 0 | 0 | (1) |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at End of Period | 38 | 38 | 37 | 42 | 37 | 38 |
Equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 37 | 2 | 4 | 3 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | (2) | (2) | 1 | (2) |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | (1) | 0 | 1 |
Assets, Purchases | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | (35) | 35 | 0 | 0 | 0 | 0 |
Balance at End of Period | 3 | 37 | 1 | 1 | 4 | 2 |
Available-for-sale embedded derivative | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 16 | 14 | 17 | |||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 7 | (3) | 3 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 0 | 0 | |
Assets, Purchases | 0 | 0 | 0 | 0 | 0 | |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | |
Assets, Settlements | 0 | 0 | 0 | 0 | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | |
Balance at End of Period | 17 | 13 | 21 | 14 | 16 | |
HIG Energy Notes | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 0 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | |||||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||||
Assets, Purchases | 0 | |||||
Assets, Sales | (20) | |||||
Assets, Settlements | 0 | |||||
Assets, Net transfer In (Out) of Level 3 | 0 | |||||
Balance at End of Period | 0 | |||||
Loan participations | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 0 | |||||
Assets, Total Gains (Losses) Included in Earnings | (1) | (2) | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 1 | ||||
Assets, Purchases | 0 | 0 | ||||
Assets, Sales | 0 | 0 | ||||
Assets, Settlements | (14) | (20) | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||||
Balance at End of Period | 6 | 0 | ||||
Residential mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 67 | 15 | 614 | 66 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | 0 | |
Assets, Total Gains (Losses) Included in AOCI | 0 | 1 | 27 | 5 | 1 | |
Assets, Purchases | 0 | 51 | 25 | 560 | 0 | |
Assets, Sales | 0 | 0 | 0 | (1) | 0 | |
Assets, Settlements | (1) | 0 | (91) | (15) | 0 | |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | (29) | (1) | 14 | |
Balance at End of Period | 66 | 67 | 614 | 15 | ||
Related party investment | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 614 | |||||
Balance at End of Period | 546 | 614 | ||||
Debt Security, Government, Non-US | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 17 | 17 | 16 | 17 | ||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | 0 | 2 | (1) | 0 |
Assets, Purchases | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Settlements | 0 | 0 | 0 | 0 | 0 | 0 |
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | 0 | 0 | 0 | 0 |
Balance at End of Period | 17 | 17 | $ 17 | 18 | 16 | $ 17 |
Reinsurance Receivables, Funds Withheld | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 4 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | ||||
Assets, Purchases | 20 | 6 | ||||
Assets, Sales | (1) | 0 | ||||
Assets, Settlements | 0 | (4) | ||||
Assets, Net transfer In (Out) of Level 3 | (22) | (2) | ||||
Balance at End of Period | 1 | 4 | ||||
HGI Energy Note | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 4 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | |||||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||||
Assets, Purchases | 0 | |||||
Assets, Sales | 0 | |||||
Assets, Settlements | 0 | |||||
Assets, Net transfer In (Out) of Level 3 | 0 | |||||
Balance at End of Period | 4 | |||||
Fixed Maturity Security Embedded Derivative | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 17 | |||||
Assets, Total Gains (Losses) Included in Earnings | 1 | |||||
Assets, Total Gains (Losses) Included in AOCI | 0 | |||||
Assets, Purchases | 0 | |||||
Assets, Sales | 0 | |||||
Assets, Settlements | 0 | |||||
Assets, Net transfer In (Out) of Level 3 | 0 | |||||
Balance at End of Period | $ 17 | |||||
Market Approach | Asset-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 801 | 405 | ||||
Market Approach | Commercial mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 27 | 43 | ||||
Market Approach | Corporates | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 346 | 577 | ||||
Market Approach | Municipals | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 42 | 37 | ||||
Market Approach | Residential mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 546 | |||||
Residential Mortage Backed securities | 614 | |||||
Market Approach | Debt Security, Government, Non-US | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 18 | 16 | ||||
Market Approach | Credit Linked Note | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 25 | |||||
Loan Recovery Value | 25 | |||||
Income Approach Valuation Technique | Corporates | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 654 | |||||
Income Approach Valuation Technique | Hybrids | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 10 | |||||
Black Scholes Model | Other invested assets | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 21 | |||||
Loan Recovery Valuation | Reinsurance Receivables, Funds Withheld | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 1 | |||||
Matrix Pricing Valuation | Asset-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 24 | |||||
Matrix Pricing Valuation | Commercial mortgage-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 24 | |||||
Matrix Pricing Valuation | Corporates | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 946 | |||||
Matrix Pricing Valuation | Hybrids | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 10 | |||||
Third Parties | Asset-backed securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 27 | 15 | ||||
Affiliated Entity | Bank Loan Obligations | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at Beginning of Period | 25 | |||||
Assets, Total Gains (Losses) Included in Earnings | 0 | 0 | ||||
Assets, Total Gains (Losses) Included in AOCI | 0 | 0 | ||||
Assets, Purchases | 0 | 25 | ||||
Assets, Sales | 0 | 0 | ||||
Assets, Settlements | 0 | 0 | ||||
Assets, Net transfer In (Out) of Level 3 | 0 | 0 | ||||
Balance at End of Period | 25 | 25 | ||||
Affiliated Entity | Market Approach | Equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 4 | |||||
Affiliated Entity | Income Approach Valuation Technique | Equity securities | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 1 | |||||
Affiliated Entity | Income Approach Valuation Technique | Other invested assets | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Assets, Fair Value Disclosure | 14 | |||||
Fixed indexed annuities | Income Approach Valuation Technique | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Liabilities, fair value | 3,235 | 2,476 | ||||
Preferred shares reimbursement feature embedded derivative | Income Approach Valuation Technique | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Liabilities, fair value | 16 | 29 | ||||
Fair Value | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
FHLB Common Stock, Fair Value | 62 | 52 | ||||
Fair Value | 435 | 483 | ||||
Assets, Fair Value Disclosure | 28,501 | 23,905 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Residential mortgage loans | 14 | 187 | ||||
Related party loans and investments | 11 | |||||
Other invested assets | 39 | |||||
Funds withheld for reinsurance receivables, at fair value | 1 | |||||
Assets, carried on Balance Sheet at amounts other than fair value | 1,517 | 772 | ||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 19,285 | 18,358 | ||||
Debt Instrument, Fair Value Disclosure | 578 | 520 | ||||
Liabilities, carried on Balance Sheet at amounts other than fair value | 19,863 | 18,878 | ||||
Fair Value | Preferred shares reimbursement feature embedded derivative | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Liabilities, Total Gains (Losses) Included in Earnings | 0 | |||||
Liabilities, Total Gains (Losses) Included in AOCI | 0 | |||||
Liabilities, Purchases | 0 | |||||
Liabilities, Sales | 0 | |||||
Liabilities, Settlements | 0 | |||||
Liabilities, Net transfer In (Out) of Level 3 | $ 0 | |||||
Reported Value Measurement | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
FHLB Common Stock, Fair Value | 62 | 52 | ||||
Fair Value | 422 | 482 | ||||
Assets, Fair Value Disclosure | 28,501 | 23,905 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Residential mortgage loans | 28 | 185 | ||||
Related party loans and investments | 22 | |||||
Other invested assets | 39 | |||||
Funds withheld for reinsurance receivables, at fair value | 1 | |||||
Assets, carried on Balance Sheet at amounts other than fair value | 1,515 | 780 | ||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 22,449 | 20,911 | ||||
Debt Instrument, Fair Value Disclosure | 542 | 541 | ||||
Liabilities, carried on Balance Sheet at amounts other than fair value | 22,991 | 21,452 | ||||
Fair Value, Inputs, Level 1 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
FHLB Common Stock, Fair Value | 0 | 0 | ||||
Fair Value | 0 | 0 | ||||
Assets, Fair Value Disclosure | 1,997 | 1,581 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Residential mortgage loans | 0 | 0 | ||||
Related party loans and investments | 0 | |||||
Other invested assets | 0 | |||||
Funds withheld for reinsurance receivables, at fair value | 0 | |||||
Assets, carried on Balance Sheet at amounts other than fair value | 0 | 0 | ||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||||
Liabilities, carried on Balance Sheet at amounts other than fair value | 0 | 0 | ||||
Level 2 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
FHLB Common Stock, Fair Value | 62 | 52 | ||||
Fair Value | 0 | 0 | ||||
Assets, Fair Value Disclosure | 23,693 | 19,858 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Residential mortgage loans | 0 | 0 | ||||
Related party loans and investments | 0 | |||||
Other invested assets | 0 | |||||
Funds withheld for reinsurance receivables, at fair value | 0 | |||||
Assets, carried on Balance Sheet at amounts other than fair value | 62 | 52 | ||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 0 | 0 | ||||
Debt Instrument, Fair Value Disclosure | 578 | 520 | ||||
Liabilities, carried on Balance Sheet at amounts other than fair value | 578 | 520 | ||||
Fair Value, Inputs, Level 3 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
FHLB Common Stock, Fair Value | 0 | 0 | ||||
Fair Value | 435 | 483 | ||||
Assets, Fair Value Disclosure | 2,811 | 2,466 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Residential mortgage loans | 14 | 187 | ||||
Related party loans and investments | 11 | |||||
Other invested assets | 39 | |||||
Funds withheld for reinsurance receivables, at fair value | 1 | |||||
Assets, carried on Balance Sheet at amounts other than fair value | 1,455 | 720 | ||||
Liabilities Related to Investment Contracts, Fair Value Disclosure | 19,285 | 18,358 | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||||
Liabilities, carried on Balance Sheet at amounts other than fair value | 19,285 | 18,358 | ||||
FSRC | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Funds withheld for reinsurance receivables, at fair value | 307 | $ 275 | ||||
FSRC | Income Approach Valuation Technique | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Liabilities, fair value | $ 1,953 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - NAV (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | $ 2,811 | $ 2,466 |
Future Policy Benefit | 725 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,204 | 3,230 |
Private Equity Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative Investment | 1,010 | 510 |
Equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Alternative Investment | 69 | 50 |
Income Approach Valuation Technique | Corporates | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 654 | |
Income Approach Valuation Technique | Hybrids | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 10 | |
Market Approach | Asset-backed securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 801 | 405 |
Market Approach | Commercial mortgage-backed securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 27 | 43 |
Market Approach | Corporates | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 346 | 577 |
Market Approach | States, municipalities and political subdivisions | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 42 | 37 |
Market Approach | Residential mortgage-backed securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 546 | |
Residential Mortage Backed securities | 614 | |
Market Approach | Debt Security, Government, Non-US | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 18 | 16 |
Affiliated Entity | Income Approach Valuation Technique | Equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 1 | |
Affiliated Entity | Income Approach Valuation Technique | Other invested assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 14 | |
Affiliated Entity | Market Approach | Equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Assets, Fair Value Disclosure | 4 | |
Fixed indexed annuities | Income Approach Valuation Technique | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 3,235 | $ 2,476 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Narrative (Detail) $ in Millions | Nov. 30, 2017 | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($)$ / Contract |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Preferred Stock, Call Features, Minimum Term | 5 years | ||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 1 | $ 12 | $ 57 | $ (42) | $ (16) | |
Assets, net transfer in (out) of Level 3 | 10 | (21) | (28) | (259) | (505) | (150) | |
Asset-backed securities | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Assets, net transfer in (out) of Level 3 | 45 | (29) | (29) | (182) | (412) | $ (125) | |
Income Approach Valuation Technique | Other invested assets | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative, strike price | $ / Contract | 0 | ||||||
Preferred Stock | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Preferred Stock, Call Features, Minimum Term | 5 years | ||||||
Preferred Stock, Dividend Rate, Percentage, Less Than Par | 90.00% | ||||||
FSRC | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Undiscounted Cash flows used in fair value measurement | 2,569 | 1,199 | |||||
Preferred shares reimbursement feature embedded derivative | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Change in fair value of other derivatives and embedded derivatives | $ 0 | $ 0 | $ 0 | $ (13) | $ 6 | $ 0 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Gross Transfers Into and Out of Certain Fair Value Levels by Asset Class (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 41 | $ 0 | $ 0 | $ 29 | $ 30 | $ 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 78 | 75 | 72 | 351 | 596 | 278 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 126 | 672 | 44 | 70 | 106 | 128 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 46 | 54 | 44 | 79 | 61 | 128 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 37 | 75 | 72 | 338 | 566 | 278 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 80 | 618 | 0 | 7 | 45 | 0 |
Asset-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | 0 |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 1 | 29 | 68 | 233 | 425 | 222 |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 46 | 0 | 39 | 51 | 13 | 112 |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 46 | 0 | 39 | 51 | 13 | 112 |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 1 | 29 | 68 | 233 | 425 | 222 |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 1 | 46 | 37 | 28 | 7 | |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 1 | 1 | 9 | 6 | |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 1 | 1 | 9 | 6 | |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 1 | 46 | 37 | 28 | 7 | |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | |
Corporates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 | |
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 0 | 4 | 1 | 75 | 49 | |
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 18 | 5 | 11 | 4 | 10 | |
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 18 | 5 | 11 | 4 | 10 | |
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 0 | 4 | 1 | 75 | 49 | |
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | $ 0 | 0 | 0 | $ 0 | |
Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 15 | 0 | 0 | |||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 15 | 0 | 0 | |||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 27 | 244 | 20 | |||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 27 | 244 | 20 | |||
Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 29 | 36 | ||||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 35 | ||||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 35 | ||||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 29 | 36 | ||||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | 0 | 0 | ||||
Hybrids | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 26 | 0 | 29 | 30 | ||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 61 | 0 | 29 | 30 | ||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 53 | 409 | 7 | 25 | ||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 35 | 16 | 0 | ||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 35 | 0 | 16 | 0 | ||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | $ 53 | $ 374 | 7 | 25 | ||
Reinsurance Receivables, Funds Withheld | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||||
Fair Value, Assets, Level 1 Or Level 3 To Level 2 Transfers, Amount | 22 | 2 | ||||
Fair Value, Assets, Level 2 To Level 1 Or Level 3 Transfers, Amount | 0 | 0 | ||||
Fair Value, Assets, Level 1 Or Level 2 To Level 3 Transfers, Amount | 0 | 0 | ||||
Fair Value, Assets, Level 3 To Level 1 Or Level 2 Transfers, Amount | 22 | 2 | ||||
Fair Value, Assets, Level 2 Or Level 3 From Level 1 Transfers, Amount | $ 0 | $ 0 |
Intangibles - Summary of Change
Intangibles - Summary of Changes in Carrying Amounts of Intangible Assets Including DAC, VOBA , and DSI (Detail) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
VOBA | ||||||
VOBA at beginning of period | $ 0 | $ 0 | $ 19 | $ 866 | $ 821 | $ 19 |
Deferrals | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization | (7) | (12) | (31) | (106) | (58) | (65) |
Interest | 2 | 2 | 2 | 18 | 19 | 11 |
Unlocking | 0 | 7 | 6 | (2) | (9) | 32 |
Adjustment for net unrealized investment (gains) losses | (18) | 3 | 122 | (183) | 93 | 3 |
VOBA at end of period | 821 | 0 | 118 | 593 | 866 | 0 |
DAC | ||||||
DAC at beginning of period | 1,031 | 1,023 | 921 | 344 | 22 | 921 |
Deferrals | 23 | 40 | 88 | 379 | 317 | 293 |
Amortization | (1) | (39) | (103) | (30) | (4) | (192) |
Interest | 0 | 7 | 22 | 13 | 4 | 42 |
Unlocking | 0 | 4 | (7) | (2) | 0 | 2 |
Adjustment for net unrealized investment (gains) losses | 0 | (4) | 103 | (74) | 5 | (43) |
DAC at end of period | 22 | 1,031 | 1,024 | 630 | 344 | 1,023 |
Movement in Deferred Sales Inducements [Roll Forward] | ||||||
DSI at beginning of period | 109 | 106 | 86 | 149 | 10 | 86 |
Deferrals | 10 | 8 | 12 | 130 | 138 | 43 |
Amortization | 0 | (5) | (2) | (20) | (2) | (23) |
Interest | 0 | 1 | (11) | 4 | 1 | 4 |
Unlocking | 0 | (1) | 1 | (1) | 0 | (4) |
Adjustment for net unrealized investment (gains) losses | 0 | 0 | 0 | (30) | 2 | 0 |
DSI at end of period | 10 | 109 | 86 | 232 | 149 | 106 |
Total | ||||||
Total VOBA, DAC and DSI at beginning of period | 1,140 | 1,129 | 1,026 | 1,359 | 853 | 1,026 |
Deferrals | 33 | 48 | 100 | 509 | 455 | 336 |
Amortization | (8) | (56) | (136) | (156) | (64) | (280) |
Interest | 2 | 10 | 13 | 35 | 24 | 57 |
Unlocking | 0 | 10 | 0 | (5) | (9) | 30 |
Adjustment for net unrealized investment (gains) losses | (18) | (1) | 225 | (287) | 100 | (40) |
Total VOBA, DAC and DSI at end of period | $ 853 | $ 1,140 | $ 1,228 | $ 1,455 | $ 1,359 | $ 1,129 |
Intangibles - Narrative (Detail
Intangibles - Narrative (Detail) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Adjustment for net unrealized investment (gains) losses | $ 0 | $ 0 | $ 0 | $ (30) | $ 2 | $ 0 |
Unearned revenue liability | (43) | (41) | ||||
Unearned Revenue, Additions | (41) | (37) | ||||
Unearned Revenue, Amortization Expense | (4) | 18 | ||||
Unearned Revenue Interest Expense | (2) | |||||
Unearned Revenue, Unlocking Adjustment | 1 | 4 | ||||
Unearned Revenue, Unrealized Gain (Loss) on Investment | 44 | (26) | ||||
Goodwill | $ 467 | $ 467 | 467 | |||
Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Value of Business Acquired, Assumption, Interest Rate to Calculate Accretion on Intangible Asset | 0.05% | |||||
Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Value of Business Acquired, Assumption, Interest Rate to Calculate Accretion on Intangible Asset | 4.01% | |||||
VOBA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cumulative Adjustments For Net Unrealized Investment Gains | $ 108 | (75) | ||||
DAC | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Cumulative Adjustments For Net Unrealized Investment Gains | 70 | (5) | ||||
Adjustment for net unrealized investment (gains) losses | $ (28) | $ 2 |
Intangibles - Estimated Amortiz
Intangibles - Estimated Amortization Expense for VOBA in Future Fiscal Periods (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 62 |
2021 | 85 |
2022 | 80 |
2023 | 72 |
2024 | 65 |
Thereafter | $ 337 |
Intangibles - Definite Lived In
Intangibles - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 1,455 | $ 1,359 |
FGL | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | 18 | |
FGL | Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 16 | |
Accumulated amortization | 4 | |
Net | $ 12 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
Licensing Agreements | FGL | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 6 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) $ in Millions | Apr. 20, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 542 | $ 541 | |||
Revolving credit facility | 0 | $ 0 | |||
Gain on Extinguishment of Debt | $ 0 | $ 0 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 135 | ||||
Interest rate if revolver drawn | 4.55% | 5.27% | |||
Remaining borrowing capacity | $ 250 | ||||
Senior Notes | 6.375% Senior Notes, Due April 1, 2021 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate | 6.375% | ||||
Debt | $ 300 | ||||
Gain on Extinguishment of Debt | 2 | ||||
Senior Notes | Five Point Five Percent Senior Notes, Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 550 | ||||
Long-term debt, interest rate | 5.50% | ||||
Debt Instrument, Unamortized Discount Rate | 99.50% | ||||
Debt | $ 547 | ||||
Debt Issuance Costs, Net | $ 7 | ||||
Royal Bank Of Canada | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
senior unsecured revolving credit facility | $ 250 | ||||
Debt term | 3 years |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 20, 2018 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 542 | $ 541 | ||
Revolving credit facility | 0 | 0 | ||
Interest expense excluding amortization | $ 2 | 30 | 28 | |
Amortization of debt issuance costs | 0 | 2 | 1 | |
Gain on Extinguishment of Debt | 0 | 0 | ||
Gain (Loss) on Extinguishment of Debt | (2) | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 135 | |||
Interest expense excluding amortization | 0 | 0 | 2 | |
Amortization of debt issuance costs | $ 0 | $ 0 | $ 0 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Dec. 15, 2020 | Feb. 26, 2020$ / shares | Nov. 06, 2019$ / shares | Aug. 07, 2019$ / shares | May 07, 2019$ / shares | Feb. 27, 2019$ / shares | Oct. 09, 2018USD ($)$ / sharesshares | Oct. 04, 2018 | Nov. 30, 2017USD ($)$ / sharesshares | Jun. 29, 2016shares | May 25, 2016$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares |
Class of Stock [Line Items] | ||||||||||||||||||
Authorized Share Capital | $ | $ 90,000 | |||||||||||||||||
Common stock, shares authorized (in shares) | shares | 800,000,000 | 800,000,000 | 800,000,000 | |||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 145,370,000 | 9,000,000 | 60,000,000 | |||||||||||||||
Sale of Stock, Price Per Share | $ 10 | $ 10 | $ 10 | |||||||||||||||
Preferred Stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||
Preferred Stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Preferred Stock, shares issued (in shares) | shares | 429,789 | 399,033 | 399,033 | |||||||||||||||
Payments of Stock Issuance Costs | $ | $ 12,000,000 | |||||||||||||||||
Preferred Stock, Call Features, Minimum Term | 5 years | |||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 19,083,000 | 34,500,000 | 19,083,000 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.50 | |||||||||||||||||
Class Of Warrant Or Right, Redemption Price Of Warrants Or Rights | $ 0.01 | $ 0.01 | ||||||||||||||||
Warrants Tendered | $ | 0 | 0 | 0 | 0 | (66,000,000) | 0 | 66,000,000 | |||||||||||
Payments for Repurchase of Warrants | $ | $ 64,000,000 | |||||||||||||||||
Class of Warrant or Right, Outstanding | shares | 70,883,000 | 0 | 0 | 5,510,000 | 55,838,000 | 0 | ||||||||||||
Class Of Warrant Or Right, Redemption, Share Price Minimum Per Twenty Trading Days Within Thirty Trading Day Period | $ 18 | $ 18 | ||||||||||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||
Shares repurchased (in shares) | shares | 8,052,000 | 600,000 | ||||||||||||||||
Treasury shares purchased | $ | $ 1,000,000 | $ 65,000,000 | $ 4,000,000 | $ 1,000,000 | ||||||||||||||
Shareholders' disclosure, ownership percentage | 66.66667% | |||||||||||||||||
Cash dividend per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 150,000,000 | |||||||||||||||||
Total Stock Repurchased During Period, Shares | shares | 8,652,000 | |||||||||||||||||
Total Stock Repurchased During Period, Value | $ | $ 69,000,000 | |||||||||||||||||
Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Preferred Stock, Call Features, Minimum Term | 5 years | |||||||||||||||||
Preferred stock dividend rate | 7.50% | |||||||||||||||||
Preferred Stock, Dividend Rate, Increase, Term | 10 years | |||||||||||||||||
Preferred Stock, Dividend Rate, Percentage, Basis Spread On Variable Rate | 5.50% | |||||||||||||||||
Preferred Stock, Conversion Term | 10 years | |||||||||||||||||
Preferred Stock, Discount To Thirty Day Volume Weighted Average | 5.00% | |||||||||||||||||
Preferred Stock, Floor Price During Year Eleven | $ 8 | |||||||||||||||||
Preferred Stock, Floor Price During Year Twelve | 7 | |||||||||||||||||
Preferred Stock, Floor Price During Year Thirteen | $ 6 | |||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Warrants Tendered | 65,374,000 | |||||||||||||||||
Ordinary Shares Exchanged for Outstanding Warrants | shares | 7,191,000 | |||||||||||||||||
Cash Exchanged per Warrant Outstanding | $ | $ 0.98 | |||||||||||||||||
Class of Warrant or Right, Outstanding | shares | 5,510,000 | |||||||||||||||||
Ordinary Shares Exchanged Per Outstanding Warrant | $ 0.11 | |||||||||||||||||
Cash dividend per common share (in dollars per share) | $ 0.01 | |||||||||||||||||
Stock Repurchase Program Expiration Date | Dec. 15, 2020 | |||||||||||||||||
Subsidiaries | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Restricted net assets for consolidated subsidiaries | $ | $ 2,501 | |||||||||||||||||
Restricted net assets for consolidated subsidiaries, percentage of stockholder's equity | 91.00% | |||||||||||||||||
Series A Cumulative Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Preferred Stock, shares issued (in shares) | shares | 275,000 | 275,000 | ||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | ||||||||||||||||
Preferred Stock, Liquidation Preference, Value | $ | $ 275 | $ 275 | ||||||||||||||||
Series B Cumulative Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Preferred Stock, shares issued (in shares) | shares | 100,000 | 100,000 | ||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | ||||||||||||||||
Preferred Stock, Liquidation Preference, Value | $ | $ 100 | $ 100 | ||||||||||||||||
Private Placement Warrant [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1 | |||||||||||||||||
CF Capital Growth, LLC 1 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 15,800,000 | |||||||||||||||||
CF Capital Growth, LLC 2 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 1,500,000 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 09, 2019 | Nov. 06, 2019 | Sep. 09, 2019 | Aug. 07, 2019 | Jun. 10, 2019 | May 07, 2019 | Apr. 01, 2019 | Feb. 27, 2019 | Dec. 31, 2019 | Nov. 25, 2019 | Aug. 26, 2019 | May 28, 2019 | Mar. 18, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||||||||||||||
Common stock, shares outstanding (in shares) | 221,807,598 | 221,661,000 | 221,661,000 | 221,661,000 | 221,661,000 | 221,660,974 | ||||||||
Cash dividend per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Total cash paid | $ 2 | $ 2 | $ 2 | $ 2 |
Equity - Schedule of Dividend_2
Equity - Schedule of Dividends Declared (Details) - Preferred Stock shares in Thousands, $ in Thousands | Dec. 15, 2019shares | Oct. 01, 2019USD ($)shares | Sep. 15, 2019shares | Jul. 01, 2019USD ($)shares | Jun. 15, 2019shares | Apr. 01, 2019USD ($)shares | Mar. 15, 2019shares | Jan. 01, 2019USD ($)shares | Dec. 15, 2018shares | Oct. 01, 2018USD ($)shares | Sep. 15, 2018shares | Jul. 01, 2018USD ($)shares | Jun. 15, 2018shares | Apr. 01, 2018USD ($)shares | Mar. 15, 2018shares | Feb. 01, 2020USD ($)shares |
Series A Cumulative Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shareholders of record (in thousands) | 316 | 310 | 304 | 298 | 293 | 287 | 282 | 277 | ||||||||
Total cash paid | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Total shares paid in kind (in thousands) | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 5 | ||||||||
Series B Cumulative Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shareholders of record (in thousands) | 114 | 112 | 110 | 108 | 106 | 104 | 102 | 101 | ||||||||
Total cash paid | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Total shares paid in kind (in thousands) | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 3 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 08, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,712,000 | ||
FGL Holdings [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Price | $ 10.65 | ||
2017 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 15,006,000 | ||
FGL Incentive Plan | |||
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 | 7,749,000 | ||
FGL Incentive Plan | Restricted shares | |||
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 | 147,000 | 112,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 1 | $ 1 | |
Management Incentive Plan | Phantom Share Units (PSUs) | |||
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 | 541,000 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 5 | $ 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities | $ 1 | ||
Management Incentive Plan | Phantom Share Units (PSUs) | Management [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 | 541,000 | 374,000 | |
Stock Option Awards | FGL Incentive Plan | Officer | |||
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 | 7,749,000 | 17,255,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Options Fair Value At Grant Date | $ 12 | $ 32 |
Stock Compensation - Summary of
Stock Compensation - Summary of Stock Options Outstanding and Related Activity (Details) - FGL Incentive Plan - $ / shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2019 |
Options (in shares): | ||
Stock options outstanding at beginning of period (in shares) | 13,007 | |
Granted (in shares) | 7,749 | |
Exercised (in shares) | 0 | |
Forfeited or expired (in shares) | (5,542) | |
Stock options outstanding at end (in shares) | 15,214 | |
Vested and exercisable at end of period (in shares) | 1,009 | |
Vested or projected to vest (in shares) | 15,214 | |
Weighted Average Exercise Price (in dollars per share): | ||
Stock options outstanding at beginning of period (in dollars per share) | $ 9.68 | |
Granted (in dollars per share) | 9.18 | |
Exercised (in dollars per share) | 0 | |
Forfeited or expired (in dollars per share) | 10 | |
Stock options outstanding at end of period (in dollars per share) | 9.30 | |
Vested and exercisable at end of period (in dollars per share) | $ 9.16 | |
Vested and projected to vest (in dollars per share) | $ 9.30 |
Stock Compensation - Summary _2
Stock Compensation - Summary of Company’s Nonvested Restricted Shares Outstanding (Details) - FGL Incentive Plan - Restricted shares - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares: | ||
beginning of period (in shares) | 0 | |
Granted (in shares) | 147 | 112 |
Vested (in shares) | (147) | |
end of period (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value (in dollars per share): | ||
beginning of period (in dollars per share) | $ 0 | |
Average grant date fair value, Granted (in dollars per share) | 6.82 | |
Average grant date fair value, Exercised (in dollars per share) | 6.82 | |
end of period (in dollars per share) | $ 0 | $ 0 |
Stock Compensation - Nonvested
Stock Compensation - Nonvested Phantom Units Outstanding (Details) - Phantom Share Units (PSUs) - Management Incentive Plan shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
beginning of period (in shares) | shares | 356 |
Granted (in shares) | shares | 541 |
Vested (in shares) | shares | 59 |
Forfeited or expired (in shares) | shares | 93 |
end of period (in shares) | shares | 745 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Weighted Average Grant [Roll Forward] | |
beginning of period (in dollars per share) | $ / shares | $ 8.95 |
Granted (in dollars per share) | $ / shares | 8.54 |
Vested (in dollars per share) | $ / shares | 10 |
Forfeited or expired (in dollars per share) | $ / shares | 9.33 |
end of period (in dollars per share) | $ / shares | $ 9.02 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Stock Based Compensation Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Related tax benefit | $ 1 | $ 1 |
Phantom Share Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
stock compensation expense | 5 | 4 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
stock compensation expense | $ 4 | $ 3 |
Stock Compensation - Summary _3
Stock Compensation - Summary of Unrecognized Stock Compensation Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 22 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
FGL Incentive Plan | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 18 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |
Management Incentive Plan | Phantom Share Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | Dec. 22, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Nov. 30, 2017 | May 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 |
Tax Credit Carryforward [Line Items] | ||||||||||
Payment for Contingent Consideration Liability, Investing Activities | $ 0 | $ 0 | $ 57,000,000 | $ 0 | $ 0 | $ 0 | $ 57,000,000 | |||
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset, Income Tax Expense | 131,000,000 | $ 18,000,000 | ||||||||
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Liability, Income Tax Benefit | $ 0 | |||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 0.00% | |||||||||
Effective tax rate | 579.00% | 37.00% | 34.00% | 11.00% | 55.00% | 33.00% | ||||
Write off of expired capital loss carryforward | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Valuation allowance increase (decrease) | 13,000,000 | $ (2,000,000) | $ 0 | (39,000,000) | (38,000,000) | |||||
Valuation allowance | $ 15,000,000 | 14,000,000 | 154,000,000 | 154,000,000 | ||||||
Unrecognized tax benefits | $ 0 | 0 | 0 | $ 0 | 0 | |||||
Deferred Tax Asset, Net Operating Loss, Credits, and Capital Loss Carryforwards | $ 35,000,000 | 94,000,000 | 94,000,000 | |||||||
Federal tax rates | 34.00% | 21.00% | ||||||||
Life Company Capital Loss Carryforwards | ||||||||||
Tax Credit Carryforward [Line Items] | ||||||||||
Valuation allowance increase (decrease) | $ (14,000,000) | (14,000,000) | ||||||||
Valuation allowance | $ 0 | 115,000,000 | $ 115,000,000 | |||||||
Deferred Tax Asset, Net Operating Loss, Credits, and Capital Loss Carryforwards | 113,000,000 | |||||||||
Non-Life Company Capital Loss Carryforwards | ||||||||||
Tax Credit Carryforward [Line Items] | ||||||||||
Valuation allowance increase (decrease) | $ (1,000,000) | (6,000,000) | (3,000,000) | |||||||
Deferred Tax Asset, Net Operating Loss, Credits, and Capital Loss Carryforwards | 165,000,000 | |||||||||
FSRC | ||||||||||
Tax Credit Carryforward [Line Items] | ||||||||||
Valuation allowance increase (decrease) | (31,000,000) | $ (21,000,000) | ||||||||
Deferred Tax Asset, Net Operating Loss, Credits, and Capital Loss Carryforwards | $ 52,000,000 | |||||||||
Maximum | ||||||||||
Tax Credit Carryforward [Line Items] | ||||||||||
Federal tax rates | 35.00% | |||||||||
Minimum | ||||||||||
Tax Credit Carryforward [Line Items] | ||||||||||
Federal tax rates | 21.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Tax (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | |||||||
United States | $ (55) | $ 44 | $ 163 | $ 467 | $ (271) | $ 333 | |
Outside the United States | 74 | 0 | 0 | 101 | 300 | 0 | |
Income (loss) before income taxes | $ 19 | $ 44 | $ 163 | $ 568 | $ 29 | $ 333 | $ 29 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Current: | |||||||
Federal | $ (5,000,000) | $ (23,000,000) | $ 21,000,000 | $ (22,000,000) | $ (42,000,000) | $ (114,000,000) | |
State | 0 | 0 | 0 | 0 | 0 | 0 | |
Total current | (5,000,000) | (23,000,000) | 21,000,000 | (22,000,000) | (42,000,000) | (114,000,000) | |
Deferred: | |||||||
Federal | (105,000,000) | 7,000,000 | (76,000,000) | (39,000,000) | 26,000,000 | 4,000,000 | |
State | 0 | 0 | 0 | 0 | 0 | 0 | |
Total deferred | (105,000,000) | 7,000,000 | (76,000,000) | (39,000,000) | 26,000,000 | 4,000,000 | |
Income tax (expense)/benefit | $ (110,000,000) | $ (16,000,000) | $ (55,000,000) | $ (61,000,000) | $ (16,000,000) | $ (110,000,000) | $ (16,000,000) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||||||
Expected income tax (expense)/benefit at Federal statutory rate | $ (7) | $ (15) | $ (57) | $ (119) | $ (6) | $ (117) | |
Valuation allowance for deferred tax assets | 13 | (2) | 0 | 39 | (38) | 1 | |
Amortization of low income housing tax credits | (1) | (1) | 0 | (8) | (4) | (4) | |
Benefit on LIHTC under proportional amortization method | 0 | 1 | 0 | 9 | 5 | 5 | |
Write off of expired capital loss carryforward | 0 | 0 | 0 | 0 | 0 | 0 | |
Remeasurement of deferred taxes under U.S. tax reform | (131) | 0 | 0 | 0 | 0 | 0 | |
Dividends received deduction | 0 | 1 | 0 | 4 | 5 | 4 | |
Benefit on Outside of United States Income taxed at 0% | 26 | 0 | 0 | 21 | 63 | 0 | |
Withholding Tax on 0% Taxed Jurisdictions | 0 | 0 | 0 | (5) | 0 | 0 | |
Write off of 382 Limited NOL | (12) | 0 | 0 | 0 | 0 | 0 | |
Base Erosion & Antiabuse Tax BEAT | 0 | 0 | 0 | 0 | (44) | 0 | |
Other | 2 | 0 | 2 | (2) | 3 | 1 | |
Income tax (expense)/benefit | $ (110) | $ (16) | $ (55) | $ (61) | $ (16) | $ (110) | $ (16) |
Effective tax rate | 579.00% | 37.00% | 34.00% | 11.00% | 55.00% | 33.00% |
Income Taxes - Deferred Tax Exp
Income Taxes - Deferred Tax Expense to OCI (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Income Taxes [Line Items] | ||||||
Deferred Tax Assets, Funds Held under Reinsurance Agreements | $ 11 | $ 0 | ||||
Deferred Tax Expense in OCI | $ (7) | $ 154 | $ (242) | $ 132 | $ (19) | $ (56) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | |||
Net operating loss, credit and capital loss carryforwards | $ 35,000,000 | $ 94,000,000 | |
Insurance reserves and claim related adjustments | 716,000,000 | 620,000,000 | |
Unrealized Investment Losses | 0 | 201,000,000 | |
Derivatives | 0 | 36,000,000 | |
Deferred acquisition costs | 0 | 0 | |
Deferred Tax Assets, Funds Held under Reinsurance Agreements | 11,000,000 | 0 | |
Funds withheld for reinsurance liabilities | 831,000,000 | 722,000,000 | |
Other | 37,000,000 | 30,000,000 | |
Valuation allowance | (14,000,000) | (154,000,000) | $ (15,000,000) |
Total deferred tax assets | 785,000,000 | 827,000,000 | |
Deferred tax liabilities: | |||
Value of business acquired | (124,000,000) | (181,000,000) | |
Unrealized Investment Gains | (221,000,000) | 0 | |
Investments | (121,000,000) | (133,000,000) | |
Derivatives | (45,000,000) | 0 | |
Deferred acquisition costs | (139,000,000) | (76,000,000) | |
Transition reserve on new reserve method | (63,000,000) | (75,000,000) | |
Funds held under Reinsurance Agreements | 0 | (11,000,000) | |
Other | (11,000,000) | (8,000,000) | |
Total deferred tax liabilities | (724,000,000) | (484,000,000) | |
Net deferred tax assets and (liabilities) | $ 61,000,000 | ||
Net deferred tax assets and (liabilities) | $ (343,000,000) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Investment Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 83 |
Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,358 |
Other invested assets | Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 1,202 |
Equity securities | Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 14 |
Fixed maturity securities, available-for-sale | Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | 48 |
Other assets | Commitment to Invest | |
Other Commitments [Line Items] | |
Unfunded investment commitment | $ 78 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Accrued amount of guaranty fund assessments | $ 2 |
Loss Contingency Accrual, Insurance-related Assessment, Premium Tax Offset | $ 2 |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance on Premiums Earned, Benefits Incurred and Reserve Changes (Detail) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Premiums and other considerations: | |||||||
Direct | $ 38 | $ 80 | $ 111 | $ 413 | $ 460 | $ 462 | |
Assumed | 0 | 0 | 0 | 0 | 0 | 0 | |
Ceded | (19) | (39) | (62) | (218) | (226) | (255) | |
Net | 19 | 41 | 49 | 195 | 234 | 207 | |
Benefits and Other Changes in Insurance Policy Reserves: | |||||||
Net | 124 | 227 | 20 | 1,057 | 843 | $ 423 | |
Traditional life insurance premiums | |||||||
Premiums and other considerations: | |||||||
Direct | 17 | 36 | 57 | 204 | 223 | 233 | |
Assumed | 0 | 0 | 0 | 0 | 0 | 0 | |
Ceded | (14) | (29) | (46) | (164) | (169) | (191) | |
Net | 3 | 7 | 11 | 40 | 54 | 42 | |
Benefits and Other Changes in Insurance Policy Reserves: | |||||||
Direct | 142 | 267 | 69 | 1,277 | 646 | 1,097 | |
Assumed | 7 | 0 | 0 | (19) | (13) | 0 | |
Ceded | (25) | (40) | (49) | (201) | (210) | (254) | |
Net | $ 124 | $ 227 | $ 20 | $ 1,057 | $ 423 | $ 843 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 01, 2018USD ($) | Dec. 01, 2017 | Sep. 17, 2014 | Dec. 31, 2012 | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)policy | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Apr. 01, 2019USD ($) | Jan. 01, 2019USD ($) | Oct. 01, 2012USD ($) |
Ceded Credit Risk [Line Items] | ||||||||||||||||
Ceded | $ 19,000,000 | $ 39,000,000 | $ 62,000,000 | $ 218,000,000 | $ 226,000,000 | $ 255,000,000 | ||||||||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 750,000,000 | |||||||||||||||
Reinsurance Risk Charge Fee | $ 2,000,000 | $ 2,000,000 | $ 17,000,000 | 11,000,000 | $ 4,000,000 | |||||||||||
Number of policies reinsured by foreign company not engaged in insurance | policy | 0 | |||||||||||||||
Statutory capital and surplus | $ 94,000,000 | $ 87,000,000 | 94,000,000 | |||||||||||||
Funds withheld for reinsurance receivables, at fair value | 757,000,000 | 2,172,000,000 | 757,000,000 | |||||||||||||
Funds withheld for reinsurance liabilities | 722,000,000 | 831,000,000 | 722,000,000 | |||||||||||||
CF Bermuda Holdings Limited [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Extraordinary Dividend | 1,094,000,000 | |||||||||||||||
FGL Insurance [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Extraordinary Dividend | $ 830,000,000 | |||||||||||||||
Nomura | Letter of Credit | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 295,000,000 | ||||||||||||||
Raven Re | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Statutory capital and surplus | 20,000,000 | 33,000,000 | 20,000,000 | |||||||||||||
Life and Annuity Insurance Product Line | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 185,000,000 | 758,000,000 | ||||||||||||||
Fixed indexed annuities | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 4,000,000,000 | $ 1,000,000,000 | ||||||||||||||
In-Force Annuity Block [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsured risk | 10.00% | |||||||||||||||
New Business [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsured risk | 30.00% | |||||||||||||||
In-Force FIA [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsurance arrangement in percentage | 80.00% | |||||||||||||||
In-Force Deferred Annuity [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Reinsurance arrangement in percentage | 40.00% | |||||||||||||||
FSRC | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Funds withheld for reinsurance receivables, at fair value | 275,000,000 | 307,000,000 | 275,000,000 | |||||||||||||
Funds withheld for reinsurance liabilities | 254,000,000 | 285,000,000 | 254,000,000 | |||||||||||||
F&G Re [Member] | ||||||||||||||||
Ceded Credit Risk [Line Items] | ||||||||||||||||
Funds withheld for reinsurance receivables, at fair value | 482,000,000 | 1,865,000,000 | 482,000,000 | $ 983 | ||||||||||||
Funds withheld for reinsurance liabilities | $ 471,000,000 | $ 1,668,000,000 | $ 471,000,000 | $ 896 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Dec. 31, 2018 | Dec. 17, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||
Management Fee, Description | $ 95,000,000 | ||||
Management Fee Payable | $ 20,000,000 | 47,000,000 | $ 20,000,000 | ||
Reimbursement Revenue (Deprecated 2018-01-31) | 10,000,000 | 9,000,000 | |||
Related Party Transaction, Asset Carrying Value | 1,461,000,000 | 2,001,000,000 | 1,461,000,000 | ||
Foreign Currency Transaction Gain (Loss), Unrealized | (2,000,000) | (3,000,000) | |||
Other Commitment | 83,000,000 | ||||
Net investment income | $ 1,000,000 | 112,000,000 | 33,000,000 | ||
Related Party Transactions, Gain (Loss) | $ 0 | 0 | 0 | ||
Commitment to Invest | |||||
Related Party Transaction [Line Items] | |||||
Other Commitment | 1,358,000,000 | ||||
Commitment to Invest | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Other Commitment | $ 990,000,000 | 993,000,000 | $ 990,000,000 | ||
Residential Portfolio Segment | |||||
Related Party Transaction [Line Items] | |||||
Residential Mortgage Loans Purchased | $ 185,000,000 | $ 89,000,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income (loss) | $ (91) | $ 28 | $ 225 | $ 65 | $ 46 | $ 171 | $ (148) | $ 56 | $ 40 | $ 65 | $ 108 | $ 507 | $ 13 | $ 223 | $ 13 |
Less Preferred stock dividend | 2 | 0 | 0 | 31 | 29 | 0 | $ 29 | ||||||||
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (93) | $ 28 | $ 108 | $ 476 | $ (16) | $ 223 | |||||||||
Weighted-average common shares outstanding - basic (in shares) | 214,370,000 | 58,341,112 | 58,280,532 | 216,591,908 | 216,019,000 | 58,319,517 | 216,018,629 | ||||||||
Dilutive effect of unvested restricted stock and unvested performance restricted stock (in shares) | 0 | 61,000 | 57,000 | 86,000 | 0 | 43,000 | |||||||||
Dilutive effect of stock options (in shares) | 0 | 92,000 | 28,000 | 59,000 | 0 | 52,000 | |||||||||
Weighted-average shares outstanding - diluted (in shares) | 214,370,000 | 58,494,043 | 58,366,009 | 216,737,602 | 216,019,000 | 58,415,187 | 216,018,629 | ||||||||
Net income (loss) per common share: | |||||||||||||||
Basic (in USD per share) | $ (0.44) | $ 0.48 | $ 1.02 | $ 0.26 | $ 0.17 | $ 0.74 | $ (0.70) | $ 0.23 | $ 0.15 | $ 0.27 | $ 1.85 | $ 2.19 | $ (0.07) | $ 3.83 | |
Diluted (in USD per share) | $ (0.44) | $ 0.47 | $ 1.02 | $ 0.26 | $ 0.17 | $ 0.74 | $ (0.70) | $ 0.23 | $ 0.15 | $ 0.27 | $ 1.85 | $ 2.19 | $ (0.07) | $ 3.83 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Common Stock Warrants Outstanding | 70,883,000 | 0 | 0 | 5,510,000 | 55,838,000 | 0 | |||||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 216,000,000 | ||||||||||||||
Restricted Stock [Member] | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 35,000 | ||||||||||||||
Stock Option Awards | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 0 | 0 | 31,000 | 1,346,000 | 863,000 | 0 | |||||||||
Preferred Stock | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Antidilutive securities excluded from computation of EPS, less than, amount (shares) | 375,000 | 0 | 0 | 430,000 | 399,000,000 | 0 |
Insurance Subsidiary Financia_3
Insurance Subsidiary Financial Information and Regulatory Matters - Statutory Income and Net Capital (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 87 | $ 94 |
IOWA | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 152 | (151) |
Statutory capital and surplus | 1,513 | 1,545 |
NEW YORK | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | (1) | (3) |
Statutory capital and surplus | 95 | 85 |
BERMUDA | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 3 | 319 |
Statutory capital and surplus | 2 | 2 |
FSRC | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | (29) | (29) |
Statutory capital and surplus | 73 | 73 |
F&G Re [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory net income | 69 | (14) |
Statutory capital and surplus | $ 295 | $ 38 |
Insurance Subsidiary Financia_4
Insurance Subsidiary Financial Information and Regulatory Matters - Narrative (Details) - USD ($) | Apr. 03, 2019 | Apr. 01, 2019 | Jul. 03, 2018 | Jun. 28, 2018 | May 14, 2018 | Sep. 30, 2019 | Dec. 31, 2017 | Nov. 30, 2017 | Jun. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 |
Statutory Accounting Practices [Line Items] | |||||||||||||
Dividends | $ 2,000,000 | $ 4,000,000 | $ 4,000,000 | $ 6,000,000 | $ 15,000,000 | ||||||||
Change in statutory capital surplus | $ 100,000,000 | 110,000,000 | |||||||||||
Non-permitted statutory accounting practices | (19,000,000) | (16,000,000) | |||||||||||
Statutory capital and surplus | 87,000,000 | 94,000,000 | |||||||||||
Increase (decrease) in statutory capital surplus | 110,000,000 | 30,000,000 | |||||||||||
Intercompany Loans | $ 50,000,000 | ||||||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | $ 27,000,000 | $ 20 | |||||||||||
IOWA | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Change in statutory capital surplus | 6,000,000 | 0 | |||||||||||
Statutory capital and surplus | 1,513,000,000 | 1,545,000,000 | |||||||||||
FGLH | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Dividends | $ 100,000,000 | ||||||||||||
Raven Re | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Statutory capital and surplus | 33,000,000 | $ 20,000,000 | |||||||||||
FGL Insurance [Member] | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Proceeds from Contributions from Parent | $ 125,000,000 | ||||||||||||
F&G Life Re Ltd [Member] | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Notes Issued | 65,000,000 | ||||||||||||
FGLH | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Proceeds from Contributions from Parent | $ 65,000,000 | ||||||||||||
F&G Re [Member] | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Proceeds from Contributions from Parent | $ 50,000,000 | $ 198,000,000 | |||||||||||
Freestone Re [Member] | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
Proceeds from Contributions from Parent | $ 2,000,000 | ||||||||||||
Maximum | |||||||||||||
Statutory Accounting Practices [Line Items] | |||||||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | $ 30 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Amounts payable for investment purchases | $ 11 | $ 39 |
Retained asset account | 141 | 162 |
Option collateral liabilities | 446 | 59 |
Remittances and items not allocated | 119 | 101 |
Accrued expenses | 116 | 72 |
Deferred reinsurance revenue | 17 | 39 |
Unearned revenue liability | 43 | 41 |
Preferred shares reimbursement feature embedded derivative | 17 | 29 |
Negative cash liability | 69 | 126 |
Commissions payable | 13 | 9 |
Funds withheld embedded derivative | 33 | 0 |
Rabbi trust investment | 36 | 26 |
Other | 47 | (3) |
Total | $ 1,108 | $ 700 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||
Premiums | $ 3 | $ 7 | $ 7 | $ 9 | $ 8 | $ 16 | $ 9 | $ 12 | $ 15 | $ 18 | $ 11 | $ 40 | $ 42 | $ 54 | |
Net investment income | 92 | 174 | 324 | 301 | 315 | 289 | 295 | 267 | 282 | 263 | 240 | 1,229 | 1,005 | 1,107 | |
Net investment gains (losses) | 42 | 146 | 196 | 103 | 135 | 240 | (555) | 119 | (2) | (191) | 51 | 674 | $ (629) | 316 | (629) |
Insurance and investment product fees and other | 28 | 35 | 36 | 42 | 37 | 55 | 40 | 46 | 45 | 48 | 38 | 170 | 167 | 179 | |
Total revenues | 165 | 362 | 563 | 455 | 495 | 600 | (211) | 444 | 340 | 138 | 340 | 2,113 | 1,530 | 711 | |
Total operating expenses | 144 | 314 | 282 | 391 | 428 | 412 | (20) | 365 | 280 | 28 | 171 | 1,513 | 1,173 | 653 | |
Net income (loss) | $ (91) | $ 28 | $ 225 | $ 65 | $ 46 | $ 171 | $ (148) | $ 56 | $ 40 | $ 65 | $ 108 | $ 507 | $ 13 | $ 223 | $ 13 |
Net income (loss) per common share - basic (in USD per share) | $ (0.44) | $ 0.48 | $ 1.02 | $ 0.26 | $ 0.17 | $ 0.74 | $ (0.70) | $ 0.23 | $ 0.15 | $ 0.27 | $ 1.85 | $ 2.19 | $ (0.07) | $ 3.83 | |
Net income (loss) per common share - diluted (in USD per share) | $ (0.44) | $ 0.47 | $ 1.02 | $ 0.26 | $ 0.17 | $ 0.74 | $ (0.70) | $ 0.23 | $ 0.15 | $ 0.27 | $ 1.85 | $ 2.19 | $ (0.07) | $ 3.83 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments (Details) $ in Millions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | $ 26,892 |
Fair Value | 27,955 |
Amount at which shown on the balance sheet | 27,954 |
United States Government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 166 |
Fair Value | 168 |
Amount at which shown on the balance sheet | 168 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,284 |
Fair Value | 1,343 |
Amount at which shown on the balance sheet | 1,343 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 138 |
Fair Value | 155 |
Amount at which shown on the balance sheet | 155 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,345 |
Fair Value | 2,453 |
Amount at which shown on the balance sheet | 2,453 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 18,981 |
Fair Value | 19,607 |
Amount at which shown on the balance sheet | 19,607 |
Total fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 22,914 |
Fair Value | 23,726 |
Amount at which shown on the balance sheet | 23,726 |
Banks, trust, and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 70 |
Fair Value | 68 |
Amount at which shown on the balance sheet | 68 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2 |
Fair Value | 2 |
Amount at which shown on the balance sheet | 2 |
Nonredeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 997 |
Fair Value | 1,001 |
Amount at which shown on the balance sheet | 1,001 |
Total equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,069 |
Fair Value | 1,071 |
Amount at which shown on the balance sheet | 1,071 |
Derivative investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 336 |
Fair Value | 587 |
Amount at which shown on the balance sheet | 587 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,267 |
Fair Value | 1,283 |
Amount at which shown on the balance sheet | 1,267 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,306 |
Fair Value | 1,288 |
Amount at which shown on the balance sheet | $ 1,303 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2017 | Nov. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Cash and cash equivalents | $ 969 | $ 571 | $ 1,215 | $ 1,107 | $ 924 | $ 885 | $ 632 | $ 864 |
Total assets | 36,714 | 30,945 | ||||||
Other liabilities | 1,108 | 700 | ||||||
Total liabilities | (33,971) | (30,055) | ||||||
Preferred stock | 0 | 0 | ||||||
Common stock | 0 | 0 | ||||||
Additional paid-in capital | 2,031 | 1,998 | ||||||
Retained earnings (Accumulated deficit) | 300 | (167) | ||||||
Accumulated other comprehensive income (loss) | 481 | (937) | ||||||
Treasury stock | (69) | (4) | ||||||
Total shareholders' equity | 2,743 | 890 | ||||||
Total liabilities and shareholders' equity | 36,714 | 30,945 | ||||||
Parent Company | ||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||||
Investments in consolidated subsidiaries | 2,750 | 900 | ||||||
Fixed maturity securities, available for sale | 14 | 54 | ||||||
Cash and cash equivalents | 5 | 7 | $ 70 | $ 155 | $ 0 | $ 2 | $ 4 | $ 2 |
Total assets | 2,769 | 961 | ||||||
Other liabilities | 26 | 71 | ||||||
Total liabilities | (26) | (71) | ||||||
Preferred stock | 0 | 0 | ||||||
Common stock | 0 | 0 | ||||||
Additional paid-in capital | 2,031 | 1,998 | ||||||
Retained earnings (Accumulated deficit) | 300 | (167) | ||||||
Accumulated other comprehensive income (loss) | 481 | (937) | ||||||
Treasury stock | (69) | (4) | ||||||
Total shareholders' equity | 2,743 | 890 | ||||||
Total liabilities and shareholders' equity | $ 2,769 | $ 961 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information - Condensed Statement of Operations (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Revenues | $ 165 | $ 362 | $ 563 | $ 455 | $ 495 | $ 600 | $ (211) | $ 444 | $ 340 | $ 138 | $ 340 | $ 2,113 | $ 1,530 | $ 711 | |
General and administrative expenses | 16 | 51 | 28 | 330 | 137 | 181 | |||||||||
Total operating expenses | 144 | 314 | 282 | 391 | 428 | 412 | (20) | 365 | 280 | 28 | 171 | 1,513 | 1,173 | 653 | |
Operating income | 21 | 48 | 169 | 600 | 357 | 58 | |||||||||
Income (loss) before income taxes | 19 | 44 | 163 | 568 | $ 29 | 333 | 29 | ||||||||
Income tax expense | 110 | 16 | 55 | 61 | 16 | 110 | 16 | ||||||||
Net income (loss) | (91) | 28 | $ 225 | $ 65 | $ 46 | $ 171 | $ (148) | $ 56 | $ 40 | $ 65 | 108 | 507 | 13 | 223 | $ 13 |
Parent Company | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Revenues | 12 | 0 | 0 | 34 | 2 | (1) | |||||||||
Gross Profit | 12 | 0 | 0 | 34 | 2 | (1) | |||||||||
General and administrative expenses | 1 | 1 | 1 | (14) | 6 | 2 | |||||||||
Total operating expenses | 1 | 1 | 1 | (14) | 6 | 2 | |||||||||
Operating income | 11 | (1) | (1) | 48 | (4) | (3) | |||||||||
Equity in net income of subsidiaries | (102) | 29 | 109 | 459 | 17 | 227 | |||||||||
Income (loss) before income taxes | (91) | 28 | 108 | 507 | 13 | 224 | |||||||||
Income tax expense | 0 | 0 | 0 | 0 | 0 | 1 | |||||||||
Net income (loss) | $ (91) | $ 28 | $ 108 | $ 507 | $ 13 | $ 223 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information - Condensed Statement of Cash Flow (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | $ (91) | $ 28 | $ 225 | $ 65 | $ 46 | $ 171 | $ (148) | $ 56 | $ 40 | $ 65 | $ 108 | $ 507 | $ 13 | $ 223 | $ 13 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||
Realized capital and other gains on investments | (42) | (137) | (51) | (682) | (305) | 629 | |||||||||
Stock based compensation | (1) | 4 | 1 | 5 | 6 | 4 | |||||||||
Other assets and other liabilities | (9) | (6) | (26) | (19) | (47) | 115 | |||||||||
Net cash provided by (used in) operating activities | 85 | 79 | 72 | 675 | 237 | 897 | |||||||||
Cash flows from investing activities: | |||||||||||||||
Net cash provided by (used in) investing activities | (22) | (175) | (594) | (1,568) | (1,217) | (2,280) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Dividends payments | 0 | (4) | (4) | (9) | (15) | 0 | |||||||||
Treasury stock | 0 | 0 | (1) | (65) | (1) | (4) | |||||||||
Net cash provided by (used in) financing activities | 45 | 135 | 290 | 1,291 | 1,001 | 739 | |||||||||
Change in cash & cash equivalents | 108 | 39 | (232) | 398 | 21 | (644) | |||||||||
Cash & cash equivalents, beginning of period | 924 | 885 | 571 | 1,215 | 864 | 571 | 1,215 | 864 | 885 | ||||||
Cash & cash equivalents, end of period | 1,215 | 924 | 969 | 571 | 632 | 969 | 571 | 885 | 571 | ||||||
Parent Company | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | (91) | 28 | 108 | 507 | 13 | 223 | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||
Realized capital and other gains on investments | 0 | 0 | 2 | 0 | 0 | 5 | |||||||||
Equity in net income of subsidiaries | 102 | (29) | (109) | (459) | (17) | (227) | |||||||||
Stock based compensation | 0 | 1 | 1 | 5 | 4 | 2 | |||||||||
Other assets and other liabilities | 1 | 2 | 0 | (48) | 4 | 3 | |||||||||
Net cash provided by (used in) operating activities | 12 | 2 | 2 | 5 | 4 | 6 | |||||||||
Cash flows from investing activities: | |||||||||||||||
Net cash provided by (used in) investing activities | 0 | 0 | 5 | 41 | (54) | 12 | |||||||||
Cash flows from financing activities: | |||||||||||||||
Cash paid upon warrant tender and capitalized warrant tender costs | 0 | 0 | 0 | 0 | (66) | 0 | |||||||||
Dividends payments | 0 | (4) | (4) | (9) | 0 | (15) | |||||||||
Treasury stock | 0 | 0 | (1) | (65) | (4) | (1) | |||||||||
Distribution to CF Bermuda and subsidiaries | (97) | 0 | 0 | 26 | 57 | (2) | |||||||||
Net cash provided by (used in) financing activities | (97) | (4) | (5) | (48) | (13) | (18) | |||||||||
Change in cash & cash equivalents | (85) | (2) | 2 | (2) | (63) | 0 | |||||||||
Cash & cash equivalents, beginning of period | 0 | 2 | $ 7 | $ 70 | 2 | 7 | 70 | 2 | 2 | ||||||
Cash & cash equivalents, end of period | 70 | 0 | $ 5 | $ 7 | 4 | 5 | 7 | 2 | $ 7 | ||||||
Equity securities | Parent Company | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from available-for-sale investments, sold, matured or repaid: | 0 | 0 | 5 | 41 | 0 | 12 | |||||||||
Cost of available-for-sale investments: | $ 0 | $ 0 | $ 0 | $ 0 | $ (54) | $ 0 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | ||||||
Deferred acquisition costs | $ 22 | $ 1,140 | $ 697 | $ 630 | $ 344 | $ 1,129 |
Future policy benefits, losses, claims and loss expenses | 4,751 | 3,401 | 3,453 | 5,735 | 4,641 | 3,412 |
Other policy claims and benefits payable | 78 | 69 | 53 | 71 | 64 | 67 |
Premium revenue | 3 | 7 | 11 | 40 | 54 | 42 |
Net investment income | 92 | 174 | 240 | 1,229 | 1,107 | 1,005 |
Benefits, claims, losses and settlement expenses | (124) | (227) | (20) | (1,057) | (423) | (843) |
Amortization, interest, and unlocking of deferred acquisition costs | (1) | (33) | (100) | (19) | 0 | (171) |
Acquisition and operating expenses, net of deferrals | $ (16) | $ (51) | $ (28) | $ (330) | $ (181) | $ (137) |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Life insurance in force | ||||||
Gross Amount | $ 3,516 | $ 3,212 | $ 3,123 | $ 3,631 | $ 3,541 | $ 3,207 |
Ceded to other companies | (2,163) | (2,031) | (2,033) | (2,060) | (2,111) | (2,036) |
Assumed from other companies | 1 | 0 | 0 | 0 | 1 | 0 |
Net Amount | $ 1,354 | $ 1,181 | $ 1,090 | $ 1,571 | $ 1,431 | $ 1,171 |
Percentage of amount assumed of net | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Premiums and other considerations: | ||||||
Direct | $ 38 | $ 80 | $ 111 | $ 413 | $ 460 | $ 462 |
Ceded to other companies | (19) | (39) | (62) | (218) | (226) | (255) |
Assumed from other companies | 0 | 0 | 0 | 0 | 0 | 0 |
Net | $ 19 | $ 41 | $ 49 | $ 195 | $ 234 | $ 207 |
Percentage of amount assumed of net | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Traditional life insurance premiums | ||||||
Premiums and other considerations: | ||||||
Direct | $ 17 | $ 36 | $ 57 | $ 204 | $ 223 | $ 233 |
Ceded to other companies | (14) | (29) | (46) | (164) | (169) | (191) |
Assumed from other companies | 0 | 0 | 0 | 0 | 0 | 0 |
Net | $ 3 | $ 7 | $ 11 | $ 40 | $ 54 | $ 42 |
Percentage of amount assumed of net | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Annuity product charges | ||||||
Premiums and other considerations: | ||||||
Direct | $ 21 | $ 44 | $ 54 | $ 209 | $ 237 | $ 229 |
Ceded to other companies | (5) | (10) | (16) | (54) | (57) | (64) |
Assumed from other companies | 0 | 0 | 0 | 0 | 0 | 0 |
Net | $ 16 | $ 34 | $ 38 | $ 155 | $ 180 | $ 165 |
Percentage of amount assumed of net | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Uncategorized Items - fglholdin
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 1,981,000,000 |
Deferred Policy Acquisition Cost | us-gaap_DeferredPolicyAcquisitionCosts | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,450,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,785,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,648,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,449,000,000 |
Deferred Sale Inducement Cost | us-gaap_DeferredSalesInducementsNet | 0 |
Present Value of Future Insurance Profits, Net | us-gaap_ValueOfBusinessAcquiredVOBA | 844,000,000 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld | 3,000,000 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld | 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld | 3,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,000,000 |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net | us-gaap_DeferredPolicyAcquisitionCostsAndValueOfBusinessAcquired | 844,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 3,077,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 3,028,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,383,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,627,000,000 |
Future Policy Benefits [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 723,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 728,000,000 |
Preferred Shares Reimbursement Feature Embedded Derivative [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 23,000,000 |
Embedded Derivatives Included In Contractholder Funds [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,331,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,627,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,277,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue | 2,383,000,000 |
Asset-backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 159,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 412,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 172,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 225,000,000 |
Debt Security, Government, Non-US [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Equity Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 3,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 2,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 3,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 38,000,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 38,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 38,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 41,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 38,000,000 |
Corporate Debt Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,097,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,104,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,163,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 1,169,000,000 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 49,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 95,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 49,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 79,000,000 |
Bank Loan Obligations [Member] | Affiliated Entity [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 0 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 66,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 67,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 15,000,000 |
Reinsurance Receivables, Funds Withheld [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 4,000,000 |
Fixed Maturity Security Embedded Derivative [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 16,000,000 |
HIG Energy Notes [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 20,000,000 |
Salus 2013 Participations [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 21,000,000 |
Available For Sale Embedded Derivatives [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 13,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 17,000,000 |
Hybrids [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 10,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 10,000,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 10,000,000 |
HGI Energy Note [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 4,000,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 2,037,000,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,000,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (56,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,000,000) |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 0 |
Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 0 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 0 |