Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 05, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 001-37905 | |
Entity Central Index Key | 0001685040 | |
Entity Registrant Name | Brighthouse Financial, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3846992 | |
Entity Address, Address Line One | 11225 North Community House Road | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28277 | |
City Area Code | 980 | |
Local Phone Number | 365-7100 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 93,022,838 | |
Common Stock, par value $0.01 per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BHF | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A | |
Trading Symbol | BHFAP | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.750% Non-Cumulative Preferred Stock, Series B | |
Trading Symbol | BHFAO | |
Security Exchange Name | NASDAQ | |
6.250% Junior Subordinated Debentures due 2058 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.250% Junior Subordinated Debentures due 2058 | |
Trading Symbol | BHFAL | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $66,496 and $64,079, respectively; allowance for credit losses of $5 and $0, respectively) | $ 76,796 | $ 71,036 |
Equity securities, at estimated fair value | 129 | 147 |
Mortgage loans (net of allowance for credit losses of $92 and $64, respectively) | 15,791 | 15,753 |
Policy loans | 1,201 | 1,292 |
Limited partnerships and limited liability companies | 2,354 | 2,380 |
Short-term investments, principally at estimated fair value | 4,537 | 1,958 |
Other invested assets, principally at estimated fair value (net of allowance for credit losses of $13 and $0, respectively) | 6,364 | 3,216 |
Total investments | 107,172 | 95,782 |
Cash and cash equivalents | 7,325 | 2,877 |
Accrued investment income | 664 | 684 |
Premiums, reinsurance and other receivables | 15,218 | 14,760 |
Deferred policy acquisition costs and value of business acquired | 4,856 | 5,448 |
Current income tax recoverable | 1 | 17 |
Other assets | 532 | 584 |
Separate account assets | 99,599 | 107,107 |
Total assets | 235,367 | 227,259 |
Liabilities | ||
Future policy benefits | 41,841 | 39,686 |
Policyholder account balances | 50,338 | 45,771 |
Other policy-related balances | 3,152 | 3,111 |
Payables for collateral under securities loaned and other transactions | 7,876 | 4,391 |
Long-term debt | 3,979 | 4,365 |
Deferred income tax liability | 2,567 | 1,355 |
Other liabilities | 5,041 | 5,236 |
Separate account liabilities | 99,599 | 107,107 |
Total liabilities | 214,393 | 211,022 |
Contingencies, Commitments and Guarantees (Note 11) | ||
Brighthouse Financial, Inc.’s stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; $828 and $425, respectively, aggregate liquidation preference | 0 | 0 |
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 120,921,446 and 120,647,871 shares issued, respectively; 92,979,854 and 106,027,301 shares outstanding, respectively | 1 | 1 |
Additional paid-in capital | 13,307 | 12,908 |
Retained earnings (deficit) | 3,523 | 585 |
Treasury stock, at cost; 27,941,592 and 14,620,570 shares, respectively | (887) | (562) |
Accumulated other comprehensive income (loss) | 4,965 | 3,240 |
Total Brighthouse Financial, Inc.’s stockholders’ equity | 20,909 | 16,172 |
Noncontrolling interests | 65 | 65 |
Total equity | 20,974 | 16,237 |
Total liabilities and equity | $ 235,367 | $ 227,259 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 66,496 | $ 64,079 |
Fixed maturity securities, allowance for credit losses | 5 | 0 |
Mortgage loans valuation allowances | 92 | 64 |
Leveraged leases, allowance for credit losses | $ 13 | $ 0 |
Brighthouse Financial, Inc.’s stockholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 828 | $ 425 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 120,921,446 | 120,647,871 |
Common stock, shares outstanding | 92,979,854 | 106,027,301 |
Treasury stock, shares | 27,941,592 | 14,620,570 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Premiums | $ 193 | $ 232 | $ 391 | $ 459 |
Universal life and investment-type product policy fees | 827 | 888 | 1,713 | 1,763 |
Net investment income | 652 | 942 | 1,568 | 1,753 |
Other revenues | 93 | 96 | 195 | 188 |
Net investment gains (losses) | (34) | 63 | (53) | 52 |
Net derivative gains (losses) | (2,653) | 149 | 4,249 | (1,154) |
Total revenues | (922) | 2,370 | 8,063 | 3,061 |
Expenses | ||||
Policyholder benefits and claims | 839 | 845 | 2,026 | 1,617 |
Interest credited to policyholder account balances | 276 | 265 | 535 | 523 |
Amortization of deferred policy acquisition costs and value of business acquired | (92) | 170 | 678 | 192 |
Other expenses | 577 | 621 | 1,094 | 1,213 |
Total expenses | 1,600 | 1,901 | 4,333 | 3,545 |
Income (loss) before provision for income tax | (2,522) | 469 | 3,730 | (484) |
Provision for income tax expense (benefit) | (531) | 85 | 762 | (133) |
Net income (loss) | (1,991) | 384 | 2,968 | (351) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 |
Net income (loss) attributable to Brighthouse Financial, Inc. | (1,991) | 384 | 2,966 | (353) |
Less: Preferred stock dividends | 7 | 7 | 14 | 7 |
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | (1,998) | 377 | 2,952 | (360) |
Comprehensive income (loss) | 327 | 1,416 | 4,693 | 1,635 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 |
Comprehensive income (loss) attributable to Brighthouse Financial, Inc. | $ 327 | $ 1,416 | $ 4,691 | $ 1,633 |
Basic | $ (21.10) | $ 3.28 | $ 29.60 | $ (3.10) |
Diluted | $ (21.10) | $ 3.27 | $ 29.56 | $ (3.10) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Treasury Stock at Cost | Accumulated Other Comprehensive Income (Loss) | Brighthouse Financial, Inc.’s Stockholders’ Equity | Noncontrolling Interests | Cumulative Effect, Adjustment | Cumulative Effect, AdjustmentRetained Earnings (Deficit) | Cumulative Effect, AdjustmentAccumulated Other Comprehensive Income (Loss) | Cumulative Effect, AdjustmentBrighthouse Financial, Inc.’s Stockholders’ Equity | Cumulative Effect, Adjusted Balance | Cumulative Effect, Adjusted BalancePreferred Stock | Cumulative Effect, Adjusted BalanceCommon Stock | Cumulative Effect, Adjusted BalanceAdditional Paid-in Capital | Cumulative Effect, Adjusted BalanceRetained Earnings (Deficit) | Cumulative Effect, Adjusted BalanceTreasury Stock at Cost | Cumulative Effect, Adjusted BalanceAccumulated Other Comprehensive Income (Loss) | Cumulative Effect, Adjusted BalanceBrighthouse Financial, Inc.’s Stockholders’ Equity | Cumulative Effect, Adjusted BalanceNoncontrolling Interests |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 14,483 | $ 65 | ||||||||||||||||||||
Beginning Balance at Dec. 31, 2018 | $ 0 | $ 1 | $ 12,473 | $ 1,346 | $ (118) | $ 716 | $ 14,418 | |||||||||||||||
Preferred stock issuance | 412 | 0 | 412 | 412 | ||||||||||||||||||
Treasury stock acquired in connection with share repurchases | (52) | (52) | (52) | |||||||||||||||||||
Share-based compensation | 4 | 4 | 4 | |||||||||||||||||||
Change in noncontrolling interests | (2) | 0 | (2) | |||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | (737) | (737) | 2 | |||||||||||||||||||
Net income (loss) | (735) | |||||||||||||||||||||
Other comprehensive income (loss), net of income tax | 954 | 954 | 954 | |||||||||||||||||||
Ending Balance at Mar. 31, 2019 | 0 | 1 | 12,889 | 609 | (170) | 1,670 | 14,999 | |||||||||||||||
Beginning Balance at Dec. 31, 2018 | 0 | 1 | 12,473 | 1,346 | (118) | 716 | 14,418 | |||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | (360) | |||||||||||||||||||||
Net income (loss) | (351) | |||||||||||||||||||||
Ending Balance at Jun. 30, 2019 | 0 | 1 | 12,893 | 986 | (306) | 2,702 | 16,276 | |||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 15,064 | 65 | ||||||||||||||||||||
Beginning Balance at Mar. 31, 2019 | 0 | 1 | 12,889 | 609 | (170) | 1,670 | 14,999 | |||||||||||||||
Treasury stock acquired in connection with share repurchases | (136) | (136) | (136) | |||||||||||||||||||
Share-based compensation | 4 | 4 | 4 | |||||||||||||||||||
Dividends on preferred stock | (7) | (7) | (7) | |||||||||||||||||||
Change in noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | 377 | 384 | 384 | 0 | ||||||||||||||||||
Net income (loss) | 384 | |||||||||||||||||||||
Other comprehensive income (loss), net of income tax | 1,032 | 1,032 | 1,032 | |||||||||||||||||||
Ending Balance at Jun. 30, 2019 | 0 | 1 | 12,893 | 986 | (306) | 2,702 | 16,276 | |||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 16,341 | 65 | ||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 16,237 | 65 | $ (11) | |||||||||||||||||||
Beginning Balance at Dec. 31, 2019 | 16,172 | 0 | 1 | 12,908 | 585 | (562) | 3,240 | 16,172 | $ (14) | $ 3 | $ (11) | |||||||||||
Treasury stock acquired in connection with share repurchases | (142) | (142) | (142) | |||||||||||||||||||
Share-based compensation | 1 | 3 | (2) | 1 | ||||||||||||||||||
Dividends on preferred stock | (7) | (7) | (7) | |||||||||||||||||||
Change in noncontrolling interests | (2) | 0 | (2) | |||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | 4,957 | 4,957 | 2 | |||||||||||||||||||
Net income (loss) | 4,959 | |||||||||||||||||||||
Other comprehensive income (loss), net of income tax | (596) | (596) | (596) | |||||||||||||||||||
Ending Balance at Mar. 31, 2020 | 0 | 1 | 12,911 | 5,521 | (706) | 2,647 | 20,374 | $ 0 | $ 1 | $ 12,908 | $ 571 | $ (562) | $ 3,243 | $ 16,161 | ||||||||
Beginning Balance at Dec. 31, 2019 | 16,172 | 0 | 1 | 12,908 | 585 | (562) | 3,240 | 16,172 | $ (14) | $ 3 | $ (11) | |||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | 2,952 | |||||||||||||||||||||
Net income (loss) | 2,968 | |||||||||||||||||||||
Ending Balance at Jun. 30, 2020 | 20,909 | 0 | 1 | 13,307 | 3,523 | (887) | 4,965 | 20,909 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 20,439 | 65 | $ 16,226 | $ 65 | ||||||||||||||||||
Beginning Balance at Mar. 31, 2020 | 0 | 1 | 12,911 | 5,521 | (706) | 2,647 | 20,374 | $ 0 | $ 1 | $ 12,908 | $ 571 | $ (562) | $ 3,243 | $ 16,161 | ||||||||
Preferred stock issuance | 390 | 0 | 390 | 390 | ||||||||||||||||||
Treasury stock acquired in connection with share repurchases | (180) | (180) | (180) | |||||||||||||||||||
Share-based compensation | 5 | 0 | 6 | (1) | 5 | |||||||||||||||||
Dividends on preferred stock | (7) | (7) | (7) | |||||||||||||||||||
Change in noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | (1,998) | (1,991) | (1,991) | 0 | ||||||||||||||||||
Net income (loss) | (1,991) | |||||||||||||||||||||
Other comprehensive income (loss), net of income tax | 2,318 | 2,318 | 2,318 | |||||||||||||||||||
Ending Balance at Jun. 30, 2020 | 20,909 | $ 0 | $ 1 | $ 13,307 | $ 3,523 | $ (887) | $ 4,965 | $ 20,909 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 20,974 | $ 65 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 467 | $ 809 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 3,729 | 9,102 |
Sales, maturities and repayments of equity securities | 27 | 16 |
Sales, maturities and repayments of mortgage loans | 827 | 542 |
Sales, maturities and repayments of limited partnerships and limited liability companies | 86 | 144 |
Purchases of fixed maturity securities | (5,894) | (9,263) |
Purchases of equity securities | 0 | (3) |
Purchases of mortgage loans | (923) | (1,973) |
Purchases of limited partnerships and limited liability companies | (298) | (209) |
Cash received in connection with freestanding derivatives | 4,958 | 725 |
Cash paid in connection with freestanding derivatives | (2,138) | (1,341) |
Net change in policy loans | 91 | 79 |
Net change in short-term investments | (2,565) | (789) |
Net change in other invested assets | (25) | 38 |
Net cash provided by (used in) investing activities | (2,125) | (2,932) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 4,835 | 3,794 |
Policyholder account balances: Withdrawals | (1,153) | (1,504) |
Net change in payables for collateral under securities loaned and other transactions | 3,485 | (963) |
Long-term debt issued | 614 | 1,000 |
Long-term debt repaid | (1,001) | (601) |
Preferred stock issued, net of issuance costs | 390 | 412 |
Dividends on preferred stock | (14) | (7) |
Treasury stock acquired in connection with share repurchases | (322) | (188) |
Financing element on certain derivative instruments and other derivative related transactions, net | (698) | 44 |
Other, net | (30) | (28) |
Net cash provided by (used in) financing activities | 6,106 | 1,959 |
Change in cash, cash equivalents and restricted cash | 4,448 | (164) |
Cash, cash equivalents and restricted cash, beginning of period | 2,877 | 4,145 |
Cash, cash equivalents and restricted cash, end of period | 7,325 | 3,981 |
Supplemental disclosures of cash flow information | ||
Net cash paid (received) for interest | 88 | 92 |
Net cash paid (received) for income tax | $ 3 | $ 5 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “Brighthouse Financial” and the “Company” refer to Brighthouse Financial, Inc. and its subsidiaries. Brighthouse Financial, Inc. (“BHF”) is a holding company formed in 2016 to own the legal entities that historically operated a substantial portion of MetLife, Inc.’s former retail segment until becoming a separate, publicly-traded company in August 2017. Brighthouse Financial is one of the largest providers of annuity and life insurance products in the United States through multiple independent distribution channels and marketing arrangements with a diverse network of distribution partners. The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLCs”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current period presentation as may be discussed when applicable in the Notes to the Interim Condensed Consolidated Financial Statements. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2019 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2019 Annual Report. Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s consolidated financial statements. ASUs adopted as of June 30, 2020 are summarized as follows: Standard Description Effective Date Impact on Financial Statements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) The amendments to Topic 326 replace the incurred loss impairment methodology for certain financial instruments with one that reflects expected credit losses based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance also requires that an other-than-temporary impairment on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. January 1, 2020 using the modified retrospective method The Company recorded an after tax net decrease to retained earnings of $14 million and a net increase to accumulated other comprehensive income (loss) (“AOCI”) of $3 million for the cumulative effect of adoption. The adjustment included establishing or updating the allowance for credit losses on fixed maturity securities, mortgage loans, and other invested assets. ASUs issued but not yet adopted as of June 30, 2020 are summarized as follows: Standard Description Effective Date Impact on Financial Statements ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (1) require all guarantees that qualify as market risk benefits to be measured at fair value, (2) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (3) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (4) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis. The amendments are currently effective for the Company on January 1, 2022. On July 7, the FASB released an exposure draft which if adopted, will change the effective date of the amendments to January 1, 2023. The Company continues to evaluate the new guidance and therefore is unable to estimate the impact to its financial statements. The most significant impact is expected to be the measurement of liabilities for variable annuity guarantees. CARES Act In response to the worldwide pandemic sparked by the novel coronavirus (the “COVID-19 pandemic”), on March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act contains numerous provisions intended to provide swift aid, including through tax relief, to businesses and individuals affected by the COVID-19 pandemic. The Company does not believe that the CARES Act will have a material impact to its consolidated financial statements at this time. The Company will continue to closely monitor developments related to the COVID-19 pandemic and the CARES Act. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into three segments: Annuities; Life; and Run-off. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment consists of insurance products and services, including term, universal, whole and variable life products designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis. Run-off The Run-off segment consists of products no longer actively sold and which are separately managed, including structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements and universal life with secondary guarantees. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes long-term care and workers’ compensation business reinsured through 100% quota share reinsurance agreements and term life insurance sold direct to consumers, which is no longer being offered for new sales. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by the investor community. Adjusted earnings should not be viewed as a substitute for net income (loss) available to BHF’s common shareholders and excludes net income (loss) attributable to noncontrolling interests and preferred stock dividends. Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends. The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings: • Net investment gains (losses); • Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and • Certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”). The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings: • Amounts associated with benefits related to GMIBs (“GMIB Costs”); • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and • Amortization of DAC and value of business acquired (“VOBA”) related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments. The tax impact of the adjustments mentioned above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below. Segment investment and capitalization targets are based on statutory oriented risk principles and metrics. Segment invested assets backing liabilities are based on net statutory liabilities plus excess capital. For the variable annuity business, the excess capital held is based on the target statutory total asset requirement consistent with the Company’s variable annuity risk management strategy. For insurance businesses other than variable annuities, excess capital held is based on a percentage of required statutory risk-based capital. Assets in excess of those allocated to the segments, if any, are held in Corporate & Other. Segment net investment income reflects the performance of each segment’s respective invested assets. Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended June 30, 2020 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 205 $ 60 $ (146) $ (98) $ 21 Provision for income tax expense (benefit) 34 12 (31) (12) 3 Post-tax adjusted earnings 171 48 (115) (86) 18 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 171 $ 48 $ (115) $ (93) 11 Adjustments for: Net investment gains (losses) (34) Net derivative gains (losses) (2,653) Other adjustments to net income (loss) 144 Provision for income tax (expense) benefit 534 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (1,998) Interest revenue $ 405 $ 69 $ 166 $ 16 Interest expense $ — $ — $ — $ 45 Three Months Ended June 30, 2019 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 323 $ 72 $ 2 $ (85) $ 312 Provision for income tax expense (benefit) 58 14 — (21) 51 Post-tax adjusted earnings 265 58 2 (64) 261 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 265 $ 58 $ 2 $ (71) 254 Adjustments for: Net investment gains (losses) 63 Net derivative gains (losses) 149 Other adjustments to net income (loss) (55) Provision for income tax (expense) benefit (34) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 377 Interest revenue $ 470 $ 116 $ 339 $ 17 Interest expense $ — $ — $ — $ 48 Six Months Ended June 30, 2020 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 594 $ 73 $ (236) $ (157) $ 274 Provision for income tax expense (benefit) 107 14 (51) (34) 36 Post-tax adjusted earnings 487 59 (185) (123) 238 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 14 14 Adjusted earnings $ 487 $ 59 $ (185) $ (139) 222 Adjustments for: Net investment gains (losses) (53) Net derivative gains (losses) 4,249 Other adjustments to net income (loss) (740) Provision for income tax (expense) benefit (726) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 2,952 Interest revenue $ 865 $ 185 $ 490 $ 36 Interest expense $ — $ — $ — $ 92 Six Months Ended June 30, 2019 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 684 $ 103 $ (44) $ (157) $ 586 Provision for income tax expense (benefit) 124 20 (10) (43) 91 Post-tax adjusted earnings 560 83 (34) (114) 495 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 560 $ 83 $ (34) $ (123) 486 Adjustments for: Net investment gains (losses) 52 Net derivative gains (losses) (1,154) Other adjustments to net income (loss) 32 Provision for income tax (expense) benefit 224 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (360) Interest revenue $ 891 $ 213 $ 615 $ 34 Interest expense $ — $ — $ — $ 95 Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Annuities $ 1,052 $ 1,194 $ 2,203 $ 2,311 Life 285 330 639 633 Run-off 332 527 825 1,003 Corporate & Other 37 42 79 85 Adjustments (2,628) 277 4,317 (971) Total $ (922) $ 2,370 $ 8,063 $ 3,061 Total assets by segment, as well as Corporate & Other, were as follows at: June 30, 2020 December 31, 2019 (In millions) Annuities $ 158,152 $ 156,965 Life 22,299 21,876 Run-off 38,044 35,112 Corporate & Other 16,872 13,306 Total $ 235,367 $ 227,259 |
Insurance
Insurance | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Guarantees As discussed in Notes 1 and 3 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report, the Company issues variable annuity contracts with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 5. The Company also has universal and variable life insurance contracts with secondary guarantees. Information regarding the Company’s guarantee exposure was as follows at: June 30, 2020 December 31, 2019 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 97,133 $ 55,048 $ 104,271 $ 59,859 Separate account value $ 92,105 $ 53,830 $ 99,385 $ 58,694 Net amount at risk $ 8,812 (4) $ 8,045 (5) $ 6,671 (4) $ 4,750 (5) Average attained age of contract holders 69 years 69 years 68 years 68 years June 30, 2020 December 31, 2019 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 5,866 $ 5,957 Net amount at risk (6) $ 70,092 $ 71,124 Average attained age of policyholders 67 years 66 years Variable Life Contracts Total account value (3) $ 3,330 $ 3,526 Net amount at risk (6) $ 20,701 $ 21,325 Average attained age of policyholders 51 years 50 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments See Note 1 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for a description of the Company’s accounting policies for investments and Note 6 for information about the fair value hierarchy for investments and the related valuation methodologies. In connection with the adoption of new guidance related to the credit losses (see Note 1), effective January 1, 2020, the Company updated its accounting policies on certain investments. Any accounting policy updates required by the new guidance are described in this footnote. Fixed Maturity Securities Available-for-sale Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: June 30, 2020 December 31, 2019 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 30,157 $ 2 $ 4,314 $ 204 $ 34,265 $ 28,375 $ — $ 2,852 $ 67 $ 31,160 Foreign corporate 9,580 2 881 168 10,291 9,177 — 741 74 9,844 RMBS 7,980 1 617 12 8,584 8,692 — 438 12 9,118 U.S. government and agency 5,673 — 3,252 — 8,925 5,529 — 1,869 2 7,396 CMBS 5,805 — 473 23 6,255 5,500 — 264 9 5,755 State and political subdivision 3,329 — 904 1 4,232 3,358 — 701 2 4,057 ABS 2,469 — 40 46 2,463 1,945 — 21 11 1,955 Foreign government 1,503 — 285 7 1,781 1,503 — 250 2 1,751 Total fixed maturity securities $ 66,496 $ 5 $ 10,766 $ 461 $ 76,796 $ 64,079 $ — $ 7,136 $ 179 $ 71,036 The Company held non-income producing fixed maturity securities with an estimated fair value of $1 million at June 30, 2020. The Company did not hold any non-income producing fixed maturity securities at December 31, 2019. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2020: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 1,687 $ 7,534 $ 13,453 $ 27,568 $ 16,254 $ 66,496 Estimated fair value $ 1,688 $ 7,889 $ 14,687 $ 35,230 $ 17,302 $ 76,796 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: June 30, 2020 December 31, 2019 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 2,761 $ 152 $ 289 $ 52 $ 2,017 $ 44 $ 326 $ 23 Foreign corporate 1,260 70 590 98 576 12 561 62 RMBS 294 11 22 1 857 8 386 4 U.S. government and agency — — — — 40 2 — — CMBS 567 21 90 2 559 7 171 2 State and political subdivision 38 1 — — 143 2 8 — ABS 853 23 563 23 362 2 676 9 Foreign government 131 6 3 1 65 2 — — Total fixed maturity securities $ 5,904 $ 284 $ 1,557 $ 177 $ 4,619 $ 79 $ 2,128 $ 100 Total number of securities in an unrealized loss position 1,332 265 720 302 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”). Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $504 million at June 30, 2020 and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $5 million, relating to 18 securities at June 30, 2020. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity. Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector The changes in the allowance for credit losses by sector were as follows: U.S. Corporate RMBS Foreign Corporate Total (In millions) Balance at January 1, 2020 $ 3 $ — $ 1 $ 4 Allowance on securities where credit losses were not previously recorded 3 1 2 6 Allowance on securities that had an allowance recorded in a previous period (1) — — (1) Write-offs charged against allowance (1) (3) — (1) (4) Balance at June 30, 2020 $ 2 $ 1 $ 2 $ 5 _______________ (1) The Company recorded total write-offs of $13 million during the six months ended June 30, 2020. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: June 30, 2020 December 31, 2019 Carrying % of Carrying % of (Dollars in millions) Commercial $ 9,715 61.5 % $ 9,721 61.7 % Agricultural 3,361 21.3 3,388 21.5 Residential 2,807 17.8 2,708 17.2 Total mortgage loans (1) 15,883 100.6 15,817 100.4 Allowance for credit losses (92) (0.6) (64) (0.4) Total mortgage loans, net $ 15,791 100.0 % $ 15,753 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $331 million and $488 million for the three months and six months ended June 30, 2020, respectively, and $86 million and $563 million for the three months and six months ended June 30, 2019, respectively, and were primarily comprised of residential mortgage loans. Allowance for Credit Losses for Mortgage Loans Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the COVID-19 pandemic, interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at June 30, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $86 million at June 30, 2020. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDRs”), foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at discounts which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount, which is accreted into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Balance at December 31, 2019 $ 47 $ 10 $ 7 $ 64 Cumulative effect of change in accounting principle (20) 7 15 2 Balance at January 1, 2020 27 17 22 66 Current period provision 10 (1) 17 26 Balance at June 30, 2020 $ 37 $ 16 $ 39 $ 92 PCD Mortgage Loans Purchases of PCD mortgage loans are summarized as follows: Six Months Ended June 30, 2020 (In millions) Purchase price $ 77 Allowance at acquisition date $ 2 Discount or premium attributable to other factors $ 2 Par value $ 81 Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2020 2019 2018 2017 2016 Prior Total (In millions) June 30, 2020 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 193 $ 1,683 $ 1,109 $ 572 $ 1,124 $ 3,247 $ 7,928 65% to 75% 59 306 456 340 10 275 1,446 76% to 80% — — — — 114 — 114 Greater than 80% — — 10 13 6 198 227 Total commercial mortgage loans 252 1,989 1,575 925 1,254 3,720 9,715 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 110 564 784 445 492 801 3,196 65% to 75% 2 76 10 45 — 19 152 76% to 80% 8 5 — — — — 13 Total agricultural mortgage loans 120 645 794 490 492 820 3,361 Residential mortgage loans Performing 168 497 540 132 51 1,371 2,759 Nonperforming — 1 1 — 1 45 48 Total residential mortgage loans 168 498 541 132 52 1,416 2,807 Total $ 540 $ 3,132 $ 2,910 $ 1,547 $ 1,798 $ 5,956 $ 15,883 The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: June 30, 2020 December 31, 2019 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-Service Coverage Ratios: Greater than 1.20x $ 9,198 94.7 % $ 9,257 95.2 % 1.00x - 1.20x 314 3.2 298 3.1 Less than 1.00x 203 2.1 166 1.7 Total $ 9,715 100.0 % $ 9,721 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both June 30, 2020 and December 31, 2019. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments, as provided in the CARES Act. At June 30, 2020, 1% of the COVID-19 pandemic modified loans were classified as delinquent. The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: June 30, 2020 Commercial Agricultural Residential Total (In millions) Current $ 9,715 $ 3,350 $ 2,705 $ 15,770 30-59 days past due — — 54 54 60-89 days past due — 10 19 29 90-179 days past due — — 12 12 180+ days past due — 1 17 18 Total $ 9,715 $ 3,361 $ 2,807 $ 15,883 Mortgage Loans in Nonaccrual Status by Portfolio Segment Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized and in the process of foreclosure. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At June 30, 2020, 1% of the COVID-19 pandemic modified loans were in nonaccrual status. The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at: Commercial Agricultural Residential Total (In millions) December 31, 2019 $ — $ 21 $ 37 $ 58 June 30, 2020 (1) $ — $ 1 $ 48 $ 49 _______________ (1) The Company had $8 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2020. Current period investment income on mortgage loans in nonaccrual status was less than $1 million for the six months ended June 30, 2020. Modified Mortgage Loans by Portfolio Segment Under certain circumstances, modifications are granted to non-performing mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring during the six months ended June 30, 2020. Other Invested Assets Over 90% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 5 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes tax credit and renewable energy partnerships, leveraged leases and Federal Home Loan Bank stock. Leveraged Leases The carrying value of leveraged leases at June 30, 2020 and December 31, 2019 was $50 million and $64 million, respectively, net of allowance for credit losses of $13 million and $0, respectively. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 15 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both June 30, 2020 and December 31, 2019, all leveraged leases were performing. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”) and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows at: June 30, 2020 December 31, 2019 (In millions) Fixed maturity securities $ 10,305 $ 6,957 Derivatives 660 245 Other (16) (13) Subtotal 10,949 7,189 Amounts allocated from: Future policy benefits (4,153) (2,692) DAC, VOBA and DSI (445) (341) Subtotal (4,598) (3,033) Deferred income tax benefit (expense) (1,334) (873) Net unrealized investment gains (losses) $ 5,017 $ 3,283 The changes in net unrealized investment gains (losses) were as follows: Six Months Ended June 30, 2020 (In millions) Balance at December 31, 2019 $ 3,283 Unrealized investment gains (losses) during the period 3,760 Unrealized investment gains (losses) relating to: Future policy benefits (1,461) DAC, VOBA and DSI (104) Deferred income tax benefit (expense) (461) Balance at June 30, 2020 $ 5,017 Change in net unrealized investment gains (losses) $ 1,734 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both June 30, 2020 and December 31, 2019. Securities Lending Elements of the securities lending program are presented below at: June 30, 2020 December 31, 2019 (In millions) Securities on loan: (1) Amortized cost $ 2,065 $ 2,031 Estimated fair value $ 3,596 $ 2,996 Cash collateral received from counterparties (2) $ 3,674 $ 3,074 Securities collateral received from counterparties (3) $ 12 $ — Reinvestment portfolio — estimated fair value $ 3,794 $ 3,174 _______________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2020 December 31, 2019 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 1,284 $ 2,012 $ 373 $ 3,669 $ 1,279 $ 1,094 $ 701 $ 3,074 U.S. corporate 2 — — 2 — — — — Foreign corporate 3 — — 3 — — — — Total $ 1,289 $ 2,012 $ 373 $ 3,674 $ 1,279 $ 1,094 $ 701 $ 3,074 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at June 30, 2020 was $1.3 billion, primarily U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, U.S. and foreign corporate securities, ABS, non-agency RMBS and U.S. government and agency securities) with 62% invested in agency RMBS, cash and cash equivalents and U.S. government and agency securities at June 30, 2020. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: June 30, 2020 December 31, 2019 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 9,922 $ 9,349 Invested assets held in trust (reinsurance agreements) (2) 5,456 4,561 Invested assets pledged as collateral (3) 4,506 3,641 Total invested assets on deposit, held in trust and pledged as collateral $ 19,884 $ 17,551 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $147 million and $69 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2020 and December 31, 2019, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $102 million and $124 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2020 and December 31, 2019, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report) and derivative transactions (see Note 5). See “— Securities Lending” for information regarding securities on loan. Variable Interest Entities The Company has invested in legal entities that are variable interest entities (“VIEs”). VIEs are consolidated when the investor is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both the power to (i) direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at June 30, 2020 or December 31, 2019. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: June 30, 2020 December 31, 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 13,143 $ 12,265 $ 13,094 $ 12,454 Limited partnerships and LLCs 1,880 3,171 1,907 3,080 Total $ 15,023 $ 15,436 $ 15,001 $ 15,534 The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities The Company invests in U.S. corporate bonds, foreign corporate bonds, and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities. Limited Partnerships and LLCs The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, hedge funds, and to a lesser extent tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 10. Net Investment Income The components of net investment income were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Investment income: Fixed maturity securities $ 676 $ 679 $ 1,345 $ 1,332 Equity securities 1 1 3 4 Mortgage loans 166 176 332 335 Policy loans 13 17 25 33 Limited partnerships and LLCs (1) (189) 88 (107) 96 Cash, cash equivalents and short-term investments 14 23 37 37 Other 11 6 25 19 Total investment income 692 990 1,660 1,856 Less: Investment expenses 40 48 92 103 Net investment income $ 652 $ 942 $ 1,568 $ 1,753 _______________ (1) Includes net investment income pertaining to other limited partnership interests of ($192) million and ($119) million for the three months and six months ended June 30, 2020, respectively, and $76 million for both the three months and six months ended June 30, 2019. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Fixed maturity securities $ (21) $ 68 $ (27) $ 53 Equity securities 7 1 (7) 11 Mortgage loans (22) (3) (26) (7) Limited partnerships and LLCs (2) (2) (3) (5) Other 4 (1) 10 — Total net investment gains (losses) $ (34) $ 63 $ (53) $ 52 Sales or Disposals of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Proceeds $ 622 $ 3,679 $ 1,271 $ 6,958 Gross investment gains $ 15 $ 106 $ 32 $ 173 Gross investment losses (37) (38) (43) (120) Net investment gains (losses) $ (22) $ 68 $ (11) $ 53 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivatives Accounting for Derivatives See Note 1 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives. Derivative Strategies Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, caps, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity derivatives: options, total return swaps and variance swaps; and • Credit derivatives: single and index reference credit default swaps. For detailed information on these contracts and the related strategies, see Note 7 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report. Primary Risks Managed by Derivatives The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at: June 30, 2020 December 31, 2019 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate forwards Interest rate $ 360 $ 101 $ — $ 420 $ 22 $ — Foreign currency swaps Foreign currency exchange rate 2,811 492 1 2,765 190 27 Total qualifying hedges 3,171 593 1 3,185 212 27 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 3,434 746 9 7,559 878 29 Interest rate caps Interest rate 2,350 1 — 3,350 2 — Interest rate options Interest rate 24,170 2,306 256 29,750 782 187 Interest rate forwards Interest rate 7,160 1,349 — 5,418 94 114 Foreign currency swaps Foreign currency exchange rate 1,020 186 14 1,051 96 15 Foreign currency forwards Foreign currency exchange rate 147 — — 138 — 1 Credit default swaps — purchased Credit 18 — — 18 — — Credit default swaps — written Credit 1,788 19 2 1,635 36 — Equity index options Equity market 46,537 834 1,246 51,509 850 1,728 Equity variance swaps Equity market 1,098 11 27 2,136 69 69 Equity total return swaps Equity market 10,120 105 696 7,723 2 367 Total non-designated or non-qualifying derivatives 97,842 5,557 2,250 110,287 2,809 2,510 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 323 — N/A 217 — Direct index-linked annuities Other N/A — 1,526 N/A — 2,253 Direct guaranteed minimum benefits Other N/A — 3,813 N/A — 1,656 Assumed index-linked annuities Other N/A — 310 N/A — 339 Total embedded derivatives N/A 323 5,649 N/A 217 4,248 Total $ 101,013 $ 6,473 $ 7,900 $ 113,472 $ 3,238 $ 6,785 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2020 and December 31, 2019. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and generally do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities and generally do not qualify for hedge accounting because they do not meet the criteria of being “highly effective” as outlined in ASC 815; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to create synthetic credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ — $ — $ — $ (4) Foreign currency exchange rate derivatives 3 (3) 10 (136) Total cash flow hedges 3 (3) 10 (140) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (165) — — — Foreign currency exchange rate derivatives (27) (2) — — Credit derivatives 29 — — — Equity derivatives (1,605) — — — Embedded derivatives (883) — — — Total non-qualifying hedges (2,651) (2) — — Total $ (2,648) $ (5) $ 10 $ (140) Three Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 6 $ — $ — $ — Foreign currency exchange rate derivatives 16 (23) 9 75 Total cash flow hedges 22 (23) 9 75 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 917 — — — Foreign currency exchange rate derivatives 30 (3) — — Credit derivatives 12 — — — Equity derivatives (344) — — — Embedded derivatives (462) — — — Total non-qualifying hedges 153 (3) — — Total $ 175 $ (26) $ 9 $ 75 Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 1 $ — $ 1 $ 93 Foreign currency exchange rate derivatives 3 (3) 21 327 Total cash flow hedges 4 (3) 22 420 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 4,756 — — — Foreign currency exchange rate derivatives 107 (9) — — Credit derivatives (3) — — — Equity derivatives 359 — — — Embedded derivatives (962) — — — Total non-qualifying hedges 4,257 (9) — — Total $ 4,261 $ (12) $ 22 $ 420 Six Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 28 $ — $ 1 $ — Foreign currency exchange rate derivatives 19 (23) 17 41 Total cash flow hedges 47 (23) 18 41 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 1,249 — — — Foreign currency exchange rate derivatives 22 (3) — — Credit derivatives 30 — — — Equity derivatives (1,790) — — — Embedded derivatives (686) — — — Total non-qualifying hedges (1,175) (3) — — Total $ (1,128) $ (26) $ 18 $ 41 At June 30, 2020 and December 31, 2019, the balance in AOCI associated with cash flow hedges was $660 million and $245 million, respectively. Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: June 30, 2020 December 31, 2019 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 7 $ 879 2.8 $ 11 $ 615 2.5 Baa 10 909 5.3 25 1,020 5.1 Total $ 17 $ 1,788 4.0 $ 36 $ 1,635 4.1 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. Counterparty Credit Risk The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty. The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. See Note 6 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2020 Derivative assets $ 6,166 $ (1,733) $ (3,715) $ 718 $ (705) $ 13 Derivative liabilities $ 2,248 $ (1,733) $ — $ 515 $ (514) $ 1 December 31, 2019 Derivative assets $ 3,062 $ (1,458) $ (1,115) $ 489 $ (488) $ 1 Derivative liabilities $ 2,522 $ (1,458) $ — $ 1,064 $ (1,061) $ 3 _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level. The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: June 30, 2020 December 31, 2019 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 515 $ 1,064 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 1,144 $ 1,473 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. Fair Value Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. June 30, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 33,566 $ 699 $ 34,265 Foreign corporate — 10,096 195 10,291 RMBS — 8,544 40 8,584 U.S. government and agency 1,858 7,067 — 8,925 CMBS — 6,229 26 6,255 State and political subdivision — 4,232 — 4,232 ABS — 2,356 107 2,463 Foreign government — 1,781 — 1,781 Total fixed maturity securities 1,858 73,871 1,067 76,796 Equity securities 12 113 4 129 Short-term investments 3,007 1,530 — 4,537 Derivative assets: (1) Interest rate — 4,503 — 4,503 Foreign currency exchange rate — 649 29 678 Credit — 11 8 19 Equity market — 937 13 950 Total derivative assets — 6,100 50 6,150 Embedded derivatives within asset host contracts (2) — — 323 323 Separate account assets 159 99,437 3 99,599 Total assets $ 5,036 $ 181,051 $ 1,447 $ 187,534 Liabilities Derivative liabilities: (1) Interest rate $ — $ 265 $ — $ 265 Foreign currency exchange rate — 15 — 15 Credit — 1 1 2 Equity market — 1,940 29 1,969 Total derivative liabilities — 2,221 30 2,251 Embedded derivatives within liability host contracts (2) — — 5,649 5,649 Total liabilities $ — $ 2,221 $ 5,679 $ 7,900 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 30,831 $ 329 $ 31,160 Foreign corporate — 9,712 132 9,844 RMBS — 9,074 44 9,118 U.S. government and agency 1,636 5,760 — 7,396 CMBS — 5,755 — 5,755 State and political subdivision — 3,984 73 4,057 ABS — 1,882 73 1,955 Foreign government — 1,751 — 1,751 Total fixed maturity securities 1,636 68,749 651 71,036 Equity securities 14 125 8 147 Short-term investments 1,271 682 5 1,958 Derivative assets: (1) Interest rate — 1,778 — 1,778 Foreign currency exchange rate — 281 5 286 Credit — 25 11 36 Equity market — 850 71 921 Total derivative assets — 2,934 87 3,021 Embedded derivatives within asset host contracts (2) — — 217 217 Separate account assets 180 106,924 3 107,107 Total assets $ 3,101 $ 179,414 $ 971 $ 183,486 Liabilities Derivative liabilities: (1) Interest rate $ — $ 330 $ — $ 330 Foreign currency exchange rate — 43 — 43 Equity market — 2,093 71 2,164 Total derivative liabilities — 2,466 71 2,537 Embedded derivatives within liability host contracts (2) — — 4,248 4,248 Total liabilities $ — $ 2,466 $ 4,319 $ 6,785 _______________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards. The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used. Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period to period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the six months ended June 30, 2020. Determination of Fair Value Fixed Maturity Securities The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded. Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to; collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Equity Securities and Short-term Investments The fair value for actively traded equity securities and short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets or liabilities, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below. Equity securities and short-term investments: Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. Derivatives Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The fair values for exchange-traded derivatives are determined using the quoted market prices and are classified as Level 1 assets. For OTC-bilateral derivatives and OTC-cleared derivatives classified as Level 2 assets or liabilities, fair values are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Embedded Derivatives Embedded derivatives principally include certain direct and ceded variable annuity guarantees and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for BHF’s debt. These observable spreads are then adjusted to reflect the priority of these liabilities and claims-paying ability of the issuing insurance subsidiaries as compared to BHF’s overall financial strength. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. The Company issues and assumes through reinsurance index-linked annuities which allow the policyholder to participate in returns from equity indices. The crediting rates associated with these features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The estimated fair value of crediting rates associated with index-linked annuities is determined using a combination of an option pricing model and an option-budget approach. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. Transfers Into or Out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: June 30, 2020 December 31, 2019 Impact of Valuation Techniques Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.02% - 11.31% 0.02% - 11.31% Decrease (1) • Lapse rates 0.25% - 16.00% 0.25% - 16.00% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.24% - 21.65% 16.24% - 21.65% Increase (5) • Nonperformance risk spread 0.52% - 2.78% 0.54% - 1.99% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value. The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short-term Net Net Embedded Separate (In millions) Three Months Ended June 30, 2020 Balance, beginning of period $ 851 $ 218 $ 73 $ 7 $ 4 $ 2 $ 50 $ (4,263) $ 4 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (2) — — — — — (3) (883) — Total realized/unrealized gains (losses) included in AOCI 59 3 — — — — (10) — — Purchases (7) 187 85 — — — — — — — Sales (7) (46) (1) — — — (2) (17) — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (180) — Transfers into Level 3 (8) 86 26 — — — — — — — Transfers out of Level 3 (8) (241) (158) (73) (7) — — — — (1) Balance, end of period $ 894 $ 173 $ — $ — $ 4 $ — $ 20 $ (5,326) $ 3 Three Months Ended June 30, 2019 Balance, beginning of period $ 697 $ 228 $ 74 $ — $ 4 $ — $ (136) $ (2,436) $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — — (1) (462) — Total realized/unrealized gains (losses) included in AOCI 1 1 — — — — 4 — — Purchases (7) 64 15 — — — 6 — — — Sales (7) (49) (9) — — — — — — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (223) — Transfers into Level 3 (8) 124 61 — — — — — — — Transfers out of Level 3 (8) (72) (188) — — — — (1) — — Balance, end of period $ 765 $ 108 $ 74 $ — $ 4 $ 6 $ (134) $ (3,121) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9) $ — $ — $ — $ — $ — $ — $ 3 $ (928) $ — Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9) $ 58 $ 3 $ — $ — $ — $ — $ (10) $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019 (9) $ — $ — $ — $ — $ — $ — $ (1) $ (538) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short-term Net Net Embedded Separate (In millions) Six Months Ended June 30, 2020 Balance, beginning of period $ 461 $ 117 $ 73 $ — $ 8 $ 5 $ 16 $ (4,031) $ 3 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (4) — — — — — (2) (962) — Total realized/unrealized gains (losses) included in AOCI 15 — — — — — 20 — — Purchases (7) 433 104 — — — — — — — Sales (7) (51) (5) — — — (5) (14) — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (333) — Transfers into Level 3 (8) 153 30 — — — — — — — Transfers out of Level 3 (8) (113) (73) (73) — (4) — — — — Balance, end of period $ 894 $ 173 $ — $ — $ 4 $ — $ 20 $ (5,326) $ 3 Six Months Ended June 30, 2019 Balance, beginning of period $ 732 $ 173 $ 74 $ — $ 3 $ — $ (122) $ (1,998) $ 1 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — — (10) (686) — Total realized/unrealized gains (losses) included in AOCI 10 2 — — — — 1 — — Purchases (7) 67 15 — — — 6 — — — Sales (7) (55) (27) — — — — — — (1) Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (437) — Transfers into Level 3 (8) 141 87 — — 1 — — — — Transfers out of Level 3 (8) (130) (142) — — — — (3) — — Balance, end of period $ 765 $ 108 $ 74 $ — $ 4 $ 6 $ (134) $ (3,121) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9) $ (1) $ — $ — $ — $ — $ — $ (17) $ (1,019) $ — Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9) $ 16 $ — $ — $ — $ — $ — $ 20 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019 (9) $ — $ — $ — $ — $ — $ — $ (9) $ (826) $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (3) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). (5) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (6) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (7) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (8) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (9) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: June 30, 2020 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 15,791 $ — $ — $ 16,439 $ 16,439 Policy loans $ 1,201 $ — $ 424 $ 1,588 $ 2,012 Other invested assets $ 93 $ — $ 81 $ 12 $ 93 Premiums, reinsurance and other receivables $ 2,518 $ — $ 56 $ 3,025 $ 3,081 Liabilities Policyholder account balances $ 16,926 $ — $ — $ 17,670 $ 17,670 Long-term debt $ 3,979 $ — $ 4,017 $ — $ 4,017 Other liabilities $ 998 $ — $ 351 $ 647 $ 998 Separate account liabilities $ 1,146 $ — $ 1,146 $ — $ 1,146 December 31, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 15,753 $ — $ — $ 16,383 $ 16,383 Policy loans $ 1,292 $ — $ 516 $ 1,062 $ 1,578 Other invested assets $ 51 $ — $ 39 $ 12 $ 51 Premiums, reinsurance and other receivables $ 2,224 $ — $ 41 $ 2,593 $ 2,634 Liabilities Policyholder account balances $ 15,614 $ — $ — $ 15,710 $ 15,710 Long-term debt $ 4,365 $ — $ 3,334 $ 1,000 $ 4,334 Other liabilities $ 846 $ — $ 191 $ 655 $ 846 Separate account liabilities $ 1,189 $ — $ 1,189 $ — $ 1,189 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 7. Long-term Debt Senior Notes During the second quarter of 2020, BHF issued $615 million aggregate principal amount of senior notes due May 2030 (the “2030 Senior Notes”) for aggregate net cash proceeds of $614 million. The 2030 Senior Notes bear interest at a fixed rate of 5.625%, payable semi-annually. Term Loan Facility During the second quarter of 2020, BHF used the aggregate net proceeds from the issuances of the 2030 Senior Notes and the Series B Depositary Shares (as defined in Note 8) to repay all outstanding borrowings under its $1.0 billion unsecured term loan facility (the “Term Loan Facility”). On June 2, 2020, BHF terminated the Term Loan Facility without penalty. Reinsurance Financing Arrangement On June 11, 2020, Brighthouse Reinsurance Company of Delaware, with the explicit permission of the Delaware Commissioner of Insurance, amended its financing arrangement with a pool of highly rated third-party reinsurers to increase the maximum amount from $10.0 billion to $12.0 billion and to extend the term by two years to 2039. At June 30, 2020, there were no borrowings and there was $10.6 billion of funding available under this financing arrangement. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity | 8. Equity Preferred Stock Preferred stock authorized, issued and outstanding were as follows at: June 30, 2020 December 31, 2019 Shares Authorized Shares Issued Shares Outstanding Shares Authorized Shares Issued Shares Outstanding 6.600% Non-Cumulative Preferred Stock, Series A 17,000 17,000 17,000 17,000 17,000 17,000 6.750% Non-Cumulative Preferred Stock, Series B 16,100 16,100 16,100 — — — Not designated 99,966,900 — — 99,983,000 — — Total 100,000,000 33,100 33,100 100,000,000 17,000 17,000 In May 2020, BHF issued depositary shares (the “Series B Depositary Shares”), each representing a 1/1,000th ownership interest in a share of its perpetual 6.750% non-cumulative preferred stock, Series B (the “Series B Preferred Stock”) and in the aggregate representing 16,100 shares of Series B Preferred Stock, with a stated amount of $25,000 per share, for aggregate net cash proceeds of $390 million. Dividends, if declared, will accrue and be payable quarterly, in arrears, at an annual rate of 6.750% on the stated amount per share. In connection with the issuance of the Series B Depositary Shares and the underlying Series B Preferred Stock, BHF incurred $13 million of issuance costs, which have been recorded as a reduction of additional paid-in capital. The declaration, record and payment dates, as well as per share and aggregate dividend amounts for BHF’s perpetual 6.600% non-cumulative preferred stock, Series A for the six months ended June 30, 2020 and 2019 were as follows: Declaration Date Record Date Payment Date Per Share Aggregate (In millions) May 15, 2020 June 10, 2020 June 25, 2020 $ 412.50 $ 7 February 14, 2020 March 10, 2020 March 25, 2020 412.50 7 $ 825.00 $ 14 May 15, 2019 June 10, 2019 June 25, 2019 $ 412.50 $ 7 $ 412.50 $ 7 Common Stock Repurchase Program On February 6, 2020, BHF authorized the repurchase of up to an additional $500 million of its common stock. Repurchases under this authorization may be made through open market purchases, including pursuant to 10b5-1 plans or pursuant to accelerated stock repurchase plans, or through privately negotiated transactions, from time to time at management’s discretion in accordance with applicable legal requirements. On May 11, 2020, the Company announced that it had temporarily suspended repurchases of its common stock. The temporary suspension remains in effect while the Company continues to assess market conditions and other factors. During the six months ended June 30, 2020 and 2019, BHF repurchased 13,250,927 and 4,993,424 shares, respectively, of its common stock through open market purchases pursuant to 10b5-1 plans for $322 million and $188 million, respectively. At June 30, 2020, BHF had $231 million remaining under its common stock repurchase program. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended June 30, 2020 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at March 31, 2020 $ 2,083 $ 612 $ (19) $ (29) $ 2,647 OCI before reclassifications 3,059 (140) 5 1 2,925 Deferred income tax benefit (expense) (643) 30 (10) — (623) AOCI before reclassifications, net of income tax 4,499 502 (24) (28) 4,949 Amounts reclassified from AOCI 23 (3) — — 20 Deferred income tax benefit (expense) (5) 1 — — (4) Amounts reclassified from AOCI, net of income tax 18 (2) — — 16 Balance at June 30, 2020 $ 4,517 $ 500 $ (24) $ (28) $ 4,965 Three Months Ended June 30, 2019 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at March 31, 2019 $ 1,580 $ 140 $ (27) $ (23) $ 1,670 OCI before reclassifications 1,293 75 7 — 1,375 Deferred income tax benefit (expense) (271) (16) — — (287) AOCI before reclassifications, net of income tax 2,602 199 (20) (23) 2,758 Amounts reclassified from AOCI (48) (22) — — (70) Deferred income tax benefit (expense) 10 4 — — 14 Amounts reclassified from AOCI, net of income tax (38) (18) — — (56) Balance at June 30, 2019 $ 2,564 $ 181 $ (20) $ (23) $ 2,702 Six Months Ended June 30, 2020 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2019 $ 3,111 $ 172 $ (15) $ (28) $ 3,240 OCI before reclassifications (2) 1,768 420 — — 2,188 Deferred income tax benefit (expense) (371) (88) (9) — (468) AOCI before reclassifications, net of income tax 4,508 504 (24) (28) 4,960 Amounts reclassified from AOCI 12 (5) — — 7 Deferred income tax benefit (expense) (3) 1 — — (2) Amounts reclassified from AOCI, net of income tax 9 (4) — — 5 Balance at June 30, 2020 $ 4,517 $ 500 $ (24) $ (28) $ 4,965 Six Months Ended June 30, 2019 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2018 $ 576 $ 187 $ (27) $ (20) $ 716 OCI before reclassifications 2,545 41 7 (3) 2,590 Deferred income tax benefit (expense) (534) (9) — — (543) AOCI before reclassifications, net of income tax 2,587 219 (20) (23) 2,763 Amounts reclassified from AOCI (29) (48) — — (77) Deferred income tax benefit (expense) 6 10 — — 16 Amounts reclassified from AOCI, net of income tax (23) (38) — — (61) Balance at June 30, 2019 $ 2,564 $ 181 $ (20) $ (23) $ 2,702 __________________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) Includes $3 million related to the adoption of ASU 2016-13, see Note 1. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (20) $ 70 $ (7) $ 55 Net investment gains (losses) Net unrealized investment gains (losses) (3) (22) (5) (26) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (23) 48 (12) 29 Income tax (expense) benefit 5 (10) 3 (6) Net unrealized investment gains (losses), net of income tax (18) 38 (9) 23 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps — 6 1 28 Net derivative gains (losses) Interest rate swaps — — 1 1 Net investment income Foreign currency swaps 3 16 3 19 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 3 22 5 48 Income tax (expense) benefit (1) (4) (1) (10) Gains (losses) on cash flow hedges, net of income tax 2 18 4 38 Total reclassifications, net of income tax $ (16) $ 56 $ (5) $ 61 |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Revenues and Other Expenses | 9. Other Revenues and Other Expenses Other Revenues The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees. To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds and is used to recognize revenue associated with 12b-1 fees. Other revenues consisted primarily of 12b-1 fees of $76 million and $157 million for the three months and six months ended June 30, 2020, respectively, and $85 million and $167 million for the three months and six months ended June 30, 2019, respectively, of which substantially all were reported in the Annuities segment. Other Expenses Information on other expenses was as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Compensation $ 93 $ 80 $ 162 $ 162 Contracted services and other labor costs 78 65 146 112 Transition services agreements 15 65 53 132 Establishment costs 35 38 53 72 Premium and other taxes, licenses and fees 14 13 26 20 Separate account fees 108 122 225 242 Volume related costs, excluding compensation, net of DAC capitalization 162 153 290 317 Interest expense on debt 45 48 92 95 Other 27 37 47 61 Total other expenses $ 577 $ 621 $ 1,094 $ 1,213 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 10. Earnings Per Common Share The calculation of earnings per common share was as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions, except share and per share data) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (1,998) $ 377 $ 2,952 $ (360) Weighted average common shares outstanding — basic 94,698,169 114,931,224 99,728,754 115,863,127 Dilutive effect of share-based awards — 605,430 140,178 — Weighted average common shares outstanding — diluted 94,698,169 115,536,654 99,868,932 115,863,127 Earnings per common share: Basic $ (21.10) $ 3.28 $ 29.60 $ (3.10) Diluted $ (21.10) $ 3.27 $ 29.56 $ (3.10) For the six months ended June 30, 2020 and the three months ended June 30, 2019, weighted average shares used for calculating diluted earnings per common share excludes 187,371 and 196,492, respectively, of out-of-the-money stock options, as the inclusion of these shares would be antidilutive to the earnings per common share calculation due to the average share price for the six months ended June 30, 2020 and the three months ended June 30, 2019. For the three months ended June 30, 2020 and the six months ended June 30, 2019, basic loss per common share equaled diluted loss per common share. The diluted shares were not utilized in the per share calculation for this period as the inclusion of such shares would have an antidilutive effect. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 11. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a number of litigation matters. In some of the matters, large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 2020. Matters as to Which an Estimate Can Be Made For some loss contingency matters, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of June 30, 2020, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $10 million. Matters as to Which an Estimate Cannot Be Made For other matters, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Cost of Insurance Class Action Richard A. Newton v. Brighthouse Life Insurance Company (U.S. District Court, Northern District of Georgia, Atlanta Division, filed May 8, 2020). Plaintiff has filed a purported class action lawsuit against Brighthouse Life Insurance Company. Plaintiff was the owner of a universal life insurance policy issued by Travelers Insurance Company, a predecessor to Brighthouse Life Insurance Company. Plaintiff seeks to certify a class of all persons who own or owned life insurance policies issued where the terms of the life insurance policy provide or provided, among other things, a guarantee that the cost of insurance rates would not be increased by more than a specified percentage in any contract year. Plaintiff alleges, among other things, causes of action for breach of contract, fraud, suppression and concealment, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act. Plaintiff seeks to recover damages, including punitive damages, interest and treble damages, attorneys’ fees, and injunctive and declaratory relief. Brighthouse Life Insurance Company filed a motion to dismiss in June 2020 and intends to vigorously defend this matter. Summary Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large and/or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations, it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Other Contingencies The Company applies the same standard of recognition for non-litigation loss contingencies when assertions are made involving disputes with counterparties to contractual arrangements entered into by the Company, including with third-party vendors. In such cases, the Company establishes liabilities when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In cases where it is not probable, but is reasonably possible that a loss will be incurred, no accrual is made. The Company estimates the aggregate range of reasonably possible losses associated with such matters in excess of amounts accrued to be between $25 million and $75 million. For all other asserted claims, the Company is not currently able to estimate any reasonably possible unrecorded loss or range of loss, and will be unable to do so until sufficient information to support any such assessments is available. On a quarterly and annual basis, the Company reviews relevant information with respect to non-litigation contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $229 million and $206 million at June 30, 2020 and December 31, 2019, respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $1.8 billion at both June 30, 2020 and December 31, 2019. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $112 million, with a cumulative maximum of $118 million, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company’s recorded liabilities were $1 million at both June 30, 2020 and December 31, 2019 for indemnities, guarantees and commitments. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries, Policy [Policy Text Block] | Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Brighthouse Financial, as well as partnerships and limited liability companies (“LLCs”) that the Company controls. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for investments in limited partnerships and LLCs when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. When the Company has virtually no influence over the investee’s operations, the investment is carried at fair value. Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the current period presentation as may be discussed when applicable in the Notes to the Interim Condensed Consolidated Financial Statements. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2019 consolidated balance sheet data was derived from audited consolidated financial statements included in Brighthouse Financial, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2019 Annual Report. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s consolidated financial statements. ASUs adopted as of June 30, 2020 are summarized as follows: Standard Description Effective Date Impact on Financial Statements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) The amendments to Topic 326 replace the incurred loss impairment methodology for certain financial instruments with one that reflects expected credit losses based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance also requires that an other-than-temporary impairment on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. January 1, 2020 using the modified retrospective method The Company recorded an after tax net decrease to retained earnings of $14 million and a net increase to accumulated other comprehensive income (loss) (“AOCI”) of $3 million for the cumulative effect of adoption. The adjustment included establishing or updating the allowance for credit losses on fixed maturity securities, mortgage loans, and other invested assets. ASUs issued but not yet adopted as of June 30, 2020 are summarized as follows: Standard Description Effective Date Impact on Financial Statements ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (1) require all guarantees that qualify as market risk benefits to be measured at fair value, (2) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (3) modify the methods of amortization for deferred policy acquisition costs (“DAC”), and (4) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis. The amendments are currently effective for the Company on January 1, 2022. On July 7, the FASB released an exposure draft which if adopted, will change the effective date of the amendments to January 1, 2023. The Company continues to evaluate the new guidance and therefore is unable to estimate the impact to its financial statements. The most significant impact is expected to be the measurement of liabilities for variable annuity guarantees. |
Investment, Policy | For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”). Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $504 million at June 30, 2020 and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the COVID-19 pandemic, interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at June 30, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $86 million at June 30, 2020. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDRs”), foreclosure probable loans, and loans with dissimilar risk characteristics. |
Derivatives, Policy [Policy Text Block] | Types of Derivative Instruments and Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate derivatives: swaps, caps, swaptions and forwards; • Foreign currency exchange rate derivatives: forwards and swaps; • Equity derivatives: options, total return swaps and variance swaps; and • Credit derivatives: single and index reference credit default swaps. |
Investments, Debt and Equity Se
Investments, Debt and Equity Securities (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment, Policy | For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss) (“OCI”). Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $504 million at June 30, 2020 and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the COVID-19 pandemic, interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at June 30, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $86 million at June 30, 2020. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDRs”), foreclosure probable loans, and loans with dissimilar risk characteristics. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating results by segment, as well as Corporate & Other, were as follows: Three Months Ended June 30, 2020 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 205 $ 60 $ (146) $ (98) $ 21 Provision for income tax expense (benefit) 34 12 (31) (12) 3 Post-tax adjusted earnings 171 48 (115) (86) 18 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 171 $ 48 $ (115) $ (93) 11 Adjustments for: Net investment gains (losses) (34) Net derivative gains (losses) (2,653) Other adjustments to net income (loss) 144 Provision for income tax (expense) benefit 534 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (1,998) Interest revenue $ 405 $ 69 $ 166 $ 16 Interest expense $ — $ — $ — $ 45 Three Months Ended June 30, 2019 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 323 $ 72 $ 2 $ (85) $ 312 Provision for income tax expense (benefit) 58 14 — (21) 51 Post-tax adjusted earnings 265 58 2 (64) 261 Less: Net income (loss) attributable to noncontrolling interests — — — — — Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 265 $ 58 $ 2 $ (71) 254 Adjustments for: Net investment gains (losses) 63 Net derivative gains (losses) 149 Other adjustments to net income (loss) (55) Provision for income tax (expense) benefit (34) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 377 Interest revenue $ 470 $ 116 $ 339 $ 17 Interest expense $ — $ — $ — $ 48 Six Months Ended June 30, 2020 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 594 $ 73 $ (236) $ (157) $ 274 Provision for income tax expense (benefit) 107 14 (51) (34) 36 Post-tax adjusted earnings 487 59 (185) (123) 238 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 14 14 Adjusted earnings $ 487 $ 59 $ (185) $ (139) 222 Adjustments for: Net investment gains (losses) (53) Net derivative gains (losses) 4,249 Other adjustments to net income (loss) (740) Provision for income tax (expense) benefit (726) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ 2,952 Interest revenue $ 865 $ 185 $ 490 $ 36 Interest expense $ — $ — $ — $ 92 Six Months Ended June 30, 2019 Annuities Life Run-off Corporate & Other Total (In millions) Pre-tax adjusted earnings $ 684 $ 103 $ (44) $ (157) $ 586 Provision for income tax expense (benefit) 124 20 (10) (43) 91 Post-tax adjusted earnings 560 83 (34) (114) 495 Less: Net income (loss) attributable to noncontrolling interests — — — 2 2 Less: Preferred stock dividends — — — 7 7 Adjusted earnings $ 560 $ 83 $ (34) $ (123) 486 Adjustments for: Net investment gains (losses) 52 Net derivative gains (losses) (1,154) Other adjustments to net income (loss) 32 Provision for income tax (expense) benefit 224 Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (360) Interest revenue $ 891 $ 213 $ 615 $ 34 Interest expense $ — $ — $ — $ 95 Total assets by segment, as well as Corporate & Other, were as follows at: June 30, 2020 December 31, 2019 (In millions) Annuities $ 158,152 $ 156,965 Life 22,299 21,876 Run-off 38,044 35,112 Corporate & Other 16,872 13,306 Total $ 235,367 $ 227,259 |
Reconciliation of Revenue from Segments to Consolidated | Total revenues by segment, as well as Corporate & Other, were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Annuities $ 1,052 $ 1,194 $ 2,203 $ 2,311 Life 285 330 639 633 Run-off 332 527 825 1,003 Corporate & Other 37 42 79 85 Adjustments (2,628) 277 4,317 (971) Total $ (922) $ 2,370 $ 8,063 $ 3,061 |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: June 30, 2020 December 31, 2019 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 97,133 $ 55,048 $ 104,271 $ 59,859 Separate account value $ 92,105 $ 53,830 $ 99,385 $ 58,694 Net amount at risk $ 8,812 (4) $ 8,045 (5) $ 6,671 (4) $ 4,750 (5) Average attained age of contract holders 69 years 69 years 68 years 68 years June 30, 2020 December 31, 2019 Secondary Guarantees (Dollars in millions) Universal Life Contracts Total account value (3) $ 5,866 $ 5,957 Net amount at risk (6) $ 70,092 $ 71,124 Average attained age of policyholders 67 years 66 years Variable Life Contracts Total account value (3) $ 3,330 $ 3,526 Net amount at risk (6) $ 20,701 $ 21,325 Average attained age of policyholders 51 years 50 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities by Sector | Fixed maturity securities by sector were as follows at: June 30, 2020 December 31, 2019 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 30,157 $ 2 $ 4,314 $ 204 $ 34,265 $ 28,375 $ — $ 2,852 $ 67 $ 31,160 Foreign corporate 9,580 2 881 168 10,291 9,177 — 741 74 9,844 RMBS 7,980 1 617 12 8,584 8,692 — 438 12 9,118 U.S. government and agency 5,673 — 3,252 — 8,925 5,529 — 1,869 2 7,396 CMBS 5,805 — 473 23 6,255 5,500 — 264 9 5,755 State and political subdivision 3,329 — 904 1 4,232 3,358 — 701 2 4,057 ABS 2,469 — 40 46 2,463 1,945 — 21 11 1,955 Foreign government 1,503 — 285 7 1,781 1,503 — 250 2 1,751 Total fixed maturity securities $ 66,496 $ 5 $ 10,766 $ 461 $ 76,796 $ 64,079 $ — $ 7,136 $ 179 $ 71,036 |
Maturities of Fixed Maturity Securities | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at June 30, 2020: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 1,687 $ 7,534 $ 13,453 $ 27,568 $ 16,254 $ 66,496 Estimated fair value $ 1,688 $ 7,889 $ 14,687 $ 35,230 $ 17,302 $ 76,796 _______________ (1) Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”). |
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector | The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: June 30, 2020 December 31, 2019 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 2,761 $ 152 $ 289 $ 52 $ 2,017 $ 44 $ 326 $ 23 Foreign corporate 1,260 70 590 98 576 12 561 62 RMBS 294 11 22 1 857 8 386 4 U.S. government and agency — — — — 40 2 — — CMBS 567 21 90 2 559 7 171 2 State and political subdivision 38 1 — — 143 2 8 — ABS 853 23 563 23 362 2 676 9 Foreign government 131 6 3 1 65 2 — — Total fixed maturity securities $ 5,904 $ 284 $ 1,557 $ 177 $ 4,619 $ 79 $ 2,128 $ 100 Total number of securities in an unrealized loss position 1,332 265 720 302 |
Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector | The changes in the allowance for credit losses by sector were as follows: U.S. Corporate RMBS Foreign Corporate Total (In millions) Balance at January 1, 2020 $ 3 $ — $ 1 $ 4 Allowance on securities where credit losses were not previously recorded 3 1 2 6 Allowance on securities that had an allowance recorded in a previous period (1) — — (1) Write-offs charged against allowance (1) (3) — (1) (4) Balance at June 30, 2020 $ 2 $ 1 $ 2 $ 5 _______________ (1) The Company recorded total write-offs of $13 million during the six months ended June 30, 2020. |
Mortgage Loans by Portfolio Segment | Mortgage loans are summarized as follows at: June 30, 2020 December 31, 2019 Carrying % of Carrying % of (Dollars in millions) Commercial $ 9,715 61.5 % $ 9,721 61.7 % Agricultural 3,361 21.3 3,388 21.5 Residential 2,807 17.8 2,708 17.2 Total mortgage loans (1) 15,883 100.6 15,817 100.4 Allowance for credit losses (92) (0.6) (64) (0.4) Total mortgage loans, net $ 15,791 100.0 % $ 15,753 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $331 million and $488 million for the three months and six months ended June 30, 2020, respectively, and $86 million and $563 million for the three months and six months ended June 30, 2019, respectively, and were primarily comprised of residential mortgage loans. |
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment | The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Balance at December 31, 2019 $ 47 $ 10 $ 7 $ 64 Cumulative effect of change in accounting principle (20) 7 15 2 Balance at January 1, 2020 27 17 22 66 Current period provision 10 (1) 17 26 Balance at June 30, 2020 $ 37 $ 16 $ 39 $ 92 |
Purchases of PCD Mortgage Loans | Purchases of PCD mortgage loans are summarized as follows: Six Months Ended June 30, 2020 (In millions) Purchase price $ 77 Allowance at acquisition date $ 2 Discount or premium attributable to other factors $ 2 Par value $ 81 |
Credit Quality of Mortgage Loans by Portfolio Segment | The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2020 2019 2018 2017 2016 Prior Total (In millions) June 30, 2020 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 193 $ 1,683 $ 1,109 $ 572 $ 1,124 $ 3,247 $ 7,928 65% to 75% 59 306 456 340 10 275 1,446 76% to 80% — — — — 114 — 114 Greater than 80% — — 10 13 6 198 227 Total commercial mortgage loans 252 1,989 1,575 925 1,254 3,720 9,715 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 110 564 784 445 492 801 3,196 65% to 75% 2 76 10 45 — 19 152 76% to 80% 8 5 — — — — 13 Total agricultural mortgage loans 120 645 794 490 492 820 3,361 Residential mortgage loans Performing 168 497 540 132 51 1,371 2,759 Nonperforming — 1 1 — 1 45 48 Total residential mortgage loans 168 498 541 132 52 1,416 2,807 Total $ 540 $ 3,132 $ 2,910 $ 1,547 $ 1,798 $ 5,956 $ 15,883 The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: June 30, 2020 December 31, 2019 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-Service Coverage Ratios: Greater than 1.20x $ 9,198 94.7 % $ 9,257 95.2 % 1.00x - 1.20x 314 3.2 298 3.1 Less than 1.00x 203 2.1 166 1.7 Total $ 9,715 100.0 % $ 9,721 100.0 % |
Past Due Mortgage Loans by Portfolio Segment | The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: June 30, 2020 Commercial Agricultural Residential Total (In millions) Current $ 9,715 $ 3,350 $ 2,705 $ 15,770 30-59 days past due — — 54 54 60-89 days past due — 10 19 29 90-179 days past due — — 12 12 180+ days past due — 1 17 18 Total $ 9,715 $ 3,361 $ 2,807 $ 15,883 |
Mortgage Loans in Nonaccrual Status by Portfolio Segment | The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at: Commercial Agricultural Residential Total (In millions) December 31, 2019 $ — $ 21 $ 37 $ 58 June 30, 2020 (1) $ — $ 1 $ 48 $ 49 _______________ (1) The Company had $8 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at June 30, 2020. |
Net Unrealized Investment Gains (Losses) | The components of net unrealized investment gains (losses), included in AOCI, were as follows at: June 30, 2020 December 31, 2019 (In millions) Fixed maturity securities $ 10,305 $ 6,957 Derivatives 660 245 Other (16) (13) Subtotal 10,949 7,189 Amounts allocated from: Future policy benefits (4,153) (2,692) DAC, VOBA and DSI (445) (341) Subtotal (4,598) (3,033) Deferred income tax benefit (expense) (1,334) (873) Net unrealized investment gains (losses) $ 5,017 $ 3,283 The changes in net unrealized investment gains (losses) were as follows: Six Months Ended June 30, 2020 (In millions) Balance at December 31, 2019 $ 3,283 Unrealized investment gains (losses) during the period 3,760 Unrealized investment gains (losses) relating to: Future policy benefits (1,461) DAC, VOBA and DSI (104) Deferred income tax benefit (expense) (461) Balance at June 30, 2020 $ 5,017 Change in net unrealized investment gains (losses) $ 1,734 |
Securities Lending | Elements of the securities lending program are presented below at: June 30, 2020 December 31, 2019 (In millions) Securities on loan: (1) Amortized cost $ 2,065 $ 2,031 Estimated fair value $ 3,596 $ 2,996 Cash collateral received from counterparties (2) $ 3,674 $ 3,074 Securities collateral received from counterparties (3) $ 12 $ — Reinvestment portfolio — estimated fair value $ 3,794 $ 3,174 _______________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: June 30, 2020 December 31, 2019 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 1,284 $ 2,012 $ 373 $ 3,669 $ 1,279 $ 1,094 $ 701 $ 3,074 U.S. corporate 2 — — 2 — — — — Foreign corporate 3 — — 3 — — — — Total $ 1,289 $ 2,012 $ 373 $ 3,674 $ 1,279 $ 1,094 $ 701 $ 3,074 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: June 30, 2020 December 31, 2019 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 9,922 $ 9,349 Invested assets held in trust (reinsurance agreements) (2) 5,456 4,561 Invested assets pledged as collateral (3) 4,506 3,641 Total invested assets on deposit, held in trust and pledged as collateral $ 19,884 $ 17,551 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $147 million and $69 million of the assets on deposit represents restricted cash and cash equivalents at June 30, 2020 and December 31, 2019, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $102 million and $124 million of the assets held in trust balance represents restricted cash and cash equivalents at June 30, 2020 and December 31, 2019, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report) and derivative transactions (see Note 5). |
Variable Interest Entities | The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: June 30, 2020 December 31, 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 13,143 $ 12,265 $ 13,094 $ 12,454 Limited partnerships and LLCs 1,880 3,171 1,907 3,080 Total $ 15,023 $ 15,436 $ 15,001 $ 15,534 |
Components of Net Investment Income | The components of net investment income were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Investment income: Fixed maturity securities $ 676 $ 679 $ 1,345 $ 1,332 Equity securities 1 1 3 4 Mortgage loans 166 176 332 335 Policy loans 13 17 25 33 Limited partnerships and LLCs (1) (189) 88 (107) 96 Cash, cash equivalents and short-term investments 14 23 37 37 Other 11 6 25 19 Total investment income 692 990 1,660 1,856 Less: Investment expenses 40 48 92 103 Net investment income $ 652 $ 942 $ 1,568 $ 1,753 _______________ (1) Includes net investment income pertaining to other limited partnership interests of ($192) million and ($119) million for the three months and six months ended June 30, 2020, respectively, and $76 million for both the three months and six months ended June 30, 2019. |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Fixed maturity securities $ (21) $ 68 $ (27) $ 53 Equity securities 7 1 (7) 11 Mortgage loans (22) (3) (26) (7) Limited partnerships and LLCs (2) (2) (3) (5) Other 4 (1) 10 — Total net investment gains (losses) $ (34) $ 63 $ (53) $ 52 |
Sales or Disposals of Fixed Maturity Securities | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Proceeds $ 622 $ 3,679 $ 1,271 $ 6,958 Gross investment gains $ 15 $ 106 $ 32 $ 173 Gross investment losses (37) (38) (43) (120) Net investment gains (losses) $ (22) $ 68 $ (11) $ 53 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The primary underlying risk exposure, gross notional amount and estimated fair value of derivatives held were as follows at: June 30, 2020 December 31, 2019 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate forwards Interest rate $ 360 $ 101 $ — $ 420 $ 22 $ — Foreign currency swaps Foreign currency exchange rate 2,811 492 1 2,765 190 27 Total qualifying hedges 3,171 593 1 3,185 212 27 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 3,434 746 9 7,559 878 29 Interest rate caps Interest rate 2,350 1 — 3,350 2 — Interest rate options Interest rate 24,170 2,306 256 29,750 782 187 Interest rate forwards Interest rate 7,160 1,349 — 5,418 94 114 Foreign currency swaps Foreign currency exchange rate 1,020 186 14 1,051 96 15 Foreign currency forwards Foreign currency exchange rate 147 — — 138 — 1 Credit default swaps — purchased Credit 18 — — 18 — — Credit default swaps — written Credit 1,788 19 2 1,635 36 — Equity index options Equity market 46,537 834 1,246 51,509 850 1,728 Equity variance swaps Equity market 1,098 11 27 2,136 69 69 Equity total return swaps Equity market 10,120 105 696 7,723 2 367 Total non-designated or non-qualifying derivatives 97,842 5,557 2,250 110,287 2,809 2,510 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 323 — N/A 217 — Direct index-linked annuities Other N/A — 1,526 N/A — 2,253 Direct guaranteed minimum benefits Other N/A — 3,813 N/A — 1,656 Assumed index-linked annuities Other N/A — 310 N/A — 339 Total embedded derivatives N/A 323 5,649 N/A 217 4,248 Total $ 101,013 $ 6,473 $ 7,900 $ 113,472 $ 3,238 $ 6,785 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ — $ — $ — $ (4) Foreign currency exchange rate derivatives 3 (3) 10 (136) Total cash flow hedges 3 (3) 10 (140) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (165) — — — Foreign currency exchange rate derivatives (27) (2) — — Credit derivatives 29 — — — Equity derivatives (1,605) — — — Embedded derivatives (883) — — — Total non-qualifying hedges (2,651) (2) — — Total $ (2,648) $ (5) $ 10 $ (140) Three Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 6 $ — $ — $ — Foreign currency exchange rate derivatives 16 (23) 9 75 Total cash flow hedges 22 (23) 9 75 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 917 — — — Foreign currency exchange rate derivatives 30 (3) — — Credit derivatives 12 — — — Equity derivatives (344) — — — Embedded derivatives (462) — — — Total non-qualifying hedges 153 (3) — — Total $ 175 $ (26) $ 9 $ 75 Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 1 $ — $ 1 $ 93 Foreign currency exchange rate derivatives 3 (3) 21 327 Total cash flow hedges 4 (3) 22 420 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 4,756 — — — Foreign currency exchange rate derivatives 107 (9) — — Credit derivatives (3) — — — Equity derivatives 359 — — — Embedded derivatives (962) — — — Total non-qualifying hedges 4,257 (9) — — Total $ 4,261 $ (12) $ 22 $ 420 Six Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 28 $ — $ 1 $ — Foreign currency exchange rate derivatives 19 (23) 17 41 Total cash flow hedges 47 (23) 18 41 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 1,249 — — — Foreign currency exchange rate derivatives 22 (3) — — Credit derivatives 30 — — — Equity derivatives (1,790) — — — Embedded derivatives (686) — — — Total non-qualifying hedges (1,175) (3) — — Total $ (1,128) $ (26) $ 18 $ 41 |
Components of Net Derivatives Gains (Losses) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Three Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ — $ — $ — $ (4) Foreign currency exchange rate derivatives 3 (3) 10 (136) Total cash flow hedges 3 (3) 10 (140) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (165) — — — Foreign currency exchange rate derivatives (27) (2) — — Credit derivatives 29 — — — Equity derivatives (1,605) — — — Embedded derivatives (883) — — — Total non-qualifying hedges (2,651) (2) — — Total $ (2,648) $ (5) $ 10 $ (140) Three Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 6 $ — $ — $ — Foreign currency exchange rate derivatives 16 (23) 9 75 Total cash flow hedges 22 (23) 9 75 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 917 — — — Foreign currency exchange rate derivatives 30 (3) — — Credit derivatives 12 — — — Equity derivatives (344) — — — Embedded derivatives (462) — — — Total non-qualifying hedges 153 (3) — — Total $ 175 $ (26) $ 9 $ 75 Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Net Investment Income Amount of Gains (Losses) Deferred in AOCI (In millions) Six Months Ended June 30, 2020 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 1 $ — $ 1 $ 93 Foreign currency exchange rate derivatives 3 (3) 21 327 Total cash flow hedges 4 (3) 22 420 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 4,756 — — — Foreign currency exchange rate derivatives 107 (9) — — Credit derivatives (3) — — — Equity derivatives 359 — — — Embedded derivatives (962) — — — Total non-qualifying hedges 4,257 (9) — — Total $ 4,261 $ (12) $ 22 $ 420 Six Months Ended June 30, 2019 Derivatives Designated as Hedging Instruments: Cash flow hedges: Interest rate derivatives $ 28 $ — $ 1 $ — Foreign currency exchange rate derivatives 19 (23) 17 41 Total cash flow hedges 47 (23) 18 41 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives 1,249 — — — Foreign currency exchange rate derivatives 22 (3) — — Credit derivatives 30 — — — Equity derivatives (1,790) — — — Embedded derivatives (686) — — — Total non-qualifying hedges (1,175) (3) — — Total $ (1,128) $ (26) $ 18 $ 41 |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps were as follows at: June 30, 2020 December 31, 2019 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A $ 7 $ 879 2.8 $ 11 $ 615 2.5 Baa 10 909 5.3 25 1,020 5.1 Total $ 17 $ 1,788 4.0 $ 36 $ 1,635 4.1 _______________ (1) The Company has written credit protection on both single name and index references. The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. |
Estimated Fair Value of Derivative Assets after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2020 Derivative assets $ 6,166 $ (1,733) $ (3,715) $ 718 $ (705) $ 13 Derivative liabilities $ 2,248 $ (1,733) $ — $ 515 $ (514) $ 1 December 31, 2019 Derivative assets $ 3,062 $ (1,458) $ (1,115) $ 489 $ (488) $ 1 Derivative liabilities $ 2,522 $ (1,458) $ — $ 1,064 $ (1,061) $ 3 _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Estimated Fair Value of Derivative Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Consolidated Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) June 30, 2020 Derivative assets $ 6,166 $ (1,733) $ (3,715) $ 718 $ (705) $ 13 Derivative liabilities $ 2,248 $ (1,733) $ — $ 515 $ (514) $ 1 December 31, 2019 Derivative assets $ 3,062 $ (1,458) $ (1,115) $ 489 $ (488) $ 1 Derivative liabilities $ 2,522 $ (1,458) $ — $ 1,064 $ (1,061) $ 3 _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Schedule of Derivative Instruments | The aggregate estimated fair values of derivatives in a net liability position containing such credit-contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: June 30, 2020 December 31, 2019 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 515 $ 1,064 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 1,144 $ 1,473 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. June 30, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated Fair Value (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 33,566 $ 699 $ 34,265 Foreign corporate — 10,096 195 10,291 RMBS — 8,544 40 8,584 U.S. government and agency 1,858 7,067 — 8,925 CMBS — 6,229 26 6,255 State and political subdivision — 4,232 — 4,232 ABS — 2,356 107 2,463 Foreign government — 1,781 — 1,781 Total fixed maturity securities 1,858 73,871 1,067 76,796 Equity securities 12 113 4 129 Short-term investments 3,007 1,530 — 4,537 Derivative assets: (1) Interest rate — 4,503 — 4,503 Foreign currency exchange rate — 649 29 678 Credit — 11 8 19 Equity market — 937 13 950 Total derivative assets — 6,100 50 6,150 Embedded derivatives within asset host contracts (2) — — 323 323 Separate account assets 159 99,437 3 99,599 Total assets $ 5,036 $ 181,051 $ 1,447 $ 187,534 Liabilities Derivative liabilities: (1) Interest rate $ — $ 265 $ — $ 265 Foreign currency exchange rate — 15 — 15 Credit — 1 1 2 Equity market — 1,940 29 1,969 Total derivative liabilities — 2,221 30 2,251 Embedded derivatives within liability host contracts (2) — — 5,649 5,649 Total liabilities $ — $ 2,221 $ 5,679 $ 7,900 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 30,831 $ 329 $ 31,160 Foreign corporate — 9,712 132 9,844 RMBS — 9,074 44 9,118 U.S. government and agency 1,636 5,760 — 7,396 CMBS — 5,755 — 5,755 State and political subdivision — 3,984 73 4,057 ABS — 1,882 73 1,955 Foreign government — 1,751 — 1,751 Total fixed maturity securities 1,636 68,749 651 71,036 Equity securities 14 125 8 147 Short-term investments 1,271 682 5 1,958 Derivative assets: (1) Interest rate — 1,778 — 1,778 Foreign currency exchange rate — 281 5 286 Credit — 25 11 36 Equity market — 850 71 921 Total derivative assets — 2,934 87 3,021 Embedded derivatives within asset host contracts (2) — — 217 217 Separate account assets 180 106,924 3 107,107 Total assets $ 3,101 $ 179,414 $ 971 $ 183,486 Liabilities Derivative liabilities: (1) Interest rate $ — $ 330 $ — $ 330 Foreign currency exchange rate — 43 — 43 Equity market — 2,093 71 2,164 Total derivative liabilities — 2,466 71 2,537 Embedded derivatives within liability host contracts (2) — — 4,248 4,248 Total liabilities $ — $ 2,466 $ 4,319 $ 6,785 _______________ (1) Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets. |
Fair Value Inputs, Quantitative Information | Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: June 30, 2020 December 31, 2019 Impact of Valuation Techniques Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.02% - 11.31% 0.02% - 11.31% Decrease (1) • Lapse rates 0.25% - 16.00% 0.25% - 16.00% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.24% - 21.65% 16.24% - 21.65% Increase (5) • Nonperformance risk spread 0.52% - 2.78% 0.54% - 1.99% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short-term Net Net Embedded Separate (In millions) Three Months Ended June 30, 2020 Balance, beginning of period $ 851 $ 218 $ 73 $ 7 $ 4 $ 2 $ 50 $ (4,263) $ 4 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (2) — — — — — (3) (883) — Total realized/unrealized gains (losses) included in AOCI 59 3 — — — — (10) — — Purchases (7) 187 85 — — — — — — — Sales (7) (46) (1) — — — (2) (17) — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (180) — Transfers into Level 3 (8) 86 26 — — — — — — — Transfers out of Level 3 (8) (241) (158) (73) (7) — — — — (1) Balance, end of period $ 894 $ 173 $ — $ — $ 4 $ — $ 20 $ (5,326) $ 3 Three Months Ended June 30, 2019 Balance, beginning of period $ 697 $ 228 $ 74 $ — $ 4 $ — $ (136) $ (2,436) $ — Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — — (1) (462) — Total realized/unrealized gains (losses) included in AOCI 1 1 — — — — 4 — — Purchases (7) 64 15 — — — 6 — — — Sales (7) (49) (9) — — — — — — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (223) — Transfers into Level 3 (8) 124 61 — — — — — — — Transfers out of Level 3 (8) (72) (188) — — — — (1) — — Balance, end of period $ 765 $ 108 $ 74 $ — $ 4 $ 6 $ (134) $ (3,121) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9) $ — $ — $ — $ — $ — $ — $ 3 $ (928) $ — Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9) $ 58 $ 3 $ — $ — $ — $ — $ (10) $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019 (9) $ — $ — $ — $ — $ — $ — $ (1) $ (538) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Corporate (1) Structured Securities State and Foreign Equity Short-term Net Net Embedded Separate (In millions) Six Months Ended June 30, 2020 Balance, beginning of period $ 461 $ 117 $ 73 $ — $ 8 $ 5 $ 16 $ (4,031) $ 3 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) (4) — — — — — (2) (962) — Total realized/unrealized gains (losses) included in AOCI 15 — — — — — 20 — — Purchases (7) 433 104 — — — — — — — Sales (7) (51) (5) — — — (5) (14) — — Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (333) — Transfers into Level 3 (8) 153 30 — — — — — — — Transfers out of Level 3 (8) (113) (73) (73) — (4) — — — — Balance, end of period $ 894 $ 173 $ — $ — $ 4 $ — $ 20 $ (5,326) $ 3 Six Months Ended June 30, 2019 Balance, beginning of period $ 732 $ 173 $ 74 $ — $ 3 $ — $ (122) $ (1,998) $ 1 Total realized/unrealized gains (losses) included in net income (loss) (5) (6) — — — — — — (10) (686) — Total realized/unrealized gains (losses) included in AOCI 10 2 — — — — 1 — — Purchases (7) 67 15 — — — 6 — — — Sales (7) (55) (27) — — — — — — (1) Issuances (7) — — — — — — — — — Settlements (7) — — — — — — — (437) — Transfers into Level 3 (8) 141 87 — — 1 — — — — Transfers out of Level 3 (8) (130) (142) — — — — (3) — — Balance, end of period $ 765 $ 108 $ 74 $ — $ 4 $ 6 $ (134) $ (3,121) $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2020 (9) $ (1) $ — $ — $ — $ — $ — $ (17) $ (1,019) $ — Changes in unrealized gains (losses) included in other comprehensive income for the instruments still held at June 30, 2020 (9) $ 16 $ — $ — $ — $ — $ — $ 20 $ — $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at June 30, 2019 (9) $ — $ — $ — $ — $ — $ — $ (9) $ (826) $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (3) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (4) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). (5) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (6) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (7) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (8) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (9) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: June 30, 2020 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 15,791 $ — $ — $ 16,439 $ 16,439 Policy loans $ 1,201 $ — $ 424 $ 1,588 $ 2,012 Other invested assets $ 93 $ — $ 81 $ 12 $ 93 Premiums, reinsurance and other receivables $ 2,518 $ — $ 56 $ 3,025 $ 3,081 Liabilities Policyholder account balances $ 16,926 $ — $ — $ 17,670 $ 17,670 Long-term debt $ 3,979 $ — $ 4,017 $ — $ 4,017 Other liabilities $ 998 $ — $ 351 $ 647 $ 998 Separate account liabilities $ 1,146 $ — $ 1,146 $ — $ 1,146 December 31, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 15,753 $ — $ — $ 16,383 $ 16,383 Policy loans $ 1,292 $ — $ 516 $ 1,062 $ 1,578 Other invested assets $ 51 $ — $ 39 $ 12 $ 51 Premiums, reinsurance and other receivables $ 2,224 $ — $ 41 $ 2,593 $ 2,634 Liabilities Policyholder account balances $ 15,614 $ — $ — $ 15,710 $ 15,710 Long-term debt $ 4,365 $ — $ 3,334 $ 1,000 $ 4,334 Other liabilities $ 846 $ — $ 191 $ 655 $ 846 Separate account liabilities $ 1,189 $ — $ 1,189 $ — $ 1,189 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Preferred Stock | Preferred stock authorized, issued and outstanding were as follows at: June 30, 2020 December 31, 2019 Shares Authorized Shares Issued Shares Outstanding Shares Authorized Shares Issued Shares Outstanding 6.600% Non-Cumulative Preferred Stock, Series A 17,000 17,000 17,000 17,000 17,000 17,000 6.750% Non-Cumulative Preferred Stock, Series B 16,100 16,100 16,100 — — — Not designated 99,966,900 — — 99,983,000 — — Total 100,000,000 33,100 33,100 100,000,000 17,000 17,000 |
Preferred Stock Dividends Declared | The declaration, record and payment dates, as well as per share and aggregate dividend amounts for BHF’s perpetual 6.600% non-cumulative preferred stock, Series A for the six months ended June 30, 2020 and 2019 were as follows: Declaration Date Record Date Payment Date Per Share Aggregate (In millions) May 15, 2020 June 10, 2020 June 25, 2020 $ 412.50 $ 7 February 14, 2020 March 10, 2020 March 25, 2020 412.50 7 $ 825.00 $ 14 May 15, 2019 June 10, 2019 June 25, 2019 $ 412.50 $ 7 $ 412.50 $ 7 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI was as follows: Three Months Ended June 30, 2020 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at March 31, 2020 $ 2,083 $ 612 $ (19) $ (29) $ 2,647 OCI before reclassifications 3,059 (140) 5 1 2,925 Deferred income tax benefit (expense) (643) 30 (10) — (623) AOCI before reclassifications, net of income tax 4,499 502 (24) (28) 4,949 Amounts reclassified from AOCI 23 (3) — — 20 Deferred income tax benefit (expense) (5) 1 — — (4) Amounts reclassified from AOCI, net of income tax 18 (2) — — 16 Balance at June 30, 2020 $ 4,517 $ 500 $ (24) $ (28) $ 4,965 Three Months Ended June 30, 2019 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at March 31, 2019 $ 1,580 $ 140 $ (27) $ (23) $ 1,670 OCI before reclassifications 1,293 75 7 — 1,375 Deferred income tax benefit (expense) (271) (16) — — (287) AOCI before reclassifications, net of income tax 2,602 199 (20) (23) 2,758 Amounts reclassified from AOCI (48) (22) — — (70) Deferred income tax benefit (expense) 10 4 — — 14 Amounts reclassified from AOCI, net of income tax (38) (18) — — (56) Balance at June 30, 2019 $ 2,564 $ 181 $ (20) $ (23) $ 2,702 Six Months Ended June 30, 2020 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2019 $ 3,111 $ 172 $ (15) $ (28) $ 3,240 OCI before reclassifications (2) 1,768 420 — — 2,188 Deferred income tax benefit (expense) (371) (88) (9) — (468) AOCI before reclassifications, net of income tax 4,508 504 (24) (28) 4,960 Amounts reclassified from AOCI 12 (5) — — 7 Deferred income tax benefit (expense) (3) 1 — — (2) Amounts reclassified from AOCI, net of income tax 9 (4) — — 5 Balance at June 30, 2020 $ 4,517 $ 500 $ (24) $ (28) $ 4,965 Six Months Ended June 30, 2019 Unrealized Unrealized Foreign Defined Benefit Plans Adjustment Total (In millions) Balance at December 31, 2018 $ 576 $ 187 $ (27) $ (20) $ 716 OCI before reclassifications 2,545 41 7 (3) 2,590 Deferred income tax benefit (expense) (534) (9) — — (543) AOCI before reclassifications, net of income tax 2,587 219 (20) (23) 2,763 Amounts reclassified from AOCI (29) (48) — — (77) Deferred income tax benefit (expense) 6 10 — — 16 Amounts reclassified from AOCI, net of income tax (23) (38) — — (61) Balance at June 30, 2019 $ 2,564 $ 181 $ (20) $ (23) $ 2,702 __________________ (1) See Note 4 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI. (2) Includes $3 million related to the adoption of ASU 2016-13, see Note 1. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Operations and Comprehensive Income (Loss) Locations Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (20) $ 70 $ (7) $ 55 Net investment gains (losses) Net unrealized investment gains (losses) (3) (22) (5) (26) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (23) 48 (12) 29 Income tax (expense) benefit 5 (10) 3 (6) Net unrealized investment gains (losses), net of income tax (18) 38 (9) 23 Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps — 6 1 28 Net derivative gains (losses) Interest rate swaps — — 1 1 Net investment income Foreign currency swaps 3 16 3 19 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 3 22 5 48 Income tax (expense) benefit (1) (4) (1) (10) Gains (losses) on cash flow hedges, net of income tax 2 18 4 38 Total reclassifications, net of income tax $ (16) $ 56 $ (5) $ 61 |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Information on other expenses was as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions) Compensation $ 93 $ 80 $ 162 $ 162 Contracted services and other labor costs 78 65 146 112 Transition services agreements 15 65 53 132 Establishment costs 35 38 53 72 Premium and other taxes, licenses and fees 14 13 26 20 Separate account fees 108 122 225 242 Volume related costs, excluding compensation, net of DAC capitalization 162 153 290 317 Interest expense on debt 45 48 92 95 Other 27 37 47 61 Total other expenses $ 577 $ 621 $ 1,094 $ 1,213 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The calculation of earnings per common share was as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In millions, except share and per share data) Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders $ (1,998) $ 377 $ 2,952 $ (360) Weighted average common shares outstanding — basic 94,698,169 114,931,224 99,728,754 115,863,127 Dilutive effect of share-based awards — 605,430 140,178 — Weighted average common shares outstanding — diluted 94,698,169 115,536,654 99,868,932 115,863,127 Earnings per common share: Basic $ (21.10) $ 3.28 $ 29.60 $ (3.10) Diluted $ (21.10) $ 3.27 $ 29.56 $ (3.10) |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2020USD ($)Segment | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of Reportable Segments | Segment | 3 | |||||
Retained Earnings (Accumulated Deficit) | $ (3,523) | $ (585) | ||||
Accumulated other comprehensive income (loss) | $ 4,965 | $ 2,647 | 3,240 | $ 2,702 | $ 1,670 | $ 716 |
Cumulative Effect, Adjustment | ||||||
Retained Earnings (Accumulated Deficit) | (14) | |||||
Accumulated other comprehensive income (loss) | $ 3 |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | $ (2,522) | $ 469 | $ 3,730 | $ (484) | ||
Provision for income tax expense (benefit) | (531) | 85 | 762 | (133) | ||
Post-tax adjusted earnings | (1,991) | $ 4,959 | 384 | $ (735) | 2,968 | (351) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 7 | 7 | 14 | 7 | ||
Net investment gains (losses) | (34) | 63 | (53) | 52 | ||
Net derivative gains (losses) | (2,653) | 149 | 4,249 | (1,154) | ||
Other adjustments to net income (loss) | 93 | 96 | 195 | 188 | ||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | (1,998) | 377 | 2,952 | (360) | ||
Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 405 | 470 | 865 | 891 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Life | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 69 | 116 | 185 | 213 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Run-off | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 166 | 339 | 490 | 615 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Corporate & Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest revenue | 16 | 17 | 36 | 34 | ||
Interest expense | 45 | 48 | 92 | 95 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | 21 | 312 | 274 | 586 | ||
Provision for income tax expense (benefit) | 3 | 51 | 36 | 91 | ||
Post-tax adjusted earnings | 18 | 261 | 238 | 495 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 7 | 7 | 14 | 7 | ||
Adjusted earnings | 11 | 254 | 222 | 486 | ||
Operating Segments | Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | 205 | 323 | 594 | 684 | ||
Provision for income tax expense (benefit) | 34 | 58 | 107 | 124 | ||
Post-tax adjusted earnings | 171 | 265 | 487 | 560 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings | 171 | 265 | 487 | 560 | ||
Operating Segments | Life | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | 60 | 72 | 73 | 103 | ||
Provision for income tax expense (benefit) | 12 | 14 | 14 | 20 | ||
Post-tax adjusted earnings | 48 | 58 | 59 | 83 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings | 48 | 58 | 59 | 83 | ||
Operating Segments | Run-off | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | (146) | 2 | (236) | (44) | ||
Provision for income tax expense (benefit) | (31) | 0 | (51) | (10) | ||
Post-tax adjusted earnings | (115) | 2 | (185) | (34) | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Adjusted earnings | (115) | 2 | (185) | (34) | ||
Operating Segments | Corporate & Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Pre-tax adjusted earnings | (98) | (85) | (157) | (157) | ||
Provision for income tax expense (benefit) | (12) | (21) | (34) | (43) | ||
Post-tax adjusted earnings | (86) | (64) | (123) | (114) | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 2 | 2 | ||
Less: Preferred stock dividends | 7 | 7 | 14 | 7 | ||
Adjusted earnings | (93) | (71) | (139) | (123) | ||
Segment Reconciling Items | ||||||
Segment Reporting Information [Line Items] | ||||||
Provision for income tax expense (benefit) | 534 | (34) | (726) | 224 | ||
Net investment gains (losses) | (34) | 63 | (53) | 52 | ||
Net derivative gains (losses) | (2,653) | 149 | 4,249 | (1,154) | ||
Other adjustments to net income (loss) | $ 144 | $ (55) | $ (740) | $ 32 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (922) | $ 2,370 | $ 8,063 | $ 3,061 |
Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,052 | 1,194 | 2,203 | 2,311 |
Life | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 285 | 330 | 639 | 633 |
Run-off | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 332 | 527 | 825 | 1,003 |
Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 37 | 42 | 79 | 85 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (2,628) | $ 277 | $ 4,317 | $ (971) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 235,367 | $ 227,259 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 158,152 | 156,965 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 22,299 | 21,876 |
Run-off | ||
Segment Reporting Information [Line Items] | ||
Total assets | 38,044 | 35,112 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 16,872 | $ 13,306 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - Variable Annuity Guarantees - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 97,133 | $ 104,271 |
Separate account value | 92,105 | 99,385 |
Net amount at risk | $ 8,812 | $ 6,671 |
Average attained age of contract holders | 69 years | 68 years |
Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 55,048 | $ 59,859 |
Separate account value | 53,830 | 58,694 |
Net amount at risk | $ 8,045 | $ 4,750 |
Average attained age of contract holders | 69 years | 68 years |
Insurance (Guarantees Related_2
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Secondary Guarantees - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Universal Life | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 5,866 | $ 5,957 |
Net amount at risk | $ 70,092 | $ 71,124 |
Average attained age of policyholders | 67 years | 66 years |
Variable Life | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 3,330 | $ 3,526 |
Net amount at risk | $ 20,701 | $ 21,325 |
Average attained age of policyholders | 51 years | 50 years |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | $ 66,496 | $ 64,079 |
Fixed maturity securities, allowance for credit losses | 5 | 0 |
Fixed maturity securities, gross unrealized gains | 10,766 | 7,136 |
Fixed maturity securities, gross unrealized losses | 461 | 179 |
Fixed maturity securities, estimated fair value | 76,796 | 71,036 |
U.S. Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 30,157 | 28,375 |
Fixed maturity securities, allowance for credit losses | 2 | 0 |
Fixed maturity securities, gross unrealized gains | 4,314 | 2,852 |
Fixed maturity securities, gross unrealized losses | 204 | 67 |
Fixed maturity securities, estimated fair value | 34,265 | 31,160 |
Foreign Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 9,580 | 9,177 |
Fixed maturity securities, allowance for credit losses | 2 | 0 |
Fixed maturity securities, gross unrealized gains | 881 | 741 |
Fixed maturity securities, gross unrealized losses | 168 | 74 |
Fixed maturity securities, estimated fair value | 10,291 | 9,844 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 7,980 | 8,692 |
Fixed maturity securities, allowance for credit losses | 1 | 0 |
Fixed maturity securities, gross unrealized gains | 617 | 438 |
Fixed maturity securities, gross unrealized losses | 12 | 12 |
Fixed maturity securities, estimated fair value | 8,584 | 9,118 |
U.S. Government and Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 5,673 | 5,529 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 3,252 | 1,869 |
Fixed maturity securities, gross unrealized losses | 0 | 2 |
Fixed maturity securities, estimated fair value | 8,925 | 7,396 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 5,805 | 5,500 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 473 | 264 |
Fixed maturity securities, gross unrealized losses | 23 | 9 |
Fixed maturity securities, estimated fair value | 6,255 | 5,755 |
State and Political Subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 3,329 | 3,358 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 904 | 701 |
Fixed maturity securities, gross unrealized losses | 1 | 2 |
Fixed maturity securities, estimated fair value | 4,232 | 4,057 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 2,469 | 1,945 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 40 | 21 |
Fixed maturity securities, gross unrealized losses | 46 | 11 |
Fixed maturity securities, estimated fair value | 2,463 | 1,955 |
Foreign Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 1,503 | 1,503 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 285 | 250 |
Fixed maturity securities, gross unrealized losses | 7 | 2 |
Fixed maturity securities, estimated fair value | $ 1,781 | $ 1,751 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due in one year or less | $ 1,687 | |
Amortized cost, due after one year through five years | 7,534 | |
Amortized cost, due after five years through ten years | 13,453 | |
Amortized cost, due after ten years | 27,568 | |
Amortized cost, Structured Securities | 16,254 | |
Fixed maturity securities, amortized cost | 66,496 | $ 64,079 |
Estimated fair value, due in one year or less | 1,688 | |
Estimated fair value, due after one year through five years | 7,889 | |
Estimated fair value, due after five years through ten years | 14,687 | |
Estimated fair value, due after ten years | 35,230 | |
Estimated fair value, Structured Securities | 17,302 | |
Fixed maturity securities, estimated fair value | $ 76,796 | $ 71,036 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 5,904 | $ 4,619 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | $ 284 | $ 79 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities | 1,332 | 720 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | $ 1,557 | $ 2,128 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 177 | $ 100 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities | 265 | 302 |
U.S. Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 2,761 | $ 2,017 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 152 | 44 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 289 | 326 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 52 | 23 |
Foreign Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 1,260 | 576 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 70 | 12 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 590 | 561 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 98 | 62 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 294 | 857 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 11 | 8 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 22 | 386 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 1 | 4 |
U.S. Government and Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 0 | 40 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | 2 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 567 | 559 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 21 | 7 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 90 | 171 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 2 | 2 |
State and Political Subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 38 | 143 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 2 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 8 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 0 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 853 | 362 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 23 | 2 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 563 | 676 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 23 | 9 |
Foreign Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 131 | 65 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 6 | 2 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 3 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 1 | $ 0 |
Investments (Rollforward of the
Investments (Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | $ 0 |
Allowance on securities where credit losses were not previously recorded | 6 |
Allowance on securities that had an allowance recorded in a previous period | (1) |
Write-offs charged against allowance | (4) |
Fixed maturity securities, allowance for credit losses, end of period | 5 |
U.S. Corporate | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 0 |
Allowance on securities where credit losses were not previously recorded | 3 |
Allowance on securities that had an allowance recorded in a previous period | (1) |
Write-offs charged against allowance | (3) |
Fixed maturity securities, allowance for credit losses, end of period | 2 |
RMBS | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 0 |
Allowance on securities where credit losses were not previously recorded | 1 |
Write-offs charged against allowance | 0 |
Fixed maturity securities, allowance for credit losses, end of period | 1 |
Foreign Corporate | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 0 |
Allowance on securities where credit losses were not previously recorded | 2 |
Write-offs charged against allowance | (1) |
Fixed maturity securities, allowance for credit losses, end of period | 2 |
Cumulative Effect, Adjusted Balance | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 4 |
Cumulative Effect, Adjusted Balance | U.S. Corporate | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 3 |
Cumulative Effect, Adjusted Balance | RMBS | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | 0 |
Cumulative Effect, Adjusted Balance | Foreign Corporate | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Fixed maturity securities, allowance for credit losses, beginning of period | $ 1 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 15,883 | $ 15,817 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.60% | 100.40% |
Financing receivable, allowance for credit losses | $ (92) | $ (64) |
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | (0.60%) | (0.40%) |
Financing receivable, net of allowance for credit losses | $ 15,791 | $ 15,753 |
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.00% | 100.00% |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 9,715 | $ 9,721 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 61.50% | 61.70% |
Financing receivable, allowance for credit losses | $ (37) | $ (47) |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 3,361 | $ 3,388 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 21.30% | 21.50% |
Financing receivable, allowance for credit losses | $ (16) | $ (10) |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 2,807 | $ 2,708 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 17.80% | 17.20% |
Financing receivable, allowance for credit losses | $ (39) | $ (7) |
Investments (Rollforward of t_2
Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | $ 64 |
Current period provision | 26 |
Financing receivable, allowance for credit losses, end of period | 92 |
Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 2 |
Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 66 |
Commercial | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 47 |
Current period provision | 10 |
Financing receivable, allowance for credit losses, end of period | 37 |
Commercial | Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | (20) |
Commercial | Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 27 |
Agricultural | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 10 |
Current period provision | (1) |
Financing receivable, allowance for credit losses, end of period | 16 |
Agricultural | Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 7 |
Agricultural | Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 17 |
Residential | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 7 |
Current period provision | 17 |
Financing receivable, allowance for credit losses, end of period | 39 |
Residential | Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | 15 |
Residential | Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of period | $ 22 |
Investments (PCD Mortgage Loans
Investments (PCD Mortgage Loans) (Details) - Mortgage Loans $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivables purchased with credit deterioration, purchase price | $ 77 |
Financing receivables purchased with credit deterioration, allowance at acquisition date | 2 |
Financing receivables purchased with credit deterioration, discount or premium attributable to other factors | 2 |
Financing receivables purchased with credit deterioration, par value | $ 81 |
Investments (Credit Quality of
Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 540 | |
Financing receivable, originated in FY before latest FY | 3,132 | |
Financing receivable, originated two years before latest FY | 2,910 | |
Financing receivable, originated three years before latest FY | 1,547 | |
Financing receivable, originated four years before latest FY | 1,798 | |
Financing receivable, originated five or more years before latest FY | 5,956 | |
Financing receivable, before allowance for credit losses | 15,883 | $ 15,817 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 252 | |
Financing receivable, originated in FY before latest FY | 1,989 | |
Financing receivable, originated two years before latest FY | 1,575 | |
Financing receivable, originated three years before latest FY | 925 | |
Financing receivable, originated four years before latest FY | 1,254 | |
Financing receivable, originated five or more years before latest FY | 3,720 | |
Financing receivable, before allowance for credit losses | $ 9,715 | $ 9,721 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 100.00% | 100.00% |
Commercial | Debt Service Coverage Ratio, Greater than 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 9,198 | $ 9,257 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 94.70% | 95.20% |
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 314 | $ 298 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 3.20% | 3.10% |
Commercial | Debt Service Coverage Ratio, Less than 1.00x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 203 | $ 166 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 2.10% | 1.70% |
Commercial | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 193 | |
Financing receivable, originated in FY before latest FY | 1,683 | |
Financing receivable, originated two years before latest FY | 1,109 | |
Financing receivable, originated three years before latest FY | 572 | |
Financing receivable, originated four years before latest FY | 1,124 | |
Financing receivable, originated five or more years before latest FY | 3,247 | |
Financing receivable, before allowance for credit losses | 7,928 | |
Commercial | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 59 | |
Financing receivable, originated in FY before latest FY | 306 | |
Financing receivable, originated two years before latest FY | 456 | |
Financing receivable, originated three years before latest FY | 340 | |
Financing receivable, originated four years before latest FY | 10 | |
Financing receivable, originated five or more years before latest FY | 275 | |
Financing receivable, before allowance for credit losses | 1,446 | |
Commercial | Loan-to-Value Ratio, 76% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 0 | |
Financing receivable, originated two years before latest FY | 0 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 114 | |
Financing receivable, originated five or more years before latest FY | 0 | |
Financing receivable, before allowance for credit losses | 114 | |
Commercial | Loan-to-Value Ratio, Greater than 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 0 | |
Financing receivable, originated two years before latest FY | 10 | |
Financing receivable, originated three years before latest FY | 13 | |
Financing receivable, originated four years before latest FY | 6 | |
Financing receivable, originated five or more years before latest FY | 198 | |
Financing receivable, before allowance for credit losses | 227 | |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 120 | |
Financing receivable, originated in FY before latest FY | 645 | |
Financing receivable, originated two years before latest FY | 794 | |
Financing receivable, originated three years before latest FY | 490 | |
Financing receivable, originated four years before latest FY | 492 | |
Financing receivable, originated five or more years before latest FY | 820 | |
Financing receivable, before allowance for credit losses | 3,361 | $ 3,388 |
Agricultural | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 110 | |
Financing receivable, originated in FY before latest FY | 564 | |
Financing receivable, originated two years before latest FY | 784 | |
Financing receivable, originated three years before latest FY | 445 | |
Financing receivable, originated four years before latest FY | 492 | |
Financing receivable, originated five or more years before latest FY | 801 | |
Financing receivable, before allowance for credit losses | 3,196 | |
Agricultural | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 2 | |
Financing receivable, originated in FY before latest FY | 76 | |
Financing receivable, originated two years before latest FY | 10 | |
Financing receivable, originated three years before latest FY | 45 | |
Financing receivable, originated four years before latest FY | 0 | |
Financing receivable, originated five or more years before latest FY | 19 | |
Financing receivable, before allowance for credit losses | 152 | |
Agricultural | Loan-to-Value Ratio, 76% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 8 | |
Financing receivable, originated in FY before latest FY | 5 | |
Financing receivable, originated two years before latest FY | 0 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 0 | |
Financing receivable, originated five or more years before latest FY | 0 | |
Financing receivable, before allowance for credit losses | 13 | |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 168 | |
Financing receivable, originated in FY before latest FY | 498 | |
Financing receivable, originated two years before latest FY | 541 | |
Financing receivable, originated three years before latest FY | 132 | |
Financing receivable, originated four years before latest FY | 52 | |
Financing receivable, originated five or more years before latest FY | 1,416 | |
Financing receivable, before allowance for credit losses | 2,807 | $ 2,708 |
Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 168 | |
Financing receivable, originated in FY before latest FY | 497 | |
Financing receivable, originated two years before latest FY | 540 | |
Financing receivable, originated three years before latest FY | 132 | |
Financing receivable, originated four years before latest FY | 51 | |
Financing receivable, originated five or more years before latest FY | 1,371 | |
Financing receivable, before allowance for credit losses | 2,759 | |
Residential | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 1 | |
Financing receivable, originated two years before latest FY | 1 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 1 | |
Financing receivable, originated five or more years before latest FY | 45 | |
Financing receivable, before allowance for credit losses | $ 48 |
Investments (Past Due Mortgage
Investments (Past Due Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, current | $ 15,770 | |
Financing receivable, before allowance for credit losses | 15,883 | $ 15,817 |
30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 54 | |
60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 29 | |
90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 12 | |
180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 18 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, current | 9,715 | |
Financing receivable, before allowance for credit losses | 9,715 | 9,721 |
Commercial | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Commercial | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Commercial | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Commercial | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, current | 3,350 | |
Financing receivable, before allowance for credit losses | 3,361 | 3,388 |
Agricultural | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Agricultural | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 10 | |
Agricultural | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 0 | |
Agricultural | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 1 | |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, current | 2,705 | |
Financing receivable, before allowance for credit losses | 2,807 | $ 2,708 |
Residential | 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 54 | |
Residential | 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 19 | |
Residential | 90 to 179 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | 12 | |
Residential | 180 Days and Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable before allowance for credit losses, past due | $ 17 |
Investments (Mortgage Loans in
Investments (Mortgage Loans in Nonaccrual Status by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 49 | $ 58 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 0 | 0 |
Agricultural | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | 1 | 21 |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing receivable in nonaccrual status | $ 48 | $ 37 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities | $ 10,305 | $ 6,957 |
Derivatives | 660 | 245 |
Other | (16) | (13) |
Subtotal | 10,949 | 7,189 |
Amounts allocated from: Future policy benefits | (4,153) | (2,692) |
Amounts allocated from: DAC, VOBA and DSI | (445) | (341) |
Subtotal | (4,598) | (3,033) |
Deferred income tax benefit (expense) | (1,334) | (873) |
Net unrealized investment gains (losses) | $ 5,017 | $ 3,283 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized investment gains (losses), beginning of period | $ 3,283 |
Unrealized investment gains (losses) during the period | 3,760 |
Unrealized investment gains (losses) relating to: Future policy benefits | (1,461) |
Unrealized investment gains (losses) relating to: DAC, VOBA and DSI | (104) |
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense) | (461) |
Unrealized investment gains (losses), end of period | 5,017 |
Change in net unrealized investment gains (losses) | $ 1,734 |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 3,674 | $ 3,074 |
Securities Received as Collateral | 12 | 0 |
Reinvestment portfolio — estimated fair value | 3,794 | 3,174 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | 2,065 | 2,031 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities on loan | $ 3,596 | $ 2,996 |
Investments (Securities Lendi_2
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 3,674 | $ 3,074 |
Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,289 | 1,279 |
Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2,012 | 1,094 |
Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 373 | 701 |
U.S. Government and Agency | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 3,669 | 3,074 |
U.S. Government and Agency | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 1,284 | 1,279 |
U.S. Government and Agency | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2,012 | 1,094 |
U.S. Government and Agency | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 373 | 701 |
U.S. Corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2 | 0 |
U.S. Corporate | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 2 | 0 |
U.S. Corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
U.S. Corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign Corporate | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 3 | 0 |
Foreign Corporate | Remaining Tenor of Securities Lending Agreements: Open | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 3 | 0 |
Foreign Corporate | Remaining Tenor of Securities Lending Agreements: 1 Month or Less | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | 0 | 0 |
Foreign Corporate | Remaining Tenor of Securities Lending Agreements: 1 to 6 Months | ||
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties | $ 0 | $ 0 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 9,922 | $ 9,349 |
Invested assets held in trust (reinsurance agreements) | 5,456 | 4,561 |
Invested assets pledged as collateral | 4,506 | 3,641 |
Total invested assets on deposit, held in trust and pledged as collateral | $ 19,884 | $ 17,551 |
Investments (Variable Interest
Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 235,367 | $ 227,259 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 15,023 | 15,001 |
Maximum exposure to loss | 15,436 | 15,534 |
VIE, Not Primary Beneficiary | Fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 13,143 | 13,094 |
Maximum exposure to loss | 12,265 | 12,454 |
VIE, Not Primary Beneficiary | Limited partnerships and LLCs | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 1,880 | 1,907 |
Maximum exposure to loss | $ 3,171 | $ 3,080 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 692 | $ 990 | $ 1,660 | $ 1,856 |
Less: Investment expenses | 40 | 48 | 92 | 103 |
Net investment income | 652 | 942 | 1,568 | 1,753 |
Fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 676 | 679 | 1,345 | 1,332 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 1 | 1 | 3 | 4 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 166 | 176 | 332 | 335 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 13 | 17 | 25 | 33 |
Limited partnerships and LLCs | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | (189) | 88 | (107) | 96 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 14 | 23 | 37 | 37 |
Other | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 11 | $ 6 | $ 25 | $ 19 |
Investments (Components of Net
Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net investment gains (losses), fixed maturity securities | $ (21) | $ 68 | $ (27) | $ 53 |
Net investment gains (losses), equity securities | 7 | 1 | (7) | 11 |
Net investment gains (losses), mortgage loans | (22) | (3) | (26) | (7) |
Net investment gains (losses), limited partnerships and LLCs | (2) | (2) | (3) | (5) |
Net investment gains (losses), other | 4 | (1) | 10 | 0 |
Net investment gains (losses) | $ (34) | $ 63 | $ (53) | $ 52 |
Investments (Sales or Disposals
Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales or disposals of fixed maturity securities | $ 622 | $ 3,679 | $ 1,271 | $ 6,958 |
Fixed maturity securities, gross investment gains | 15 | 106 | 32 | 173 |
Fixed maturity securities, gross investment losses | (37) | (38) | (43) | (120) |
Fixed maturity securities, net investment gains (losses) | $ (22) | $ 68 | $ (11) | $ 53 |
Investments (Fixed Maturity S_2
Investments (Fixed Maturity Securities - Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | $ 76,796 | $ 71,036 |
Fixed maturity securities, allowance for credit losses | $ 5 | 0 |
Fixed maturity securities with allowance for credit losses, number of securities | 18 | |
Fixed maturity securities, total write-offs | $ 13 | |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | 504 | |
Non-Income Producing | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | $ 1 | $ 0 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivables purchased from third parties | $ 331 | $ 86 | $ 488 | $ 563 | |
Accrued interest receivable | $ 86 | $ 86 | |||
Financing receivables past due, COVID-19 pandemic modified loans | 1.00% | 1.00% | |||
Financing receivables in nonaccrual status, COVID-19 pandemic modified loans | 1.00% | 1.00% | |||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivables in nonaccrual status, investment income | $ 1 | ||||
Performing | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses | 99.00% | 99.00% | 99.00% | ||
Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivables in nonaccrual status with no allowance for credit losses | $ 8 | $ 8 |
Investments (Other Invested Ass
Investments (Other Invested Assets - Narrative) (Details) | Jun. 30, 2020 |
Minimum | |
Derivative [Line Items] | |
Percentage of other invested assets comprised of freestanding derivatives with positive estimated fair values | 90.00% |
Investments (Leveraged Leases -
Investments (Leveraged Leases - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Leveraged leases, net of allowance for credit losses | $ 50 | $ 64 |
Leveraged leases, allowance for credit losses | $ 13 | $ 0 |
Leveraged leases by performance status as a percentage of leveraged leases | 100.00% | 100.00% |
Investments (Securities Lendi_3
Investments (Securities Lending - Narrative) (Details) $ in Billions | Jun. 30, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Cash collateral on deposit from counterparties | $ 1.3 |
Percentage of reinvestment portfolio invested in liquid assets | 62.00% |
Investments (Invested Assets _2
Investments (Invested Assets on Deposit, Held in Trust and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | $ 9,922 | $ 9,349 |
Invested assets held in trust (reinsurance agreements) | 5,456 | 4,561 |
Restricted Cash and Cash Equivalents | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Invested assets on deposit (regulatory deposits) | 147 | 69 |
Invested assets held in trust (reinsurance agreements) | $ 102 | $ 124 |
Investments (Net Investment I_2
Investments (Net Investment Income - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Net investment income | $ 652 | $ 942 | $ 1,568 | $ 1,753 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ (192) | $ 76 | $ (119) | $ 76 |
Derivatives (Primary Risks Mana
Derivatives (Primary Risks Managed by Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 101,013 | $ 113,472 |
Derivative Asset, Fair Value, Gross Asset | 6,473 | 3,238 |
Derivative Liability, Fair Value, Gross Liability | 7,900 | 6,785 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 323 | 217 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 5,649 | 4,248 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,171 | 3,185 |
Derivative Asset, Fair Value, Gross Asset | 593 | 212 |
Derivative Liability, Fair Value, Gross Liability | 1 | 27 |
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 360 | 420 |
Derivative Asset, Fair Value, Gross Asset | 101 | 22 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivatives Designated as Hedging Instruments: | Cash flow hedges: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,811 | 2,765 |
Derivative Asset, Fair Value, Gross Asset | 492 | 190 |
Derivative Liability, Fair Value, Gross Liability | 1 | 27 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 97,842 | 110,287 |
Derivative Asset, Fair Value, Gross Asset | 5,557 | 2,809 |
Derivative Liability, Fair Value, Gross Liability | 2,250 | 2,510 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 3,434 | 7,559 |
Derivative Asset, Fair Value, Gross Asset | 746 | 878 |
Derivative Liability, Fair Value, Gross Liability | 9 | 29 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,350 | 3,350 |
Derivative Asset, Fair Value, Gross Asset | 1 | 2 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 24,170 | 29,750 |
Derivative Asset, Fair Value, Gross Asset | 2,306 | 782 |
Derivative Liability, Fair Value, Gross Liability | 256 | 187 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 7,160 | 5,418 |
Derivative Asset, Fair Value, Gross Asset | 1,349 | 94 |
Derivative Liability, Fair Value, Gross Liability | 0 | 114 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,020 | 1,051 |
Derivative Asset, Fair Value, Gross Asset | 186 | 96 |
Derivative Liability, Fair Value, Gross Liability | 14 | 15 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 147 | 138 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 18 | 18 |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,788 | 1,635 |
Derivative Asset, Fair Value, Gross Asset | 19 | 36 |
Derivative Liability, Fair Value, Gross Liability | 2 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 46,537 | 51,509 |
Derivative Asset, Fair Value, Gross Asset | 834 | 850 |
Derivative Liability, Fair Value, Gross Liability | 1,246 | 1,728 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,098 | 2,136 |
Derivative Asset, Fair Value, Gross Asset | 11 | 69 |
Derivative Liability, Fair Value, Gross Liability | 27 | 69 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 10,120 | 7,723 |
Derivative Asset, Fair Value, Gross Asset | 105 | 2 |
Derivative Liability, Fair Value, Gross Liability | 696 | 367 |
Ceded guaranteed minimum benefits | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 323 | 217 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 0 | 0 |
Direct guaranteed minimum benefits | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 3,813 | 1,656 |
Direct index-linked annuities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 1,526 | 2,253 |
Direct index-linked annuities | Assumed index-linked annuities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 310 | $ 339 |
Derivatives (Derivatives Pertai
Derivatives (Derivatives Pertaining to Hedged Items) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | $ (5) | $ (26) | $ (12) | $ (26) |
Amount of Gains (Losses) deferred in AOCI | (140) | 75 | 420 | 41 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (2) | (3) | (9) | (3) |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (3) | (23) | (3) | (23) |
Amount of Gains (Losses) deferred in AOCI | (140) | 75 | 420 | 41 |
Net Derivative Gains (Losses) Recognized for Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (2,648) | 175 | 4,261 | (1,128) |
Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (2,651) | 153 | 4,257 | (1,175) |
Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 3 | 22 | 4 | 47 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 10 | 9 | 22 | 18 |
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 10 | 9 | 22 | 18 |
Interest rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Interest rate derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) deferred in AOCI | (4) | 0 | 93 | 0 |
Interest rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (165) | 917 | 4,756 | 1,249 |
Interest rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 6 | 1 | 28 |
Interest rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Interest rate derivatives | Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 1 | 1 |
Foreign currency exchange rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (2) | (3) | (9) | (3) |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | (3) | (23) | (3) | (23) |
Amount of Gains (Losses) deferred in AOCI | (136) | 75 | 327 | 41 |
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (27) | 30 | 107 | 22 |
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 3 | 16 | 3 | 19 |
Foreign currency exchange rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Net Investment Income | Cash flow hedges: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 10 | 9 | 21 | 17 |
Credit derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Credit derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 29 | 12 | (3) | 30 |
Credit derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Equity derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Equity derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (1,605) | (344) | 359 | (1,790) |
Equity derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
Embedded derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 | 0 |
Amount of Gains (Losses) deferred in AOCI | 0 | 0 | 0 | 0 |
Embedded derivatives | Net Derivative Gains (Losses) Recognized for Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (883) | (462) | (962) | (686) |
Embedded derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 17 | $ 36 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 1,788 | $ 1,635 |
Weighted Average Years to Maturity (2) | 4 years | 4 years 1 month 6 days |
Credit default swaps | Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 7 | $ 11 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 879 | $ 615 |
Weighted Average Years to Maturity (2) | 2 years 9 months 18 days | 2 years 6 months |
Credit default swaps | Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 10 | $ 25 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 909 | $ 1,020 |
Weighted Average Years to Maturity (2) | 5 years 3 months 18 days | 5 years 1 month 6 days |
Derivatives (Derivatives Asset
Derivatives (Derivatives Asset and Liability after Master Netting Arrangement or a Similar Arrangement) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 6,166 | $ 3,062 |
Derivative Asset, Not Offset, Policy Election Deduction | (1,733) | (1,458) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (3,715) | (1,115) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 718 | 489 |
Derivative Asset, Collateral, Obligation to Return Securities, Offset | (705) | (488) |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 13 | 1 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 2,248 | 2,522 |
Derivative Liability, Not Offset, Policy Election Deduction | (1,733) | (1,458) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 515 | 1,064 |
Derivative Liability, Collateral, Right to Reclaim Securities, Offset | (514) | (1,061) |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 1 | $ 3 |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of OTC-Bilateral Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | $ 515 | $ 1,064 |
Fixed Maturity Securities | ||
Derivative [Line Items] | ||
Estimated Fair Value of Collateral Provided | $ 1,144 | $ 1,473 |
Derivatives (Derivatives Pert_2
Derivatives (Derivatives Pertaining to Hedged Items - Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 660 | $ 245 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 76,796 | $ 71,036 |
Equity securities | 129 | 147 |
Short-term Investments | 4,537 | 1,958 |
Derivative assets: (1) | 6,473 | 3,238 |
Embedded derivatives within asset host contracts | 323 | 217 |
Separate account assets | 99,599 | 107,107 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 7,900 | 6,785 |
Embedded derivatives within liability host contracts | 5,649 | 4,248 |
Recurring | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 76,796 | 71,036 |
Equity securities | 129 | 147 |
Short-term Investments | 4,537 | 1,958 |
Derivative assets: (1) | 6,150 | 3,021 |
Embedded derivatives within asset host contracts | 323 | 217 |
Separate account assets | 99,599 | 107,107 |
Total assets | 187,534 | 183,486 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 2,251 | 2,537 |
Embedded derivatives within liability host contracts | 5,649 | 4,248 |
Total liabilities | 7,900 | 6,785 |
Recurring | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 4,503 | 1,778 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 265 | 330 |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 678 | 286 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 15 | 43 |
Recurring | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 19 | 36 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 2 | |
Recurring | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 950 | 921 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,969 | 2,164 |
Recurring | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 34,265 | 31,160 |
Recurring | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 10,291 | 9,844 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 8,584 | 9,118 |
Recurring | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 8,925 | 7,396 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,255 | 5,755 |
Recurring | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,232 | 4,057 |
Recurring | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 2,463 | 1,955 |
Recurring | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,781 | 1,751 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,858 | 1,636 |
Equity securities | 12 | 14 |
Short-term Investments | 3,007 | 1,271 |
Derivative assets: (1) | 0 | 0 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 159 | 180 |
Total assets | 5,036 | 3,101 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | |
Recurring | Level 1 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 1 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,858 | 1,636 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 73,871 | 68,749 |
Equity securities | 113 | 125 |
Short-term Investments | 1,530 | 682 |
Derivative assets: (1) | 6,100 | 2,934 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 99,437 | 106,924 |
Total assets | 181,051 | 179,414 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 2,221 | 2,466 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 2,221 | 2,466 |
Recurring | Level 2 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 4,503 | 1,778 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 265 | 330 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 649 | 281 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 15 | 43 |
Recurring | Level 2 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 11 | 25 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1 | |
Recurring | Level 2 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 937 | 850 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1,940 | 2,093 |
Recurring | Level 2 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 33,566 | 30,831 |
Recurring | Level 2 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 10,096 | 9,712 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 8,544 | 9,074 |
Recurring | Level 2 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 7,067 | 5,760 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6,229 | 5,755 |
Recurring | Level 2 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 4,232 | 3,984 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 2,356 | 1,882 |
Recurring | Level 2 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,781 | 1,751 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,067 | 651 |
Equity securities | 4 | 8 |
Short-term Investments | 0 | 5 |
Derivative assets: (1) | 50 | 87 |
Embedded derivatives within asset host contracts | 323 | 217 |
Separate account assets | 3 | 3 |
Total assets | 1,447 | 971 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 30 | 71 |
Embedded derivatives within liability host contracts | 5,649 | 4,248 |
Total liabilities | 5,679 | 4,319 |
Recurring | Level 3 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets: (1) | 29 | 5 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 0 | 0 |
Recurring | Level 3 | Credit | ||
Assets [Abstract] | ||
Derivative assets: (1) | 8 | 11 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 1 | |
Recurring | Level 3 | Equity market | ||
Assets [Abstract] | ||
Derivative assets: (1) | 13 | 71 |
Liabilities [Abstract] | ||
Derivative liabilities: (1) | 29 | 71 |
Recurring | Level 3 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 699 | 329 |
Recurring | Level 3 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 195 | 132 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 40 | 44 |
Recurring | Level 3 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 26 | 0 |
Recurring | Level 3 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 73 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 107 | 73 |
Recurring | Level 3 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 0 | $ 0 |
Fair Value (Assets and Liabilit
Fair Value (Assets and Liabilities Measured - Quantitative Information) (Details) - Level 3 | Jun. 30, 2020 | Dec. 31, 2019 |
Measurement Input, Mortality Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0002 | 0.0002 |
Measurement Input, Mortality Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1131 | 0.1131 |
Measurement Input, Lapse Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0025 | 0.0025 |
Measurement Input, Lapse Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1600 | 0.1600 |
Measurement Input, Utilization Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0 | 0 |
Measurement Input, Utilization Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.2500 | 0.2500 |
Measurement Input, Withdrawal Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0025 | 0.0025 |
Measurement Input, Withdrawal Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1000 | 0.1000 |
Measurement Input, Long Term Equity Volatilities | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.1624 | 0.1624 |
Measurement Input, Long Term Equity Volatilities | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.2165 | 0.2165 |
Measurement Input, Entity Credit Risk | Minimum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0052 | 0.0054 |
Measurement Input, Entity Credit Risk | Maximum | ||
Fair Value, Option, Quantitative Disclosures | ||
Embedded Derivative Liability, Measurement Input | 0.0278 | 0.0199 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Derivatives (2) | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | $ 50 | $ (136) | $ 16 | $ (122) |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | (3) | (1) | (2) | (10) |
Total realized/unrealized gains (losses) included in AOCI | (10) | 4 | 20 | 1 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | (17) | 0 | (14) | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | 0 | (1) | 0 | (3) |
Balance, end of period | 20 | (134) | 20 | (134) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 3 | (1) | (17) | (9) |
Changes in unrealized gains (losses) included in OCI | (10) | 20 | ||
Embedded derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (4,263) | (2,436) | (4,031) | (1,998) |
Total realized/unrealized gains (losses) included in net income (loss) (5) (6) | (883) | (462) | (962) | (686) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | 0 | 0 | 0 | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | (180) | (223) | (333) | (437) |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 | 0 | 0 |
Balance, end of period | (5,326) | (3,121) | (5,326) | (3,121) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (928) | (538) | (1,019) | (826) |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | ||
Corporate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 851 | 697 | 461 | 732 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (2) | 0 | (4) | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 59 | 1 | 15 | 10 |
Purchases (7) | 187 | 64 | 433 | 67 |
Sales (7) | (46) | (49) | (51) | (55) |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 86 | 124 | 153 | 141 |
Transfers out of Level 3 (8) | (241) | (72) | (113) | (130) |
Balance, end of period | 894 | 765 | 894 | 765 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | (1) | 0 |
Changes in unrealized gains (losses) included in OCI | 58 | 16 | ||
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 218 | 228 | 117 | 173 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 3 | 1 | 0 | 2 |
Purchases (7) | 85 | 15 | 104 | 15 |
Sales (7) | (1) | (9) | (5) | (27) |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 26 | 61 | 30 | 87 |
Transfers out of Level 3 (8) | (158) | (188) | (73) | (142) |
Balance, end of period | 173 | 108 | 173 | 108 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 3 | 0 | ||
State and Political Subdivision | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 73 | 74 | 73 | 74 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | 0 | 0 | 0 | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | (73) | 0 | (73) | 0 |
Balance, end of period | 0 | 74 | 0 | 74 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | ||
Foreign Government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 7 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | 0 | 0 | 0 | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | (7) | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | ||
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 4 | 4 | 8 | 3 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | 0 | 0 | 0 | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 1 |
Transfers out of Level 3 (8) | 0 | 0 | (4) | 0 |
Balance, end of period | 4 | 4 | 4 | 4 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | ||
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 2 | 0 | 5 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 6 | 0 | 6 |
Sales (7) | (2) | 0 | (5) | 0 |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 6 | 0 | 6 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Changes in unrealized gains (losses) included in OCI | 0 | 0 | ||
Separate Account Assets (4) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 4 | 0 | 3 | 1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases (7) | 0 | 0 | 0 | 0 |
Sales (7) | 0 | 0 | 0 | (1) |
Issuances (7) | 0 | 0 | 0 | 0 |
Settlements (7) | 0 | 0 | 0 | 0 |
Transfers into Level 3 (8) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (8) | (1) | 0 | 0 | 0 |
Balance, end of period | 3 | 0 | 3 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | $ 0 | 0 | $ 0 |
Changes in unrealized gains (losses) included in OCI | $ 0 | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Policy loans | $ 1,201 | $ 1,292 |
Liabilities | ||
Separate account liabilities | 99,599 | 107,107 |
Carrying Value | ||
Assets | ||
Mortgage loans | 15,791 | 15,753 |
Policy loans | 1,201 | 1,292 |
Other invested assets | 93 | 51 |
Premiums, reinsurance and other receivables | 2,518 | 2,224 |
Liabilities | ||
Policyholder account balances | 16,926 | 15,614 |
Long-term debt | 3,979 | 4,365 |
Other liabilities | 998 | 846 |
Separate account liabilities | 1,146 | 1,189 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 16,439 | 16,383 |
Policy loans | 2,012 | 1,578 |
Other invested assets | 93 | 51 |
Premiums, reinsurance and other receivables | 3,081 | 2,634 |
Liabilities | ||
Policyholder account balances | 17,670 | 15,710 |
Long-term debt | 4,017 | 4,334 |
Other liabilities | 998 | 846 |
Separate account liabilities | 1,146 | 1,189 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 424 | 516 |
Other invested assets | 81 | 39 |
Premiums, reinsurance and other receivables | 56 | 41 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 4,017 | 3,334 |
Other liabilities | 351 | 191 |
Separate account liabilities | 1,146 | 1,189 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 16,439 | 16,383 |
Policy loans | 1,588 | 1,062 |
Other invested assets | 12 | 12 |
Premiums, reinsurance and other receivables | 3,025 | 2,593 |
Liabilities | ||
Policyholder account balances | 17,670 | 15,710 |
Long-term debt | 0 | 1,000 |
Other liabilities | 647 | 655 |
Separate account liabilities | $ 0 | $ 0 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 11, 2020 | Jun. 10, 2020 | |
Debt Instrument [Line Items] | |||||
Long-term debt repaid | $ 1,001 | $ 601 | |||
Term Loan Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt repaid | $ 1,000 | ||||
BRCD Committed Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facilities, maximum borrowing capacity | $ 12,000 | $ 10,000 | |||
Credit facilities, outstanding balance | 0 | 0 | |||
Credit facilities, remaining borrowing capacity | 10,600 | 10,600 | |||
BHF Senior Notes due 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 615 | $ 615 | |||
Debt instrument, net cash proceeds | $ 614 | ||||
Debt instrument, stated interest rate | 5.625% | 5.625% |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - shares | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | |
Preferred stock, shares issued | 33,100 | 17,000 | |
Preferred stock, shares outstanding | 33,100 | 17,000 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 17,000 | 17,000 | |
Preferred stock, shares issued | 17,000 | 17,000 | |
Preferred stock, shares outstanding | 17,000 | 17,000 | |
Preferred stock, annual dividend rate | 6.60% | 6.60% | |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 16,100 | 0 | |
Preferred stock, shares issued | 16,100 | 16,100 | 0 |
Preferred stock, shares outstanding | 16,100 | 0 | |
Preferred stock, annual dividend rate | 6.75% | 6.75% | |
Not Designated Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 99,966,900 | 99,983,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 |
Equity (Preferred Stock Dividen
Equity (Preferred Stock Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions | May 15, 2020 | Feb. 14, 2020 | May 15, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Class of Stock [Line Items] | ||||||||
Preferred stock dividend declared | $ 7 | $ 7 | $ 7 | |||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock dividend declared per share | $ 412.50 | $ 412.50 | $ 412.50 | $ 825 | $ 412.50 | |||
Preferred stock dividend declared | $ 7 | $ 7 | $ 7 | $ 14 | $ 7 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 2,647 | $ 1,670 | $ 3,240 | $ 716 |
OCI before reclassifications | 2,925 | 1,375 | 2,188 | 2,590 |
Deferred income tax benefit (expense) | (623) | (287) | (468) | (543) |
AOCI before reclassifications, net of income tax | 4,949 | 2,758 | 4,960 | 2,763 |
Amounts reclassified from AOCI | 20 | (70) | 7 | (77) |
Deferred income tax benefit (expense) | (4) | 14 | (2) | 16 |
Amounts reclassified from AOCI, net of income tax | 16 | (56) | 5 | (61) |
Balance, end of period | 4,965 | 2,702 | 4,965 | 2,702 |
Unrealized Investment Gains (Losses), Net of Related Offsets (1) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 2,083 | 1,580 | 3,111 | 576 |
OCI before reclassifications | 3,059 | 1,293 | 1,768 | 2,545 |
Deferred income tax benefit (expense) | (643) | (271) | (371) | (534) |
AOCI before reclassifications, net of income tax | 4,499 | 2,602 | 4,508 | 2,587 |
Amounts reclassified from AOCI | 23 | (48) | 12 | (29) |
Deferred income tax benefit (expense) | (5) | 10 | (3) | 6 |
Amounts reclassified from AOCI, net of income tax | 18 | (38) | 9 | (23) |
Balance, end of period | 4,517 | 2,564 | 4,517 | 2,564 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 612 | 140 | 172 | 187 |
OCI before reclassifications | (140) | 75 | 420 | 41 |
Deferred income tax benefit (expense) | 30 | (16) | (88) | (9) |
AOCI before reclassifications, net of income tax | 502 | 199 | 504 | 219 |
Amounts reclassified from AOCI | (3) | (22) | (5) | (48) |
Deferred income tax benefit (expense) | 1 | 4 | 1 | 10 |
Amounts reclassified from AOCI, net of income tax | (2) | (18) | (4) | (38) |
Balance, end of period | 500 | 181 | 500 | 181 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (19) | (27) | (15) | (27) |
OCI before reclassifications | 5 | 7 | 0 | 7 |
Deferred income tax benefit (expense) | (10) | 0 | (9) | 0 |
AOCI before reclassifications, net of income tax | (24) | (20) | (24) | (20) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | (24) | (20) | (24) | (20) |
Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (29) | (23) | (28) | (20) |
OCI before reclassifications | 1 | 0 | 0 | (3) |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
AOCI before reclassifications, net of income tax | (28) | (23) | (28) | (23) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | $ (28) | $ (23) | (28) | $ (23) |
Cumulative Effect, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 3 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Gain (Loss) on Investments | $ (34) | $ 63 | $ (53) | $ 52 | ||
Net investment income | 652 | 942 | 1,568 | 1,753 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (2,653) | 149 | 4,249 | (1,154) | ||
Income (loss) before provision for income tax | (2,522) | 469 | 3,730 | (484) | ||
Income tax (expense) benefit | 531 | (85) | (762) | 133 | ||
Net income (loss) | (1,991) | $ 4,959 | 384 | $ (735) | 2,968 | (351) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | (16) | 56 | (5) | 61 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net unrealized investment gains (losses): | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Gain (Loss) on Investments | (20) | 70 | (7) | 55 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (3) | (22) | (5) | (26) | ||
Income (loss) before provision for income tax | (23) | 48 | (12) | 29 | ||
Income tax (expense) benefit | 5 | (10) | 3 | (6) | ||
Net income (loss) | (18) | 38 | (9) | 23 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on derivatives - cash flow hedges: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income (loss) before provision for income tax | 3 | 22 | 5 | 48 | ||
Income tax (expense) benefit | (1) | (4) | (1) | (10) | ||
Net income (loss) | 2 | 18 | 4 | 38 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on derivatives - cash flow hedges: | Interest rate swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net investment income | 0 | 0 | 1 | 1 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 6 | 1 | 28 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized gains (losses) on derivatives - cash flow hedges: | Foreign currency swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 3 | $ 16 | $ 3 | $ 19 |
Equity (Preferred Stock & Commo
Equity (Preferred Stock & Common Stock Repurchase Program - Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Feb. 06, 2020 | |
Class of Stock [Line Items] | |||||||||
Preferred stock, shares issued | 33,100 | 33,100 | 17,000 | ||||||
Preferred stock, proceeds from issuance, net of issuance costs | $ 390 | $ 412 | |||||||
Treasury stock, value acquired | $ 180 | $ 142 | $ 136 | $ 52 | |||||
Series B Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, annual dividend rate | 6.75% | 6.75% | |||||||
Preferred stock, shares issued | 16,100 | 16,100 | 16,100 | 0 | |||||
Preferred stock, stated amount per share | $ 25,000 | ||||||||
Preferred stock, proceeds from issuance, net of issuance costs | $ 390 | ||||||||
Preferred stock, issuance costs | $ 13 | ||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of 6.600% Non-Cumulative Preferred Stock, Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, annual dividend rate | 6.60% | 6.60% | |||||||
Preferred stock, shares issued | 17,000 | 17,000 | 17,000 | ||||||
Authorization Under 10b5-1 Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 500 | ||||||||
Treasury stock, shares acquired | 13,250,927 | 4,993,424 | |||||||
Treasury stock, value acquired | $ 322 | $ 188 | |||||||
Stock repurchase program, remaining authorized repurchase amount | $ 231 | $ 231 |
Other Revenues and Other Expe_3
Other Revenues and Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Compensation | $ 93 | $ 80 | $ 162 | $ 162 |
Contracted services and other labor costs | 78 | 65 | 146 | 112 |
Transition services agreements | 15 | 65 | 53 | 132 |
Establishment costs | 35 | 38 | 53 | 72 |
Premium and other taxes, licenses and fees | 14 | 13 | 26 | 20 |
Separate account fees | 108 | 122 | 225 | 242 |
Volume related costs, excluding compensation, net of DAC capitalization | 162 | 153 | 290 | 317 |
Interest expense on debt | 45 | 48 | 92 | 95 |
Other | 27 | 37 | 47 | 61 |
Total other expenses | $ 577 | $ 621 | $ 1,094 | $ 1,213 |
Other Revenues and Other Expe_4
Other Revenues and Other Expenses (Other Revenues - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Distribution service | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 76 | $ 85 | $ 157 | $ 167 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders | $ (1,998) | $ 377 | $ 2,952 | $ (360) |
Weighted average common shares outstanding - basic | 94,698,169 | 114,931,224 | 99,728,754 | 115,863,127 |
Dilutive effect of share-based awards | 0 | 605,430 | 140,178 | 0 |
Weighted average common shares outstanding - diluted | 94,698,169 | 115,536,654 | 99,868,932 | 115,863,127 |
Earnings per common share - basic | $ (21.10) | $ 3.28 | $ 29.60 | $ (3.10) |
Earnings per common share - diluted | $ (21.10) | $ 3.27 | $ 29.56 | $ (3.10) |
Antidilutive stock options excluded from the computation of earnings per common share | 196,492 | 187,371 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Cumulative maximum indemnities and guarantees contractual limitation | $ 118,000,000 | |
Liabilities for indemnities, guarantees and commitments | 1,000,000 | $ 1,000,000 |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 | |
Indemnities And Guarantees Contractual Limitation Range | 1,000,000 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 10,000,000 | |
Indemnities And Guarantees Contractual Limitation Range | 112,000,000 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 229,000,000 | 206,000,000 |
Commitments to Fund Partnership Investments and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 1,800,000,000 | $ 1,800,000,000 |
Non-litigation loss | Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 25,000,000 | |
Non-litigation loss | Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 75,000,000 |