Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |
Document Type | POS AM |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Trading Symbol | NWLIC |
Entity Registrant Name | NATIONWIDE LIFE INSURANCE CO |
Entity Central Index Key | 0000205695 |
Entity Filer Category | Non-accelerated Filer |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Policy charges | $ 2,749 | $ 2,545 | $ 2,361 |
Premiums | 695 | 633 | 642 |
Net investment income | 2,675 | 2,414 | 2,139 |
Net realized investment (losses) gains, including other-than-temporary impairment losses | (340) | 12 | (111) |
Other revenues | 21 | 9 | 8 |
Total revenues | 5,800 | 5,613 | 5,039 |
Benefits and expenses | |||
Interest credited to policyholder account values | 978 | 1,844 | 1,406 |
Benefits and claims | 1,651 | 1,283 | 1,298 |
Amortization of deferred policy acquisition costs | 423 | 392 | 433 |
Other expenses, net of deferrals | 1,300 | 1,193 | 998 |
Total benefits and expenses | 4,352 | 4,712 | 4,135 |
Income before federal income taxes and noncontrolling interests | 1,448 | 901 | 904 |
Federal income tax expense (benefit) | 211 | (408) | 126 |
Net income | 1,237 | 1,309 | 778 |
Loss attributable to noncontrolling interests, net of tax | 168 | 96 | 91 |
Net income attributable to Nationwide Life Insurance Company | $ 1,405 | $ 1,405 | $ 869 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,237 | $ 1,309 | $ 778 |
Other comprehensive (loss) income, net of tax | |||
Net unrealized (losses) gains on available-for-sale securities | (1,588) | 550 | 237 |
Net unrealized gains (losses) on derivatives used in cash flow hedging relationships | 84 | (100) | 22 |
Total other comprehensive (loss) income, net of tax | (1,504) | 450 | 259 |
Total comprehensive (loss) income | (267) | 1,759 | 1,037 |
Comprehensive loss attributable to noncontrolling interests, net of tax | 168 | 96 | 91 |
Total comprehensive (loss) income attributable to Nationwide Life Insurance Company | $ (99) | $ 1,855 | $ 1,128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturity securities, available-for-sale | $ 53,337 | $ 50,201 |
Mortgage loans, net of allowance | 12,379 | 10,929 |
Policy loans | 1,015 | 1,030 |
Short-term investments | 1,892 | 1,406 |
Other investments | 1,891 | 1,493 |
Total investments | 70,514 | 65,059 |
Cash and cash equivalents | 132 | 95 |
Accrued investment income | 608 | 549 |
Deferred policy acquisition costs | 6,830 | 5,676 |
Other assets | 3,938 | 4,203 |
Separate account assets | 97,056 | 105,607 |
Total assets | 179,078 | 181,189 |
Liabilities | ||
Future policy benefits and claims | 66,074 | 59,885 |
Short-term debt | 407 | 0 |
Long-term debt | 771 | 793 |
Other liabilities | 2,880 | 3,433 |
Separate account liabilities | 97,056 | 105,607 |
Total liabilities | 167,188 | 169,718 |
Shareholder's equity | ||
Common stock value | 4 | 4 |
Additional paid-in capital | 2,153 | 1,718 |
Retained earnings | 9,115 | 7,703 |
Accumulated other comprehensive (loss) income | (203) | 1,308 |
Total shareholder's equity | 11,069 | 10,733 |
Noncontrolling interests | 821 | 738 |
Total equity | 11,890 | 11,471 |
Total liabilities and equity | $ 179,078 | $ 181,189 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 3,814,779 | 3,814,779 |
Common stock, shares outstanding | 3,814,779 | 3,814,779 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholder's equity | Non-controlling interest | |
Comprehensive income (loss): | ||||||||
Net income (loss) | $ 778 | $ 869 | $ 869 | $ (91) | ||||
Other comprehensive income | 259 | $ 259 | 259 | |||||
Total comprehensive (loss) income | 1,037 | 869 | 259 | 1,128 | (91) | |||
Beginning Balance at Dec. 31, 2015 | 8,394 | $ 4 | $ 1,718 | 5,661 | 367 | 7,750 | 644 | |
Comprehensive income (loss): | ||||||||
Change in noncontrolling interest | 114 | 114 | ||||||
Ending Balance at Dec. 31, 2016 | 9,545 | 4 | 1,718 | 6,530 | 626 | 8,878 | 667 | |
Comprehensive income (loss): | ||||||||
Net income (loss) | 1,309 | 1,405 | 1,405 | (96) | ||||
Other comprehensive income | 450 | 450 | 450 | |||||
Total comprehensive (loss) income | 1,759 | 1,405 | 450 | 1,855 | (96) | |||
Change in noncontrolling interest | 167 | 167 | ||||||
Ending Balance at Dec. 31, 2017 | 11,471 | 4 | 1,718 | 7,703 | 1,308 | 10,733 | 738 | |
Ending Balance (ASU 2016-01 [Member]) at Dec. 31, 2017 | 11,471 | 4 | 1,718 | 7,710 | 1,301 | 10,733 | 738 | |
Cumulative effect of adoption of accounting principle | [1] | (232) | 232 | |||||
Comprehensive income (loss): | ||||||||
Net income (loss) | 1,237 | 1,405 | 1,405 | (168) | ||||
Other comprehensive income | (1,504) | (1,504) | (1,504) | |||||
Total comprehensive (loss) income | (267) | 1,405 | (1,504) | (99) | (168) | |||
Capital contribution from Nationwide Financial Services, Inc. | 435 | 435 | 435 | |||||
Change in noncontrolling interest | 251 | 251 | ||||||
Ending Balance at Dec. 31, 2018 | $ 11,890 | $ 4 | $ 2,153 | 9,115 | (203) | $ 11,069 | $ 821 | |
Cumulative effect of adoption of accounting principle | ASU 2016-01 [Member] | [2] | $ 7 | $ (7) | |||||
[1] | Includes the reclassification of accumulated other comprehensive income on net unrealized gains on available-for-sale securities into retained earnings for the related tax effects resulting from the Tax Cuts and Jobs Act, as disclosed in Note 13. | |||||||
[2] | The Company adopted ASU 2016-01 by recognizing a cumulative-effect adjustment, effective January 1, 2018, to reclassify the balance of accumulated other comprehensive income related to equity securities into retained earnings. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 1,237 | $ 1,309 | $ 778 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net realized investment losses (gains), including other-than-temporary impairment losses | 340 | (12) | 111 |
Interest credited to policyholder account values | 978 | 1,844 | 1,406 |
Capitalization of deferred policy acquisition costs | (942) | (923) | (823) |
Amortization of deferred policy acquisition costs | 423 | 392 | 433 |
Amortization and depreciation | 183 | 99 | 81 |
Future policy benefits and claims | (840) | (934) | (680) |
Derivatives, net | 272 | (486) | (247) |
Other, net | (5) | (319) | (77) |
Net cash provided by operating activities | 1,646 | 970 | 982 |
Cash flows from investing activities | |||
Proceeds from maturities of available-for-sale securities | 4,528 | 4,471 | 3,007 |
Proceeds from sales of available-for-sale securities | 407 | 1,857 | 852 |
Purchases of available-for-sale securities | (10,821) | (11,648) | (8,938) |
Proceeds from repayments and sales of mortgage loans | 699 | 651 | 792 |
Issuances of mortgage loans | (1,988) | (1,807) | (2,163) |
Net (purchases) sales of short-term investments | (486) | 543 | (1,174) |
Collateral received, net | (563) | 378 | 217 |
Purchase of Jefferson National Financial Corp, net of cash assumed | (186) | ||
Other, net | (244) | (355) | (231) |
Net cash used in investing activities | (8,468) | (6,096) | (7,638) |
Cash flows from financing activities | |||
Net proceeds (repayments) from short-term debt | 407 | (300) | (100) |
Investment and universal life insurance product deposits | 10,919 | 10,442 | 10,894 |
Investment and universal life insurance product withdrawals | (5,639) | (5,034) | (4,132) |
Proceeds from Nationwide Trust Company, FSB for funding agreement transfer | 772 | ||
Capital contribution from Nationwide Financial Services, Inc. | 435 | ||
Other, net | (35) | 21 | 19 |
Net cash provided by financing activities | 6,859 | 5,129 | 6,681 |
Net increase in cash and cash equivalents | 37 | 3 | 25 |
Cash and cash equivalents at beginning of year | 95 | 92 | 67 |
Cash and cash equivalents at end of year | $ 132 | $ 95 | $ 92 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | (1) Nature of Operations Nationwide Life Insurance Company (“NLIC,” or collectively with its subsidiaries, “the Company”) was incorporated in 1929 and is an Ohio-domiciled stock life insurance company. The Company is a member of the Nationwide group of companies (“Nationwide”), which is comprised of Nationwide Mutual Insurance Company (“NMIC”) and all of its subsidiaries and affiliates. All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (“NFS”), a holding company formed by Nationwide Corporation, a majority-owned subsidiary of NMIC. The Company is a leading provider of long-term savings and retirement products in the United States of America (“U.S.”). The Company develops and sells a wide range of products and services, which include fixed and variable individual annuities, private and public sector group retirement plans, life insurance, investment advisory services and other investment products. The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators, life insurance agencies, specialists and registered investment advisors. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. and Nationwide Financial Network producers, which includes the agency distribution force of the Company’s ultimate parent company, NMIC. The Company has announced it will transition away from utilizing the exclusive agent model by 2020. The Company believes its broad range of competitive products, strong distributor relationships and diverse distribution network position it to compete effectively under various economic conditions. Wholly-owned subsidiaries of NLIC as of December 31, 2018 include Nationwide Life and Annuity Insurance Company (“NLAIC”) and its wholly-owned subsidiaries, Olentangy Reinsurance, LLC (“Olentangy”) and Nationwide SBL, LLC (“NWSBL”), Nationwide Investment Services Corporation (“NISC”), Nationwide Investment Advisor (“NIA”), Eagle Captive Reinsurance, LLC (“Eagle”) and Jefferson National Financial Corp (“JNF”) and its wholly-owned subsidiaries, Jefferson National Life Insurance Company (“JNL”), Jefferson National Life Insurance Company of New York (“JNLNY”), and Jefferson National Securities Corporation (“JNSC”). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life insurance (“COLI”) and individual annuity contracts on a non-participating tax-advantaged fee-based The Company completed its acquisition of JNF and its wholly-owned subsidiaries on March 1, 2017. Refer to Note 2 for detailed information related to the acquisition of JNF. As of December 31, 2018 and 2017, the Company did not have a significant concentration of financial instruments in a single investee, industry or geographic region. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region in which a single event could cause a severe impact on the Company’s financial position, after considering insurance risk that has been transferred to external reinsurers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany transactions have been eliminated. Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), legal and regulatory reserves, certain investment and derivative valuations, certain future policy benefits and claims, goodwill, provision for income taxes and valuation of net deferred tax assets. Actual results could differ significantly from those estimates. Revenues and Benefits Investment and universal life insurance products. Traditional life insurance products. Future Policy Benefits and Claims The liability for future policy benefits and claims is primarily comprised of policyholder account balances. The assumptions and methods used in calculating the portion of the liability that does not represent the policyholder account balances depend on the type of product. Investment and universal life insurance products. The Company offers guarantees on variable and fixed indexed annuity products, which can include a return of no less than the total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date less any customer withdrawals following the contract anniversary. These guarantees can also include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. As part of its valuation procedures, the Company makes an assumption of the expected utilization of guarantee benefits by participants. Guarantees that include a benefit that is wholly life contingent are accounted for as insurance liabilities that accumulate over time. Guarantees that are expected to be exercised using a net settlement option are accounted for as embedded derivatives, which are required to be separated and valued apart from the host variable annuity contracts. Guaranteed minimum death benefits (“GMDB”) and certain guaranteed living withdrawal benefits (“GLWB”) on variable annuity and fixed indexed annuity products, as well as no-lapse Certain GLWB that are expected to net settle on variable annuity products represent embedded derivatives which are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in results of operations as a component of net realized investment gains and losses. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous, unobservable assumptions including, but not limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes a wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance The Company offers certain indexed life insurance and annuity products for which the policyholders’ interest credits are based on market performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated and valued apart from the host contracts. The embedded derivatives are held at fair value. Subsequent changes in the fair value of the embedded derivatives are recognized in results of operations as a component of interest credited to policyholder account values. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous unobservable assumptions including, but not limited to, mortality, lapse rates and index volatility. The assumptions used to calculate the fair value of embedded derivatives are based on actual experience and industry data and are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. Traditional life and other insurance products. in-force The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method, with a weighted average interest rate of 6.6% for the years ended December 31, 2018 and 2017 and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation. The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses, discounted using weighted average interest rates of 4.7% and 4.8% for the years ended December 31, 2018 and 2017, respectively, with a provision for adverse deviation. The Company offers certain short duration traditional insurance, consisting primarily of accident and health contracts. These short duration insurance contracts are subject to an internal modified coinsurance treaty where activity including premiums, investment income, losses paid and adjustments to reserves, dividends paid and expenses incurred are ceded from NLIC to NMIC. The Company’s reserve for short duration contracts was $137 million and $70 million as of December 31, 2018 and 2017, respectively. Advances under FHLB funding agreements Reinsurance Ceded The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. The Company obtains reinsurance from a diverse group of reinsurers and monitors concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. Such agreements do not relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. On an ongoing basis, the Company monitors the financial condition of reinsurers. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company. Amounts recoverable from reinsurers are estimated in a manner consistent with future policy benefits and claims reserves. The Company reports its reinsurance recoverables net of any allowance for estimated uncollectible reinsurance recoverables, if deemed necessary. The Company’s consideration is based upon ongoing reviews of amounts outstanding, changes in reinsurer credit standings and other relevant factors. Under the terms of contracts held with certain unaffiliated reinsurers, specified assets have been placed in trusts as collateral for the recoveries. The trust assets are invested in investment grade securities, the fair value of which must at all times be greater than or equal to 100% of the reinsured reserves, as outlined in the underlying reinsurance contracts. Deferred Policy Acquisition Costs The Company has deferred certain costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product. Investment and universal life insurance products. available-for-sale The assumptions used in the estimation of gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual comprehensive study of assumptions. The most significant assumptions that are involved in the estimation of future gross profits include future net general and separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured through the end of the life of the product, equals the long-term assumption. The Company’s long-term assumption for net separate account investment performance is approximately 6.3% growth per year as of December 31, 2018. Changes in assumptions can have a significant impact on the amount of DAC reported for investment and universal life insurance products and on their related amortization patterns. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC amortization expense at the time such assessment is made, which could be significant. Traditional life insurance products. premium-paying Refer to Note 5 for discussion regarding DAC amortization and related balances. Investments Available-for-sale . Available-for-sale available-for-sale As of December 31, 2018 and 2017, 99% of fixed maturity securities were priced using externally sourced data. Independent pricing services are most often utilized (85% as of December 31, 2018 and 2017), and compared to pricing from additional sources, to determine the fair value of securities for which market quotations or quotations on comparable securities are available. For these securities, the Company obtains the pricing services’ methodologies and classifies the investments accordingly in the fair value hierarchy. A corporate pricing matrix is used in valuing certain corporate debt securities. The corporate pricing matrix was developed using publicly and privately available spreads for privately placed corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using this matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security. Non-binding When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income in the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. As of December 31, 2018 and 2017, cash collateral received was $195 million and $313 million, respectively. Additionally, the Company may receive non-cash off-balance off-balance available-for-sale For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments. The Company periodically reviews its available-for-sale In assessing corporate debt securities for other-than-temporary impairment (“OTTI”), the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. government and agencies and obligations of states and political subdivisions securities for OTTI by examining similar characteristics. Mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value Certain asset-backed securities are assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research. The Company evaluates its intent to sell on an individual security basis. OTTI losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis are bifurcated, with the credit related portion of the impairment loss being recognized in results of operations and the non-credit The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance. The Company’s potential loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets. Mortgage loans, net of allowance . held-for-investment As part of the underwriting process, specific guidelines are followed to ensure the initial quality of each new mortgage loan. Third-party appraisals are obtained to support loaned amounts, as the loans are usually collateral dependent. The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral. The Company’s commercial mortgage loans are typically structured with balloon payment maturities, exposing the Company to risks associated with the borrower’s ability to make the balloon payment or refinance the property. Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and either the fair value of the collateral less costs to sell or the present value of expected future cash flows, discounted at the loan’s effective interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses. In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses. In addition to the loan-specific reserves, the Company maintains a non-specific non-specific Non-specific Management evaluates the credit quality of individual commercial mortgage loans and the portfolio as a whole through a number of loan quality measurements, including but not limited to LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. These loan quality measurements contribute to management’s assessment of relative credit risk in the commercial mortgage loan portfolio. Based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible. This process identifies the risk profile and potential for loss individually and in the aggregate for the commercial mortgage loan portfolios. These factors are updated and evaluated at least annually. Interest income on performing mortgage loans is recognized in net investment income over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual non-accrual Policy loans. Short-term investments. Other investments. mark-to-market The Company holds alternative investments as described above and applies the equity method of accounting to these investments as it does not have a controlling financial interest. The Company recognizes income or losses from equity method investments in net investment income. These equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. The Company’s unfunded commitments related to alternative investments were $750 million and $787 million as of December 31, 2018 and 2017, respectively. The carrying value of alternative investments was $797 million and $582 million as of December 31, 2018 and 2017, respectively. In the normal course of business, the Company has relationships with VIEs. If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity’s contract and other deal-related information, such as the entity’s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. Consolidated VIEs are primarily made up of tax credit funds whereby the Company serves as the managing member and has guaranteed after-tax after-tax after-tax after-tax Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $821 million and $738 million as of December 31, 2018 and 2017, respectively, and are included within the consolidated balance sheets primarily as other investments of $757 million, other assets of $369 million and other liabilities of $335 million as of December 31, 2018, and other investments of $680 million, other assets of $189 million and other liabilities of $158 million as of December 31, 2017. The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs. The results of operations and financial positions of each VIE for which the Company is the primary beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to the Company on the consolidated statements of operations. The Company is not required and does not intend to provide financial or other support outside of contractual requirements to any VIE. Derivative Instruments The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and foreign currency. These derivative instruments primarily include swaps, futures contracts and options. All derivative instruments are held at fair value and are reflected as other assets or liabilities in the consolidated balance sheets. The fair value of derivative instruments is determined using various valuation techniques relying predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding For derivatives that are not designated for hedge accounting, the unrealized and realized gains or losses are recognized in net realized investment gains and losses. For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into results of operations in the same period or periods that the hedged transaction impacts results of operations. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses. The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the forms of cash and marketable securities. Non-cash off-balance Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods, including market, income and cost approaches. The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety. The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows: Level 1. Level 2. Level 3. The Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs. Fair Value Option. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with original maturities of less than three months. Goodwill and Other Intangibles In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price or fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually or on an interim basis, in addition to the annual evaluation, if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will calculate implied goodwill. Goodwill is impaired at the reporting unit level if its carrying value exceeds the implied value of its goodwill. The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and results of operations, and the selection of comparable companies used to develop market-based assumptions. The carrying value of goodwill was $269 million as of December 31, 2018 and 2017 and is included in other assets in the consolidated balance sheets. There were no impairments or additions to goodwill for the year ended December 31, 2018. There were no impairments to goodwill and total additions to goodwill were $69 million for the year ended December 31, 2017. Indefinite-lived intangibles are evaluated for impairment annually in conjunction with the Goodwill impairment test and were immaterial as of December 31, 2018 and 2017. All other intangibles are amortized over the useful life of the intangible asset and are monitored for indicators of impairment. All other intangibles totaled $255 million and $267 million as of December 31, 2018 and 2017, respectively. Separate Accounts Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are recorded at fair value, with the value of separate account liabilities set to equal the fair value of separate account assets. Separate account assets are primarily comprised of public, privately-registered and non-registered Federal Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expenses. The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant. Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related The Company files with the NMIC consolidated federal income tax return. Jefferson National Financial Corp Acquisition On March 1, 2017, the Company completed its acquisition of JNF. The Company acquired 100% of the stock of JNF for a total consideration of $201 million in cash. As a result of the acquisition, JNF and its subsidiaries became wholly-owned subsidiaries of Nationwide. JNF, based in Louisville, Kentucky, is a distributor of tax-advantaged fee-based The determination of fair value of assets acquired, liabilities assumed and purchase consideration reflects the Company’s estimates and assumptions. The following table summarizes the fair value of consideration exchanged in the acquisition of JNF: (in millions) Total assets acquired $ 5,522 Total liabilities assumed (5,321 ) Total consideration $ 201 As a result of the JNF acquisition, the Company recognized goodwill of $69 million, representing the excess of fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. Subsequent Events The Company evaluated subsequent events through February 27, 2019, the date the consolidated financial statements were issued. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | (3) Recently Issued Accounting Standards Adopted Accounting Standards On January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Liabilities available-for-sale On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers 2015-14, Deferral of the Effective Date 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licenses 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers 2014-09, Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force). Pending Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Section A – Leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. available-for-sale In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2018, the FASB issued ASU 2018-12, Financial Instruments – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
Long-Duration Contracts
Long-Duration Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Long-Duration Contracts | (4) Long-Duration Contracts Variable Annuity Contracts The Company provides various forms of guarantees to benefit the related contractholders of variable annuity contracts issued through general and separate accounts. The primary guarantee types include GMDB and GLWB. The GMDB, offered on variable annuity contracts, provides a specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid into the contract and having a second death benefit paid upon the survivor’s death. The GLWB, primarily offered in the Company’s Lifetime Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of minimum return and contract duration. Other guarantee types the Company previously offered include guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum income benefits (“GMIB”). The GMAB is a living benefit that provides the contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years). The GMIB is a living benefit that provides the contractholder with a guaranteed annuitization stream of income. The separate account value subject to GMAB was $203 million and $291 million for the years ended December 31, 2018 and December 31, 2017, respectively. The net amount at risk, general account value and reserve balances for GMAB were immaterial as of December 31, 2018 and 2017. The separate account value subject to GMIB was $283 million and $355 million for the years ended December 31, 2018 and December 31, 2017, respectively. The general account value subject to GMIB was $43 million and $46 million as of December 31, 2018 and 2017, respectively. The net amount at risk and reserve balances for GMIB were immaterial as of December 31, 2018 and 2017. Paid claims for GMAB and GMIB were immaterial for the years ended December 31, 2018 and 2017. The following table summarizes information regarding variable annuity contracts with GMDB and GLWB invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees): December 31, 2018 December 31, 2017 (in millions) General Separate Net 1 Average 2 General Separate Net 1 Average 2 Contracts with GMDB: Return of net deposits $ 793 $ 30,276 $ 228 67 $ 842 $ 32,313 $ 16 67 Minimum return or anniversary contract value 1,660 28,473 2,164 72 1,764 33,337 347 71 Total contracts with GMDB $ 2,453 $ 58,749 $ 2,392 70 $ 2,606 $ 65,650 $ 363 69 Total contracts with GLWB: (Minimum return or anniversary contract value) $ 63 $ 35,499 $ 330 68 $ 84 $ 39,183 $ 104 68 1 Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit). 2 Represents the weighted average attained age of contractholders at the respective date. The following table summarizes the reserve balances for the primary guarantees on variable annuity contracts, as of the dates indicated: December 31, (in millions) 2018 2017 GMDB $ 223 $ 164 GLWB $ 554 $ 300 During 2018, the Company recognized a decrease in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for guarantees on variable annuity contracts, primarily related to market performance and expected policyholder behavior. For the year ended December 31, 2018, the updated assumptions resulted in a decrease to life insurance benefits and claims of $8 million and higher amortization of DAC of $6 million. During 2017, the Company recognized an increase in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for guarantees on variable annuity contracts, primarily related to expected policyholder behavior. For the year ended December 31, 2017, the updated assumptions resulted in an increase to life insurance benefits and claims of $32 million and lower amortization of DAC of $10 million. During 2016, the Company recognized an increase in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for guarantees on variable annuity contracts, primarily related to lapses, mortality, interest rates and market rates of return. For the year ended December 31, 2016, the updated assumptions resulted in an increase to life insurance benefits and claims of $62 million and lower amortization of DAC of $21 million. Paid claims for GMDB were $20 million and $14 million for the years ended December 31, 2018 and 2017, respectively. Paid claims for GLWB were immaterial for the years ended December 31, 2018 and 2017. The following table summarizes the account balances of variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated: December 31, (in millions) 2018 2017 Mutual funds: Bond $ 6,876 $ 7,167 Domestic equity 47,554 53,617 International equity 3,235 3,874 Total mutual funds $ 57,665 $ 64,658 Money market funds 1,084 992 Total 1 $ 58,749 $ 65,650 1 Excludes $38.3 billion and $40.0 billion as of December 31, 2018 and 2017, respectively, of separate account assets not related to variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products. Fixed Indexed Annuity Contracts The Company offers fixed indexed annuity products with a GMDB and GLWB. As of December 31, 2018, the fixed indexed annuity general account value was $14.8 billion, which included $440 million of general account value relating to contracts with GMDB and $4.7 billion of general account value relating to contracts with GLWB. The net amount at risk as of December 31, 2018 and paid claims for the year ended December 31, 2018 were immaterial for GMDB and GLWB. The reserve balances as of December 31, 2018 were immaterial and $54 million for GMDB and GLWB, respectively. As of December 31, 2017, the fixed indexed annuity general account value was $9.8 billion, which included $351 million of general account value relating to contracts with the GMDB and $3.7 billion of general account value relating to contracts with GLWB. The net amount at risk as of December 31, 2017 and paid claims for the year ended December 31, 2017 were immaterial for GMDB and GLWB. The reserve balances as of December 31, 2017 were immaterial and $31 million for GMDB and GLWB, respectively. The Company conducts an annual comprehensive review of assumptions for fixed indexed annuity guarantees. For the years ended December 31, 2018, 2017 and 2016, the updated assumptions resulted in an immaterial change to life insurance benefits and claims and amortization of DAC. Universal and Variable Universal Life Insurance Contracts The Company offers certain universal and variable universal life insurance products with no-lapse no-lapse During 2018, the Company recognized a decrease in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for universal and variable universal life insurance contracts with no-lapse During 2017, the Company recognized an increase in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for universal and variable universal life insurance contracts with no-lapse During 2016, the Company recognized an increase in the liability for future policy benefits and claims in conjunction with the annual comprehensive review of assumptions for the no-lapse The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse (in millions) General account Separate account Adjusted insurance 1 Average age 2 December 31, 2018 $ 4,290 $ 2,021 $ 68,466 50 December 31, 2017 $ 3,637 $ 2,350 $ 61,489 51 1 The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value and reinsurance. 2 Represents the weighted average attained age of contractholders at the respective date. Participating Business Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 2% of the Company’s life insurance in force in 2018 (3% in 2017 and 2016) and 30% of the number of life insurance policies in force in 2018 (31% in 2017 and 33% in 2016). The provision for policyholder dividends was based on the respective year’s dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | (5) Deferred Policy Acquisition Costs The following table summarizes changes in the DAC balance, as of the dates indicated: December 31, (in millions) 2018 2017 2016 Balance at beginning of year $ 5,676 $ 5,432 $ 5,200 Capitalization of DAC 942 923 823 Amortization of DAC, excluding unlocks (440 ) (461 ) (412 ) Amortization of DAC related to unlocks 17 69 (21 ) Adjustments to DAC related to unrealized gains and losses on available-for-sale 635 (287 ) (158 ) Balance at end of year $ 6,830 $ 5,676 $ 5,432 The Company conducted its annual comprehensive review of model assumptions related to financial services operations used to project DAC and other related balances, including valuation of business acquired (“VOBA”) and unearned revenue reserves. For the year ended December 31, 2018, the Company recognized a decrease in amortization for DAC of $17 million and a decrease in amortization for other related balances of $43 million. The updated assumptions were primarily related to favorable market rates of return and changes to expected future mortality. This was partially offset by updated assumptions for expected policyholder renewal premiums, persistency and lapse rates. For the year ended December 31, 2017, the Company recognized a decrease in amortization for DAC of $69 million and a decrease in amortization for other related balances of $13 million. The updated assumptions were primarily related to favorable market rates of return and changes to expected future mortality. This was partially offset by updated assumptions for expected policyholder renewal premiums, persistency and lapse rates. For the year ended December 31, 2016, the Company recognized an increase in amortization for DAC of $21 million and a decrease in amortization for other related balances of $75 million. The updated assumptions were primarily related to a decrease in expected lapse rates and mortality performance. This was partially offset by updated assumptions for persistency, interest rates and market rates of return. As disclosed in Note 2, ASU 2018-12, Financial Instruments – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Investments | (6) Investments Available-for-Sale The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale (in millions) Amortized Unrealized Unrealized Fair December 31, 2018 Fixed maturity securities: U.S. government and agencies $ 459 $ 28 $ 1 $ 486 Obligations of states and political subdivisions 4,026 290 23 4,293 Corporate securities 41,991 645 1,403 41,233 Residential mortgage-backed securities 2,797 65 39 2,823 Commercial mortgage-backed securities 1,731 9 19 1,721 Asset-backed securities 2,794 34 47 2,781 Total available-for-sale $ 53,798 $ 1,071 $ 1,532 $ 53,337 December 31, 2017 Fixed maturity securities: U.S. government and agencies $ 358 $ 39 $ 1 $ 396 Obligations of states and political subdivisions 3,433 414 2 3,845 Corporate securities 37,643 2,018 220 39,441 Residential mortgage-backed securities 2,788 107 23 2,872 Commercial mortgage-backed securities 1,154 13 6 1,161 Asset-backed securities 2,466 44 24 2,486 Total fixed maturity securities $ 47,842 $ 2,635 $ 276 $ 50,201 Equity securities 1 73 10 4 79 Total available-for-sale $ 47,915 $ 2,645 $ 280 $ 50,280 1 As disclosed within Note 3, the Company adopted ASU 2016-01 The fair value of the Company’s available-for-sale available-for-sale The following table summarizes the amortized cost and fair value of fixed maturity securities, by contractual maturity, as of December 31, 2018. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties. (in millions) Amortized Fair Fixed maturity securities: Due in one year or less $ 1,644 $ 1,688 Due after one year through five years 11,360 11,371 Due after five years through ten years 17,066 16,641 Due after ten years 16,406 16,312 Subtotal $ 46,476 $ 46,012 Residential mortgage-backed securities 2,797 2,823 Commercial mortgage-backed securities 1,731 1,721 Asset-backed securities 2,794 2,781 Total fixed maturity securities $ 53,798 $ 53,337 The following table summarizes the components of net unrealized gains and losses, as of the dates indicated: December 31, 2018 2017 Net unrealized (losses) gains on available-for-sale 1 $ (461 ) $ 2,365 Adjustment to DAC and other expenses 161 (478 ) Adjustment to future policy benefits and claims (10 ) (103 ) Adjustment to policyholder dividend obligation (21 ) (88 ) Deferred federal income tax benefit (expense) 71 (593 ) Cumulative effect of adoption of accounting principle 2 — 232 Net unrealized (losses) gains on available-for-sale $ (260 ) $ 1,335 1 Includes net unrealized gains of $37 million and $38 million as of December 31, 2018 and 2017, respectively, related to the non-credit 2 Represents impact of reclassifying AOCI related to available-for-sale The following table summarizes December 31, (in millions) 2018 2017 Balance at beginning of year $ 1,335 $ 553 Cumulative effect of adoption of accounting principle 1 (7 ) — Adjusted balance at beginning of year $ 1,328 $ 553 Unrealized (losses) gains arising during the year: Net unrealized (losses) gains on available-for-sale (2,818 ) 1,191 Non-credit (1 ) 37 Net adjustment to DAC and other expense 639 (287 ) Net adjustment to future policy benefits and claims 93 (35 ) Net adjustment to policyholder dividend obligations 67 (14 ) Related federal income tax expense (benefit) 432 (318 ) Unrealized (losses) gains on available-for-sale $ (1,588 ) $ 574 Less: Reclassification adjustment for net realized gains and credit-related OTTI on available-for-sale — 24 Change in net unrealized (losses) gains on available-for-sale $ (1,588 ) $ 550 Cumulative effect of adoption of accounting principle 2 — 232 Balance at end of year $ (260 ) $ 1,335 1 The Company recognized a cumulative-effect adjustment on January 1, 2018 related to the adoption of ASU 2016-01, 2 Represents impacts of reclassifying accumulated other comprehensive income related to available-for-sale The following table summarizes, by asset class, available-for-sale Less than or equal to one year More than one year Total (in millions) Fair Unrealized Fair Unrealized Unrealized 1 December 31, 2018 Fixed maturity securities: U.S. government and agencies $ 55 $ — $ 31 $ 1 $ 1 Obligations of states and political subdivisions 843 16 166 7 23 Corporate securities 20,640 847 6,452 556 1,403 Residential mortgage-backed securities 652 8 673 31 39 Commercial mortgage-backed securities 614 8 403 11 19 Asset-backed securities 2,135 27 222 20 47 Total 2 $ 24,939 $ 906 $ 7,947 $ 626 $ 1,532 December 31, 2017 Fixed maturity securities: U.S. government and agencies $ 53 $ 1 $ — $ — $ 1 Obligations of states and political subdivisions 77 — 111 2 2 Corporate securities 3,363 37 4,058 183 220 Residential mortgage-backed securities 370 3 433 20 23 Commercial mortgage-backed securities 307 2 127 4 6 Asset-backed securities 254 1 82 23 24 Total fixed maturity securities $ 4,424 $ 44 $ 4,811 $ 232 $ 276 Equity securities 3 12 2 30 2 4 Total 2 $ 4,436 $ 46 $ 4,841 $ 234 $ 280 1 As of December 31, 2018 and 2017, there were $145 million and $67 million, respectively, of unrealized losses related to available-for-sale 2 Represents 2,427 and 775 available-for-sale 3 As disclosed within Note 3, the Company adopted ASU 2016-01 Mortgage Loans, Net of Allowance The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated: December 31, 2018 December 31, 2017 (in millions) Commercial Residential Total 1 Commercial Residential Total 1 Amortized cost: Loans with non-specific $ 12,417 $ 1 $ 12,418 $ 10,963 $ — $ 10,963 Total amortized cost $ 12,417 $ 1 $ 12,418 $ 10,963 $ — $ 10,963 Valuation allowance: Non-specific $ 39 $ — $ 39 $ 34 $ — $ 34 Total valuation allowance 2 $ 39 $ — $ 39 $ 34 $ — $ 34 Mortgage loans, net of allowance $ 12,378 $ 1 $ 12,379 $ 10,929 $ — $ 10,929 1 The company did not hold any loans with specific reserves as of December 31, 2018 and 2017. 2 Changes in the valuation allowance are primarily due to portfolio growth and current period provisions. These changes for the years ended December 31, 2018 and 2017 were immaterial. As of December 31, 2018 and 2017, the Company’s mortgage loans classified as delinquent and/or in non-accrual The following table summarizes the LTV and DSC ratios of the mortgage loan portfolio, as of the dates indicated: LTV ratio DSC ratio (in millions) Less than 90% or Total Greater Less than Total December 31, 2018 Apartment $ 4,550 $ 116 $ 4,666 $ 4,644 $ 22 $ 4,666 Industrial 1,881 10 1,891 1,887 4 1,891 Office 2,193 — 2,193 2,184 9 2,193 Retail 3,298 6 3,304 3,302 2 3,304 Other 363 — 363 363 — 363 Total $ 12,285 $ 132 $ 12,417 $ 12,380 $ 37 $ 12,417 Weighted average DSC ratio 2.06 1.48 2.06 n/a n/a n/a Weighted average LTV ratio n/a n/a n/a 58 % 82 % 58 % December 31, 2017 Apartment $ 4,102 $ 102 $ 4,204 $ 4,181 $ 23 $ 4,204 Industrial 1,573 10 1,583 1,582 1 1,583 Office 1,752 — 1,752 1,738 14 1,752 Retail 2,995 4 2,999 2,996 3 2,999 Other 425 — 425 425 — 425 Total $ 10,847 $ 116 $ 10,963 $ 10,922 $ 41 $ 10,963 Weighted average DSC ratio 2.06 1.31 2.05 n/a n/a n/a Weighted average LTV ratio n/a n/a n/a 59 % 81 % 59 % Available-For-Sale Available-for-sale Available-for-sale Net Investment Income The following table summarizes net investment income, by investment type, for the years ended: December 31, (in millions) 2018 2017 2016 Fixed maturity securities, available-for-sale $ 2,116 $ 1,982 $ 1,781 Mortgage loans 503 450 407 Alternative investments 42 23 8 Policy loans 59 41 52 Other 50 27 21 Gross investment income $ 2,770 $ 2,523 $ 2,269 Tax credit fund losses 1 (27 ) (44 ) (68 ) Investment expenses (68 ) (65 ) (62 ) Net investment income $ 2,675 $ 2,414 $ 2,139 1 Represents losses on tax credit funds accounted for under the equity method of accounting. Tax benefits on these tax credit funds are recorded in federal income tax benefit. Net Realized Investment Gains and Losses, Including Other-Than-Temporary Impairments The following table summarizes net realized investment gains and losses, including OTTI, by source, for the years ended: December 31, (in millions) 2018 2017 2016 Realized gains on sales 1 $ 12 $ 53 $ 50 Realized losses on sales 1 (10 ) (16 ) (90 ) Net realized derivative losses (309 ) (9 ) (42 ) Valuation losses and other 2 (30 ) (5 ) (3 ) OTTI losses 3,4 (3 ) (11 ) (26 ) Net realized investment (losses) gains $ (340 ) $ 12 $ (111 ) 1 Gross gains of $12 million, $52 million and $49 million and gross losses of $10 million, $11 million and $89 million were realized on sales of available-for-sale 2 As disclosed within Note 3, the Company adopted ASU 2016-01 3 OTTI on fixed maturity securities excludes non-credit 4 Includes impairments on alternative investment tax credit funds due to corporate tax rate reductions set forth in the Tax Cuts and Jobs Act during the year ended December 31, 2017. The following table summarizes the reconciliation of the beginning and ending cumulative credit losses for fixed maturity securities as of dates indicated: December 31, (in millions) 2018 2017 2016 Cumulative credit losses at beginning of year 1 $ (170 ) $ (195 ) $ (224 ) New credit losses — (3 ) (22 ) Incremental credit losses (2 ) (2 ) — Losses related to securities included in the beginning balance sold or paid down during the period 17 30 51 Cumulative credit losses at end of year 1 $ (155 ) $ (170 ) $ (195 ) 1 Cumulative credit losses are defined as amounts related to the Company’s credit portion of the OTTI losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | (7) Derivative Instruments The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative instruments. Interest rate risk management. Interest rate contracts are used by the Company in association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate contracts are generally used to convert fixed rate cash flow streams to variable rate cash flow streams or vice versa. Equity market risk management. Other risk management. Credit risk associated with derivatives transactions. The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated: December 31, 2018 December 31, 2017 Derivative assets Derivative liabilities Derivative assets Derivative liabilities (in millions) Fair value Notional Fair value Notional Fair value Notional 1 Fair value Notional 1 Derivatives designated and qualifying as hedging instruments $ 129 $ 1,459 $ 46 $ 794 $ 60 $ 654 $ 93 $ 1,127 Derivatives not designated as hedging instruments: Interest rate contracts $ — $ 446 $ 1 $ 42 $ 25 $ 2,131 $ 73 $ 2,336 Equity contracts 438 19,984 — 641 1,070 15,738 — 2,081 Other derivative contracts — — 13 — — — 12 2 Total derivatives 1,2 $ 567 $ 21,889 $ 60 $ 1,477 $ 1,155 $ 18,523 $ 178 $ 5,546 1 Fair value balance excludes immaterial accrued interest on derivative assets and liabilities for December 31, 2018 and 2017. 2 Excludes embedded derivatives included in future policy benefits and claims on the consolidated balance sheets of $627 million and $984 million as of December 31, 2018 and December 31, 2017, respectively. Of the $567 million and $1.2 billion of fair value of total derivative assets at December 31, 2018 and 2017, $33 million and $62 million, respectively, are subject to master netting agreements. The Company received $508 million and $998 million of cash collateral and held $22 million and $101 million, respectively, of securities as off-balance The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended: December 31, (in millions) 2018 2017 2016 Derivatives instruments Interest rate contracts $ 30 $ (9 ) $ 13 Equity contracts (329 ) (25 ) (81 ) Other derivative contracts (8 ) 2 8 Net interest settlements (2 ) (9 ) (2 ) Total derivative losses $ (309 ) $ (41 ) $ (62 ) Change in embedded derivative liabilities and related fees 1 — 32 20 Net realized derivative losses $ (309 ) $ (9 ) $ (42 ) 1 Excludes the change in embedded derivatives recognized in interest credited to policyholder account values in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 of $(380) million, $646 million and $276 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2018: (in millions) Level 1 Level 2 Level 3 Total Assets Investments: Fixed maturity securities, available-for-sale: U.S. government and agencies $ 485 $ — $ 1 $ 486 Obligations of states and political subdivisions 53 4,235 5 4,293 Corporate securities — 40,345 888 41,233 Residential mortgage-backed securities 1,505 1,318 — 2,823 Commercial mortgage-backed securities — 1,721 — 1,721 Asset-backed securities — 2,646 135 2,781 Total fixed maturity securities, available-for-sale, $ 2,043 $ 50,265 $ 1,029 $ 53,337 Other investments at fair value 1 878 1,195 5 2,078 Investments at fair value $ 2,921 $ 51,460 $ 1,034 $ 55,415 Derivative instruments - assets — 129 438 567 Separate account assets 2 94,259 1,328 80 95,667 Assets at fair value $ 97,180 $ 52,917 $ 1,552 $ 151,649 Liabilities Future policy benefits and claims 3 $ — $ — $ 627 $ 627 Derivative instruments - liabilities — 46 14 60 Liabilities at fair value $ — $ 46 $ 641 $ 687 1 Includes short-term investments, equity securities and trading securities of $1.9 billion, $121 million and $67 million, respectively. 2 Excludes $1.4 billion of separate account assets that use net asset value (“NAV”) as a practical expedient to estimate fair value. 3 Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2018: (in millions) Fixed 2 Other Derivative 3 Separate Total assets Liabilities at 3 Balance as of December 31, 2017 $ 1,062 $ 14 $ 1,070 $ 61 $ 2,207 $ 996 Net (losses) gains In operations 1 (1 ) — (489 ) 19 (471 ) (355 ) In other comprehensive income (34 ) — — — (34 ) — Purchases 84 3 376 — 463 — Sales (168 ) — (519 ) — (687 ) — Transfers into Level 3 118 — — — 118 — Transfers out of Level 3 (32 ) (12 ) — — (44 ) — Balance as of December 31, 2018 $ 1,029 $ 5 $ 438 $ 80 $ 1,552 $ 641 1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was ($357) million for future policy benefits and claims, ($302) million for derivative assets, and $2 million for derivative liabilities. 2 Non-binding 3 Non-binding Transfers into and out of Level 3 during the year ended December 31, 2018 are primarily due to the change in observability of pricing inputs used for certain corporate securities. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2018. Living Benefit Guarantees The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities, included in future policy benefits and claims and classified as Level 3 as of December 31, 2018: Unobservable Inputs Range Mortality 0.1% - 10% 3 Lapse 0% - 35% 4 Wait period 0 yrs - 30 yrs 5 Efficiency of benefit utilization 1 60% - 100% 6 Discount rate 2 See note 2 below Index volatility 15% - 25% 1 The unobservable input is not applicable to GMABs. 2 Incorporates the liquidity and non-performance non-performance 3 Represents the mortality for the majority of business with living benefits, with policyholder issue ages ranging from 45 to 85. 4 Certain scenarios could drive dynamic lapses outside of the specified range. The range shown represents lapses for the vast majority of scenarios. 5 A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period. 6 A portion of the contractholders could withdraw more than the benefit guarantee allows. For these policies, the excess withdrawals are assumed to be temporary before reverting back to 100% utilization. The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability: Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability. Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness, non-qualified), in-the-money out-of-the-money, The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions vary by the product type, age of the policyholder, policy size and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years, so long as withdrawals have not commenced. All else being equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition, policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount. A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability. Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability. Indexed Products The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life and indexed annuity products classified as Level 3 as of December 31, 2018: Unobservable Inputs Range Mortality 0% - 5%¹ Lapse 0% - 10% Index volatility 15% - 25% 2 1 Represents the mortality for the majority of business, with policyholder issue ages ranging from 0 to 80. 2 Certain managed volatility indices utilize a 5% index volatility. The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the indexed products: Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability. Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse rates than policies without a surrender charge. Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability. The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2017: (in millions) Level 1 Level 2 Level 3 Total Assets Investments: Fixed maturity securities, available-for-sale: U.S. government and agencies $ 395 $ — $ 1 $ 396 Obligations of states, political subdivisions and foreign governments 60 3,780 5 3,845 Corporate securities — 38,529 912 39,441 Residential mortgage-backed securities 1,190 1,682 — 2,872 Commercial mortgage-backed securities — 1,161 — 1,161 Asset-backed securities — 2,342 144 2,486 Total fixed maturity securities, available-for-sale, $ 1,645 $ 47,494 $ 1,062 $ 50,201 Other investments at fair value 1 401 1,157 14 1,572 Investments at fair value $ 2,046 $ 48,651 $ 1,076 $ 51,773 Derivative instruments - assets — 85 1,070 1,155 Separate account assets 2 103,532 1,365 61 104,958 Assets at fair value $ 105,578 $ 50,101 $ 2,207 $ 157,886 Liabilities Future policy benefits and claims 3 $ — $ — $ 984 $ 984 Derivative instruments - liabilities — 166 12 178 Liabilities at fair value $ — $ 166 $ 996 $ 1,162 1 Primarily includes short-term investments, equity securities and trading securities of $1.4 billion, $79 million and $74 million, respectively. 2 Excludes $649 million of separate account assets that use NAV as a practical expedient to estimate fair value. 3 Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2017: (in millions) Fixed 2 Other Derivative 3 Separate Total assets Liabilities at 3 Balance as of December 31, 2016 $ 1,421 $ 1 $ 633 $ 65 $ 2,120 $ 348 Net gains (losses) In operations 1 4 (1 ) 307 (4 ) 306 (648 ) In other comprehensive income 63 — — — 63 — Purchases 74 17 239 — 330 — Sales (176 ) (3 ) (109 ) — (288 ) — Transfers into Level 3 91 — — — 91 — Transfers out of Level 3 (415 ) — — — (415 ) — Balance as of December 31, 2017 $ 1,062 $ 14 $ 1,070 $ 61 $ 2,207 $ 996 1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized losses on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was $(638) million for future policy benefits and claims, $264 million for derivative assets, and $(10) million for derivative liabilities and $(1) million for other investments at fair value. 2 Non-binding 3 Non-binding Transfers into and out of Level 3 during the year ended December 31, 2017 are primarily due to the change in the observability of pricing inputs used for certain corporate securities. There were no material transfers between Levels 1 and 2 during the year ended December 31, 2017. Financial Instruments Not Carried at Fair Value The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated. The valuation techniques used to estimate these fair values are described below. December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) value value Level 2 Level 3 value value Level 2 Level 3 Assets Investments: Mortgage loans, net of allowance $ 12,379 $ 12,167 $ — $ 12,167 $ 10,929 $ 10,876 $ — $ 10,876 Policy loans $ 1,015 $ 1,015 $ — $ 1,015 $ 1,030 $ 1,030 $ — $ 1,030 Other investments $ 84 $ 84 $ — $ 84 $ 78 $ 78 $ — $ 78 Liabilities Investment contracts $ 42,094 $ 40,113 $ — $ 40,113 $ 36,746 $ 34,711 $ — $ 34,711 Short-term debt $ 407 $ 407 $ — $ 407 $ — $ — $ — $ — Long-term debt $ 771 $ 999 $ 927 $ 71 $ 793 $ 1,070 $ 977 $ 93 Mortgage loans, net of allowance Policy loans Other investments Investment contracts Short-term debt Long-term debt |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | (9) Goodwill The following table summarizes changes in the carrying value of goodwill by segment for the years indicated: (in millions) Retirement Individual Total Balance as of December 31, 2016 1 $ 25 $ 175 $ 200 Adjustments — 69 69 Balance as of December 31, 2017 1 $ 25 $ 244 $ 269 Adjustments — — — Balance as of December 31, 2018 1 $ 25 $ 244 $ 269 1 The goodwill balances have not been previously impaired. |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Closed Block | (10) Closed Block In connection with the sponsored demutualization of Provident Mutual Life Insurance Company (“Provident”) prior to its acquisition by the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues. Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without the approval of the Pennsylvania Insurance Department and the Ohio Department of Insurance (“ODI”). The closed block will remain in effect as long as any policy in the closed block is in force. If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block, dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company’s assets outside of the closed block, which are general account assets. The assets and liabilities allocated to the closed block are recorded in the Company’s consolidated financial statements on the same basis as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets and liabilities designated to the closed block that can be recognized in income, for the benefit of policyholders, over the period the policies in the closed block remain in force. If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block policyholders as an additional policyholder dividend expense in the future, unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable than expected, actual earnings will be recognized in income. The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross margins of closed block policies. The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that enter into the determination of amounts that are to be paid to policyholders. The following table summarizes financial information for the closed block, as of the dates indicated: December 31, (in millions) 2018 2017 Liabilities: Future policyholder benefits $ 1,533 $ 1,571 Policyholder funds and accumulated dividends 136 137 Policyholder dividends payable 18 20 Policyholder dividend obligation 35 110 Other policy obligations and liabilities 38 25 Total liabilities $ 1,760 $ 1,863 Assets: Available-for-sale $ 1,202 $ 1,294 Mortgage loans, net of allowance 220 220 Policy loans 124 128 Other assets 80 77 Total assets $ 1,626 $ 1,719 Excess of reported liabilities over assets $ 134 $ 144 Portion of above representing other comprehensive income: (Decrease) Increase in unrealized gain on fixed maturity securities, available-for-sale $ (67 ) $ 14 Adjustment to policyholder dividend obligation 67 (14 ) Total of above representing other than comprehensive income $ — $ — Maximum future earnings to be recognized from assets and liabilities $ 134 $ 144 Other comprehensive income: Available-for-sale Fair value $ 1,202 $ 1,294 Amortized cost 1,181 1,206 Shadow policyholder dividend obligation (21 ) (88 ) Net unrealized appreciation $ — $ — The following table summarizes closed block operations for the years ended: December 31, (in millions) 2018 2017 2016 Revenues: Premiums $ 50 $ 53 $ 56 Net investment income 75 81 84 Realized investment (losses) gains — (1 ) (3 ) Realized losses credited to policyholder benefit obligation (4 ) (4 ) (1 ) Total revenues $ 121 $ 129 $ 136 Benefits and expenses: Policy and contract benefits $ 121 $ 115 $ 125 Change in future policyholder benefits and interest credited to policyholder accounts (38 ) (32 ) (36 ) Policyholder dividends 36 39 40 Change in policyholder dividend obligation (12 ) (8 ) (8 ) Other expenses 1 1 1 Total benefits and expenses $ 108 $ 115 $ 122 Total revenues, net of benefits and expenses, before federal income tax expense $ 13 $ 14 $ 14 Federal income tax expense 3 5 5 Revenues, net of benefits and expenses and federal income tax expense $ 10 $ 9 $ 9 Maximum future earnings from assets and liabilities: Beginning of period $ 144 $ 153 $ 162 Change during period (10 ) (9 ) (9 ) End of period $ 134 $ 144 $ 153 Cumulative closed block earnings from inception through December 31, 2018, 2017 and 2016 were higher than expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | (11) Short-Term Debt The Company classifies debt as short-term if the maturity date at inception is less than one year. In December 2015, the Company renewed an agreement to increase its $600 million commercial paper program to $750 million. The Company had $362 million and no amount outstanding under this agreement as of December 31, 2018 and 2017, respectively. In March 2018, the Company renewed an agreement with the FHLB to extend its ability to borrow in order to provide financing for operations. This extension, which expires on March 22, 2019, allows the Company access to borrow up to $250 million, which would be collateralized by pledged securities, at a borrowing rate set by the FHLB. The Company had $5.8 billion and $6.5 billion in eligible collateral and no amounts outstanding under the agreement as of December 31, 2018 and 2017, respectively. In April 2015, NMIC and the Company entered into a $750 million credit facility with a borrowing rate of 0.785% plus a U.S. LIBOR rate, which is based on the repayment date of the draw, which expires on April 2, 2020. The Company had no amounts outstanding under this agreement as of December 31, 2018 and 2017. The Company has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to the one-month In December 2018, the Company entered into an agreement with NFS to borrow $45 million at a borrowing rate of 3.55% due in March 2019. The amount of interest paid on short-term debt was immaterial for the years ended December 31, 2018, 2017 and 2016. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (12) Long-Term Debt The following table summarizes the carrying value of long-term debt, as of the dates indicated: December 31, (in millions) 2018 2017 8.15% surplus note, due June 27, 2032, payable to NFS $ 300 $ 300 7.50% surplus note, due December 31, 2031, payable to NFS 300 300 6.75% surplus note, due December 23, 2033, payable to NFS 100 100 Other 1 71 93 Total long-term debt $ 771 $ 793 1 Includes debt assumed in the JNF acquisition. The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended December 31, 2018, 2017 and 2016. Payments of interest and principal under the surplus notes require the prior approval of the ODI. |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | (13) Federal Income Taxes The following table summarizes the components of federal income tax expense (benefit) for the years ended: December 31, (in millions) 2018 2017 2016 Current tax (benefit) expense 1 $ (21 ) $ (177 ) $ 61 Deferred tax expense (benefit) 1 232 (231 ) 65 Total federal income tax expense (benefit) $ 211 $ (408 ) $ 126 1 Includes reclassification of AMT credit carryforwards from deferred tax assets to an income tax receivable as a result of the Tax Cuts and Jobs Act for the year ended December 31, 2017. The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to net income for the years ended: December 31, 2018 2017 2016 (in millions) Amount % Amount % Amount % Income before federal income taxes and noncontrolling interests $ 1,448 $ 901 $ 904 Rate reconciliation: Computed (expected tax expense) $ 304 21 % $ 315 35 % $ 316 35 % Dividends received deduction (45 ) (3 )% (128 ) (14 )% (144 ) (16 )% Tax credits (54 ) (4 )% (90 ) (10 )% (81 ) (9 )% Impact of enacted tax law changes 1 (28 ) (2 )% (530 ) (59 )% — — % Other, net 34 3 % 25 3 % 35 4 % Total federal income tax expense (benefit) $ 211 15 % $ (408 ) (45 )% $ 126 14 % 1 Includes the waived $11 million of government sequestration fees and $17 million of tax benefits related to the Tax Cuts and Jobs Act for the year ended December 31, 2018. Includes the remeasurement of deferred tax assets and liabilities of $(541) million and government sequestration fees of $11 million as a result of the Act for the year ended December 31, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”) was signed into law and became effective January 1, 2018. Impacts to the Company included a reduction in the corporate tax rate from 35% to 21%, repeal of the corporate alternative minimum tax (“AMT”) and other changes to the corporate tax rules. Upon the enactment of these tax law changes, the Company remeasured deferred tax assets and liabilities and assessed its investment portfolio for impairment. As a result of the Act, the Company recognized $530 million of federal income tax benefit and immaterial net realized investment loss in the statement of operations for the year ended December 31, 2017. Additional provisions of the Act applied to taxable years beginning after December 31, 2017, but were not effective as of the enactment date. Certain of these provisions, which included a reduced dividends received deduction, may adversely affect the Company’s future effective tax rate, taxable income and income tax expense. Under the Act, the Company can continue to use AMT credit carryforwards to offset tax liability until 2021. To the extent that AMT credit carryovers exceed tax liabilities, 50% of the excess AMT credit carryovers remaining each year are refundable prior to 2021. Any remaining AMT credits will be fully refundable in 2021. As of December 31, 2017, the Company reclassified $253 million of AMT credit carryforwards, net of government sequestration fees of $11 million, as an income tax receivable. In December 2018, the taxing authority waived and the Company subsequently reversed the expense relate to the government sequestration fees on the AMT credit refund. As of In December 31, 2018, the Company had $284 million of an income tax receivable that was previously AMT credit carryforwards. As of December 31, 2017, the valuation of deferred tax assets and liabilities related to life insurance reserves based on tax reserve methodology changes in the Act reflected the Company’s best estimates and assumptions at that time. The Company recorded $134 million of provisional amounts in both deferred tax assets and deferred tax liabilities as of December 31, 2017, with no impact to net deferred tax assets. These provisional amounts were finalized as of December 31, 2018, which resulted in a $9 million decrease to the provisional amounts recorded, with no impact to net deferred tax assets. The Company’s current federal income tax receivable was $259 million and $166 million as of December 31, 2018 and 2017, respectively, and included in other assets on the consolidated balance sheet. The Company received refunds of $6 million for the year ended December 31, 2018 and made payments of $8 million and $7 million for the years ended 2017 and 2016, respectively. The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated: December 31, (in millions) 2018 2017 Deferred tax assets Future policy benefits and claims $ 544 $ 781 Tax credit carryforwards 387 350 Other 239 280 Gross deferred tax assets $ 1,170 $ 1,411 Valuation allowance (22 ) (10 ) Gross deferred tax assets, net of valuation allowance $ 1,148 $ 1,401 Deferred tax liabilities Deferred policy acquisition costs $ 1,186 $ 971 Available-for-sale 54 589 Other 211 311 Gross deferred tax liabilities $ 1,451 $ 1,871 Net deferred tax liability $ 303 $ 470 As of December 31, 2018, the Company has gross federal net operating losses of $77 million, which expire between 2019 and 2037. As of December 31, 2018, the Company had $335 million in low-income-housing In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Based on the Company’s analysis, it is more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established valuation allowances. The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties: (in millions) 2018 2017 2016 Balance at beginning of period $ 10 $ 36 $ 36 Additions for current year tax positions — 2 1 Additions for prior year tax positions (1 ) — 1 Reductions for prior years’ tax positions — (28 ) (2 ) Balance at end of period $ 9 $ 10 $ 36 The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities through the 2014 tax year. |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Statutory Financial Information | (14) Statutory Financial Information Statutory Results The Company’s life insurance subsidiaries prepare their statutory financial statements in conformity with the statutory accounting practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state departments of insurance. Olentangy was granted a permitted practice from the Commissioner of Insurance of the State of Vermont allowing Olentangy to carry the assets placed in a trust account by Union Hamilton Reinsurance Ltd. and held for the benefit of the ceding insurer under a reinsurance agreement on its statutory statements of admitted assets, liabilities and surplus at net admitted asset value with the offset to surplus. In 2018, this permitted practice increased NLAIC’s valuation of this subsidiary by $67 million and did not have an impact on NLIC’s admitted deferred tax assets. In 2017, this permitted practice increased NLAIC’s valuation of this subsidiary by $56 million and did not have an impact on NLIC’s admitted deferred tax assets. Eagle applies a prescribed practice from the State of Ohio that allows an alternative reserve basis on assumed liabilities, net of third party reinsurance, with respect to specified GMDB and GLWB obligations provided under substantially all of the variable annuity contracts issued and to be issued by NLIC. In 2018, this prescribed practice decreased NLIC’s valuation of this subsidiary by $183 million and did not have an impact on NLIC’s admitted deferred tax assets. In 2017, this prescribed practice decreased NLIC’s valuation of this subsidiary by $184 million and did not have an impact on NLIC’s admitted deferred tax assets. Statutory accounting practices focus on insurer solvency and differ materially from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves based on different actuarial assumptions, excluding certain assets from statutory admitted assets, and valuing investments and establishing deferred taxes on a different basis. The following table summarizes the statutory capital and surplus for the Company’s primary life insurance subsidiaries for the years ended: December 31, (in millions) 2018 2017 2016 Statutory net income (loss) NLIC $ 711 $ 1,039 $ 751 NLAIC 230 (277 ) (227 ) JNL 7 — N/A JNLNY — — N/A Statutory capital and surplus NLIC $ 6,845 $ 5,949 $ 5,208 NLAIC 1,468 1,340 968 JNL 43 35 N/A JNLNY 7 7 N/A Dividend Restrictions The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to notify the Ohio Superintendent of Insurance of all dividends prior to payment, and they must seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis policyholders’ surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer as of the prior December 31. During the years ended December 31, 2018, 2017 and 2016 NLIC did not make a dividend payment to NFS. As of January 1, 2019, NLIC has the ability to pay dividends to NFS totaling $711 million without obtaining prior approval. The State of Ohio insurance laws also require insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned surplus is defined under the State of Ohio insurance laws as the amount equal to the Company’s unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer’s policyholder surplus must be reasonable in relation to the insurer’s outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory profits on the Company’s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders. The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future. Regulatory Risk-Based Capital The National Association of Insurance Commissioners’ (“NAIC”) Risk-Based Capital (“RBC”) model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company’s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity, based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. NLIC, NLAIC, JNL, JNLNY, Olentangy and Eagle each exceeded the minimum RBC requirements for all periods presented. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) Related Party Transactions The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations. These include annuity and life insurance contracts, agreements related to reinsurance, cost sharing, tax sharing, administrative services, marketing, intercompany loans, intercompany repurchases, cash management services, investment management and software licensing. In addition, employees of the Company participate in several benefit plans sponsored by NMIC, for which the Company has no legal obligations. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, claims counts, policies in force, direct written premium, paid losses, pro rate share of employees or their salaries, the number of full-time employees, commission expense and other methods agreed to by the participating companies. The Company is party to a tax sharing agreement that reflects the NMIC consolidated federal return group, which includes its eligible life and non-life In addition, Nationwide Services Company, LLC (“NSC”), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed pursuant to the enterprise cost sharing agreement. For the years ended December 31, 2018, 2017 and 2016, the Company was allocated costs from NMIC and NSC totaling $361 million, $324 million and $277 million, respectively. Under the enterprise cost sharing agreement, the Company has an arrangement with NMIC to occupy office space. The Company made payments under the cost sharing agreement to NMIC of $16 million, $17 million and $19 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates. Total account values of these contracts were $3.4 billion as of December 31, 2018 and 2017. Total revenues from these contracts were $119 million, $125 million and $127 million for the years ended December 31, 2018, 2017 and 2016, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $107 million for the year ended December 31, 2018 and $111 million for the years ended 2017 and 2016. The Company may underwrite insurance policies for its employees, officers and/or directors. The Company may offer discounts on certain products that are subject to applicable state insurance laws and approvals. NLIC has a reinsurance agreement with NMIC whereby all of NLIC’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are paid to the reinsurer. Under the terms of NLIC’s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. Revenues ceded to NMIC were $257 million for the year ended December 31, 2018, $158 million for the year ended December 31, 2017 and $209 million for the year ended December 31, 2016, while benefits, claims and expenses ceded during these years were $237 million, $108 million and $185 million, respectively. Funds of Nationwide Funds Group (“NFG”), a group of Nationwide businesses that develops, sells and services mutual funds, are offered to the Company’s customers as investment options in certain of the Company’s products. As of December 31, 2018, 2017 and 2016, customer allocations to NFG funds totaled $61.6 billion, $66.7 billion and $61.4 billion, respectively. For the years ended December 31, 2018, 2017 and 2016, NFG paid the Company $230 million, $221 million and $199 million, respectively, for the distribution and servicing of these funds. Amounts on deposit with NCMC for the benefit of the Company were $1.4 billion and $1.0 billion as of December 31, 2018 and 2017, respectively. During the fourth quarter of 2018, $1.0 billion of FHLB fixed-rate advances previously held by Nationwide Trust Company, FSB (formerly Nationwide Bank), an affiliate of the Company, were transferred to the Company along with $772 million of cash, $207 million of commercial mortgage loans, $152 million of fixed maturity securities and $65 million of other investments. The advances were converted to funding agreements and are classified as future policy benefits and claims consistent with other funding agreements with the FHLB. Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates were $72 million for the years ended December 31, 2018 and 2017 and $65 million for the year ended 2016. The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC, at interest rates ranging from 3.27% to 5.00% and due dates between January 2022 and June 2038. As of December 31, 2018, 2017 and 2016, the Company had notes receivable outstanding of $321 million, $313 million and $332 million, respectively. The Company provides financing to Nationwide Advantage Mortgage Company (“NAMC”), a subsidiary of NMIC, at an interest rate of 5.57% and due date in November 2019. As of December 31, 2018, 2017 and 2016, the Company had notes receivable outstanding of $4 million, $7 million and $11 million, respectively. The Company provides financing to Nationwide Trust Company, FSB at an interest rate of LIBOR plus 0.785% and due date in March 2019. The Company had notes receivable outstanding of $165 million for the year ended December 31, 2018 and $0 for the years ended 2017 and 2016. The Company received a capital contribution from NFS of $435 million during the year ended December 31, 2018. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | (16) Contingencies Legal and Regulatory Matters The Company is subject to legal and regulatory proceedings in the ordinary course of its business. These include proceedings specific to the Company and proceedings generally applicable to business practices in the industries in which the Company operates. The outcomes of these proceedings cannot be predicted due to their complexity, scope and many uncertainties. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory proceedings is not likely to have a material adverse effect on the Company’s consolidated financial position. The Company maintains Professional Liability Insurance and Director and Officer Liability insurance policies that may cover losses for certain legal and regulatory proceedings. The Company will make adequate provision for any probable and reasonably estimable recoveries under such policies. The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS, the Office of the Comptroller and the Currency and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. With respect to all such scrutiny directed at the Company or its affiliates, the Company is cooperating with regulators. Indemnifications In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business with various third parties based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Reinsurance | (17) Reinsurance The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended: December 31, ( in millions 2018 2017 2016 Premiums Direct $ 1,057 $ 962 $ 1,011 Assumed from other companies 83 — — Ceded to other companies 1 (445 ) (329 ) (369 ) Net $ 695 $ 633 $ 642 Life, accident and health insurance in force Direct $ 303,578 $ 291,984 $ 275,404 Assumed from other companies 2 2 2 Ceded to other companies (64,852 ) (62,714 ) (61,674 ) Net $ 238,728 $ 229,272 $ 213,732 1 Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. Amounts recoverable under reinsurance contracts totaled $1.0 billion, $1.1 billion and $683 million as of December 31, 2018, 2017 and 2016, respectively, and are included in other assets in the consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (18) Segment Information Management views the Company’s business primarily based on its underlying products and uses this basis to define its business segments. During the 2017 second quarter, the Company reorganized its business segments based on the internally-aligned segment leadership structure, which is how the Company monitors results and assesses performance. The Company now has three reportable segments: Individual Products & Solutions (“IPS”), Retirement Plans and Corporate and Other. All prior period business segment results have been updated to conform to the current period presentation. The primary segment profitability measure that management uses is a financial measure called pre-tax Individual Products and Solutions IPS offers the following products: individual deferred annuity contracts, immediate annuities, and various life insurance products. Individual deferred annuity contracts offered consist of deferred variable annuity contracts, deferred fixed annuity contracts and deferred fixed indexed annuity contracts. Deferred annuity contracts provide the customer with tax-deferred tax-advantaged Retirement Plans The Retirement Plans segment is comprised of the private and public sector retirement plans businesses. The private sector business primarily includes Internal Revenue Code (“IRC”) Section 401 qualified plans funded through fixed and variable group annuity contracts issued through NLIC. The public sector business primarily includes IRC Section 457 (b) and Section 401(a) governmental plans, both in the form of full-service arrangements that provide plan administration along with fixed and variable group annuities, as well as administration-only business. Across the public and private sector business NIA managed account services are also available. The Retirement Plans segment also includes stable value wrap products and solutions. Corporate and Other The Corporate and Other segment includes the revenues and expenses associated with small business group life insurance and spread income on FHLB funding agreements. Additionally, certain non-operating The following tables summarize the Company’s business segment operating results for the years ended: (in millions) Individual Retirement Corporate Total December 31, 2018 Revenues: Policy charges $ 2,623 126 — $ 2,749 Premiums 658 — 37 695 Net investment income 1,655 835 185 2,675 Non-operating 1 — — (11 ) (11 ) Other revenues (expenses) 2 2 — 10 12 Total revenues $ 4,938 $ 961 $ 221 $ 6,120 Benefits and expenses: Interest credited to policyholder account values 3 $ 847 576 42 $ 1,465 Benefits and claims 4 1,387 — 97 1,484 Amortization of DAC 473 (4 ) (46 ) 423 Other expenses, net of deferrals 810 198 292 1,300 Total benefits and expenses $ 3,517 $ 770 $ 385 $ 4,672 Income (loss) before federal income taxes and noncontrolling interests $ 1,421 191 (164 ) $ 1,448 Less: certain non-operating 1 — — (11 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — 48 Less: net loss attributable to noncontrolling interest — — (168 ) Pre-tax $ 1,421 $ 191 $ (33 ) $ 1,448 Assets as of year end $ 131,820 $ 33,933 $ 13,325 $ 179,078 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating (in millions) Individual Retirement Corporate Total December 31, 2017 Revenues: Policy charges $ 2,428 $ 117 $ — $ 2,545 Premiums 596 — 37 633 Net investment income 1,521 835 58 2,414 Non-operating 1 — — (318 ) (318 ) Other revenues 2 1 — 9 10 Total revenues $ 4,546 $ 952 $ (214 ) $ 5,284 Benefits and expenses: Interest credited to policyholder account values 3 $ 783 $ 557 $ 36 $ 1,376 Benefits and claims 4 1,395 — 27 1,422 Amortization of DAC 332 6 54 392 Other expenses, net of deferrals 741 194 258 1,193 Total benefits and expenses $ 3,251 $ 757 $ 375 $ 4,383 Income before federal income taxes and noncontrolling interests $ 1,295 $ 195 $ (589 ) $ 901 Less: certain non-operating 1 — — (318 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — (54 ) Less: net loss attributable to noncontrolling interest — — (96 ) Pre-tax $ 1,295 $ 195 $ (121 ) Assets as of year end $ 134,326 $ 35,520 $ 11,343 $ 181,189 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating (in millions) Individual Retirement Corporate Total December 31, 2016 Revenues: Policy charges $ 2,254 $ 107 $ — $ 2,361 Premiums 605 — 37 642 Net investment income 1,337 791 11 2,139 Non-operating 1 — — (299 ) (299 ) Other revenues 2 — — 14 14 Total revenues $ 4,196 $ 898 $ (237 ) $ 4,857 Benefits and expenses: Interest credited to policyholder account values 3 $ 684 $ 531 $ 30 $ 1,245 Benefits and claims 4 1,245 — 32 1,277 Amortization of DAC 432 4 (3 ) 433 Other expenses, net of deferrals 654 181 163 998 Total benefits and expenses $ 3,015 $ 716 $ 222 $ 3,953 Income before federal income taxes and noncontrolling interests $ 1,181 $ 182 $ (459 ) $ 904 Less: certain non-operating 1 — — (299 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — 6 Less: net loss attributable to noncontrolling interest — — (91 ) Pre-tax $ 1,181 $ 182 $ (75 ) Assets as of year end $ 113,062 $ 32,239 $ 10,337 $ 155,638 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating |
Consolidated Summary of Investm
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments - Other Than Investments in Related Parties | Schedule I Consolidated Summary of Investments – Other Than Investments in Related Parties As of December 31, 2018 (in millions) Column A Column B Column C Column D Amount at which shown in the Fair consolidated Type of investment Cost value balance sheet Fixed maturity securities, available-for-sale: Bonds: U.S. government and agencies $ 459 $ 486 $ 486 Obligations of states and political subdivisions 4,026 4,293 4,293 Public utilities 5,990 5,844 5,844 All other corporate, mortgage-backed and asset-backed securities 43,323 42,714 42,714 Total fixed maturity securities $ 53,798 $ 53,337 $ 53,337 Equity securities: Common stocks: Banks, trust and insurance companies $ 12 $ 10 $ 10 Industrial, miscellaneous and all other 72 62 62 Nonredeemable preferred stocks 43 49 49 Total equity securities $ 127 $ 121 $ 121 Trading assets 66 58 Mortgage loans, net of allowance 12,418 12,379 1 Policy loans 1,015 1,015 Other investments 1,712 1,712 Short-term investments 1,892 1,892 Total investments $ 71,028 $ 70,514 1 Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans on real estate (see Note 6 to the audited consolidated financial statements), hedges and commitment hedges on mortgage loans on real estate. |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Schedule III Supplementary Insurance Information As of December 31, 2018, 2017 and 2016 and for each of the years then ended (in millions) Column A Column B Column C Column D Column E Column F Deferred policy Future policy benefits, Other policy acquisition losses, claims and Unearned claims and Premium Year: Segment costs loss expenses premiums 1 benefits payable 1 revenue 2018 IPS $ 6,417 $ 43,513 $ 658 Retirement Plans 252 19,648 — Corporate and Other 161 2,913 37 Total $ 6,830 $ 66,074 $ 695 2017 IPS $ 5,922 $ 38,510 $ 596 Retirement Plans 235 18,773 — Corporate and Other (481 ) 2,602 37 Total $ 5,676 $ 59,885 $ 633 2016 IPS $ 5,390 $ 32,621 $ 605 Retirement Plans 229 17,443 — Corporate and Other (187 ) 2,847 37 Total $ 5,432 $ 52,911 $ 642 Column A Column G Column H Column I Column J Column K Net Benefits, claims, Amortization Other investment losses and of deferred policy operating Premiums Year: Segment income 2 settlement expenses acquisition costs expenses 2 written 2018 IPS $ 1,655 $ 1,914 $ 473 810 Retirement Plans 835 576 (4 ) 198 Corporate and Other 185 139 (46 ) 292 Total $ 2,675 $ 2,629 $ 423 $ 1,300 2017 IPS $ 1,521 $ 2,507 $ 332 741 Retirement Plans 835 557 6 194 Corporate and Other 58 63 54 258 Total $ 2,414 $ 3,127 $ 392 $ 1,193 2016 IPS $ 1,337 $ 2,111 $ 432 654 Retirement Plans 791 531 4 181 Corporate and Other 11 62 (3 ) 163 Total $ 2,139 $ 2,704 $ 433 $ 998 1 Unearned premiums and other policy claims and benefits payable are included in Column C amounts. 2 Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates and reported segment operating results would change if different methods were applied. |
Reinsurance_2
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | Schedule IV Reinsurance As of December 31, 2018, 2017 and 2016 and for each of the years then ended (in millions) Column A Column B Column C Column D Column E Ceded to Assumed Gross other from other Net amount companies companies amount 2018 Life, accident and health insurance in force $ 303,578 $ (64,852 ) $ 2 $ 238,728 Premiums: Life insurance 1 $ 756 $ (61 ) $ — $ 695 Accident and health insurance 300 (383 ) 83 — Total $ 1,056 $ (444 ) $ 83 $ 695 2017 Life, accident and health insurance in force $ 291,984 $ (62,714 ) $ 2 $ 229,272 Premiums: Life insurance 1 $ 700 $ (67 ) $ — $ 633 Accident and health insurance 262 (262 ) — — Total $ 962 $ (329 ) $ — $ 633 2016 Life, accident and health insurance in force $ 275,404 $ (61,674 ) $ 2 $ 213,732 Premiums: Life insurance 1 $ 698 $ (56 ) $ — $ 642 Accident and health insurance 313 (313 ) — — Total $ 1,011 $ (369 ) $ — $ 642 1 Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule V Valuation and Qualifying Accounts Years ended December 31, 2018, 2017 and 2016 (in millions) Column A Column B Column C Column D Column E Balance at Charged to Charged to Balance at beginning costs and other end of Description of period expenses accounts Deductions 1 period 2018 Valuation allowances - mortgage loans $ 34 $ 9 $ — $ (4 ) $ 39 2017 Valuation allowances - mortgage loans $ 32 $ 6 $ — $ (4 ) $ 34 2016 Valuation allowances - mortgage loans $ 26 $ 8 $ — $ (2 ) $ 32 1 Amounts generally represent payoffs, sales and recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”). All intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), legal and regulatory reserves, certain investment and derivative valuations, certain future policy benefits and claims, goodwill, provision for income taxes and valuation of net deferred tax assets. Actual results could differ significantly from those estimates. |
Revenues and Benefits | Revenues and Benefits Investment and universal life insurance products. Traditional life insurance products. |
Future Policy Benefits and Claims | Future Policy Benefits and Claims The liability for future policy benefits and claims is primarily comprised of policyholder account balances. The assumptions and methods used in calculating the portion of the liability that does not represent the policyholder account balances depend on the type of product. Investment and universal life insurance products. The Company offers guarantees on variable and fixed indexed annuity products, which can include a return of no less than the total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date less any customer withdrawals following the contract anniversary. These guarantees can also include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. As part of its valuation procedures, the Company makes an assumption of the expected utilization of guarantee benefits by participants. Guarantees that include a benefit that is wholly life contingent are accounted for as insurance liabilities that accumulate over time. Guarantees that are expected to be exercised using a net settlement option are accounted for as embedded derivatives, which are required to be separated and valued apart from the host variable annuity contracts. Guaranteed minimum death benefits (“GMDB”) and certain guaranteed living withdrawal benefits (“GLWB”) on variable annuity and fixed indexed annuity products, as well as no-lapse Certain GLWB that are expected to net settle on variable annuity products represent embedded derivatives which are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in results of operations as a component of net realized investment gains and losses. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous, unobservable assumptions including, but not limited to, mortality, lapse rates, index volatility, benefit utilization and discounting. Benefit utilization includes a wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible) and efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes). Discounting includes liquidity and non-performance The Company offers certain indexed life insurance and annuity products for which the policyholders’ interest credits are based on market performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated and valued apart from the host contracts. The embedded derivatives are held at fair value. Subsequent changes in the fair value of the embedded derivatives are recognized in results of operations as a component of interest credited to policyholder account values. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous unobservable assumptions including, but not limited to, mortality, lapse rates and index volatility. The assumptions used to calculate the fair value of embedded derivatives are based on actual experience and industry data and are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. Traditional life and other insurance products. in-force The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method, with a weighted average interest rate of 6.6% for the years ended December 31, 2018 and 2017 and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued, with a provision for adverse deviation. The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses, discounted using weighted average interest rates of 4.7% and 4.8% for the years ended December 31, 2018 and 2017, respectively, with a provision for adverse deviation. The Company offers certain short duration traditional insurance, consisting primarily of accident and health contracts. These short duration insurance contracts are subject to an internal modified coinsurance treaty where activity including premiums, investment income, losses paid and adjustments to reserves, dividends paid and expenses incurred are ceded from NLIC to NMIC. The Company’s reserve for short duration contracts was $137 million and $70 million as of December 31, 2018 and 2017, respectively. Advances under FHLB funding agreements |
Reinsurance Ceded | Reinsurance Ceded The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. The Company obtains reinsurance from a diverse group of reinsurers and monitors concentration as well as financial strength ratings of the reinsurers to minimize counterparty credit risk. Such agreements do not relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. On an ongoing basis, the Company monitors the financial condition of reinsurers. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company. Amounts recoverable from reinsurers are estimated in a manner consistent with future policy benefits and claims reserves. The Company reports its reinsurance recoverables net of any allowance for estimated uncollectible reinsurance recoverables, if deemed necessary. The Company’s consideration is based upon ongoing reviews of amounts outstanding, changes in reinsurer credit standings and other relevant factors. Under the terms of contracts held with certain unaffiliated reinsurers, specified assets have been placed in trusts as collateral for the recoveries. The trust assets are invested in investment grade securities, the fair value of which must at all times be greater than or equal to 100% of the reinsured reserves, as outlined in the underlying reinsurance contracts. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The Company has deferred certain costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product. Investment and universal life insurance products. available-for-sale The assumptions used in the estimation of gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual comprehensive study of assumptions. The most significant assumptions that are involved in the estimation of future gross profits include future net general and separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years, such that the separate account mean return, measured through the end of the life of the product, equals the long-term assumption. The Company’s long-term assumption for net separate account investment performance is approximately 6.3% growth per year as of December 31, 2018. Changes in assumptions can have a significant impact on the amount of DAC reported for investment and universal life insurance products and on their related amortization patterns. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC amortization expense at the time such assessment is made, which could be significant. Traditional life insurance products. premium-paying Refer to Note 5 for discussion regarding DAC amortization and related balances. |
Investments | Investments Available-for-sale . Available-for-sale available-for-sale As of December 31, 2018 and 2017, 99% of fixed maturity securities were priced using externally sourced data. Independent pricing services are most often utilized (85% as of December 31, 2018 and 2017), and compared to pricing from additional sources, to determine the fair value of securities for which market quotations or quotations on comparable securities are available. For these securities, the Company obtains the pricing services’ methodologies and classifies the investments accordingly in the fair value hierarchy. A corporate pricing matrix is used in valuing certain corporate debt securities. The corporate pricing matrix was developed using publicly and privately available spreads for privately placed corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using this matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security. Non-binding When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income in the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. As of December 31, 2018 and 2017, cash collateral received was $195 million and $313 million, respectively. Additionally, the Company may receive non-cash off-balance off-balance available-for-sale For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method, based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments. The Company periodically reviews its available-for-sale In assessing corporate debt securities for other-than-temporary impairment (“OTTI”), the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. government and agencies and obligations of states and political subdivisions securities for OTTI by examining similar characteristics. Mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value Certain asset-backed securities are assessed for impairment using expected cash flows based on various inputs, including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research. The Company evaluates its intent to sell on an individual security basis. OTTI losses on securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis are bifurcated, with the credit related portion of the impairment loss being recognized in results of operations and the non-credit The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance. The Company’s potential loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets. Mortgage loans, net of allowance . held-for-investment As part of the underwriting process, specific guidelines are followed to ensure the initial quality of each new mortgage loan. Third-party appraisals are obtained to support loaned amounts, as the loans are usually collateral dependent. The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral. The Company’s commercial mortgage loans are typically structured with balloon payment maturities, exposing the Company to risks associated with the borrower’s ability to make the balloon payment or refinance the property. Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and either the fair value of the collateral less costs to sell or the present value of expected future cash flows, discounted at the loan’s effective interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses. In the event a loan-specific reserve charge is reversed, the recovery is also recorded in net realized investment gains and losses. In addition to the loan-specific reserves, the Company maintains a non-specific non-specific Non-specific Management evaluates the credit quality of individual commercial mortgage loans and the portfolio as a whole through a number of loan quality measurements, including but not limited to LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. These loan quality measurements contribute to management’s assessment of relative credit risk in the commercial mortgage loan portfolio. Based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible. This process identifies the risk profile and potential for loss individually and in the aggregate for the commercial mortgage loan portfolios. These factors are updated and evaluated at least annually. Interest income on performing mortgage loans is recognized in net investment income over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual non-accrual Policy loans. Short-term investments. Other investments. mark-to-market The Company holds alternative investments as described above and applies the equity method of accounting to these investments as it does not have a controlling financial interest. The Company recognizes income or losses from equity method investments in net investment income. These equity method investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. The Company’s unfunded commitments related to alternative investments were $750 million and $787 million as of December 31, 2018 and 2017, respectively. The carrying value of alternative investments was $797 million and $582 million as of December 31, 2018 and 2017, respectively. In the normal course of business, the Company has relationships with VIEs. If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE. This determination is based on a review of the entity’s contract and other deal-related information, such as the entity’s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. Consolidated VIEs are primarily made up of tax credit funds whereby the Company serves as the managing member and has guaranteed after-tax after-tax after-tax after-tax Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $821 million and $738 million as of December 31, 2018 and 2017, respectively, and are included within the consolidated balance sheets primarily as other investments of $757 million, other assets of $369 million and other liabilities of $335 million as of December 31, 2018, and other investments of $680 million, other assets of $189 million and other liabilities of $158 million as of December 31, 2017. The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs. The results of operations and financial positions of each VIE for which the Company is the primary beneficiary, as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Losses attributable to noncontrolling interests are excluded from the net income attributable to the Company on the consolidated statements of operations. The Company is not required and does not intend to provide financial or other support outside of contractual requirements to any VIE. |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and foreign currency. These derivative instruments primarily include swaps, futures contracts and options. All derivative instruments are held at fair value and are reflected as other assets or liabilities in the consolidated balance sheets. The fair value of derivative instruments is determined using various valuation techniques relying predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding For derivatives that are not designated for hedge accounting, the unrealized and realized gains or losses are recognized in net realized investment gains and losses. For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into results of operations in the same period or periods that the hedged transaction impacts results of operations. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses. The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the forms of cash and marketable securities. Non-cash off-balance |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods, including market, income and cost approaches. The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety. The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows: Level 1. Level 2. Level 3. The Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in the observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs. Fair Value Option. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with original maturities of less than three months. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price or fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually or on an interim basis, in addition to the annual evaluation, if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will calculate implied goodwill. Goodwill is impaired at the reporting unit level if its carrying value exceeds the implied value of its goodwill. The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and results of operations, and the selection of comparable companies used to develop market-based assumptions. The carrying value of goodwill was $269 million as of December 31, 2018 and 2017 and is included in other assets in the consolidated balance sheets. There were no impairments or additions to goodwill for the year ended December 31, 2018. There were no impairments to goodwill and total additions to goodwill were $69 million for the year ended December 31, 2017. Indefinite-lived intangibles are evaluated for impairment annually in conjunction with the Goodwill impairment test and were immaterial as of December 31, 2018 and 2017. All other intangibles are amortized over the useful life of the intangible asset and are monitored for indicators of impairment. All other intangibles totaled $255 million and $267 million as of December 31, 2018 and 2017, respectively. |
Separate Accounts | Separate Accounts Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are recorded at fair value, with the value of separate account liabilities set to equal the fair value of separate account assets. Separate account assets are primarily comprised of public, privately-registered and non-registered |
Federal Income Taxes | Federal Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expenses. The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant. Tax reserves are reviewed regularly and are adjusted as events occur that the Company believes impact its liability for additional taxes, such as the lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related The Company files with the NMIC consolidated federal income tax return. |
Subsequent Events | Subsequent Events The Company evaluated subsequent events through February 27, 2019, the date the consolidated financial statements were issued. |
Jefferson National Financial Corp [Member] | |
Jefferson National Financial Corp Acquisition | Jefferson National Financial Corp Acquisition On March 1, 2017, the Company completed its acquisition of JNF. The Company acquired 100% of the stock of JNF for a total consideration of $201 million in cash. As a result of the acquisition, JNF and its subsidiaries became wholly-owned subsidiaries of Nationwide. JNF, based in Louisville, Kentucky, is a distributor of tax-advantaged fee-based The determination of fair value of assets acquired, liabilities assumed and purchase consideration reflects the Company’s estimates and assumptions. The following table summarizes the fair value of consideration exchanged in the acquisition of JNF: (in millions) Total assets acquired $ 5,522 Total liabilities assumed (5,321 ) Total consideration $ 201 As a result of the JNF acquisition, the Company recognized goodwill of $69 million, representing the excess of fair value of consideration exchanged over the fair values of tangible assets acquired, liabilities assumed and separately identified intangible assets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair value of consideration exchanged in the acquisition of JNF: (in millions) Total assets acquired $ 5,522 Total liabilities assumed (5,321 ) Total consideration $ 201 |
Long-Duration Contracts (Tables
Long-Duration Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Summary of Information Regarding Variable Annuity Contracts with Guarantees Invested in General and Separate Accounts | The following table summarizes information regarding variable annuity contracts with GMDB and GLWB invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees): December 31, 2018 December 31, 2017 (in millions) General Separate Net 1 Average 2 General Separate Net 1 Average 2 Contracts with GMDB: Return of net deposits $ 793 $ 30,276 $ 228 67 $ 842 $ 32,313 $ 16 67 Minimum return or anniversary contract value 1,660 28,473 2,164 72 1,764 33,337 347 71 Total contracts with GMDB $ 2,453 $ 58,749 $ 2,392 70 $ 2,606 $ 65,650 $ 363 69 Total contracts with GLWB: (Minimum return or anniversary contract value) $ 63 $ 35,499 $ 330 68 $ 84 $ 39,183 $ 104 68 1 Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit). 2 Represents the weighted average attained age of contractholders at the respective date. |
Summary of Reserve Balances for Variable Annuity Contracts with Guarantees | The following table summarizes the reserve balances for the primary guarantees on variable annuity contracts, as of the dates indicated: December 31, (in millions) 2018 2017 GMDB $ 223 $ 164 GLWB $ 554 $ 300 |
Summary of Account Balances of Deferred Variable Annuity | The following table summarizes the account balances of variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated: December 31, (in millions) 2018 2017 Mutual funds: Bond $ 6,876 $ 7,167 Domestic equity 47,554 53,617 International equity 3,235 3,874 Total mutual funds $ 57,665 $ 64,658 Money market funds 1,084 992 Total 1 $ 58,749 $ 65,650 1 Excludes $38.3 billion and $40.0 billion as of December 31, 2018 and 2017, respectively, of separate account assets not related to variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products. |
Summary of Information Regarding Universal and Variable Universal Life Insurance Contracts with No Lapse Guarantees Invested in General and Separate Accounts | The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse (in millions) General Separate Adjusted 1 Average 2 December 31, 2018 $ 4,290 $ 2,021 $ 68,466 50 December 31, 2017 $ 3,637 $ 2,350 $ 61,489 51 1 The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value and reinsurance. 2 Represents the weighted average attained age of contractholders at the respective date. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | The following table summarizes changes in the DAC balance, as of the dates indicated: December 31, (in millions) 2018 2017 2016 Balance at beginning of year $ 5,676 $ 5,432 $ 5,200 Capitalization of DAC 942 923 823 Amortization of DAC, excluding unlocks (440 ) (461 ) (412 ) Amortization of DAC related to unlocks 17 69 (21 ) Adjustments to DAC related to unrealized gains and losses on available-for-sale 635 (287 ) (158 ) Balance at end of year $ 6,830 $ 5,676 $ 5,432 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Available-for-Sale Securities | The following table summarizes the amortized cost, unrealized gains and losses and fair value of available-for-sale (in millions) Amortized Unrealized Unrealized Fair December 31, 2018 Fixed maturity securities: U.S. government and agencies $ 459 $ 28 $ 1 $ 486 Obligations of states and political subdivisions 4,026 290 23 4,293 Corporate securities 41,991 645 1,403 41,233 Residential mortgage-backed securities 2,797 65 39 2,823 Commercial mortgage-backed securities 1,731 9 19 1,721 Asset-backed securities 2,794 34 47 2,781 Total available-for-sale $ 53,798 $ 1,071 $ 1,532 $ 53,337 December 31, 2017 Fixed maturity securities: U.S. government and agencies $ 358 $ 39 $ 1 $ 396 Obligations of states and political subdivisions 3,433 414 2 3,845 Corporate securities 37,643 2,018 220 39,441 Residential mortgage-backed securities 2,788 107 23 2,872 Commercial mortgage-backed securities 1,154 13 6 1,161 Asset-backed securities 2,466 44 24 2,486 Total fixed maturity securities $ 47,842 $ 2,635 $ 276 $ 50,201 Equity securities 1 73 10 4 79 Total available-for-sale $ 47,915 $ 2,645 $ 280 $ 50,280 1 As disclosed within Note 3, the Company adopted ASU 2016-01 |
Summary of Amortized Cost and Fair Value of Fixed Maturity Securities | Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties. (in millions) Amortized Fair Fixed maturity securities: Due in one year or less $ 1,644 $ 1,688 Due after one year through five years 11,360 11,371 Due after five years through ten years 17,066 16,641 Due after ten years 16,406 16,312 Subtotal $ 46,476 $ 46,012 Residential mortgage-backed securities 2,797 2,823 Commercial mortgage-backed securities 1,731 1,721 Asset-backed securities 2,794 2,781 Total fixed maturity securities $ 53,798 $ 53,337 |
Summary of Components of Net Unrealized Gains and Losses on Available-for-Sale Securities | The following table summarizes the components of net unrealized gains and losses, as of the dates indicated: December 31, 2018 2017 Net unrealized (losses) gains on available-for-sale 1 $ (461 ) $ 2,365 Adjustment to DAC and other expenses 161 (478 ) Adjustment to future policy benefits and claims (10 ) (103 ) Adjustment to policyholder dividend obligation (21 ) (88 ) Deferred federal income tax benefit (expense) 71 (593 ) Cumulative effect of adoption of accounting principle 2 — 232 Net unrealized (losses) gains on available-for-sale $ (260 ) $ 1,335 1 Includes net unrealized gains of $37 million and $38 million as of December 31, 2018 and 2017, respectively, related to the non-credit 2 Represents impact of reclassifying AOCI related to available-for-sale |
Summary of Change in Net Unrealized Gains and Losses on Available for Sale Securities | The following table summarizes the change in net unrealized gains and losses reported in AOCI, for the years ended: (in millions) December 31, 2018 2017 Balance at beginning of year $ 1,335 $ 553 Cumulative effect of adoption of accounting principle 1 (7 ) — Adjusted balance at beginning of year $ 1,328 $ 553 Unrealized (losses) gains arising during the year: Net unrealized (losses) gains on available-for-sale (2,818 ) 1,191 Non-credit (1 ) 37 Net adjustment to DAC and other expense 639 (287 ) Net adjustment to future policy benefits and claims 93 (35 ) Net adjustment to policyholder dividend obligations 67 (14 ) Related federal income tax expense (benefit) 432 (318 ) Unrealized (losses) gains on available-for-sale $ (1,588 ) $ 574 Less: Reclassification adjustment for net realized gains and credit-related OTTI on available-for-sale — 24 Change in net unrealized (losses) gains on available-for-sale $ (1,588 ) $ 550 Cumulative effect of adoption of accounting principle 2 — 232 Balance at end of year $ (260 ) $ 1,335 1 The Company recognized a cumulative-effect adjustment on January 1, 2018 related to the adoption of ASU 2016-01, 2 Represents impacts of reclassifying accumulated other comprehensive income related to available-for-sale |
Summary of Available for Sale Securities by Asset Class in Gross Unrealized Loss Position | The following table summarizes, by asset class, available-for-sale Less than or equal to one year More than one year Total (in millions) Fair Unrealized Fair Unrealized Unrealized 1 December 31, 2018 Fixed maturity securities: U.S. government and agencies $ 55 $ — $ 31 $ 1 $ 1 Obligations of states and political subdivisions 843 16 166 7 23 Corporate securities 20,640 847 6,452 556 1,403 Residential mortgage-backed securities 652 8 673 31 39 Commercial mortgage-backed securities 614 8 403 11 19 Asset-backed securities 2,135 27 222 20 47 Total 2 $ 24,939 $ 906 $ 7,947 $ 626 $ 1,532 December 31, 2017 Fixed maturity securities: U.S. government and agencies $ 53 $ 1 $ — $ — $ 1 Obligations of states and political subdivisions 77 — 111 2 2 Corporate securities 3,363 37 4,058 183 220 Residential mortgage-backed securities 370 3 433 20 23 Commercial mortgage-backed securities 307 2 127 4 6 Asset-backed securities 254 1 82 23 24 Total fixed maturity securities $ 4,424 $ 44 $ 4,811 $ 232 $ 276 Equity securities 3 12 2 30 2 4 Total 2 $ 4,436 $ 46 $ 4,841 $ 234 $ 280 1 As of December 31, 2018 and 2017, there were $145 million and $67 million, respectively, of unrealized losses related to available-for-sale 2 Represents 2,427 and 775 available-for-sale 3 As disclosed within Note 3, the Company adopted ASU 2016-01 |
Summary of Amortized Cost of Mortgage Loans | The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated: (in millions) December 31, 2018 December 31, 2017 Commercial Residential Total 1 Commercial Residential Total 1 Amortized cost: Loans with non-specific $ 12,417 $ 1 $ 12,418 $ 10,963 $ — $ 10,963 Total amortized cost $ 12,417 $ 1 $ 12,418 $ 10,963 $ — $ 10,963 Valuation allowance: Non-specific $ 39 $ — $ 39 $ 34 $ — $ 34 Total valuation allowance 2 $ 39 $ — $ 39 $ 34 $ — $ 34 Mortgage loans, net of allowance $ 12,378 $ 1 $ 12,379 $ 10,929 $ — $ 10,929 1 The company did not hold any loans with specific reserves as of December 31, 2018 and 2017. 2 Changes in the valuation allowance are primarily due to portfolio growth and current period provisions. These changes for the years ended December 31, 2018 and 2017 were immaterial. |
Summary of LTV Ratio and DSC Ratios of Mortgage Loan Portfolio | The following table summarizes the LTV and DSC ratios of the mortgage loan portfolio, as of the dates indicated: LTV ratio DSC ratio (in millions) Less than 90% or Total Greater than Less than Total December 31, 2018 Apartment $ 4,550 $ 116 $ 4,666 $ 4,644 $ 22 $ 4,666 Industrial 1,881 10 1,891 1,887 4 1,891 Office 2,193 — 2,193 2,184 9 2,193 Retail 3,298 6 3,304 3,302 2 3,304 Other 363 — 363 363 — 363 Total $ 12,285 $ 132 $ 12,417 $ 12,380 $ 37 $ 12,417 Weighted average DSC ratio 2.06 1.48 2.06 n/a n/a n/a Weighted average LTV ratio n/a n/a n/a 58 % 82 % 58 % December 31, 2017 Apartment $ 4,102 $ 102 $ 4,204 $ 4,181 $ 23 $ 4,204 Industrial 1,573 10 1,583 1,582 1 1,583 Office 1,752 — 1,752 1,738 14 1,752 Retail 2,995 4 2,999 2,996 3 2,999 Other 425 — 425 425 — 425 Total $ 10,847 $ 116 $ 10,963 $ 10,922 $ 41 $ 10,963 Weighted average DSC ratio 2.06 1.31 2.05 n/a n/a n/a Weighted average LTV ratio n/a n/a n/a 59 % 81 % 59 % |
Summary of Net Investment Income by Investment Type | The following table summarizes net investment income, by investment type, for the years ended: (in millions) December 31, 2018 2017 2016 Fixed maturity securities, available-for-sale $ 2,116 $ 1,982 $ 1,781 Mortgage loans 503 450 407 Alternative investments 42 23 8 Policy loans 59 41 52 Other 50 27 21 Gross investment income $ 2,770 $ 2,523 $ 2,269 Tax credit fund losses 1 (27 ) (44 ) (68 ) Investment expenses (68 ) (65 ) (62 ) Net investment income $ 2,675 $ 2,414 $ 2,139 1 Represents losses on tax credit funds accounted for under the equity method of accounting. Tax benefits on these tax credit funds are recorded in federal income tax benefit. |
Net Realized Investment Gains and Losses | The following table summarizes net realized investment gains and losses, including OTTI, by source, for the years ended: (in millions) December 31, 2018 2017 2016 Realized gains on sales 1 $ 12 $ 53 $ 50 Realized losses on sales 1 (10 ) (16 ) (90 ) Net realized derivative losses (309 ) (9 ) (42 ) Valuation losses and other 2 (30 ) (5 ) (3 ) OTTI losses 3,4 (3 ) (11 ) (26 ) Net realized investment (losses) gains $ (340 ) $ 12 $ (111 ) 1 Gross gains of $12 million, $52 million and $49 million and gross losses of $10 million, $11 million and $89 million were realized on sales of available-for-sale 2 As disclosed within Note 3, the Company adopted ASU 2016-01 3 OTTI on fixed maturity securities excludes non-credit 4 Includes impairments on alternative investment tax credit funds due to corporate tax rate reductions set forth in the Tax Cuts and Jobs Act during the year ended December 31, 2017. |
Other-Than-Temporary Impairment Losses | The following table summarizes the reconciliation of the beginning and ending cumulative credit losses for fixed maturity securities as of dates indicated: (in millions) December 31, 2018 2017 2016 Cumulative credit losses at beginning of year 1 $ (170 ) $ (195 ) $ (224 ) New credit losses — (3 ) (22 ) Incremental credit losses (2 ) (2 ) — Losses related to securities included in the beginning balance sold or paid down during the period 17 30 51 Cumulative credit losses at end of year 1 $ (155 ) $ (170 ) $ (195 ) 1 Cumulative credit losses are defined as amounts related to the Company’s credit portion of the OTTI losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Instruments | The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated: December 31, 2018 December 31, 2017 Derivative assets Derivative liabilities Derivative assets Derivative liabilities (in millions) Fair value Notional Fair value Notional Fair value Notional 1 Fair value Notional 1 Derivatives designated and qualifying as hedging instruments $ 129 $ 1,459 $ 46 $ 794 $ 60 $ 654 $ 93 $ 1,127 Derivatives not designated as hedging instruments: Interest rate contracts $ — $ 446 $ 1 $ 42 $ 25 $ 2,131 $ 73 $ 2,336 Equity contracts 438 19,984 — 641 1,070 15,738 — 2,081 Other derivative contracts — — 13 — — — 12 2 Total derivatives 1,2 $ 567 $ 21,889 $ 60 $ 1,477 $ 1,155 $ 18,523 $ 178 $ 5,546 1 Fair value balance excludes immaterial accrued interest on derivative assets and liabilities for December 31, 2018 and 2017. 2 Excludes embedded derivatives included in future policy benefits and claims on the consolidated balance sheets of $627 million and $984 million as of December 31, 2018 and December 31, 2017, respectively. |
Summary of Realized Gains and Losses for Derivative Instruments | The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended: December 31, (in millions) 2018 2017 2016 Derivatives instruments Interest rate contracts $ 30 $ (9 ) $ 13 Equity contracts (329 ) (25 ) (81 ) Other derivative contracts (8 ) 2 8 Net interest settlements (2 ) (9 ) (2 ) Total derivative losses $ (309 ) $ (41 ) $ (62 ) Change in embedded derivative liabilities and related fees 1 — 32 20 Net realized derivative losses $ (309 ) $ (9 ) $ (42 ) 1 Excludes the change in embedded derivatives recognized in interest credited to policyholder account values in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 of $(380) million, $646 million and $276 million, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2018: (in millions) Level 1 Level 2 Level 3 Total Assets Investments: Fixed maturity securities, available-for-sale: U.S. government and agencies $ 485 $ — $ 1 $ 486 Obligations of states and political subdivisions 53 4,235 5 4,293 Corporate securities — 40,345 888 41,233 Residential mortgage-backed securities 1,505 1,318 — 2,823 Commercial mortgage-backed securities — 1,721 — 1,721 Asset-backed securities — 2,646 135 2,781 Total fixed maturity securities, available-for-sale, $ 2,043 $ 50,265 $ 1,029 $ 53,337 Other investments at fair value 1 878 1,195 5 2,078 Investments at fair value $ 2,921 $ 51,460 $ 1,034 $ 55,415 Derivative instruments - assets — 129 438 567 Separate account assets 2 94,259 1,328 80 95,667 Assets at fair value $ 97,180 $ 52,917 $ 1,552 $ 151,649 Liabilities Future policy benefits and claims 3 $ — $ — $ 627 $ 627 Derivative instruments - liabilities — 46 14 60 Liabilities at fair value $ — $ 46 $ 641 $ 687 1 Includes short-term investments, equity securities and trading securities of $1.9 billion, $121 million and $67 million, respectively. 2 Excludes $1.4 billion of separate account assets that use net asset value (“NAV”) as a practical expedient to estimate fair value. 3 Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2017: (in millions) Level 1 Level 2 Level 3 Total Assets Investments: Fixed maturity securities, available-for-sale: U.S. government and agencies $ 395 $ — $ 1 $ 396 Obligations of states, political subdivisions and foreign governments 60 3,780 5 3,845 Corporate securities — 38,529 912 39,441 Residential mortgage-backed securities 1,190 1,682 — 2,872 Commercial mortgage-backed securities — 1,161 — 1,161 Asset-backed securities — 2,342 144 2,486 Total fixed maturity securities, available-for-sale, $ 1,645 $ 47,494 $ 1,062 $ 50,201 Other investments at fair value 1 401 1,157 14 1,572 Investments at fair value $ 2,046 $ 48,651 $ 1,076 $ 51,773 Derivative instruments - assets — 85 1,070 1,155 Separate account assets 2 103,532 1,365 61 104,958 Assets at fair value $ 105,578 $ 50,101 $ 2,207 $ 157,886 Liabilities Future policy benefits and claims 3 $ — $ — $ 984 $ 984 Derivative instruments - liabilities — 166 12 178 Liabilities at fair value $ — $ 166 $ 996 $ 1,162 1 Primarily includes short-term investments, equity securities and trading securities of $1.4 billion, $79 million and $74 million, respectively. 2 Excludes $649 million of separate account assets that use NAV as a practical expedient to estimate fair value. 3 Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. |
Fair Value Measurements of Unobservable Inputs | The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2018: (in millions) Level 1 Level 2 Level 3 Total Assets Investments: Fixed maturity securities, available-for-sale: U.S. government and agencies $ 485 $ — $ 1 $ 486 Obligations of states and political subdivisions 53 4,235 5 4,293 Corporate securities — 40,345 888 41,233 Residential mortgage-backed securities 1,505 1,318 — 2,823 Commercial mortgage-backed securities — 1,721 — 1,721 Asset-backed securities — 2,646 135 2,781 Total fixed maturity securities, available-for-sale, $ 2,043 $ 50,265 $ 1,029 $ 53,337 Other investments at fair value 1 878 1,195 5 2,078 Investments at fair value $ 2,921 $ 51,460 $ 1,034 $ 55,415 Derivative instruments - assets — 129 438 567 Separate account assets 2 94,259 1,328 80 95,667 Assets at fair value $ 97,180 $ 52,917 $ 1,552 $ 151,649 Liabilities Future policy benefits and claims 3 $ — $ — $ 627 $ 627 Derivative instruments - liabilities — 46 14 60 Liabilities at fair value $ — $ 46 $ 641 $ 687 1 Includes short-term investments, equity securities and trading securities of $1.9 billion, $121 million and $67 million, respectively. 2 Excludes $1.4 billion of separate account assets that use net asset value (“NAV”) as a practical expedient to estimate fair value. 3 Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2018: (in millions) Fixed 2 Other Derivative 3 Separate Total assets Liabilities at 3 Balance as of December 31, 2017 $ 1,062 $ 14 $ 1,070 $ 61 $ 2,207 $ 996 Net (losses) gains In operations 1 (1 ) — (489 ) 19 (471 ) (355 ) In other comprehensive income (34 ) — — — (34 ) — Purchases 84 3 376 — 463 — Sales (168 ) — (519 ) — (687 ) — Transfers into Level 3 118 — — — 118 — Transfers out of Level 3 (32 ) (12 ) — — (44 ) — Balance as of December 31, 2018 $ 1,029 $ 5 $ 438 $ 80 $ 1,552 $ 641 1 Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was ($357) million for future policy benefits and claims, ($302) million for derivative assets, and $2 million for derivative liabilities. 2 Non-binding 3 Non-binding |
Summary of Significant Unobservable Inputs Used for Fair Value Measurements for Living Benefits Liabilities | The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities, included in future policy benefits and claims and classified as Level 3 as of December 31, 2018: Unobservable Inputs Range Mortality 0.1% - 10% 3 Lapse 0% - 35% 4 Wait period 0 yrs - 30 yrs 5 Efficiency of benefit utilization 1 60% - 100% 6 Discount rate 2 See note 2 below Index volatility 15% - 25% 1 The unobservable input is not applicable to GMABs. 2 Incorporates the liquidity and non-performance non-performance 3 Represents the mortality for the majority of business with living benefits, with policyholder issue ages ranging from 45 to 85. 4 Certain scenarios could drive dynamic lapses outside of the specified range. The range shown represents lapses for the vast majority of scenarios. 5 A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period. 6 A portion of the contractholders could withdraw more than the benefit guarantee allows. For these policies, the excess withdrawals are assumed to be temporary before reverting back to 100% utilization. |
Summary of Significant Unobservable Inputs Used for Fair Value Measurements for Indexed Universal Life Equity Indexed Products | The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life and indexed annuity products classified as Level 3 as of December 31, 2018: Unobservable Inputs Range Mortality 0% - 5%¹ Lapse 0% - 10% Index volatility 15% -25% 2 1 Represents the mortality for the majority of business, with policyholder issue ages ranging from 0 to 80. 2 Certain managed volatility indices utilize a 5% index volatility. |
Summary of Carrying Value and Fair Value of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated. The valuation techniques used to estimate these fair values are described below. December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair (in millions) value value Level 2 Level 3 value value Level 2 Level 3 Assets Investments: Mortgage loans, net of allowance $ 12,379 $ 12,167 $ — $ 12,167 $ 10,929 $ 10,876 $ — $ 10,876 Policy loans $ 1,015 $ 1,015 $ — $ 1,015 $ 1,030 $ 1,030 $ — $ 1,030 Other investments $ 84 $ 84 $ — $ 84 $ 78 $ 78 $ — $ 78 Liabilities Investment contracts $ 42,094 $ 40,113 $ — $ 40,113 $ 36,746 $ 34,711 $ — $ 34,711 Short-term debt $ 407 $ 407 $ — $ 407 $ — $ — $ — $ — Long-term debt $ 771 $ 999 $ 927 $ 71 $ 793 $ 1,070 $ 977 $ 93 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Value of Goodwill by Segment | The following table summarizes changes in the carrying value of goodwill by segment for the years indicated: (in millions) Retirement Individual Total Balance as of December 31, 2016 1 $ 25 $ 175 $ 200 Adjustments — 69 69 Balance as of December 31, 2017 1 $ 25 $ 244 $ 269 Adjustments — — — Balance as of December 31, 2018 1 $ 25 $ 244 $ 269 1 The goodwill balances have not been previously impaired. |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Summary of Financial Information for Closed Block | The following table summarizes financial information for the closed block, as of the dates indicated: December 31, (in millions) 2018 2017 Liabilities: Future policyholder benefits $ 1,533 $ 1,571 Policyholder funds and accumulated dividends 136 137 Policyholder dividends payable 18 20 Policyholder dividend obligation 35 110 Other policy obligations and liabilities 38 25 Total liabilities $ 1,760 $ 1,863 Assets: Available-for-sale $ 1,202 $ 1,294 Mortgage loans, net of allowance 220 220 Policy loans 124 128 Other assets 80 77 Total assets $ 1,626 $ 1,719 Excess of reported liabilities over assets $ 134 $ 144 Portion of above representing other comprehensive income: (Decrease) Increase in unrealized gain on fixed maturity securities, available-for-sale $ (67 ) $ 14 Adjustment to policyholder dividend obligation 67 (14 ) Total of above representing other than comprehensive income $ — $ — Maximum future earnings to be recognized from assets and liabilities $ 134 $ 144 Other comprehensive income: Available-for-sale Fair value $ 1,202 $ 1,294 Amortized cost 1,181 1,206 Shadow policyholder dividend obligation (21 ) (88 ) Net unrealized appreciation $ — $ — |
Summary of Closed Block Operations | The following table summarizes closed block operations for the years ended: December 31, (in millions) 2018 2017 2016 Revenues: Premiums $ 50 $ 53 $ 56 Net investment income 75 81 84 Realized investment (losses) gains — (1 ) (3 ) Realized losses credited to policyholder benefit obligation (4 ) (4 ) (1 ) Total revenues $ 121 $ 129 $ 136 Benefits and expenses: Policy and contract benefits $ 121 $ 115 $ 125 Change in future policyholder benefits and interest credited to policyholder accounts (38 ) (32 ) (36 ) Policyholder dividends 36 39 40 Change in policyholder dividend obligation (12 ) (8 ) (8 ) Other expenses 1 1 1 Total benefits and expenses $ 108 $ 115 $ 122 Total revenues, net of benefits and expenses, before federal income tax expense $ 13 $ 14 $ 14 Federal income tax expense 3 5 5 Revenues, net of benefits and expenses and federal income tax expense $ 10 $ 9 $ 9 Maximum future earnings from assets and liabilities: Beginning of period $ 144 $ 153 $ 162 Change during period (10 ) (9 ) (9 ) End of period $ 134 $ 144 $ 153 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the carrying value of long-term debt, as of the dates indicated: December 31, (in millions) 2018 2017 8.15% surplus note, due June 27, 2032, payable to NFS $ 300 $ 300 7.50% surplus note, due December 31, 2031, payable to NFS 300 300 6.75% surplus note, due December 23, 2033, payable to NFS 100 100 Other 1 71 93 Total long-term debt $ 771 $ 793 1 Includes debt assumed in the JNF acquisition. |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Federal Income Tax Expense | The following table summarizes the components of federal income tax expense (benefit) for the years ended: December 31, (in millions) 2018 2017 2016 Current tax (benefit) expense 1 $ (21 ) $ (177 ) $ 61 Deferred tax expense (benefit) 1 232 (231 ) 65 Total federal income tax expense (benefit) $ 211 $ (408 ) $ 126 1 Includes reclassification of AMT credit carryforwards from deferred tax assets to an income tax receivable as a result of the Tax Cuts and Jobs Act for the year ended December 31, 2017. |
Summary of Amount Computed by Applying U.S. Federal Income Tax Rate to Income | The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to net income for the years ended: December 31, 2018 2017 2016 (in millions) Amount % Amount % Amount % Income before federal income taxes and noncontrolling interests $ 1,448 $ 901 $ 904 Rate reconciliation: Computed (expected tax expense) $ 304 21 % $ 315 35 % $ 316 35 % Dividends received deduction (45 ) (3 )% (128 ) (14 )% (144 ) (16 )% Tax credits (54 ) (4 )% (90 ) (10 )% (81 ) (9 )% Impact of enacted tax law changes 1 (28 ) (2 )% (530 ) (59 )% — — % Other, net 34 3 % 25 3 % 35 4 % Total federal income tax expense (benefit) $ 211 15 % $ (408 ) (45 )% $ 126 14 % 1 Includes the waived $11 million of government sequestration fees and $17 million of tax benefits related to the Tax Cuts and Jobs Act for the year ended December 31, 2018. Includes the remeasurement of deferred tax assets and liabilities of $(541) million and government sequestration fees of $11 million as a result of the Act for the year ended December 31, 2017. |
Net Deferred Tax Liability | The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated: December 31, (in millions) 2018 2017 Deferred tax assets Future policy benefits and claims $ 544 $ 781 Tax credit carryforwards 387 350 Other 239 280 Gross deferred tax assets $ 1,170 $ 1,411 Valuation allowance (22 ) (10 ) Gross deferred tax assets, net of valuation allowance $ 1,148 $ 1,401 Deferred tax liabilities Deferred policy acquisition costs $ 1,186 $ 971 Available-for-sale 54 589 Other 211 311 Gross deferred tax liabilities $ 1,451 $ 1,871 Net deferred tax liability $ 303 $ 470 |
Uncertain Tax Positions | The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties: (in millions) 2018 2017 2016 Balance at beginning of period $ 10 $ 36 $ 36 Additions for current year tax positions — 2 1 Additions for prior year tax positions (1 ) — 1 Reductions for prior years’ tax positions — (28 ) (2 ) Balance at end of period $ 9 $ 10 $ 36 |
Statutory Financial Informati_2
Statutory Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Statutory Net Income Loss and Statutory Capital and Surplus | The following table summarizes the statutory capital and surplus for the Company’s primary life insurance subsidiaries for the years ended: December 31, (in millions) 2018 2017 2016 Statutory net income (loss) NLIC $ 711 $ 1,039 $ 751 NLAIC 230 (277 ) (227 ) JNL 7 — N/A JNLNY — — N/A Statutory capital and surplus NLIC $ 6,845 $ 5,949 $ 5,208 NLAIC 1,468 1,340 968 JNL 43 35 N/A JNLNY 7 7 N/A |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Summary of the Effects of Reinsurance on Life, Accident and Health Insurance | The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended: December 31, ( in millions 2018 2017 2016 Premiums Direct $ 1,057 $ 962 $ 1,011 Assumed from other companies 83 — — Ceded to other companies 1 (445 ) (329 ) (369 ) Net $ 695 $ 633 $ 642 Life, accident and health insurance in force Direct $ 303,578 $ 291,984 $ 275,404 Assumed from other companies 2 2 2 Ceded to other companies (64,852 ) (62,714 ) (61,674 ) Net $ 238,728 $ 229,272 $ 213,732 1 Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of the Company's Business Segment Operating Results | The following tables summarize the Company’s business segment operating results for the years ended: (in millions) Individual Retirement Corporate Total December 31, 2018 Revenues: Policy charges $ 2,623 126 — $ 2,749 Premiums 658 — 37 695 Net investment income 1,655 835 185 2,675 Non-operating 1 — — (11 ) (11 ) Other revenues (expenses) 2 2 — 10 12 Total revenues $ 4,938 $ 961 $ 221 $ 6,120 Benefits and expenses: Interest credited to policyholder account values 3 $ 847 576 42 $ 1,465 Benefits and claims 4 1,387 — 97 1,484 Amortization of DAC 473 (4 ) (46 ) 423 Other expenses, net of deferrals 810 198 292 1,300 Total benefits and expenses $ 3,517 $ 770 $ 385 $ 4,672 Income (loss) before federal income taxes and noncontrolling interests $ 1,421 191 (164 ) $ 1,448 Less: certain non-operating 1 — — (11 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — 48 Less: net loss attributable to noncontrolling interest — — (168 ) Pre-tax $ 1,421 $ 191 $ (33 ) $ 1,448 Assets as of year end $ 131,820 $ 33,933 $ 13,325 $ 179,078 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating (in millions) Individual Retirement Corporate Total December 31, 2017 Revenues: Policy charges $ 2,428 $ 117 $ — $ 2,545 Premiums 596 — 37 633 Net investment income 1,521 835 58 2,414 Non-operating 1 — — (318 ) (318 ) Other revenues 2 1 — 9 10 Total revenues $ 4,546 $ 952 $ (214 ) $ 5,284 Benefits and expenses: Interest credited to policyholder account values 3 $ 783 $ 557 $ 36 $ 1,376 Benefits and claims 4 1,395 — 27 1,422 Amortization of DAC 332 6 54 392 Other expenses, net of deferrals 741 194 258 1,193 Total benefits and expenses $ 3,251 $ 757 $ 375 $ 4,383 Income before federal income taxes and noncontrolling interests $ 1,295 $ 195 $ (589 ) $ 901 Less: certain non-operating 1 — — (318 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — (54 ) Less: net loss attributable to noncontrolling interest — — (96 ) Pre-tax $ 1,295 $ 195 $ (121 ) Assets as of year end $ 134,326 $ 35,520 $ 11,343 $ 181,189 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating (in millions) Individual Retirement Corporate Total December 31, 2016 Revenues: Policy charges $ 2,254 $ 107 $ — $ 2,361 Premiums 605 — 37 642 Net investment income 1,337 791 11 2,139 Non-operating 1 — — (299 ) (299 ) Other revenues 2 — — 14 14 Total revenues $ 4,196 $ 898 $ (237 ) $ 4,857 Benefits and expenses: Interest credited to policyholder account values 3 $ 684 $ 531 $ 30 $ 1,245 Benefits and claims 4 1,245 — 32 1,277 Amortization of DAC 432 4 (3 ) 433 Other expenses, net of deferrals 654 181 163 998 Total benefits and expenses $ 3,015 $ 716 $ 222 $ 3,953 Income before federal income taxes and noncontrolling interests $ 1,181 $ 182 $ (459 ) $ 904 Less: certain non-operating 1 — — (299 ) Less: adjustment to amortization of DAC and other related expenses related to non-operating — — 6 Less: net loss attributable to noncontrolling interest — — (91 ) Pre-tax $ 1,181 $ 182 $ (75 ) Assets as of year end $ 113,062 $ 32,239 $ 10,337 $ 155,638 1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). 2 Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). 3 Includes operating items (net realized gains and losses related to certain product hedges). 4 Excludes certain non-operating |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Premium method using interest rate | 6.60% | 6.60% | |||
Expenses discounted using weighted average interest rates | 4.70% | 4.80% | |||
Reserve for short duration contracts | $ 137 | $ 70 | |||
Reinsurance ceded description | Under the terms of contracts held with certain unaffiliated reinsurers, specified assets have been placed in trusts as collateral for the recoveries. The trust assets are invested in investment grade securities, the fair value of which must at all times be greater than or equal to 100% of the reinsured reserves, as outlined in the underlying reinsurance contracts. | ||||
Reversion period | 3 years | ||||
Percentage of assumption for net separate account investment performance | 6.30% | ||||
Fixed maturity securities priced using external source data | 99.00% | 99.00% | |||
Fixed maturity securities priced using independent pricing services | 85.00% | 85.00% | |||
Agreements require a minimum of fair value | 102.00% | ||||
Cash collateral received | $ 195 | $ 313 | |||
Fair value of securities received as collateral and recorded off balance sheet | 84 | 43 | |||
Fair value of loaned securities | $ 273 | 348 | |||
Loans delinquent period | 90 days | ||||
Valuation allowance for policy loan | $ 0 | ||||
Government agency discount notes maturity period | 12 months | ||||
Unfunded commitments, equity method investments | $ 750 | 787 | |||
Carrying value of investments in limited partnerships | 797 | 582 | |||
LIHTC Funds Sold | $ 2,000 | $ 1,700 | |||
Cumulative yields after tax maturity | 2037 | ||||
Effective period of Guarantees | 15 years | 15 years | |||
Maximum amount payment to investors under guarantees | $ 1,200,000 | ||||
Net assets of all consolidated VIEs | $ 821 | $ 738 | |||
Cash and cash equivalents liquid investments maturities period | Less than three months | ||||
Goodwill | [1] | $ 269 | 269 | $ 200 | |
Addition to goodwill | 0 | 69 | |||
Impairment to goodwill | 0 | 0 | |||
Other intangibles assets | 255 | 267 | |||
Jefferson National Financial Corp [Member] | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Addition to goodwill | $ 69 | ||||
Percentage of ownership acquired | 100.00% | ||||
Payment to acquire business | $ 201 | ||||
Other [Member] | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Other long-term investments | 757 | 680 | |||
Other Assets [Member] | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Other assets | 369 | 189 | |||
Other Liabilities [Member] | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Other liabilities | 335 | 158 | |||
Federal Home Loan Bank Borrowings [Member] | |||||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||||
Amount of collateralized funding agreements outstanding | 2,500 | 2,000 | |||
Federal Home Loan Bank stock held | $ 53 | $ 47 | |||
[1] | The goodwill balances have not been previously impaired. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policy (Detail) - Jefferson National Financial Corp [Member] $ in Millions | Mar. 01, 2017USD ($) |
Total assets acquired | $ 5,522 |
Total liabilities assumed | (5,321) |
Total consideration | $ 201 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Detail) - New Accounting Pronouncement, Early Adoption, Effect [Member] $ in Millions | Jan. 01, 2018USD ($) |
Accumulated other comprehensive income (loss) | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Tax cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ 7 |
Retained earnings | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Tax cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings | $ 7 |
Long Duration Contracts - Addit
Long Duration Contracts - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Long Duration Contracts Textual [Abstract] | |||
Guaranteed return of deposits period one | 5 years | ||
Guaranteed return of deposits period two | 7 years | ||
Guaranteed return of deposits period three | 10 years | ||
Net separate account value | $ 97,056 | $ 105,607 | |
Amortization of deferred policy acquisition costs | 423 | 392 | $ 433 |
General account value for annuity contracts | 14,800 | 9,800 | |
Reserve balances on guarantees | $ 1,100 | $ 915 | |
Policyholder dividends, rate on policy earnings | 2.00% | 3.00% | 3.00% |
Participating policies as percentage of number of life insurance policies in force | 30.00% | 31.00% | 33.00% |
Universal Life [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Net general account value | $ 4,290 | $ 3,637 | |
GMDB [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Net general account value | 2,453 | 2,606 | |
Paid claims for variable annuity contracts with guarantees | 20 | 14 | |
General account value for annuity contracts | 440 | 351 | |
Reserve balances on guarantees | 223 | 164 | |
GLWB [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Net general account value | 63 | 84 | |
Increase to benefits and claim | 8 | 32 | $ 62 |
Amortization of deferred policy acquisition costs | 6 | 10 | 21 |
General account value for annuity contracts | 4,700 | 3,700 | |
General account distribution for annuity contracts | 54 | 31 | |
Reserve balances on guarantees | 554 | 300 | |
GLWB [Member] | Universal Life [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Increase to benefits and claim | 35 | 42 | 21 |
Amortization of deferred policy acquisition costs | 15 | 22 | $ 9 |
GMAB [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Net separate account value | 203 | 291 | |
GMIB [Member] | |||
Certain Long Duration Contracts Textual [Abstract] | |||
Net separate account value | 283 | 355 | |
Net general account value | $ 43 | $ 46 |
Summary of Annuity Contracts wi
Summary of Annuity Contracts with Guarantees Invested in General and Separate Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
GMDB [Member] | |||
Summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts | |||
General account value | $ 2,453 | $ 2,606 | |
Separate account value | 58,749 | 65,650 | |
Net amount at risk | [1] | $ 2,392 | $ 363 |
Average age | [2] | 70 years | 69 years |
GMDB [Member] | Return of net deposits [Member] | |||
Summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts | |||
General account value | $ 793 | $ 842 | |
Separate account value | 30,276 | 32,313 | |
Net amount at risk | [1] | $ 228 | $ 16 |
Average age | [2] | 67 years | 67 years |
GMDB [Member] | Minimum return or anniversary contract value [Member] | |||
Summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts | |||
General account value | $ 1,660 | $ 1,764 | |
Separate account value | 28,473 | 33,337 | |
Net amount at risk | [1] | $ 2,164 | $ 347 |
Average age | [2] | 72 years | 71 years |
GLWB [Member] | |||
Summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts | |||
General account value | $ 63 | $ 84 | |
Separate account value | 35,499 | 39,183 | |
Net amount at risk | [1] | $ 330 | $ 104 |
Average age | [2] | 68 years | 68 years |
[1] | Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit). | ||
[2] | Represents the weighted average attained age of contractholders at the respective date. |
Summary of Reserve Balances for
Summary of Reserve Balances for Variable Annuity Contracts with Guarantees (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Summarizes the reserve balances, for variable annuity contracts with guarantees | ||
Reserve balances on guarantees | $ 1,100 | $ 915 |
GMDB [Member] | ||
Summarizes the reserve balances, for variable annuity contracts with guarantees | ||
Reserve balances on guarantees | 223 | 164 |
GLWB [Member] | ||
Summarizes the reserve balances, for variable annuity contracts with guarantees | ||
Reserve balances on guarantees | $ 554 | $ 300 |
Summary of Account Balances of
Summary of Account Balances of Deferred Variable Annuity Contracts with Guarantees Invested in Separate Accounts (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | [1] | $ 58,749 | $ 65,650 |
Bonds [Member] | |||
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | 6,876 | 7,167 | |
Domestic equity [Member] | |||
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | 47,554 | 53,617 | |
International Equity [Member] | |||
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | 3,235 | 3,874 | |
Total mutual funds [Member] | |||
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | 57,665 | 64,658 | |
Money market funds [Member] | |||
Summarizes account balances of deferred variable annuity | |||
Deferred variable annuity | $ 1,084 | $ 992 | |
[1] | Excludes $38.3 billion and $40.0 billion as of December 31, 2018 and 2017, respectively, of separate account assets not related to variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products. |
Summary of Account Balances o_2
Summary of Account Balances of Deferred Variable Annuity Contracts with Guarantees Invested in Separate Accounts (Parenthetical) (Detail) - USD ($) $ in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Separate Account Value [Member] | ||
Summarizes account balances of deferred variable annuity | ||
Deferred variable annuity | $ 38.3 | $ 40 |
Summary of Universal and Variab
Summary of Universal and Variable Universal Life Insurance Contracts with No-Lapse Guarantees Invested in General and Separate Accounts (Detail) - Universal Life [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Summarizes information regarding universal and variable universal life insurance contracts with no lapse guarantees invested in general and separate accounts | |||
General account value | $ 4,290 | $ 3,637 | |
Separate account value | 2,021 | 2,350 | |
Adjusted insurance in force | [1] | $ 68,466 | $ 61,489 |
Average age | [2] | 50 years | 51 years |
[1] | The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value and reinsurance. | ||
[2] | Represents the weighted average attained age of contractholders at the respective date. |
Summary of Changes in DAC Balan
Summary of Changes in DAC Balance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs | |||
Balance at beginning of year | $ 5,676 | $ 5,432 | $ 5,200 |
Capitalization of DAC | 942 | 923 | 823 |
Amortization of DAC, excluding unlocks | (440) | (461) | (412) |
Amortization of DAC related to unlocks | 17 | 69 | (21) |
Adjustments to DAC related to unrealized gains and losses on available-for-sale securities | 635 | (287) | (158) |
Balance at end of year | $ 6,830 | $ 5,676 | $ 5,432 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Amortization of DAC related to unlocks | $ (17) | $ (69) | $ 21 |
Other decrease in amortization | $ (43) | $ (13) | $ (75) |
Summary of Amortized Cost, Unre
Summary of Amortized Cost, Unrealized Gains and Losses and Fair Value of Available for Sale Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | $ 53,798 | $ 47,915 | |
Available-for-sale Securities, Gross unrealized gains | 1,071 | 2,645 | |
Available-for-sale Securities, Gross unrealized losses | 1,532 | 280 | |
Available-for-sale Securities, Fair value | 53,337 | 50,280 | |
Fixed maturity securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 53,798 | 47,842 | |
Available-for-sale Securities, Gross unrealized gains | 2,635 | ||
Available-for-sale Securities, Gross unrealized losses | 276 | ||
Available-for-sale Securities, Fair value | 53,337 | 50,201 | |
Fixed maturity securities [Member] | U.S. Treasury securities and obligations of U.S. Government corporations and agencies [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 459 | 358 | |
Available-for-sale Securities, Gross unrealized gains | 28 | 39 | |
Available-for-sale Securities, Gross unrealized losses | 1 | 1 | |
Available-for-sale Securities, Fair value | 486 | 396 | |
Fixed maturity securities [Member] | Obligations of states, political subdivisions and foreign governments [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 4,026 | 3,433 | |
Available-for-sale Securities, Gross unrealized gains | 290 | 414 | |
Available-for-sale Securities, Gross unrealized losses | 23 | 2 | |
Available-for-sale Securities, Fair value | 4,293 | 3,845 | |
Fixed maturity securities [Member] | Corporate Securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 41,991 | 37,643 | |
Available-for-sale Securities, Gross unrealized gains | 645 | 2,018 | |
Available-for-sale Securities, Gross unrealized losses | 1,403 | 220 | |
Available-for-sale Securities, Fair value | 41,233 | 39,441 | |
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 2,797 | 2,788 | |
Available-for-sale Securities, Gross unrealized gains | 65 | 107 | |
Available-for-sale Securities, Gross unrealized losses | 39 | 23 | |
Available-for-sale Securities, Fair value | 2,823 | 2,872 | |
Fixed maturity securities [Member] | Commercial mortgage-backed securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 1,731 | 1,154 | |
Available-for-sale Securities, Gross unrealized gains | 9 | 13 | |
Available-for-sale Securities, Gross unrealized losses | 19 | 6 | |
Available-for-sale Securities, Fair value | 1,721 | 1,161 | |
Fixed maturity securities [Member] | Asset-backed Securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | 2,794 | 2,466 | |
Available-for-sale Securities, Gross unrealized gains | 34 | 44 | |
Available-for-sale Securities, Gross unrealized losses | 47 | 24 | |
Available-for-sale Securities, Fair value | $ 2,781 | 2,486 | |
Equity securities [Member] | |||
Available-for-Sale Securities | |||
Available-for-Sale Securities, Amortized cost | [1] | 73 | |
Available-for-sale Securities, Gross unrealized gains | [1] | 10 | |
Available-for-sale Securities, Gross unrealized losses | [1] | 4 | |
Available-for-sale Securities, Fair value | [1] | $ 79 | |
[1] | As disclosed within Note 3, the Company adopted ASU 2016-01 on January 1, 2018, which required the Company to measure equity securities at fair value with any changes in fair value recognized through net realized investment gains and losses. |
Summary of Amortized Cost and F
Summary of Amortized Cost and Fair Value of Fixed Maturity Securities, by Maturity (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Summarizes the amortized cost and fair value of fixed maturity securities | ||
Subtotal, Fair value | $ 53,337 | $ 50,201 |
Available-for-Sale Securities, Amortized cost | 53,798 | 47,915 |
Available-for-sale Securities, Fair value | 53,337 | 50,280 |
Fixed maturity securities [Member] | ||
Summarizes the amortized cost and fair value of fixed maturity securities | ||
Due in one year or less, Amortized cost | 1,644 | |
Due in one year or less, Fair Value | 1,688 | |
Due after one year through five years, Amortized cost | 11,360 | |
Due after one year through five years, Fair value | 11,371 | |
Due after five years through ten years, Amortized cost | 17,066 | |
Due after five years through ten years, Fair value | 16,641 | |
Due after ten years, Amortized cost | 16,406 | |
Due after ten years, Fair value | 16,312 | |
Subtotal, Amortized cost | 46,476 | |
Subtotal, Fair value | 46,012 | |
Available-for-Sale Securities, Amortized cost | 53,798 | 47,842 |
Available-for-sale Securities, Fair value | 53,337 | 50,201 |
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | ||
Summarizes the amortized cost and fair value of fixed maturity securities | ||
Available-for-Sale Securities, Amortized cost | 2,797 | 2,788 |
Available-for-sale Securities, Fair value | 2,823 | 2,872 |
Fixed maturity securities [Member] | Commercial mortgage-backed securities [Member] | ||
Summarizes the amortized cost and fair value of fixed maturity securities | ||
Available-for-Sale Securities, Amortized cost | 1,731 | 1,154 |
Available-for-sale Securities, Fair value | 1,721 | 1,161 |
Fixed maturity securities [Member] | Asset-backed Securities [Member] | ||
Summarizes the amortized cost and fair value of fixed maturity securities | ||
Available-for-Sale Securities, Amortized cost | 2,794 | 2,466 |
Available-for-sale Securities, Fair value | $ 2,781 | $ 2,486 |
Summary of Components of Net Un
Summary of Components of Net Unrealized Gains and Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Summarizes components of net unrealized gains and losses on available-for-sale securities | ||||
Net unrealized gains on available-for-sale securities, before adjustments and taxes | [1] | $ (461) | $ 2,365 | |
Adjustment to DAC | 161 | (478) | ||
Adjustment to future policy benefits and claims | (10) | (103) | ||
Adjustment to policyholder dividend obligation | (21) | (88) | ||
Deferred federal income tax expense | 71 | (593) | ||
Cumulative effect of adoption of accounting principle | (7) | 232 | [2],[3] | |
Net unrealized gains on available-for-sale securities | $ (260) | $ 1,335 | ||
[1] | Includes net unrealized gains of $37 million and $38 million as of December 31, 2018 and 2017, respectively, related to the non-credit portion of other-than-temporarily impaired securities. | |||
[2] | Represents impact of reclassifying AOCI related to available-for-sale securities into retained earnings for the related tax effects resulting from the Tax Cuts and Jobs Act, as disclosed in Note 13. | |||
[3] | Represents impacts of reclassifying accumulated other comprehensive income related to available-for-sale securities into retained earnings for the related tax effects resulting from the Tax Cuts and Jobs Act. |
Summary of Components of Net _2
Summary of Components of Net Unrealized Gains and Losses (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Non-credit portion of other-than-temporary impairments | $ 37 | $ 38 |
Summary of Change in Net Unreal
Summary of Change in Net Unrealized Gains and Losses Reported in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Equity [Abstract] | ||||
Balance at beginning of year | $ 1,335 | $ 553 | ||
Cumulative effect of adoption of accounting principle | (7) | 232 | [1],[2] | |
Adjusted balance at beginning of year | 1,328 | 553 | ||
Unrealized (losses) gains arising during the year: | ||||
Net unrealized (losses) gains on available-for-sale securities before adjustments | (2,818) | 1,191 | ||
Non-credit impairments and subsequent changes in fair value of impaired debt securities | (1) | 37 | ||
Net adjustment to DAC and other expense | 639 | (287) | ||
Net adjustment to future policy benefits and claims | 93 | (35) | ||
Net adjustment to policyholder dividend obligations | 67 | (14) | ||
Related federal income tax expense (benefit) | 432 | (318) | ||
Unrealized (losses) gains on available-for-sale securities | (1,588) | 574 | ||
Less: Reclassification adjustment for net realized gains and credit-related OTTI on available-for-sale securities, net of tax expense ($0 and $13 as of December 31, 2018 and 2017, respectively) | 24 | |||
Change in net unrealized (losses) gains on available-for-sale securities | (1,588) | 550 | $ 237 | |
Cumulative effect of adoption of accounting principle | (7) | 232 | [1],[2] | |
Balance at end of year | $ (260) | $ 1,335 | $ 553 | |
[1] | Represents impact of reclassifying AOCI related to available-for-sale securities into retained earnings for the related tax effects resulting from the Tax Cuts and Jobs Act, as disclosed in Note 13. | |||
[2] | Represents impacts of reclassifying accumulated other comprehensive income related to available-for-sale securities into retained earnings for the related tax effects resulting from the Tax Cuts and Jobs Act. |
Summary of Change in Net Unre_2
Summary of Change in Net Unrealized Gains and Losses Reported in Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Reclassification adjustments to net investment losses, tax benefit | $ 0 | $ (13) |
Summary of Available for Sale S
Summary of Available for Sale Securities, by Asset Class, in Unrealized Loss Position (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value | |||
Less than or equal to one year, Fair value | [1] | $ 24,939 | $ 4,436 |
More than one year, Fair value | [1] | 7,947 | 4,841 |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | [1] | 906 | 46 |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | [1] | 626 | 234 |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | [1] | 1,532 | 280 |
Fixed maturity securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 4,424 | ||
More than one year, Fair value | 4,811 | ||
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 44 | ||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 232 | ||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 276 | ||
Fixed maturity securities [Member] | Us Government And Agency Securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 55 | 53 | |
More than one year, Fair value | 31 | ||
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 1 | ||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 1 | ||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 1 | 1 | |
Fixed maturity securities [Member] | Obligations Of State And Political Subdivisions [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 843 | 77 | |
More than one year, Fair value | 166 | 111 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 16 | ||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 7 | 2 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 23 | 2 | |
Fixed maturity securities [Member] | Corporate Securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 20,640 | 3,363 | |
More than one year, Fair value | 6,452 | 4,058 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 847 | 37 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 556 | 183 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 1,403 | 220 | |
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 652 | 370 | |
More than one year, Fair value | 673 | 433 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 8 | 3 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 31 | 20 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 39 | 23 | |
Fixed maturity securities [Member] | Commercial mortgage-backed securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 614 | 307 | |
More than one year, Fair value | 403 | 127 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 8 | 2 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 11 | 4 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | 19 | 6 | |
Fixed maturity securities [Member] | Other asset-backed securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | 2,135 | 254 | |
More than one year, Fair value | 222 | 82 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | 27 | 1 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 20 | 23 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | $ 47 | 24 | |
Equity securities [Member] | |||
Fair value | |||
Less than or equal to one year, Fair value | [2] | 12 | |
More than one year, Fair value | [2] | 30 | |
Gross unrealized losses | |||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Less than or equal to one year | [2] | 2 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | [2] | 2 | |
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, Total | [2] | $ 4 | |
[1] | Represents 2,427 and 775 available-for-sale securities in an unrealized loss position as of December 31, 2018 and 2017, respectively. | ||
[2] | As disclosed within Note 3, the Company adopted ASU 2016-01 on January 1, 2018, which required the Company to measure equity securities at fair value with any changes in fair value recognized through net realized investment gains and losses. |
Summary of Available for Sale_2
Summary of Available for Sale Securities, by Asset Class, in Unrealized Loss Position (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Investment Income [Line Items] | ||||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | [1] | $ 626 | $ 234 | |
Net unrealized gains (losses) on available-for-sale securities | (1,588) | 550 | $ 237 | |
Fixed maturity securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | 232 | |||
Net unrealized gains (losses) on available-for-sale securities | $ 2,427 | $ 775 | ||
Fixed maturity securities [Member] | Maximum [Member] | ||||
Net Investment Income [Line Items] | ||||
Ratio of estimated fair value to amortized cost | 80.00% | 80.00% | ||
Less than 80.0% [Member] | Fixed maturity securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross unrealized losses based on the ratio of estimated fair value to amortized cost, More than one year | $ 145 | $ 67 | ||
[1] | Represents 2,427 and 775 available-for-sale securities in an unrealized loss position as of December 31, 2018 and 2017, respectively. |
Summary of Amortized Cost of Mo
Summary of Amortized Cost of Mortgage Loans (Detail) - Mortgage loans, net of allowance [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Total amortized cost | [1] | $ 12,418 | $ 10,963 |
Total valuation allowance | [1],[2] | 39 | 34 |
Mortgage loans, net of allowance | [1] | 12,379 | 10,929 |
Non-specific reserves [Member] | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Amortized cost | [1] | 12,418 | 10,963 |
Valuation allowance | [1] | 39 | 34 |
Commercial Loan [Member] | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Total amortized cost | 12,417 | 10,963 | |
Total valuation allowance | [2] | 39 | 34 |
Mortgage loans, net of allowance | 12,378 | 10,929 | |
Commercial Loan [Member] | Non-specific reserves [Member] | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Amortized cost | 12,417 | 10,963 | |
Valuation allowance | 39 | $ 34 | |
Residential Mortgage [Member] | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Total amortized cost | 1 | ||
Mortgage loans, net of allowance | 1 | ||
Residential Mortgage [Member] | Non-specific reserves [Member] | |||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |||
Amortized cost | $ 1 | ||
[1] | The company did not hold any loans with specific reserves as of December 31, 2018 and 2017. | ||
[2] | Changes in the valuation allowance are primarily due to portfolio growth and current period provisions. These changes for the years ended December 31, 2018 and 2017 were immaterial. |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments (Textual) [Abstract] | ||
No mortgage loans past due and still accruing | 90 days | |
Mortgage Loans | $ 0 | |
Available-for-sale securities, carrying value | 53,337 | $ 50,280 |
Deposits [Member] | ||
Investments (Textual) [Abstract] | ||
Available-for-sale securities, carrying value | 22 | 10 |
Available-for-sale securities, collateral value | $ 365 | $ 88 |
Summary of LTV Ratio and DSC Ra
Summary of LTV Ratio and DSC Ratios of Mortgage Loan (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 12,417 | $ 10,963 |
Weighted average DSC ratio | 2.06 | 2.05 |
Weighted average LTV ratio | 58 | 59 |
Apartment [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 4,666 | $ 4,204 |
Warehouse [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 1,891 | 1,583 |
Office [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 2,193 | 1,752 |
Retail [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 3,304 | 2,999 |
Other [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 363 | 425 |
Less than 90% [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 12,285 | $ 10,847 |
Weighted average DSC ratio | 2.06 | 2.06 |
Less than 90% [Member] | Apartment [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 4,550 | $ 4,102 |
Less than 90% [Member] | Warehouse [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 1,881 | 1,573 |
Less than 90% [Member] | Office [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 2,193 | 1,752 |
Less than 90% [Member] | Retail [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 3,298 | 2,995 |
Less than 90% [Member] | Other [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 363 | 425 |
90% or greater [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 132 | $ 116 |
Weighted average DSC ratio | 1.48 | 1.31 |
90% or greater [Member] | Apartment [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 116 | $ 102 |
90% or greater [Member] | Warehouse [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 10 | 10 |
90% or greater [Member] | Retail [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 6 | 4 |
Use Greater than One [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 12,380 | $ 10,922 |
Weighted average LTV ratio | 58 | 59 |
Use Greater than One [Member] | Apartment [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 4,644 | $ 4,181 |
Use Greater than One [Member] | Warehouse [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 1,887 | 1,582 |
Use Greater than One [Member] | Office [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 2,184 | 1,738 |
Use Greater than One [Member] | Retail [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 3,302 | 2,996 |
Use Greater than One [Member] | Other [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 363 | 425 |
Less than 1.00 [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 37 | $ 41 |
Weighted average LTV ratio | 82 | 81 |
Less than 1.00 [Member] | Apartment [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 22 | $ 23 |
Less than 1.00 [Member] | Warehouse [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 4 | 1 |
Less than 1.00 [Member] | Office [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | 9 | 14 |
Less than 1.00 [Member] | Retail [Member] | ||
Summary of loan-to-value ratio and debt service coverage ratios of the commercial mortgage loan portfolio | ||
Total | $ 2 | $ 3 |
Summary of Net Investment Incom
Summary of Net Investment Income by Investment Type (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of net investment income by investment type | ||||
Gross investment income | $ 2,770 | $ 2,523 | $ 2,269 | |
Investment expenses | (68) | (65) | (62) | |
Net investment income | 2,675 | 2,414 | 2,139 | |
Fixed maturity securities [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | 2,116 | 1,982 | 1,781 | |
Mortgage loans, net of allowance [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | 503 | 450 | 407 | |
Alternative Investments [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | 42 | 23 | 8 | |
Policy loans [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | 59 | 41 | 52 | |
Other [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | 50 | 27 | 21 | |
Tax Credits [Member] | ||||
Summary of net investment income by investment type | ||||
Gross investment income | [1] | $ (27) | $ (44) | $ (68) |
[1] | Represents losses on tax credit funds accounted for under the equity method of accounting. Tax benefits on these tax credit funds are recorded in federal income tax benefit. |
Summary of Net Realized Investm
Summary of Net Realized Investment Gains and Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Realized Investment Gains and Losses | ||||
Realized gains on sales | [1] | $ 12 | $ 53 | $ 50 |
Realized losses on sales | [1] | (10) | (16) | (90) |
Net realized derivative losses | (309) | (9) | (42) | |
Valuation losses and other | [2] | (30) | (5) | (3) |
OTTI losses | [3],[4] | (3) | (11) | (26) |
Net realized investment (losses) gains | $ (340) | $ 12 | $ (111) | |
[1] | Gross gains of $12 million, $52 million and $49 million and gross losses of $10 million, $11 million and $89 million were realized on sales of available-for-sale securities during the years ended December 31, 2018, 2017 and 2016, respectively. | |||
[2] | As disclosed within Note 3, the Company adopted ASU 2016-01 on January 1, 2018, which required the Company to measure equity securities at fair value with any changes in fair value recognized through net realized investment gains and losses. | |||
[3] | Includes impairments on alternative investment tax credit funds due to corporate tax rate reductions set forth in the Tax Cuts and Jobs Act during the year ended December 31, 2017. | |||
[4] | OTTI on fixed maturity securities excludes non-credit losses of $3 million, $4 million and $6 million included in other comprehensive income for the years ended December 31, 2018, 2017 and 2016, respectively. |
Summary of Net Realized Inves_2
Summary of Net Realized Investment Gains and Losses (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Realized Investment Gains and Losses | |||
Gross realized gains | $ 12 | $ 52 | $ 49 |
Gross realized losses | 10 | 11 | 89 |
Non-credit losses included in other comprehensive income | $ 3 | $ 4 | $ 6 |
Summary of Cumulative Credit Lo
Summary of Cumulative Credit Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other-Than-Temporary Impairment Losses on Debt Securities | ||||
Cumulative credit losses at beginning of year | [1] | $ (170) | $ (195) | $ (224) |
New credit losses | (3) | (22) | ||
Incremental credit losses | (2) | (2) | ||
Losses related to securities included in the beginning balance sold or paid down during the period | 17 | 30 | 51 | |
Cumulative credit losses at end of year | [1] | $ (155) | $ (170) | $ (195) |
[1] | Cumulative credit losses are defined as amounts related to the Company's credit portion of the OTTI losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis. |
Summary of Fair Value and Relat
Summary of Fair Value and Related Notional Amounts of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Summary of fair value of derivative instruments | ||||
Derivative asset, Fair value | $ 567 | $ 1,200 | ||
Derivative liability, Fair value | 60 | 178 | ||
Designated as Hedging Instrument [Member] | ||||
Summary of fair value of derivative instruments | ||||
Derivative asset, Fair value | 129 | 60 | ||
Derivative asset, Notional amount | 1,459 | 654 | [1] | |
Derivative liability, Fair value | 46 | 93 | ||
Derivative liability, Notional amount | 794 | 1,127 | [1] | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | ||||
Summary of fair value of derivative instruments | ||||
Derivative asset, Fair value | 25 | |||
Derivative asset, Notional amount | 446 | 2,131 | [1] | |
Derivative liability, Fair value | 1 | 73 | ||
Derivative liability, Notional amount | 42 | 2,336 | [1] | |
Not Designated as Hedging Instrument [Member] | Equity Contracts [Member] | ||||
Summary of fair value of derivative instruments | ||||
Derivative asset, Fair value | 438 | 1,070 | ||
Derivative asset, Notional amount | 19,984 | 15,738 | [1] | |
Derivative liability, Notional amount | 641 | 2,081 | [1] | |
Not Designated as Hedging Instrument [Member] | Total Return Swaps and Other Derivative contracts [Member] | ||||
Summary of fair value of derivative instruments | ||||
Derivative liability, Fair value | 13 | 12 | ||
Derivative liability, Notional amount | [1] | 2 | ||
Other Assets Liabilities [Member] | ||||
Summary of fair value of derivative instruments | ||||
Derivative asset, Fair value | [1],[2] | 567 | 1,155 | |
Derivative asset, Notional amount | [1],[2] | 21,889 | 18,523 | |
Derivative liability, Fair value | [1],[2] | 60 | 178 | |
Derivative liability, Notional amount | [1],[2] | $ 1,477 | $ 5,546 | |
[1] | Fair value balance excludes immaterial accrued interest on derivative assets and liabilities for December 31, 2018 and 2017. | |||
[2] | Excludes embedded derivatives included in future policy benefits and claims on the consolidated balance sheets of $627 million and $984 million as of December 31, 2018 and December 31, 2017, respectively. |
Summary of Fair Value and Rel_2
Summary of Fair Value and Related Notional Amounts of Derivative Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of fair value of derivative instruments | ||
Embedded derivatives, Fair value | $ 627 | $ 984 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative asset, Fair value | $ 567 | $ 1,200 |
Derivative asset, Fair value | 33 | 62 |
Derivative collateral obligation to return cash | 508 | 998 |
Collateral securities as off-balance sheet | 22 | 101 |
Derivative liability, Fair value | 60 | 178 |
Derivative liability, Fair value | 33 | 62 |
Derivative collateral right to reclaim cash | 14 | 106 |
Initial Margin [Member] | ||
Derivative asset, Fair value | $ 144 | $ 114 |
Summary of Gains and Losses for
Summary of Gains and Losses for Derivative Instruments Recognized in Net Realized Investment Gains and Losses in Statements of Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of realized gains and losses for derivative instruments | ||||
Total derivative losses | $ (309) | $ (41) | $ (62) | |
Change in embedded derivative liabilities and related fees | [1] | 32 | 20 | |
Net realized derivative losses | (309) | (9) | (42) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | ||||
Summary of realized gains and losses for derivative instruments | ||||
Total derivative losses | 30 | (9) | 13 | |
Not Designated as Hedging Instrument [Member] | Equity Contracts [Member] | ||||
Summary of realized gains and losses for derivative instruments | ||||
Total derivative losses | (329) | (25) | (81) | |
Not Designated as Hedging Instrument [Member] | Other Derivative Contracts [Member] | ||||
Summary of realized gains and losses for derivative instruments | ||||
Total derivative losses | (8) | 2 | 8 | |
Not Designated as Hedging Instrument [Member] | Net Interest Settlements [Member] | ||||
Summary of realized gains and losses for derivative instruments | ||||
Total derivative losses | $ (2) | $ (9) | $ (2) | |
[1] | Excludes the change in embedded derivatives recognized in interest credited to policyholder account values in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 of $(380) million, $646 million and $276 million, respectively. |
Summary of Gains and Losses f_2
Summary of Gains and Losses for Derivative Instruments Recognized in Net Realized Investment Gains and Losses in Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of realized gains and losses for derivative instruments | |||
Change in embedded derivatives recognized | $ (380) | $ 646 | $ 276 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Separate account assets | [1] | $ 58,749 | $ 65,650 | |
Liabilities | ||||
Short term security value | 1,892 | 1,406 | ||
Equity securities | 79 | |||
Trading Security | 74 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 55,415 | 51,773 | ||
Derivative instruments - assets | 567 | 1,155 | ||
Separate account assets | 95,667 | [2] | 104,958 | |
Assets at fair value | 151,649 | 157,886 | ||
Liabilities | ||||
Future policy benefits and claims | [3] | 627 | 984 | |
Derivative instruments - liabilities | 60 | 178 | ||
Liabilities at fair value | 687 | 1,162 | ||
Short term security value | 1,900 | |||
Equity securities | 121 | |||
Trading Security | 67 | |||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 2,921 | 2,046 | ||
Separate account assets | 94,259 | [2] | 103,532 | |
Assets at fair value | 97,180 | 105,578 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 51,460 | 48,651 | ||
Derivative instruments - assets | 129 | 85 | ||
Separate account assets | 1,328 | [2] | 1,365 | |
Assets at fair value | 52,917 | 50,101 | ||
Liabilities | ||||
Derivative instruments - liabilities | 46 | 166 | ||
Liabilities at fair value | 46 | 166 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,034 | 1,076 | ||
Derivative instruments - assets | 438 | 1,070 | ||
Separate account assets | 80 | [2] | 61 | |
Assets at fair value | 1,552 | 2,207 | ||
Liabilities | ||||
Future policy benefits and claims | [3] | 627 | 984 | |
Derivative instruments - liabilities | 14 | 12 | ||
Liabilities at fair value | 641 | 996 | ||
Fixed maturity securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 53,337 | 50,201 | ||
Fixed maturity securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 2,043 | 1,645 | ||
Fixed maturity securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 50,265 | 47,494 | ||
Fixed maturity securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,029 | 1,062 | ||
Fixed maturity securities [Member] | U.S. Treasury securities and obligations of U.S. Government corporations and agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 486 | 396 | ||
Fixed maturity securities [Member] | U.S. Treasury securities and obligations of U.S. Government corporations and agencies [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 485 | 395 | ||
Fixed maturity securities [Member] | U.S. Treasury securities and obligations of U.S. Government corporations and agencies [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 1 | 1 | ||
Fixed maturity securities [Member] | Obligations of states, political subdivisions and foreign governments [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 4,293 | 3,845 | ||
Fixed maturity securities [Member] | Obligations of states, political subdivisions and foreign governments [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 53 | 60 | ||
Fixed maturity securities [Member] | Obligations of states, political subdivisions and foreign governments [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 4,235 | 3,780 | ||
Fixed maturity securities [Member] | Obligations of states, political subdivisions and foreign governments [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 5 | 5 | ||
Fixed maturity securities [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 41,233 | 39,441 | ||
Fixed maturity securities [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 40,345 | 38,529 | ||
Fixed maturity securities [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 888 | 912 | ||
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 2,823 | 2,872 | ||
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,505 | 1,190 | ||
Fixed maturity securities [Member] | Residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,318 | 1,682 | ||
Fixed maturity securities [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 1,721 | 1,161 | ||
Fixed maturity securities [Member] | Commercial mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,721 | 1,161 | ||
Fixed maturity securities [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 2,781 | 2,486 | ||
Fixed maturity securities [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 2,646 | 2,342 | ||
Fixed maturity securities [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | 135 | 144 | ||
Other [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Asset-backed securities | 2,078 | [4] | 1,572 | |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Asset-backed securities | 878 | [4] | 401 | |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Asset-backed securities | 1,195 | [4] | 1,157 | |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Asset-backed securities | $ 5 | [4] | $ 14 | |
[1] | Excludes $38.3 billion and $40.0 billion as of December 31, 2018 and 2017, respectively, of separate account assets not related to variable annuity contracts with guarantees, primarily attributable to retirement plan, variable universal life and COLI products. | |||
[2] | Excludes $1.4 billion of separate account assets that use net asset value ("NAV") as a practical expedient to estimate fair value. | |||
[3] | Amount primarily represents the fair value of interest credits associated with certain indexed life and annuity products. | |||
[4] | Includes short-term investments, equity securities and trading securities of $1.9 billion, $121 million and $67 million, respectively. |
Summary of Assets and Liabili_2
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | $ 1,892 | $ 1,406 | |
Equity securities | 79 | ||
Trading securities | 74 | ||
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 1,900 | ||
Equity securities | 121 | ||
Trading securities | 67 | ||
Fair value of assets esimated using NAV | 151,649 | $ 157,886 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets esimated using NAV | $ 1,400 | $ 649 |
Rollforward of Level 3 Assets a
Rollforward of Level 3 Assets and Liabilities Held at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Assets, Beginning balance | $ 2,207 | $ 2,120 | |||
Assets, Net gains (losses) In operations | (471) | 306 | |||
Assets, Net gains (losses) In OCI | (34) | 63 | |||
Assets, Purchases | 463 | 330 | |||
Assets, Sales | (687) | (288) | |||
Assets, Transfers in to Level 3 | 118 | [1] | 91 | ||
Assets, Transfers out of Level 3 | (44) | [1] | (415) | ||
Assets, ending balance | 1,552 | 2,207 | |||
Liability value, beginning balance | 996 | 348 | |||
Net (losses) gains In operations | (355) | (648) | [2] | ||
Liability, Net gains (losses) In operations | 0 | 0 | |||
Liability, Purchases | 0 | 0 | |||
Liability, Sales | 0 | 0 | |||
Liability, Transfers into Level 3 | 0 | [1] | 0 | ||
Liability, Transfers out of Level 3 | 0 | [1] | 0 | ||
Liability value, ending balance | 641 | 996 | |||
Fixed maturity securities [Member] | |||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Assets, Beginning balance | 1,062 | [3] | 1,421 | ||
Assets, Net gains (losses) In operations | (1) | [3] | 4 | ||
Assets, Net gains (losses) In OCI | (34) | [3] | 63 | ||
Assets, Purchases | 84 | [3] | 74 | ||
Assets, Sales | (168) | [3] | (176) | ||
Assets, Transfers in to Level 3 | 118 | [1],[3] | 91 | ||
Assets, Transfers out of Level 3 | (32) | [1],[3] | (415) | ||
Assets, ending balance | [3] | 1,029 | 1,062 | ||
Other [Member] | |||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Assets, Beginning balance | 14 | 1 | |||
Assets, Net gains (losses) In operations | (1) | ||||
Assets, Purchases | 3 | 17 | |||
Assets, Sales | (3) | ||||
Assets, Transfers out of Level 3 | [1] | (12) | |||
Assets, ending balance | 5 | 14 | |||
Derivative Assets [Member] | |||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Assets, Beginning balance | 1,070 | 633 | |||
Assets, Net gains (losses) In operations | (489) | 307 | |||
Assets, Purchases | 376 | 239 | |||
Assets, Sales | (519) | (109) | |||
Assets, ending balance | 438 | 1,070 | |||
Separate Account Assets [Member] | |||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||||
Assets, Beginning balance | 61 | 65 | |||
Assets, Net gains (losses) In operations | 19 | (4) | |||
Assets, ending balance | $ 80 | $ 61 | |||
[1] | Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities. | ||||
[2] | Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized losses on separate account assets are attributable to contractholders and therefore are not included in the Company's earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was $(638) million for future policy benefits and claims, $264 million for derivative assets, and $(10) million for derivative liabilities and $(1) million for other investments at fair value. | ||||
[3] | Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). |
Rollforward of Level 3 Assets_2
Rollforward of Level 3 Assets and Liabilities Held at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Unrealized gain (loss) on future policy benefits and claims | $ (357) | $ (638) |
Unrealized gain (loss) on derivatives | (302) | 264 |
Unrealized gain (loss) on derivatives liability | 2 | (10) |
Fair value of fixed maturity securities that were determined using non binding broker quotes | 53,337 | 50,280 |
Unrealized Gain Loss On Other Investments | (1) | |
Fixed Maturity Securities Held At Fair Value [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value of fixed maturity securities that were determined using non binding broker quotes | $ 801 | $ 721 |
Summary of Significant Observab
Summary of Significant Observable Inputs Used for Fair Value Measurements for Living Benefits Liabilities Classified as Level 3 (Detail) - Living Benefits [Member] | 12 Months Ended | |
Dec. 31, 2018 | ||
Summary of significant unobservable inputs used for fair value measurements for living benefits liabilities | ||
Fair value unobservable inputs Discount rate | [1] | |
Minimum [Member] | ||
Summary of significant unobservable inputs used for fair value measurements for living benefits liabilities | ||
Fair value unobservable inputs Mortality | 0.10% | [2] |
Fair value unobservable inputs Lapse | 0.00% | [3] |
Fair value unobservable inputs wait period | 0 years | [4] |
Fair value unobservable inputs efficiency of benefit utilization | 60.00% | [5],[6] |
Fair value unobservable inputs index Volatility | 15.00% | |
Maximum [Member] | ||
Summary of significant unobservable inputs used for fair value measurements for living benefits liabilities | ||
Fair value unobservable inputs Mortality | 10.00% | [2] |
Fair value unobservable inputs Lapse | 35.00% | [3] |
Fair value unobservable inputs wait period | 30 years | [4] |
Fair value unobservable inputs efficiency of benefit utilization | 100.00% | [5],[6] |
Fair value unobservable inputs index Volatility | 25.00% | |
[1] | Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional spread over LIBOR, determined by market observables for similarly rated public bonds. | |
[2] | Represents the mortality for the majority of business with living benefits, with policyholder issue ages ranging from 45 to 85. | |
[3] | Certain scenarios could drive dynamic lapses outside of the specified range. The range shown represents lapses for the vast majority of scenarios. | |
[4] | A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period. | |
[5] | A portion of the contractholders could withdraw more than the benefit guarantee allows. For these policies, the excess withdrawals are assumed to be temporary before reverting back to 100% utilization. | |
[6] | The unobservable input is not applicable to GMABs. |
Summary of Significant Observ_2
Summary of Significant Observable Inputs Used for Fair Value Measurements for Living Benefits Liabilities Classified as Level 3 (Parenthetical) (Detail) - Living Benefits [Member] | 12 Months Ended |
Dec. 31, 2018Person | |
Minimum [Member] | |
Summary of significant unobservable inputs used for fair value measurements for living benefits liabilities | |
Policyholders of mortality for majority of business | 45 |
Maximum [Member] | |
Summary of significant unobservable inputs used for fair value measurements for living benefits liabilities | |
Policyholders of mortality for majority of business | 85 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value of Financial Instruments (Textual) [Abstract] | ||
Enhancing guarantee bonus feature period | 10 years | |
High liability value policy withdrawal period | 20 years | |
Policy withdrawal period | 1 year | |
Transfers from Level 1 to Level 2 | $ 0 |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements for Indexed Universal Life Equity Indexed Products Classified as Level 3 (Detail) - Equity Index Product [Member] | 12 Months Ended | |
Dec. 31, 2018 | ||
Minimum [Member] | ||
Summary Of Significant Unobservable Inputs Used For Fair Value Measurements For Equity Indexed Products [Abstract] | ||
Fair value unobservable inputs Mortality | 0.00% | [1] |
Fair value unobservable inputs Lapse | 0.00% | |
Fair value unobservable inputs index Volatility | 15.00% | [2] |
Maximum [Member] | ||
Summary Of Significant Unobservable Inputs Used For Fair Value Measurements For Equity Indexed Products [Abstract] | ||
Fair value unobservable inputs Mortality | 5.00% | [1] |
Fair value unobservable inputs Lapse | 10.00% | |
Fair value unobservable inputs index Volatility | 25.00% | [2] |
[1] | Represents the mortality for the majority of business, with policyholder issue ages ranging from 0 to 80. | |
[2] | Certain managed volatility indices utilize a 5% index volatility. |
Summary of Significant Unobse_2
Summary of Significant Unobservable Inputs Used for Fair Value Measurements for Indexed Universal Life Equity Indexed Products Classified as Level 3 (Parenthetical) (Detail) - Equity Index Product [Member] | 12 Months Ended |
Dec. 31, 2018Person | |
Minimum [Member] | |
Summary Of Significant Unobservable Inputs Used For Fair Value Measurements For Equity Indexed Products [Abstract] | |
Policyholders of mortality for majority of business | 0 |
Maximum [Member] | |
Summary Of Significant Unobservable Inputs Used For Fair Value Measurements For Equity Indexed Products [Abstract] | |
Policyholders of mortality for majority of business | 80 |
Financial Instruments not Carri
Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Mortgage loans, net of allowance | $ 12,379 | $ 10,929 |
Policy loans | 1,015 | 1,030 |
Liabilities | ||
Short-term debt | 407 | 0 |
Long-term debt | 771 | 793 |
Level 2 [Member] | ||
Liabilities | ||
Long-term debt | 927 | 977 |
Level 3 [Member] | ||
Liabilities | ||
Investment contracts | 40,113 | 34,711 |
Short-term debt | 407 | |
Long-term debt | 71 | 93 |
Mortgage loans held-for-investment [Member] | Level 3 [Member] | ||
Investments: | ||
Investments | 12,167 | 10,876 |
Policy loans [Member] | Level 3 [Member] | ||
Investments: | ||
Investments | 1,015 | 1,030 |
Other [Member] | Level 3 [Member] | ||
Investments: | ||
Investments | 84 | 78 |
Fair Value [Member] | ||
Liabilities | ||
Investment contracts | 40,113 | 34,711 |
Short-term debt | 407 | |
Long-term debt | 999 | 1,070 |
Fair Value [Member] | Mortgage loans held-for-investment [Member] | ||
Investments: | ||
Investments | 12,167 | 10,876 |
Fair Value [Member] | Policy loans [Member] | ||
Investments: | ||
Investments | 1,015 | 1,030 |
Fair Value [Member] | Other [Member] | ||
Investments: | ||
Investments | 84 | 78 |
Carrying Value [Member] | ||
Liabilities | ||
Investment contracts | 42,094 | 36,746 |
Short-term debt | 407 | |
Long-term debt | 771 | 793 |
Carrying Value [Member] | Mortgage loans held-for-investment [Member] | ||
Investments: | ||
Mortgage loans, net of allowance | 12,379 | 10,929 |
Carrying Value [Member] | Policy loans [Member] | ||
Investments: | ||
Policy loans | 1,015 | 1,030 |
Carrying Value [Member] | Other [Member] | ||
Investments: | ||
Other investments | $ 84 | $ 78 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Summary of changes in the carrying value of goodwill by segment | |||
Goodwill, beginning balance | [1] | $ 269 | $ 200 |
Adjustments | 0 | 69 | |
Goodwill, ending balance | [1] | 269 | 269 |
Retirement Plans [Member] | |||
Summary of changes in the carrying value of goodwill by segment | |||
Goodwill, beginning balance | [1] | 25 | 25 |
Adjustments | 0 | ||
Goodwill, ending balance | [1] | 25 | 25 |
Individual Products and Solutions (IPS) [Member] | |||
Summary of changes in the carrying value of goodwill by segment | |||
Goodwill, beginning balance | [1] | 244 | 175 |
Adjustments | 0 | 69 | |
Goodwill, ending balance | [1] | $ 244 | $ 244 |
[1] | The goodwill balances have not been previously impaired. |
Goodwill (Parenthetical) (Detai
Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of changes in the carrying value of goodwill by segment | ||
Impairment of goodwill | $ 0 | $ 0 |
Summary of Financial Informatio
Summary of Financial Information for Closed Block (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities: | ||||
Future policyholder benefits | $ 1,533 | $ 1,571 | ||
Policyholder funds and accumulated dividends | 136 | 137 | ||
Policyholder dividends payable | 18 | 20 | ||
Policyholder dividend obligation | 35 | 110 | ||
Other policy obligations and liabilities | 38 | 25 | ||
Total liabilities | 1,760 | 1,863 | ||
Assets: | ||||
Available-for-sale securities | 1,202 | 1,294 | ||
Mortgage loans, net of allowance | 220 | 220 | ||
Policy loans | 124 | 128 | ||
Other assets | 80 | 77 | ||
Total assets | 1,626 | 1,719 | ||
Excess of reported liabilities over assets | 134 | 144 | ||
Portion of above representing other comprehensive income: | ||||
(Decrease) Increase in unrealized gain on fixed maturity securities, available-for-sale | (67) | 14 | ||
Adjustment to policyholder dividend obligation | 67 | (14) | ||
Total of above representing other than comprehensive income | 0 | 0 | ||
Maximum future earnings to be recognized from assets and liabilities | 134 | 144 | $ 153 | $ 162 |
Available-for-sale securities: | ||||
Fair value | 1,202 | 1,294 | ||
Amortized cost | 1,181 | 1,206 | ||
Shadow policyholder dividend obligation | (21) | (88) | ||
Net unrealized appreciation | $ 0 | $ 0 |
Summary of Closed Block Operati
Summary of Closed Block Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Premiums | $ 50 | $ 53 | $ 56 |
Net investment income | 75 | 81 | 84 |
Realized investment (losses) gains | (1) | (3) | |
Realized losses credited to policyholder benefit obligation | (4) | (4) | (1) |
Total revenues | 121 | 129 | 136 |
Benefits and expenses: | |||
Policy and contract benefits | 121 | 115 | 125 |
Change in future policyholder benefits and interest credited to policyholder accounts | (38) | (32) | (36) |
Policyholder dividends | 36 | 39 | 40 |
Change in policyholder dividend obligation | (12) | (8) | (8) |
Other expenses | 1 | 1 | 1 |
Total benefits and expenses | 108 | 115 | 122 |
Total revenues, net of benefits and expenses, before federal income tax expense | 13 | 14 | 14 |
Federal income tax expense | 3 | 5 | 5 |
Revenues, net of benefits and expenses and federal income tax expense | 10 | 9 | 9 |
Maximum future earnings from assets and liabilities: | |||
Beginning of period | 144 | 153 | 162 |
Change during period | (10) | (9) | (9) |
End of period | $ 134 | $ 144 | $ 153 |
Closed Block - Additional Infor
Closed Block - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Closed Block (Textual) [Abstract] | |||
Policyholder dividend obligation | $ 14 | $ 22 | $ 26 |
Short-Term Debt - Additional In
Short-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Apr. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2014 | |
Short Term Debt (Textual) [Abstract] | |||||||
Cash equivalent maturity description | Less than one year | ||||||
Maximum borrowing capacity of short term debt | $ 350 | $ 350 | |||||
Short-term debt | 407 | 407 | $ 0 | ||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Maximum borrowing capacity of short term debt | $ 750 | ||||||
Outstanding amounts | 0 | $ 0 | 0 | ||||
Line of credit facility, expiry date | Apr. 2, 2020 | ||||||
Credit facility, spread on variable rate | 0.785% | ||||||
Interest rate basis on outstanding principal balances of the line of credit | A U.S. LIBOR rate | ||||||
Nationwide Financial Services [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Maximum borrowing capacity of short term debt | $ 45 | $ 45 | |||||
Credit facility, spread on variable rate | 3.55% | ||||||
Line of credit facility, expiry period | 2019-03 | ||||||
Federal Home Loan Bank Borrowings [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Maximum borrowing capacity of short term debt | $ 250 | ||||||
Eligible collateral for short term borrowings | 5,800 | 6,500 | |||||
Outstanding amounts | $ 0 | $ 0 | 0 | ||||
Line of credit facility, expiry date | Mar. 22, 2019 | ||||||
Amounts outstanding under agreement with Federal Home Loan Bank | $ 0 | $ 0 | $ 0 | ||||
$600 million Commercial Paper Program [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Maximum borrowing capacity of short term debt | $ 600 | ||||||
$750 million Commercial Paper Program [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Maximum borrowing capacity of short term debt | $ 750 | ||||||
Custodial Bank [Member] | |||||||
Short Term Debt (Textual) [Abstract] | |||||||
Interest rate basis on outstanding principal balances of the line of credit | One-month U.S. LIBOR. |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of long-term debt | |||
Long-term debt | $ 771 | $ 793 | |
8.15% surplus note, due June 27, 2032, payable to NFS [Member] | |||
Summary of long-term debt | |||
Long-term debt | 300 | 300 | |
7.50% surplus note, due December 31, 2031, payable to NFS [Member] | |||
Summary of long-term debt | |||
Long-term debt | 300 | 300 | |
6.75% surplus note, due December 23, 2033, payable to NFS [Member] | |||
Summary of long-term debt | |||
Long-term debt | 100 | 100 | |
Other [Member] | |||
Summary of long-term debt | |||
Long-term debt | [1] | $ 71 | $ 93 |
[1] | Includes debt assumed in the JNF acquisition. |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2018 |
8.15% surplus note, due June 27, 2032, payable to NFS [Member] | |
Summary of long-term debt | |
Interest rate of surplus note | 8.15% |
7.50% surplus note, due December 31, 2031, payable to NFS [Member] | |
Summary of long-term debt | |
Interest rate of surplus note | 7.50% |
6.75% surplus note, due December 23, 2033, payable to NFS [Member] | |
Summary of long-term debt | |
Interest rate of surplus note | 6.75% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long Term Debt (Textual) [Abstract] | |||
Interest payments on surplus notes payable to NFS | $ 54 | $ 54 | $ 54 |
Summary of Components of Federa
Summary of Components of Federal Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of federal income tax (benefit) expense attributable to (loss) income before income attributable to noncontrolling interest | ||||
Current tax (benefit) expense | [1] | $ (21) | $ (177) | $ 61 |
Deferred tax expense (benefit) | [1] | 232 | (231) | 65 |
Total federal income tax expense (benefit) | $ 211 | $ (408) | $ 126 | |
[1] | Includes reclassification of AMT credit carryforwards from deferred tax assets to an income tax receivable as a result of the Tax Cuts and Jobs Act for the year ended December 31, 2017. |
Summary of Federal Income Tax E
Summary of Federal Income Tax Expense Attributable to Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Summary of percentage computed by applying the U.S. federal income tax rate to (loss) income before federal income taxes and noncontrolling interests | ||||
Income before federal income taxes and noncontrolling interests | $ 1,448 | $ 901 | $ 904 | |
Computed (expected tax expense) | 304 | 315 | 316 | |
Dividends received deduction | (45) | (128) | (144) | |
Tax credits | (54) | (90) | (81) | |
Impact of enacted tax law changes | [1] | (28) | (530) | |
Other, net | 34 | 25 | 35 | |
Total federal income tax expense (benefit) | $ 211 | $ (408) | $ 126 | |
Computed (expected tax expense) | 21.00% | 35.00% | 35.00% | |
Dividends received deduction | (3.00%) | (14.00%) | (16.00%) | |
Tax credits | (4.00%) | (10.00%) | (9.00%) | |
Impact of enacted tax law changes | [1] | (2.00%) | (59.00%) | |
Other, net | 3.00% | 3.00% | 4.00% | |
Total federal income tax expense (benefit) | 15.00% | (45.00%) | 14.00% | |
[1] | Includes the waived $11 million of government sequestration fees and $17 million of tax benefits related to the Tax Cuts and Jobs Act for the year ended December 31, 2018. Includes the remeasurement of deferred tax assets and liabilities of $(541) million and government sequestration fees of $11 million as a result of the Act for the year ended December 31, 2017. |
Summary of Federal Income Tax_2
Summary of Federal Income Tax Expense Attributable to Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of percentage computed by applying the U.S. federal income tax rate to (loss) income before federal income taxes and noncontrolling interests | ||
Income tax expense benefit remeasurement of deferred tax liabilities net | $ 17 | $ (541) |
Government sequestration fee payable | 11 | |
Government sequestration fee waived | $ 11 |
Federal Income Taxes - Addition
Federal Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Taxes (Textual) [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Federal income tax benefit | $ 530 | ||
Excess credit carryforwards refundable rate | 50.00% | ||
Credit carryforwards | $ 253 | ||
Government sequestration fees payable | 11 | ||
Federal income tax receivable | $ 284 | ||
Deferred tax assets | 1,148 | 1,401 | |
Deferred tax liabilities | 1,451 | 1,871 | |
Deferred tax balances provisional income tax expense benefit | (9) | ||
Federal income taxes refunds/payments | 6 | 8 | $ 7 |
Operating loss carryforward | 77 | ||
Low Income-housing credit carry forwards other | $ 335 | ||
Income-housing credit carryforwards description | Low-income-housing credit carryforwards, which expire between 2024 and 2038 | ||
Foreign tax credit carryforwards | $ 52 | ||
Other Assets [Member] | |||
Federal Income Taxes (Textual) [Abstract] | |||
Federal income tax receivable | $ 259 | 166 | |
Life insurance [Member] | |||
Federal Income Taxes (Textual) [Abstract] | |||
Deferred tax assets | 134 | ||
Deferred tax liabilities | 134 | ||
Net deferred liabilities | $ 0 | ||
Earliest Tax Year [Member] | |||
Federal Income Taxes (Textual) [Abstract] | |||
Operating loss carryforward, expiration year | 2019 | ||
Foreign tax credit carryforwards expiring period | 2023 | ||
Latest Tax Year [Member] | |||
Federal Income Taxes (Textual) [Abstract] | |||
Operating loss carryforward, expiration year | 2037 | ||
Foreign tax credit carryforwards expiring period | 2026 |
Summary of Tax Effects of Tempo
Summary of Tax Effects of Temporary Differences Included in Net Deferred Tax (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Future policy benefits and claims | $ 544 | $ 781 |
Tax credit carryforwards | 387 | 350 |
Other | 239 | 280 |
Gross deferred tax assets | 1,170 | 1,411 |
Valuation allowance | (22) | (10) |
Gross deferred tax assets, net of valuation allowance | 1,148 | 1,401 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | 1,186 | 971 |
Available-for-sale securities | 54 | 589 |
Other | 211 | 311 |
Gross deferred tax liabilities | 1,451 | 1,871 |
Net deferred tax liability | $ 303 | $ 470 |
Rollforward of Uncertain Tax Po
Rollforward of Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Uncertain tax positions including permanent and temporary differences | |||
Balance at beginning of period | $ 10 | $ 36 | $ 36 |
Additions for current year tax positions | 2 | 1 | |
Additions for prior year tax positions | (1) | 1 | |
Reductions for prior years' tax positions | (28) | (2) | |
Balance at end of period | $ 9 | $ 10 | $ 36 |
Statutory Financial Informati_3
Statutory Financial Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Financial Information (Textual) [Abstract] | |||
State of Ohio insurance laws description | The State of Ohio insurance laws require Ohio-domiciled life insurance companies to notify the Ohio Superintendent of Insurance of all dividends prior to payment, and they must seek prior regulatory approval to pay a dividend or distribute cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding twelve months, exceeds the greater of (1) 10% of statutory-basis | ||
Dividend distributions made for the period | 12 months | ||
Statutory basis policyholders surplus | 10.00% | ||
Cash dividend paid | $ 0 | $ 0 | $ 0 |
NLIC paid dividend | 711 | ||
Eagle Captive Reinsurance LLC [Member] | |||
Statutory Financial Information (Textual) [Abstract] | |||
Change in deferred tax valuation | (183) | (184) | |
Subsidiaries [Member] | |||
Statutory Financial Information (Textual) [Abstract] | |||
Change in deferred tax valuation | $ 67 | $ 56 |
Statutory Financial Informati_4
Statutory Financial Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Parent Company [Member] | |||
Summarize the statutory net income (loss) and statutory capital and surplus for the Company and its primary insurance subsidiary | |||
Statutory Net Income(Loss) | $ 711 | $ 1,039 | $ 751 |
Statutory capital and surplus | 6,845 | 5,949 | 5,208 |
Subsidiaries [Member] | |||
Summarize the statutory net income (loss) and statutory capital and surplus for the Company and its primary insurance subsidiary | |||
Statutory Net Income(Loss) | 230 | (277) | (227) |
Statutory capital and surplus | 1,468 | 1,340 | $ 968 |
Subsidiaries One [Member] | |||
Summarize the statutory net income (loss) and statutory capital and surplus for the Company and its primary insurance subsidiary | |||
Statutory Net Income(Loss) | 7 | ||
Statutory capital and surplus | 43 | 35 | |
Subsidiaries Two [Member] | |||
Summarize the statutory net income (loss) and statutory capital and surplus for the Company and its primary insurance subsidiary | |||
Statutory capital and surplus | $ 7 | $ 7 |
Related Party Transactions - Ad
Related Party Transactions - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transactions (Textual) [Abstract] | ||||
IT service payments to NMIC and NSC | $ 361 | $ 324 | $ 277 | |
Company made lease payments to NMIC | 16 | 17 | 19 | |
Total account values of group annuity and life insurance contracts | 3,400 | 3,400 | ||
Revenue from group annuity and life insurance contracts | 119 | 125 | 127 | |
Total interest credited to the account balances | 107 | 111 | 111 | |
Revenues ceded to NMIC | [1] | 444 | 329 | 369 |
Customer allocations to NFG funds | 61,600 | 66,700 | 61,400 | |
NFG paid to NLIC | 230 | 221 | 199 | |
Amounts on deposit with NCMC | 1,400 | 1,000 | ||
Commercial mortgage loans | 12,417 | 10,963 | ||
Other investments | 1,891 | 1,493 | ||
Total commissions and fees paid | 72 | 72 | 65 | |
Notes receivable outstanding | 321 | 313 | 332 | |
Nation Wide Bank [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Fixed-rate advances | 1,000 | |||
Affiliate of the Company, were transferred to the Company along with of cash | 772 | |||
Commercial mortgage loans | 207 | |||
Fixed maturity securities | 152 | |||
Other investments | 65 | |||
Nationwide Trust Company [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Notes receivable outstanding | $ 165 | 0 | 0 | |
Interest rate | 0.785% | |||
Receivable due date | 2019-03 | |||
Additional Paid in Capital | $ 435 | |||
Nationwide Advantage Mortgage Company [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Revenues ceded to NMIC | 257 | 158 | 209 | |
Notes receivable outstanding | $ 4 | 7 | 11 | |
Interest rate | 5.57% | |||
Receivable due date | 2019-11 | |||
Minimum [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Interest rate | 3.27% | |||
Receivable due date | 2022-01 | |||
Maximum [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Interest rate | 5.00% | |||
Receivable due date | 2038-06 | |||
Nationwide Mutual Insurance Company [Member] | ||||
Related Party Transactions (Textual) [Abstract] | ||||
Revenues ceded to NMIC | $ 257 | 158 | 209 | |
Benefits, claims and expenses | $ 237 | $ 108 | $ 185 | |
[1] | Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company's accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. |
Reinsurance (Detail)
Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Premiums | ||||
Direct | $ 1,056 | $ 962 | $ 1,011 | |
Assumed from other companies | 83 | |||
Ceded to other companies | [1] | (444) | (329) | (369) |
Net premiums earned | 695 | 633 | 642 | |
Life, accident and health insurance in force | ||||
Direct | 303,578 | 291,984 | 275,404 | |
Assumed from other companies | 2 | 2 | 2 | |
Ceded to other companies | (64,852) | (62,714) | (61,674) | |
Net Life, accident and health insurance in force | $ 238,728 | $ 229,272 | $ 213,732 | |
[1] | Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company's accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reinsurance (Textual) [Abstract] | ||||
Ceded revenue | [1] | $ 444 | $ 329 | $ 369 |
Nationwide Advantage Mortgage Company [Member] | ||||
Reinsurance (Textual) [Abstract] | ||||
Ceded revenue | 257 | 158 | 209 | |
Other Assets [Member] | ||||
Reinsurance (Textual) [Abstract] | ||||
Amounts recoverable under reinsurance contracts | $ 1,000 | $ 1,100 | $ 683 | |
[1] | Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company's accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Revenues: | |||||||
Policy charges | $ 2,749 | $ 2,545 | $ 2,361 | ||||
Premiums | 695 | 633 | 642 | ||||
Net investment income | 2,675 | 2,414 | 2,139 | ||||
Total revenues | 5,800 | 5,613 | 5,039 | ||||
Income before federal income taxes and noncontrolling interests | 1,448 | 901 | 904 | ||||
Benefits and expenses: | |||||||
Interest credited to policyholder account values | 978 | 1,844 | 1,406 | ||||
Benefits and claims | 1,651 | 1,283 | 1,298 | ||||
Amortization of DAC | 423 | 392 | 433 | ||||
Other expenses, net of deferrals | 1,300 | 1,193 | 998 | ||||
Total benefits and expenses | 4,352 | 4,712 | 4,135 | ||||
Less: net gain attributable to noncontrolling interest | 168 | 96 | 91 | ||||
Pre-tax operating earnings (loss) | 1,448 | ||||||
Assets as of year end | 179,078 | 181,189 | 155,638 | ||||
Operating Segments [Member] | |||||||
Revenues: | |||||||
Policy charges | 2,749 | 2,545 | 2,361 | ||||
Premiums | 695 | 633 | 642 | ||||
Net investment income | 2,675 | 2,414 | 2,139 | ||||
Non-operating changes in variable annuity liabilities and net realized investment losses | [1] | (11) | (318) | (299) | |||
Other revenues | 12 | [2] | 10 | [2] | 14 | [3] | |
Total revenues | 6,120 | 5,284 | 4,857 | ||||
Benefits and expenses: | |||||||
Interest credited to policyholder account values | [4] | 1,465 | 1,376 | 1,245 | |||
Benefits and claims | [5] | 1,484 | [6] | 1,422 | 1,277 | ||
Amortization of DAC | 423 | 392 | 433 | ||||
Other expenses, net of deferrals | 1,300 | 1,193 | 998 | ||||
Total benefits and expenses | 4,672 | 4,383 | 3,953 | ||||
Less: non-operating net realized investment gains, including other-than-temporary impairment losses | [1] | (11) | (318) | (299) | |||
Individual Products and Solutions (IPS) [Member] | |||||||
Revenues: | |||||||
Income before federal income taxes and noncontrolling interests | 1,421 | 1,295 | 1,181 | ||||
Benefits and expenses: | |||||||
Pre-tax operating earnings (loss) | 1,421 | 1,295 | 1,181 | ||||
Assets as of year end | 131,820 | 134,326 | 113,062 | ||||
Individual Products and Solutions (IPS) [Member] | Operating Segments [Member] | |||||||
Revenues: | |||||||
Policy charges | 2,623 | 2,428 | 2,254 | ||||
Premiums | 658 | 596 | 605 | ||||
Net investment income | 1,655 | 1,521 | 1,337 | ||||
Other revenues | [2] | 2 | 1 | ||||
Total revenues | 4,938 | 4,546 | 4,196 | ||||
Benefits and expenses: | |||||||
Interest credited to policyholder account values | [4] | 847 | 783 | 684 | |||
Benefits and claims | [5] | 1,387 | [6] | 1,395 | 1,245 | ||
Amortization of DAC | 473 | 332 | 432 | ||||
Other expenses, net of deferrals | 810 | 741 | 654 | ||||
Total benefits and expenses | 3,517 | 3,251 | 3,015 | ||||
Retirement Plans [Member] | |||||||
Revenues: | |||||||
Income before federal income taxes and noncontrolling interests | 191 | 195 | 182 | ||||
Benefits and expenses: | |||||||
Pre-tax operating earnings (loss) | 191 | 195 | 182 | ||||
Assets as of year end | 33,933 | 35,520 | 32,239 | ||||
Retirement Plans [Member] | Operating Segments [Member] | |||||||
Revenues: | |||||||
Policy charges | 126 | 117 | 107 | ||||
Net investment income | 835 | 835 | 791 | ||||
Total revenues | 961 | 952 | 898 | ||||
Benefits and expenses: | |||||||
Interest credited to policyholder account values | [4] | 576 | 557 | 531 | |||
Amortization of DAC | (4) | 6 | 4 | ||||
Other expenses, net of deferrals | 198 | 194 | 181 | ||||
Total benefits and expenses | 770 | 757 | 716 | ||||
Corporate and Other [Member] | |||||||
Revenues: | |||||||
Non-operating changes in variable annuity liabilities and net realized investment losses | [1] | (11) | (318) | (299) | |||
Income before federal income taxes and noncontrolling interests | (164) | (589) | (459) | ||||
Benefits and expenses: | |||||||
Less: non-operating net realized investment gains, including other-than-temporary impairment losses | [1] | (11) | (318) | (299) | |||
Less: adjustment to amortization of DAC and other related expenses related to non-operating items above | 48 | (54) | 6 | ||||
Less: net gain attributable to noncontrolling interest | (168) | (96) | (91) | ||||
Pre-tax operating earnings (loss) | (33) | (121) | (75) | ||||
Assets as of year end | 13,325 | 11,343 | 10,337 | ||||
Corporate and Other [Member] | Operating Segments [Member] | |||||||
Revenues: | |||||||
Premiums | 37 | 37 | 37 | ||||
Net investment income | 185 | 58 | 11 | ||||
Non-operating changes in variable annuity liabilities and net realized investment losses | [1] | (11) | (318) | (299) | |||
Other revenues | 10 | [2] | 9 | [2] | 14 | [3] | |
Total revenues | 221 | (214) | (237) | ||||
Benefits and expenses: | |||||||
Interest credited to policyholder account values | [4] | 42 | 36 | 30 | |||
Benefits and claims | [5] | 97 | [6] | 27 | 32 | ||
Amortization of DAC | (46) | 54 | (3) | ||||
Other expenses, net of deferrals | 292 | 258 | 163 | ||||
Total benefits and expenses | 385 | 375 | 222 | ||||
Less: non-operating net realized investment gains, including other-than-temporary impairment losses | [1] | $ (11) | $ (318) | $ (299) | |||
[1] | Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to certain product hedges). | ||||||
[2] | Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes). | ||||||
[3] | Includes operating items (trading portfolio realized gains and losses, trading portfolio valuation changes) | ||||||
[4] | Includes operating items (net realized gains and losses related to certain product hedges). | ||||||
[5] | Excludes certain non-operating changes in variable annuity liabilities. | ||||||
[6] | The unobservable input is not applicable to GMABs. |
Consolidated Summary of Inves_2
Consolidated Summary of Investments - Other Than Investments in Related Parties (Detail) $ in Millions | Dec. 31, 2018USD ($) | |
Summary of Investments Other Than Investments in Related Parties | ||
Cost | $ 71,028 | |
Amount at which shown in the consolidated balance sheet | 70,514 | |
US Government Corporations and Agencies securities [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 459 | |
Fair value | 486 | |
Amount at which shown in the consolidated balance sheet | 486 | |
Obligations of states, political subdivisions and foreign governments [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 4,026 | |
Fair value | 4,293 | |
Amount at which shown in the consolidated balance sheet | 4,293 | |
Public Utility, Bonds [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 5,990 | |
Fair value | 5,844 | |
Amount at which shown in the consolidated balance sheet | 5,844 | |
All Other Corporate Bonds [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 43,323 | |
Fair value | 42,714 | |
Amount at which shown in the consolidated balance sheet | 42,714 | |
Fixed maturity securities [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 53,798 | |
Fair value | 53,337 | |
Amount at which shown in the consolidated balance sheet | 53,337 | |
Banks, Trust and Insurance, Equities [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 12 | |
Fair value | 10 | |
Amount at which shown in the consolidated balance sheet | 10 | |
Industrial, miscellaneous and all other [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 72 | |
Fair value | 62 | |
Amount at which shown in the consolidated balance sheet | 62 | |
Nonredeemable preferred stocks [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 43 | |
Fair value | 49 | |
Amount at which shown in the consolidated balance sheet | 49 | |
Equity securities [Member] | Available-for-sale Securities [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 127 | |
Fair value | 121 | |
Amount at which shown in the consolidated balance sheet | 121 | |
Trading Assets [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 66 | |
Amount at which shown in the consolidated balance sheet | 58 | |
Mortgage loans, net of allowance [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 12,418 | |
Amount at which shown in the consolidated balance sheet | 12,379 | [1] |
Policy loans [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 1,015 | |
Amount at which shown in the consolidated balance sheet | 1,015 | |
Other investments [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 1,712 | |
Amount at which shown in the consolidated balance sheet | 1,712 | |
Short-term investments [Member] | ||
Summary of Investments Other Than Investments in Related Parties | ||
Cost | 1,892 | |
Amount at which shown in the consolidated balance sheet | $ 1,892 | |
[1] | Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans on real estate (see Note 6 to the audited consolidated financial statements), hedges and commitment hedges on mortgage loans on real estate. |
Schedule - Supplementary Insura
Schedule - Supplementary Insurance Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Supplementary Insurance Information | ||||
Supplementary Insurance Information, Deferred policy acquisition costs | $ 6,830 | $ 5,676 | $ 5,432 | |
Supplementary Insurance Information, Future policy benefits, losses, claims and loss expenses | 66,074 | 59,885 | 52,911 | |
Supplementary Insurance Information, Unearned premiums | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Other policy claims and benefits payable | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Premium revenue | 695 | 633 | 642 | |
Supplementary Insurance Information, Net investment income | [2] | 2,675 | 2,414 | 2,139 |
Supplementary Insurance Information, Benefits, claims, losses and settlement expenses | 2,629 | 3,127 | 2,704 | |
Supplementary Insurance Information, Amortization of deferred policy acquisition costs | 423 | 392 | 433 | |
Supplementary Insurance Information, Other operating expenses | [2] | 1,300 | 1,193 | 998 |
Supplementary Insurance Information, Premiums written | 0 | 0 | 0 | |
Individual Products and Solutions (IPS) [Member] | ||||
Supplementary Insurance Information | ||||
Supplementary Insurance Information, Deferred policy acquisition costs | 6,417 | 5,922 | 5,390 | |
Supplementary Insurance Information, Future policy benefits, losses, claims and loss expenses | 43,513 | 38,510 | 32,621 | |
Supplementary Insurance Information, Unearned premiums | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Other policy claims and benefits payable | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Premium revenue | 658 | 596 | 605 | |
Supplementary Insurance Information, Net investment income | [2] | 1,655 | 1,521 | 1,337 |
Supplementary Insurance Information, Benefits, claims, losses and settlement expenses | 1,914 | 2,507 | 2,111 | |
Supplementary Insurance Information, Amortization of deferred policy acquisition costs | 473 | 332 | 432 | |
Supplementary Insurance Information, Other operating expenses | [2] | 810 | 741 | 654 |
Supplementary Insurance Information, Premiums written | 0 | 0 | 0 | |
Retirement Plans [Member] | ||||
Supplementary Insurance Information | ||||
Supplementary Insurance Information, Deferred policy acquisition costs | 252 | 235 | 229 | |
Supplementary Insurance Information, Future policy benefits, losses, claims and loss expenses | 19,648 | 18,773 | 17,443 | |
Supplementary Insurance Information, Unearned premiums | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Other policy claims and benefits payable | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Net investment income | [2] | 835 | 835 | 791 |
Supplementary Insurance Information, Benefits, claims, losses and settlement expenses | 576 | 557 | 531 | |
Supplementary Insurance Information, Amortization of deferred policy acquisition costs | (4) | 6 | 4 | |
Supplementary Insurance Information, Other operating expenses | [2] | 198 | 194 | 181 |
Supplementary Insurance Information, Premiums written | 0 | 0 | 0 | |
Corporate and Other [Member] | ||||
Supplementary Insurance Information | ||||
Supplementary Insurance Information, Deferred policy acquisition costs | 161 | (481) | (187) | |
Supplementary Insurance Information, Future policy benefits, losses, claims and loss expenses | 2,913 | 2,602 | 2,847 | |
Supplementary Insurance Information, Unearned premiums | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Other policy claims and benefits payable | [1] | 0 | 0 | 0 |
Supplementary Insurance Information, Premium revenue | 37 | 37 | 37 | |
Supplementary Insurance Information, Net investment income | [2] | 185 | 58 | 11 |
Supplementary Insurance Information, Benefits, claims, losses and settlement expenses | 139 | 63 | 62 | |
Supplementary Insurance Information, Amortization of deferred policy acquisition costs | (46) | 54 | (3) | |
Supplementary Insurance Information, Other operating expenses | [2] | 292 | 258 | 163 |
Supplementary Insurance Information, Premiums written | $ 0 | $ 0 | $ 0 | |
[1] | Unearned premiums and other policy claims and benefits payable are included in Column C amounts. | |||
[2] | Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates and reported segment operating results would change if different methods were applied. |
Schedule of Reinsurance (Detail
Schedule of Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | ||||
Reinsurance Premiums for Insurance Companies, Product Segment, Gross amount | $ 1,056 | $ 962 | $ 1,011 | |
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded to other companies | [1] | (444) | (329) | (369) |
Reinsurance Effect on Claims and Benefits Incurred, Amount Assumed from other companies | 83 | |||
Reinsurance Effect on Claims and Benefits Incurred, Net amount | 695 | 633 | 642 | |
Life, accident and health insurance in force [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | ||||
Reinsurance Premiums for Insurance Companies, Product Segment, Gross amount | 303,578 | 291,984 | 275,404 | |
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded to other companies | (64,852) | (62,714) | (61,674) | |
Reinsurance Effect on Claims and Benefits Incurred, Amount Assumed from other companies | 2 | 2 | 2 | |
Reinsurance Effect on Claims and Benefits Incurred, Net amount | 238,728 | 229,272 | 213,732 | |
Life insurance [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | ||||
Reinsurance Premiums for Insurance Companies, Product Segment, Gross amount | [2] | 756 | 700 | 698 |
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded to other companies | [2] | (61) | (67) | (56) |
Reinsurance Effect on Claims and Benefits Incurred, Net amount | [2] | 695 | 633 | 642 |
Accident and health insurance [Member] | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | ||||
Reinsurance Premiums for Insurance Companies, Product Segment, Gross amount | 300 | 262 | 313 | |
Reinsurance Effect on Claims and Benefits Incurred, Amount Ceded to other companies | (383) | $ (262) | $ (313) | |
Reinsurance Effect on Claims and Benefits Incurred, Amount Assumed from other companies | $ 83 | |||
[1] | Amount includes revenues ceded to NMIC of $257 million, $158 million and $209 million for the years ended December 31, 2018, 2017 and 2016, respectively, under a modified coinsurance agreement whereby all of the Company's accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC. | |||
[2] | Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Detail) - Allowance For Mortgage Loan [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Activity in the valuation allowance for mortgage loans | ||||
Valuation Allowances and Reserves, beginning Balance | $ 34 | $ 32 | $ 26 | |
Charged to costs and expenses | 9 | 6 | 8 | |
Charged to other accounts | 0 | 0 | 0 | |
Deductions | [1] | (4) | (4) | (2) |
Valuation Allowances and Reserves, Ending Balance | $ 39 | $ 34 | $ 32 | |
[1] | Amounts generally represent payoffs, sales and recoveries. |