Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 24, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AFL | |
Entity Registrant Name | Aflac Incorporated | |
Entity Central Index Key | 4,977 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 761,279,345 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenues: | |||||
Net premiums, principally supplemental health insurance | $ 4,636 | $ 4,648 | $ 14,086 | $ 13,951 | |
Net investment income | 870 | 811 | 2,569 | 2,408 | |
Realized investment gains (losses): | |||||
Other-than-temporary impairment losses realized | (5) | (17) | |||
Other-than-temporary impairment losses | (8) | (27) | |||
Other gains (losses) | [1] | 61 | 38 | (59) | (139) |
Total realized investment gains (losses) | 56 | 30 | (76) | (166) | |
Other income (loss) | 15 | 17 | 53 | 50 | |
Total revenues | 5,577 | 5,506 | 16,632 | 16,243 | |
Benefits and expenses: | |||||
Benefits and claims, net | 3,002 | 3,083 | 9,075 | 9,174 | |
Acquisition and operating expenses: | |||||
Amortization of deferred policy acquisition costs | 315 | 271 | 932 | 848 | |
Insurance commissions | 331 | 332 | 1,007 | 996 | |
Insurance and other expenses | 730 | 686 | 2,193 | 2,025 | |
Interest expense | 53 | 59 | 164 | 181 | |
Total acquisition and operating expenses | 1,429 | 1,348 | 4,296 | 4,050 | |
Total benefits and expenses | 4,431 | 4,431 | 13,371 | 13,224 | |
Earnings before income taxes | 1,146 | 1,075 | 3,261 | 3,019 | |
Income taxes | 301 | 359 | 866 | 998 | |
Net earnings | $ 845 | $ 716 | $ 2,395 | $ 2,021 | |
Net earnings per share: | |||||
Basic (in dollars per share) | $ 1.10 | $ 0.91 | $ 3.10 | $ 2.54 | |
Diluted (in dollars per share) | $ 1.09 | $ 0.90 | $ 3.08 | $ 2.52 | |
Weighted-average outstanding common shares used in computing earnings per share (In thousands): | |||||
Basic (in shares) | 767,049 | 788,958 | 772,807 | 794,645 | |
Diluted (in shares) | 772,070 | 794,762 | 777,867 | 800,483 | |
Cash dividends per share | $ 0.26 | $ 0.22 | $ 0.78 | $ 0.65 | |
[1] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 845 | $ 716 | $ 2,395 | $ 2,021 | |
Other comprehensive income (loss) before income taxes: | |||||
Unrealized foreign currency translation gains (losses) during period | (383) | (58) | (51) | 325 | |
Unrealized gains (losses) on fixed maturity securities: | |||||
Unrealized holding gains (losses) on fixed maturity securities during period | [1] | (866) | 457 | (3,099) | 1,006 |
Reclassification adjustment for realized (gains) losses on fixed maturity securities included in net earnings | [1] | (37) | (50) | (11) | (33) |
Unrealized gains (losses) on derivatives during period | (2) | (1) | 2 | 0 | |
Pension liability adjustment during period | 1 | 1 | 1 | (1) | |
Total other comprehensive income (loss) before income taxes | (1,287) | 349 | (3,158) | 1,297 | |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (344) | 219 | (813) | 396 | |
Other comprehensive income (loss), net of income taxes | [2] | (943) | 130 | (2,345) | 901 |
Total comprehensive income (loss) | $ (98) | $ 846 | $ 50 | $ 2,922 | |
[1] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||||
[2] | All amounts in the table above are net of tax. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Securities available for sale, at fair value: | |||||
Available for sale, fixed maturity securities | [2] | $ 82,296 | [1],[3] | $ 84,313 | [4] |
Securities held to maturity, at amortized cost: | |||||
Held to maturity, fixed maturity securities | 30,421 | 31,430 | |||
Equity securities, at fair value: | |||||
Equity securities | [2],[5] | 1,059 | |||
Available for sale securities, equity securities | 1,023 | ||||
Other investments | [6] | 7,009 | 3,402 | ||
Cash and cash equivalents | 3,429 | 3,491 | |||
Total investments and cash | 124,214 | 123,659 | |||
Receivables | 784 | 827 | |||
Accrued investment income | 735 | 769 | |||
Deferred policy acquisition costs | 9,622 | 9,505 | |||
Property and equipment, at cost less accumulated depreciation | 435 | 434 | |||
Other | [7] | 2,151 | 2,023 | ||
Total assets | 137,941 | 137,217 | |||
Policy Liabilities: | |||||
Future policy benefits | 83,856 | 81,857 | |||
Unpaid policy claims | 4,530 | 4,392 | |||
Unearned premiums | 5,224 | 5,959 | |||
Other policyholders’ funds | 6,974 | 6,939 | |||
Total policy liabilities | 100,584 | 99,147 | |||
Income taxes | 3,887 | 4,745 | |||
Payables for return of cash collateral on loaned securities | 1,970 | 606 | |||
Notes payable | 5,279 | 5,289 | |||
Other | [8] | 2,987 | 2,832 | ||
Total liabilities | 114,707 | 112,619 | |||
Shareholders’ equity: | |||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2018 and 2017; issued 1,347,061 shares in 2018 and 1,345,762 shares in 2017 | 135 | 135 | |||
Additional paid-in capital | 2,151 | 2,052 | |||
Retained earnings | 31,461 | 29,895 | |||
Accumulated other comprehensive income (loss): | |||||
Unrealized foreign currency translation gains (losses) | (2,113) | (1,750) | |||
Unrealized gain (losses) on fixed maturity securities | [9],[10] | 4,240 | 5,964 | ||
Unrealized gains (losses) on derivatives | (24) | (23) | |||
Pension liability adjustment | (194) | (163) | |||
Treasury stock, at average cost | (12,422) | (11,512) | |||
Total shareholders’ equity | 23,234 | 24,598 | |||
Total liabilities and shareholders’ equity | 137,941 | 137,217 | |||
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||
Securities available for sale, at fair value: | |||||
Available for sale, fixed maturity securities | [11] | 77,443 | 78,804 | ||
Securities held to maturity, at amortized cost: | |||||
Held to maturity, fixed maturity securities | 30,421 | 31,430 | |||
Equity securities, at fair value: | |||||
Equity securities | [11] | 880 | |||
Available for sale securities, equity securities | [11] | 270 | |||
Variable Interest Entity, Consolidated | |||||
Securities available for sale, at fair value: | |||||
Available for sale, fixed maturity securities | [11],[12] | 4,853 | 5,509 | ||
Equity securities, at fair value: | |||||
Equity securities | 179 | ||||
Available for sale securities, equity securities | 753 | ||||
Other investments | [13] | 5,388 | 2,341 | ||
Policy Liabilities: | |||||
Total liabilities | $ 101 | $ 128 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities | ||||
[3] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[4] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[5] | Includes perpetual securities ( $66 | ||||
[6] | Includes $5,388 in 2018 and $2,341 in 2017 | ||||
[7] | Includes $190 in 2018 and $151 in 2017 | ||||
[8] | Includes $101 in 2018 and $128 in 2017 | ||||
[9] | See Note 1 for discussion of the accounting treatment of tax on amounts recorded in accumulated other comprehensive income pursuant to the Tax Act and for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||||
[10] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||||
[11] | Includes perpetual securities, see Notes 1 and 3 of the Notes to the Consolidated Financial Statements | ||||
[12] | Includes perpetual securities | ||||
[13] | Consists of TREs, CMLs, MMLs, and alternative investments in limited partnerships |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Available for sale, fixed maturity securities, amortized cost | $ 76,252 | [1],[2] | $ 75,132 | [3] | |
Held to maturity, fixed maturity securities, fair value | $ 36,250 | $ 38,072 | |||
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 | |||
Common stock, shares authorized (in shares) | 1,900,000,000 | 1,900,000,000 | |||
Common stock, shares issued (in shares) | 1,347,376,000 | 1,345,762,000 | |||
Asset derivatives | $ 430 | $ 331 | |||
Liability derivatives | 497 | 474 | |||
Variable Interest Entity, Consolidated | |||||
Available for sale, fixed maturity securities, amortized cost | [4],[5] | 4,045 | 4,538 | ||
Asset derivatives | [6] | 190 | 151 | ||
Liability derivatives | [6] | 101 | 128 | ||
Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||
Available for sale, fixed maturity securities, amortized cost | [5] | 72,207 | 70,594 | ||
Held to maturity, fixed maturity securities, fair value | 36,250 | 38,072 | |||
Loan Receivables and Limited Partnerships | Variable Interest Entity, Consolidated | |||||
Other investments held in unit trust, net of reserves, amortized cost | $ 5,388 | $ 2,341 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[3] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[4] | Includes perpetual securities | ||||
[5] | Includes perpetual securities, see Notes 1 and 3 of the Notes to the Consolidated Financial Statements | ||||
[6] | Consists entirely of derivatives |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock: | Additional paid-in capital: | Retained earnings: | Accumulated other comprehensive income (loss): | Treasury stock: | |
Balance, beginning of period at Dec. 31, 2016 | $ 135 | $ 1,908 | $ 25,981 | $ 2,630 | $ (10,172) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 33 | ||||||
Share-based compensation | 38 | ||||||
Treasury stock reissued | 30 | 38 | |||||
Net earnings | $ 2,021 | 2,021 | |||||
Dividends to shareholders | (513) | ||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 268 | ||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | [1] | 632 | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 1 | ||||||
Pension liability adjustment during period, net of income taxes | 0 | ||||||
Purchases of treasury stock | (1,053) | ||||||
Balance, end of period at Sep. 30, 2017 | 21,977 | 135 | 2,009 | 27,489 | 3,531 | (11,187) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle, net of income taxes | Accounting Standards Update 2016-01 | [1] | 0 | 0 | ||||
Cumulative effect of change in accounting principle, net of income taxes | Accounting Standards Update 2018-02 | [1] | 0 | 0 | ||||
Cumulative effect of change in accounting principle, net of income taxes | Accounting Standards Update 2016-01 | [1] | 148 | (148) | ||||
Cumulative effect of change in accounting principle, net of income taxes | Accounting Standards Update 2018-02 | [1] | (374) | 374 | ||||
Balance, beginning of period at Dec. 31, 2017 | 24,598 | 135 | 2,052 | 29,895 | 4,028 | (11,512) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 30 | ||||||
Share-based compensation | 39 | ||||||
Treasury stock reissued | 30 | 29 | |||||
Net earnings | 2,395 | 2,395 | |||||
Dividends to shareholders | (603) | ||||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | (38) | ||||||
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments | [1] | (2,310) | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 2 | ||||||
Pension liability adjustment during period, net of income taxes | 1 | ||||||
Purchases of treasury stock | (939) | ||||||
Balance, end of period at Sep. 30, 2018 | $ 23,234 | $ 135 | $ 2,151 | $ 31,461 | $ 1,909 | $ (12,422) | |
[1] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 2,395 | $ 2,021 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Change in receivables and advance premiums | (27) | (32) |
Capitalization of deferred policy acquisition costs | (1,082) | (1,077) |
Amortization of deferred policy acquisition costs | 932 | 848 |
Increase in policy liabilities | 1,821 | 2,137 |
Change in income tax liabilities | 38 | 323 |
Realized investment (gains) losses | 76 | 166 |
Other, net | 506 | 210 |
Net cash provided (used) by operating activities | 4,659 | 4,596 |
Proceeds from investments sold or matured: | ||
Available-for-sale fixed maturity securities | 5,991 | 3,382 |
Equity securities, FV-NI | 369 | |
Equity securities, available for sale | 755 | |
Held-to-maturity fixed maturity securities | 880 | 1,714 |
Other investments - loan receivables | 597 | 134 |
Costs of investments acquired: | ||
Available for sale fixed maturity securities | (7,845) | (6,827) |
Equity securities, FV-NI | (338) | |
Equity securities, available-for-sale | (391) | |
Other investments - loan receivables | (4,150) | (916) |
Other investments, excluding loan receivables, net | (136) | (167) |
Settlement of derivatives, net | (141) | (240) |
Cash received (pledged or returned) as collateral, net | 1,413 | (273) |
Other, net | 188 | (58) |
Net cash provided (used) by investing activities | (3,172) | (2,887) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (923) | (1,053) |
Proceeds from borrowings | 0 | 524 |
Principal payments under debt obligations | 0 | (660) |
Dividends paid to shareholders | (595) | (491) |
Change in investment-type contracts, net | (17) | 39 |
Treasury stock reissued | 36 | 23 |
Other, net | (14) | 5 |
Net cash provided (used) by financing activities | (1,513) | (1,613) |
Effect of exchange rate changes on cash and cash equivalents | (36) | (28) |
Net change in cash and cash equivalents | (62) | 68 |
Cash and cash equivalents, beginning of period | 3,491 | 4,859 |
Cash and cash equivalents, end of period | 3,429 | 4,927 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 827 | 693 |
Interest paid | 124 | 144 |
Noncash interest | 41 | 38 |
Impairment losses included in realized investment losses | 17 | |
Impairment losses included in realized investment losses | 27 | |
Noncash financing activities: | ||
Capital lease obligations | 10 | 7 |
Associate stock bonus | ||
Treasury stock issued for: | ||
Treasury stock issued | 7 | 22 |
Shareholder dividend reinvestment | ||
Treasury stock issued for: | ||
Treasury stock issued | 8 | 22 |
Share-based compensation grants | ||
Treasury stock issued for: | ||
Treasury stock issued | $ 2 | $ 1 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the United States (Aflac U.S.) and, effective April 1, 2018, through Aflac Life Insurance Japan Ltd. in Japan (Aflac Japan). Prior to April 1, 2018, the Company's insurance business was marketed in Japan as a branch of Aflac. American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the United States and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 69% of the Company's total revenues in both the nine -month periods ended September 30, 2018 and 2017 , respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at September 30, 2018 , compared with 83% at December 31, 2017 . Basis of Presentation The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are adequate. The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2018 , and December 31, 2017 , the consolidated statements of earnings and comprehensive income (loss) for the three- and nine -month periods ended September 30, 2018 and 2017, and the consolidated statements of shareholders' equity and cash flows for the nine -month periods ended September 30, 2018 and 2017 . Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2017 ( 2017 Annual Report). Stock split: On February 13, 2018, the Board of Directors of the Parent Company declared a two -for-one stock split of the Company’s common stock in the form of a 100% stock dividend payable on March 16, 2018 to shareholders of record at the close of business on March 2, 2018. The stock split was payable in the form of one additional common stock share for every share of common stock held. All equity and share-based data, including the number of shares outstanding and per share amounts, have been adjusted to reflect the stock split for all periods presented in this Quarterly Report on Form 10-Q. Reclassifications : Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. Perpetual securities have been reclassified in prior periods from a separate line item to fixed maturity securities to conform to current period reporting classifications. This reclassification had no impact on net earnings or total shareholder’s equity. New Accounting Pronouncements Recently Adopted Accounting Pronouncements Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2018-03 Technical Corrections and Improvements to Financial Instruments - Overall In February 2018, the FASB issued amendments to clarify certain aspects of the guidance issued in the original Financial Instruments - Overall - Recognition and Measurement pronouncement summarized below. Specifically, for entities who have chosen the measurement alternative approach for equity securities without readily determinable fair values, the amendments clarify that entities may change from a measurement alternative approach to a fair value method through an irrevocable election that would apply to a specific equity security and all identical or similar investments of the same issuer; entities should use an observable price at the date of the transaction rather than reporting date for the measurement alternative calculation; and insurance companies should use a prospective transition method when applying the measurement alternative. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted the Financial Instruments - Overall - Recognition and Measurement guidance discussed below. Early adopted as of January 1, 2018 The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2018-02 Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued amendments which allow a reclassification from accumulated other comprehensive income (AOCI) to retained earnings of the effects of the change in the U.S. federal income tax rate resulting from the Tax Cuts and Jobs Act (Tax Act) on the gross deferred tax amounts and the corresponding valuation allowances related to items remaining in AOCI. The amendments eliminate the stranded tax effects resulting from the Tax Act and also require certain disclosures about the reclassified tax effects. The amendments are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Public business entities may early adopt this guidance in any interim reporting period for which financial statements have not yet been issued. The amendments should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adopted as of January 1, 2018 The amounts reclassified from AOCI to retained earnings include the income tax effects of the change in the federal corporate tax rate enacted by the Tax Act. The Company’s policy is to follow the portfolio approach for releasing income tax effects from AOCI. The adoption of this guidance resulted in an increase to beginning 2018 AOCI of $374 million with a corresponding decrease to beginning 2018 retained earnings as of January 1, 2018. ASU 2017-09 Compensation - Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued amendments to provide guidance clarifying when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. An entity should apply modification accounting if the fair value, vesting conditions or classification of the award (as an equity instrument or liability instrument) changes as a result of the change in terms or conditions of the award. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-08 Receivables - Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Early adopted as of July 1, 2018 The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2017-07 Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued amendments requiring that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost and net periodic postretirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-05 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued amendments that clarify the scope and accounting guidance for the derecognition of a nonfinancial asset or a financial asset that meets the definition of an "in substance nonfinancial asset." The amendments define an "in substance nonfinancial asset" and provide additional accounting guidance for partial sales of nonfinancial assets. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-01 Business Combinations: Clarifying the Definition of a Business In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to exclude transactions where substantially all the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2016-18 Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures. ASU 2016-16 Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of this guidance require certain equity investments to be measured at fair value with changes in fair value recognized in net earnings; separate presentation in other comprehensive income for changes in fair value of financial liabilities measured under the fair value option that are due to instrument-specific credit risk; and changes in disclosures associated with the fair value of financial instruments. The guidance also clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset (DTA) related to available-for-sale (AFS) securities in combination with the entity's other DTAs. January 1, 2018 The Company recorded a cumulative effect adjustment with an increase to beginning 2018 retained earnings and a decrease to beginning 2018 AOCI of $148 million, net of taxes. ASU 2014-09 Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. Accounting Pronouncements Pending Adoption Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued amendments to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued amendments to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Accordingly, six disclosures requirements were removed, two added and two clarified. The amendments are effective for public business entities for fiscal years beginning after December 15, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-13 Fair Value Measurement, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued amendments to the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments remove, modify, and add certain disclosures. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until their effective date. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-12 Financial Services - Insurance, Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) requirement to update assumptions for liability for future policy benefits, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application of the amendments is permitted. The Company is thoroughly evaluating the impact of adoption and it is expected that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company expects that the requirement to update assumptions for liability for future policy benefits will have the most significant impact on its results of operations, systems, processes, and controls. ASU 2018-11 Leases, Targeted Improvements In July 2018, the FASB issued targeted improvements to Topic 842 Leases. The amendments in the update provide entities with an additional (and optional) transition method to adopt the new leases standard by recording a cumulative effect adjustment to beginning retained earnings. Additionally, the amendments provide lessors with a practical expedient to not separate nonlease components from associated lease components and instead account for those components as a single component under certain conditions. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company has elected the optional transition method. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-10 Codification Improvements to Topic 842, Leases In July 2018, the FASB issued guidance which clarifies, corrects errors in, or makes minor improvements to the Codification related to ASU 2016-02, Leases (Topic 842). The amendments in this ASU affect narrow aspects of the guidance issued in the amendments to ASU 2016-02, including but not limited to, Residual Value Guarantees, Rate Implicit in the Lease, Lessee Reassessment of Lease Classification and Variable Lease Payments that Depend on an Index or a Rate. Amendments within this ASU follow the effective dates of Topic 842, which are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-01 Leases: Land Easement Practical Expedient for Transition to Topic 842 In January 2018, the FASB issued guidance which provides an entity with the option to elect a transition practical expedient to not evaluate, under Topic 842, land easements that exist or expired before the entity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The amendments clarify that new or modified land easements should be evaluated under the new leases standard once an entity has adopted the new standard. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-12 Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued guidance which improves and simplifies the accounting rules around hedge accounting and will create more transparency around how economic results are presented on financial statements. Issues addressed in this new guidance include: 1) risk component hedging, 2) accounting for the hedged item in fair value hedges of interest rate risk, 3) recognition and presentation of the effects of hedging instruments, and 4) amounts excluded from the assessment of hedge effectiveness. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of the guidance. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current U.S. GAAP; however, the amendments require that credit losses be presented as an allowance rather than as a write-down. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (PCD financial assets). The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments will be adopted following a modified-retrospective approach resulting in a cumulative effect adjustment in retained earnings as of the beginning of the year of adoption. Two exceptions to this adoption method are for PCD financial assets and debt securities for which other-than-temporary impairment (OTTI) will have been recognized before the effective date. Loans purchased with credit deterioration accounted for under current U.S. GAAP as "purchased credit impaired" (PCI) financial assets will be classified as PCD financial assets at transition and PCD guidance will be applied prospectively. Debt securities that have experienced OTTI before the effective date will follow a prospective adoption method which allows an entity to maintain the same amortized cost basis before and after the effective date. The Company has identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loan and loan receivables and reinsurance recoverables (See Notes 3 and 7 for current balances of instruments in scope). The Company is progressing towards updating its credit loss projection models and accounting systems to comply with the required changes in measurement of credit losses. The Company currently expects loans and loan receivables and held-to-maturity fixed maturity securities to be the asset classes most significantly impacted upon adoption of the guidance. The Company continues to evaluate the impact of adoption of this guidance on its financial position, results of operations, and disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2016-02 Leases In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. The new standard is effective for the Company on January 1, 2019, as we do not plan to early adopt. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company is electing to use its effective date as its date of initial application. The transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. Because the Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight. The Company has identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 of the Notes to the Consolidated Financial Statements in the 2017 Annual Report for current balances of leases in scope). The leases within scope of this guidance will increase the Company's ROU assets and lease liabilities recorded on its statement of financial position, however the Company estimates leases within scope of the guidance to represent less than 1% of its total assets as of September 30, 2018. The Company estimates that the adoption of this guidance will not have a significant impact on its financial position, results of operations, or disclosures. Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company's business. For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position or results of operations, see Note 1 of the Notes to the Consolidated Financial Statements in the 2017 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in the "Corporate and other" category. The Company does not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, the Company evaluates and manages its business segments using a financial performance measure called pretax adjusted earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding realized investment gains and losses, except for amortized hedge costs related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. Information regarding operations by segment follows: Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Revenues: Aflac Japan: Net earned premiums $ 3,159 $ 3,200 $ 9,649 $ 9,616 Net investment income, less amortized hedge costs 606 561 1,801 1,676 Other income 10 11 31 31 Total Aflac Japan 3,775 3,772 11,481 11,323 Aflac U.S.: Net earned premiums 1,426 1,393 4,280 4,172 Net investment income 187 181 544 539 Other income 3 1 7 3 Total Aflac U.S. 1,616 1,575 4,831 4,714 Corporate and other 82 69 245 204 Total adjusted revenues 5,473 5,416 16,557 16,241 Realized investment gains (losses) (1),(2),(3) 104 90 75 2 Total revenues $ 5,577 $ 5,506 $ 16,632 $ 16,243 (1) Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 and for both the nine -month periods ended September 30, 2018 , and 2017 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations. (2) Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 , respectively, which has been reclassified from realized investment gains (losses) and reported as an increase in net investment income when analyzing operations. (3) An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 , were reclassified from realized investment gains (losses) into net investment income when analyzing operations. Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Pretax earnings: Aflac Japan $ 756 $ 748 $ 2,411 $ 2,308 Aflac U.S. 334 316 1,011 956 Corporate and other (29 ) (50 ) (113 ) (150 ) Pretax adjusted earnings 1,061 1,014 3,309 3,114 Realized investment gains (losses) (1),(2),(3),(4) 88 71 25 (57 ) Other income (loss) (3 ) (10 ) (73 ) (38 ) Total earnings before income taxes $ 1,146 $ 1,075 $ 3,261 $ 3,019 Income taxes applicable to pretax adjusted earnings $ 270 $ 338 $ 862 $ 1,031 Effect of foreign currency translation on after-tax (1 ) (29 ) 27 (31 ) (1) Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 for both the nine -month periods ended September 30, 2018 , and 2017 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax adjusted earnings when analyzing segment operations. (2) Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 which has been reclassified from realized investment gains (losses) and reported as an increase in pretax adjusted earnings when analyzing operations. (3) An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 , were reclassified from realized investment gains (losses) into net investment income when analyzing operations. (4) Excluding a gain of $17 and $19 for the three-month periods and $50 and $60 for the nine -month periods ended September 30, 2018 , and 2017 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is included in adjusted earnings when analyzing segment operations Assets were as follows: (In millions) September 30, December 31, Assets: Aflac Japan $ 116,181 $ 114,402 Aflac U.S. 19,585 19,893 Corporate and other 2,175 2,922 Total assets $ 137,941 $ 137,217 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Investment Holdings The amortized cost for the Company's investments in debt securities, the cost for equity securities and the fair values of these investments are shown in the following tables. September 30, 2018 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value Fixed maturity securities: (1) Yen-denominated: Japan government and agencies $ 29,499 $ 2,955 $ 426 $ 32,028 Municipalities 376 25 17 384 Mortgage- and asset-backed securities 151 21 0 172 Public utilities 1,685 303 9 1,979 Sovereign and supranational 1,116 133 1 1,248 Banks/financial institutions 5,317 602 159 5,760 Other corporate 4,618 683 36 5,265 Total yen-denominated 42,762 4,722 648 46,836 U.S. dollar-denominated: U.S. government and agencies 136 7 1 142 Municipalities 1,339 123 12 1,450 Mortgage- and asset-backed securities 154 8 1 161 Public utilities 4,863 562 91 5,334 Sovereign and supranational 248 61 0 309 Banks/financial institutions 2,767 431 19 3,179 Other corporate 23,983 1,677 775 24,885 Total U.S. dollar-denominated 33,490 2,869 899 35,460 Total securities available for sale $ 76,252 (1) $ 7,591 $ 1,547 $ 82,296 (1) (1) Includes perpetual securities ( $1,408 at amortized cost and $1,591 at fair value) September 30, 2018 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,224 $ 4,652 $ 0 $ 25,876 Municipalities 353 97 0 450 Mortgage- and asset-backed securities 14 1 0 15 Public utilities 3,150 302 1 3,451 Sovereign and supranational 1,516 276 0 1,792 Banks/financial institutions 1,491 163 11 1,643 Other corporate 2,673 356 6 3,023 Total yen-denominated 30,421 5,847 18 36,250 Total securities held to maturity $ 30,421 $ 5,847 $ 18 $ 36,250 September 30, 2018 (In millions) Fair Equity securities, carried at fair value through net earnings: Equity securities: (1) Yen-denominated $ 707 U.S. dollar-denominated 352 Total equity securities $ 1,059 (1) (1) Includes perpetual securities ( $66 at fair value) December 31, 2017 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturity securities: (1) Yen-denominated: Japan government and agencies $ 27,980 $ 3,363 $ 271 $ 31,072 Municipalities 314 28 12 330 Mortgage- and asset-backed securities 242 29 0 271 Public utilities 1,635 352 6 1,981 Sovereign and supranational 1,380 190 1 1,569 Banks/financial institutions 4,742 811 53 5,500 Other corporate 4,085 809 7 4,887 Total yen-denominated 40,378 5,582 350 45,610 U.S dollar-denominated: U.S. government and agencies 146 13 1 158 Municipalities 872 168 0 1,040 Mortgage- and asset-backed securities 161 12 0 173 Public utilities 5,116 884 27 5,973 Sovereign and supranational 267 73 0 340 Banks/financial institutions 2,808 633 8 3,433 Other corporate 25,384 2,620 418 27,586 Total U.S. dollar-denominated 34,754 4,403 454 38,703 Total securities available for sale $ 75,132 (1) $ 9,985 $ 804 $ 84,313 (1) (1) Includes perpetual securities ( $1,462 at amortized cost and $1,789 at fair value) December 31, 2017 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,331 $ 5,160 $ 0 $ 26,491 Municipalities 357 105 0 462 Mortgage- and asset-backed securities 26 1 0 27 Public utilities 3,300 398 0 3,698 Sovereign and supranational 1,523 312 0 1,835 Banks/financial institutions 2,206 190 9 2,387 Other corporate 2,687 485 0 3,172 Total yen-denominated 31,430 6,651 9 38,072 Total securities held to maturity $ 31,430 $ 6,651 $ 9 $ 38,072 December 31, 2017 (In millions) Fair Equity securities, carried at fair value: Equity securities: Yen-denominated $ 695 U.S. dollar-denominated 328 Total equity securities $ 1,023 The methods of determining the fair values of the Company's investments in fixed maturity securities and equity securities are described in Note 5. During the first nine months of 2018, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the third quarter of 2017, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the second quarter of 2017, the Company reclassified three investments from the held-to-maturity category to the available-for-sale category as a result of the issuers' credit rating being downgraded to below investment grade. At the time of the transfer, the securities had an amortized cost of $773 million and an unrealized gain of $47 million . During the first quarter of 2017, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. Contractual and Economic Maturities The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2018 , were as follows: (In millions) Amortized Fair Available for sale: (1) Due in one year or less $ 691 $ 757 Due after one year through five years 8,058 8,199 Due after five years through 10 years 10,282 10,936 Due after 10 years 56,916 62,071 Mortgage- and asset-backed securities 305 333 Total fixed maturity securities available for sale $ 76,252 $ 82,296 Held to maturity: Due in one year or less $ 528 $ 533 Due after one year through five years 541 569 Due after five years through 10 years 1,303 1,415 Due after 10 years 28,034 33,718 Mortgage- and asset-backed securities 15 15 Total fixed maturity securities held to maturity $ 30,421 $ 36,250 (1) Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. Investment Concentrations The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). The Company further evaluates the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income. Investment exposures that individually exceeded 10% of shareholders' equity were as follows: September 30, 2018 December 31, 2017 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A+ $49,603 $56,679 A $48,399 $56,532 (1) Japan Government Bonds (JGBs) or JGB-backed securities Realized Investment Gains and Losses Information regarding pretax realized gains and losses from investments is as follows: Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Realized investment gains (losses): Fixed maturity securities: (1) Available for sale: Gross gains from sales $ 60 $ 18 $ 81 $ 40 Gross losses from sales (26 ) (5 ) (99 ) (24 ) Foreign currency gains (losses) on sales and redemptions 3 3 27 (47 ) Other-than-temporary impairment losses 0 (1 ) (2 ) (5 ) Total fixed maturity securities 37 15 7 (36 ) Equity securities (1),(2) 27 39 (3) (1 ) 73 (3) Loan loss reserves (5 ) (1 ) (15 ) (4 ) Derivatives and other: Derivative gains (losses) (162 ) (40 ) (190 ) (143 ) Foreign currency gains (losses) 159 17 123 (56 ) Total derivatives and other (3 ) (23 ) (67 ) (199 ) Total realized investment gains (losses) $ 56 $ 30 $ (76 ) $ (166 ) (1) Includes perpetual securities (2) See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. (3) Includes impairments of $6 for the three-month period and $18 for the nine-month period ended September 30, 2017 The unrealized holding gains , net of losses , recorded as a component of realized investment gains and losses for the three-month period ended September 30, 2018, that relates to equity securities still held at the September 30, 2018 , reporting date was $25 million . The unrealized holding gains , net of losses , recorded as a component of realized investment gains and losses for the nine -month period ended September 30, 2018 , that relates to equity securities still held at the September 30, 2018 , reporting date was $1 million . Unrealized Investment Gains and Losses Effect on Shareholders’ Equity The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows: (In millions) September 30, 2018 December 31, Unrealized gains (losses) on securities available for sale $ 6,044 $ 9,358 Deferred income taxes (1,804 ) (3,394 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,240 $ 5,964 See Note 1 for discussion of the accounting treatment of tax on amounts recorded in accumulated other comprehensive income pursuant to the Tax Act and for the adoption of accounting guidance on January 1, 2018 related to financial instruments. Gross Unrealized Loss Aging The following tables show the fair values and gross unrealized losses of the Company's available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2018 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: (1) U.S. government and U.S. dollar-denominated $ 80 $ 1 $ 80 $ 1 $ 0 $ 0 Japan government and Yen-denominated 9,221 426 9,221 426 0 0 Municipalities: U.S. dollar-denominated 490 12 490 12 0 0 Yen-denominated 224 17 224 17 0 0 Mortgage- and asset- U.S. dollar-denominated 81 1 81 1 0 0 Public utilities: U.S. dollar-denominated 1,726 91 1,721 91 5 0 Yen-denominated 381 10 381 10 0 0 Sovereign and supranational: Yen-denominated 43 1 43 1 0 0 Banks/financial institutions: U.S. dollar-denominated 552 19 517 18 35 1 Yen-denominated 2,806 170 2,806 170 0 0 Other corporate: U.S. dollar-denominated 11,731 775 11,291 744 440 31 Yen-denominated 1,134 42 1,134 42 0 0 Total $ 28,469 $ 1,565 $ 27,989 $ 1,533 $ 480 $ 32 (1) Includes perpetual securities December 31, 2017 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: (1) U.S. government and U.S. dollar-denominated $ 74 $ 1 $ 74 $ 1 $ 0 $ 0 Japan government and Yen-denominated 5,255 271 1,264 9 3,991 262 Municipalities: Yen-denominated 129 12 10 0 119 12 Public utilities: U.S. dollar-denominated 785 27 221 3 564 24 Yen-denominated 83 6 0 0 83 6 Sovereign and supranational: Yen-denominated 309 1 309 1 0 0 Banks/financial institutions: U.S. dollar-denominated 362 8 316 5 46 3 Yen-denominated 1,507 62 394 4 1,113 58 Other corporate: U.S. dollar-denominated 7,741 418 2,839 50 4,902 368 Yen-denominated 440 7 349 4 91 3 Total $ 16,685 $ 813 $ 5,776 $ 77 $ 10,909 $ 736 (1) Includes perpetual securities Analysis of Securities in Unrealized Loss Positions The unrealized losses on the Company's fixed maturity securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal. For any significant declines in fair value of its fixed maturity securities, the Company performs a more focused review of the related issuers' credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company. Other Investments The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) September 30, 2018 December 31, 2017 Other investments: Transitional real estate loans $ 4,128 $ 1,235 Commercial mortgage loans 1,026 908 Middle market loans 1,363 859 Policy loans 223 210 Short-term investments 2 57 Other 267 133 Total other investments $ 7,009 $ 3,402 Loans and Loan Receivables The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and includes them in the other investments line on the consolidated balance sheets. The Company carries them on the balance sheet at amortized cost less an estimated allowance for loan losses. The Company's allowance for loan losses is established using both general and specific allowances. The general allowance is used for loans grouped by similar risk characteristics where a loan-specific or market-specific risk has not been identified, but for which the Company estimates probable incurred losses. The specific allowance is used on an individual loan basis when it is probable that a loss has been incurred. As of September 30, 2018 , and December 31, 2017 , the Company's allowance for loan losses was $25 million and $11 million , respectively. As of September 30, 2018 , and December 31, 2017 , the Company had no loans that were past due in regards to principal and/or interest payments. Additionally, the Company held no loans that were on nonaccrual status or considered impaired as of September 30, 2018 , and December 31, 2017 . The Company had no troubled debt restructurings during the nine months ended September 30, 2018 and 2017. Transitional Real Estate Loans Transitional real estate loans are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile. As of September 30, 2018 , the Company had $720 million in outstanding commitments to fund transitional real estate loans. These commitments are contingent on the final underwriting and due diligence to be performed. Commercial Mortgage Loans As of September 30, 2018 , the Company had $86 million in outstanding commitments to fund commercial mortgage loans. These commitments are contingent on the final underwriting and due diligence to be performed. Middle Market Loans Middle market loans are generally considered to be below investment grade. The carrying value for middle market loans included an unfunded amount of $155 million and $109 million , as of September 30, 2018 , and December 31, 2017 , respectively, that is reflected in other liabilities on the consolidated balance sheets. As of September 30, 2018 , the Company had commitments of approximately $896 million to fund potential future loan originations related to this investment program. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria. Other Other investments primarily includes investments in limited partnerships. As of September 30, 2018 , the Company had $1.0 billion in outstanding commitments to fund alternative investments in limited partnerships. Variable Interest Entities (VIEs) As a condition of its involvement or investment in a VIE, the Company enters into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of the Company's investment or its beneficial interest in the VIE. For those VIEs other than certain unit trust structures, the Company's involvement is passive in nature. The Company has not, nor has it been, required to purchase any securities issued in the future by these VIEs. The Company's ownership interest in VIEs is limited to holding the obligations issued by them. The Company has no direct or contingent obligations to fund the limited activities of these VIEs, nor does it have any direct or indirect financial guarantees related to the limited activities of these VIEs. The Company has not provided any assistance or any other type of financing support to any of the VIEs it invests in, nor does it have any intention to do so in the future. For those VIEs in which the Company holds debt obligations, the weighted-average lives of the Company's notes are very similar to the underlying collateral held by these VIEs where applicable. The Company's risk of loss related to its interests in any of its VIEs is limited to the carrying value of the related investments held in the VIE. VIEs - Consolidated The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. Investments in Consolidated Variable Interest Entities September 30, 2018 December 31, 2017 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturity securities, available for sale (1) $ 4,045 $ 4,853 $ 4,538 $ 5,509 Equity securities 179 179 606 753 Other investments (2) 5,388 5,369 2,341 2,328 Other assets (3) 190 190 151 151 Total assets of consolidated VIEs $ 9,802 $ 10,591 $ 7,636 $ 8,741 Liabilities: Other liabilities (3) $ 101 $ 101 $ 128 $ 128 Total liabilities of consolidated VIEs $ 101 $ 101 $ 128 $ 128 (1) Includes perpetual securities (2) Consists of TREs, CMLs, MMLs, and alternative investments in limited partnerships (3) Consists entirely of derivatives The Company is substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, the Company has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and is therefore considered to be the primary beneficiary of the VIEs that it consolidates. The Company also participates in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps, as appropriate, and utilizing the cash flows from these securities to service its investment. Neither the Company nor any of its creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, the Company is not a direct counterparty to the swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. The Company's consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature. Investments in Unit Trust Structures The Company also utilizes unit trust structures in its Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, the Company is required to consolidate these trusts under U.S. GAAP. VIEs-Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated September 30, 2018 December 31, 2017 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturity securities, available for sale (1) $ 4,746 $ 5,261 $ 5,004 $ 5,724 Fixed maturity securities, held to maturity 2,402 2,702 2,549 2,929 Other investments 33 33 55 55 Total investments in VIEs not consolidated $ 7,181 $ 7,996 $ 7,608 $ 8,708 (1) Includes perpetual securities The Company holds alternative investments in limited partnerships that have been determined to be VIEs. These partnerships invest in private equity and structured investments. The Company’s maximum exposure to loss on these investments is limited to the amount of its investment. The Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. The Company classifies these investments as Other investments in the consolidated balance sheets. Certain investments in VIEs that the Company is not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. The Company does not have the power to direct the activities that most significantly impact the entity's economic performance, nor does it have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, the Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. Securities Lending and Pledged Securities The Company lends fixed maturity and public equity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. The Company's security lending policy requires that the fair value of the securities received as collateral be 102% or more of the fair value of the loaned securities and that unrestricted cash received as collateral be 100% or more of the fair value of the loaned securities. These securities continue to be carried as investment assets on the Company's balance sheet during the terms of the loans and are not reported as sales. The Company receives cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. For loans where the Company receives as collateral securities that the Company is not permitted to sell or repledge, the collateral is not reported as an asset. Details of the Company's securities lending activities were as follows: Securities Lending Transactions Accounted for as Secured Borrowings September 30, 2018 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 30-90 days Greater Total Securities lending transactions: Fixed maturity securities: Japan government and agencies $ 15 $ 1,516 1 $ 1,158 $ 2,690 Public utilities 17 0 0 0 17 Banks/financial institutions 48 0 0 0 48 Other corporate 365 0 0 0 365 Equity securities 8 0 0 0 8 Total borrowings $ 453 $ 1,516 $ 1 $ 1,158 $ 3,128 Gross amount of recognized liabilities for securities lending transactions $ 1,970 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 1,158 (1) These securities are pledged as collateral under the Company's U.S. securities lending program and can be called at its discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings December 31, 2017 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Fixed maturity securities: Japan government and agencies $ 0 $ 49 $ 49 Public utilities 73 0 73 Banks/financial institutions 54 0 54 Other corporate 415 0 415 Equity securities 15 0 15 Total borrowings $ 557 $ 49 $ 606 Gross amount of recognized liabilities for securities lending transactions $ 606 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under the Company's U.S. securities lending program and can be called at its discretion; therefore, they are classified as Overnight and Continuous. The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of September 30, 2018 , and December 31, 2017 , respectively. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company's freestanding derivative financial instruments have historically consisted of: (1) foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio; (2) foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen; (3) swaps associated with the Company's notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and its subordinated debentures; (4) foreign currency swaps and credit default swaps that are associated with investments in special-purpose entities, including VIEs where the Company is the primary beneficiary; and (5) interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments. The Company does not use derivative financial instruments for trading purposes, nor does it engage in leveraged derivative transactions. Some of the Company's derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or the Company elects not to designate them as accounting hedges. Derivative Types Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In situations where the maturity of the forwards and options are shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase a fixed amount of U.S. dollar put options and sell U.S. dollar call options. The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The foreign currency forwards and options are used in fair value hedging relationships to mitigate the foreign exchange risk associated with U.S. dollar-denominated investments supporting yen-denominated liabilities. Foreign currency forwards and options are also used to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified price at a specified future date. In the option transactions, the Company uses a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions create a zero-cost collar. The Company enters into foreign currency swaps pursuant to which it exchanges an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the currencies at a future date at an agreed upon exchange rate. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in the Company's Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. The Company also uses foreign currency swaps to economically convert certain of its U.S. dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations. In order to mitigate a portion of volatility risk to investment income, the Company economically hedges interest rate fluctuations for certain of its variable–rate investments by entering into receive–fixed, pay–floating interest rate swaps. These derivatives are cleared and settled through a central clearinghouse. Derivative Balance Sheet Classification The tables below summarize the balance sheet classification of the Company's derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk. September 30, 2018 December 31, 2017 (In millions) Asset Liability Asset Liability Hedge Designation/ Derivative Notional Fair Value Fair Value Notional Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ 0 $ (5 ) $ 75 $ 0 $ (8 ) Total cash flow hedges 75 0 (5 ) 75 0 (8 ) Fair value hedges: Foreign currency forwards 3,172 0 (67 ) 7,640 2 (221 ) Foreign currency options 9,279 0 (12 ) 7,670 0 (2 ) Total fair value hedges 12,451 0 (79 ) 15,310 2 (223 ) Net investment hedge: Foreign currency forwards 0 0 0 5 0 0 Foreign currency options 0 0 0 434 12 (1 ) Total net investment hedge 0 0 0 439 12 (1 ) Non-qualifying strategies: Foreign currency swaps 5,373 302 (202 ) 5,386 296 (189 ) Foreign currency forwards 10,501 128 (210 ) 3,683 20 (53 ) Foreign currency options 373 0 0 770 0 0 Credit default swaps 0 0 0 88 1 0 Interest rate swaps 2,250 0 (1 ) 0 0 0 Total non-qualifying strategies 18,497 430 (413 ) 9,927 317 (242 ) Total derivatives $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) Balance Sheet Location Other assets $ 11,232 $ 430 $ 0 $ 10,948 $ 331 $ 0 Other liabilities 19,791 0 (497 ) 14,803 0 (474 ) Total derivatives $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) Cash Flow Hedges Certain of the Company's consolidated VIEs have foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, the Company has designated the derivative as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge). The maximum length of time for which these cash flows are hedged is eight years. The remaining derivatives in the Company's consolidated VIEs that have not qualified for hedge accounting are included in “non-qualifying strategies.” Fair Value Hedges The Company designates and accounts for certain foreign currency forwards and options as fair value hedges when they meet the requirements for hedge accounting. These foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated investments held in Aflac Japan. The Company recognizes gains and losses on these derivatives and the related hedged items in current earnings within other gains (losses). The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is excluded from the assessment of hedge effectiveness. The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness Three Months Ended September 30, 2018: Foreign currency Fixed maturity securities $ (106 ) $ (19 ) $ (87 ) $ 83 $ (4 ) Foreign currency Fixed maturity securities (7 ) (7 ) 0 0 0 Nine Months Ended September 30, 2018: Foreign currency forwards Fixed maturity securities $ 93 $ (88 ) $ 181 $ (195 ) $ (14 ) Foreign currency options Fixed maturity securities (10 ) (10 ) 0 0 0 Three Months Ended September 30, 2017: Foreign currency Fixed maturity and equity securities $ (114 ) $ (53 ) $ (61 ) $ 61 $ 0 Foreign currency options Fixed maturity securities (14 ) (14 ) 0 0 0 Nine Months Ended September 30, 2017: Foreign currency forwards Fixed maturity and equity securities $ 193 $ (151 ) $ 344 $ (326 ) $ 18 Foreign currency options Fixed maturity securities 3 (8 ) 11 (10 ) 1 Net Investment Hedge The Company's investment in Aflac Japan is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, the Parent Company's yen-denominated liabilities (see Note 8) have been designated as non-derivative hedges and, prior to April 1, 2018, foreign currency forwards and options have been designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. The Company's net investment hedge was effective during the three- and nine -month periods ended September 30, 2018 and 2017 , respectively. Non-qualifying Strategies For the Company's derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within realized investment gains (losses). The amount of gain or loss recognized in earnings for the Company's VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed maturity securities associated with these swaps is recorded through other comprehensive income. As of September 30, 2018 , the Parent Company had cross-currency interest rate swap agreements related to its $550 million senior notes due March 2020, $350 million senior notes due February 2022, $700 million senior notes due June 2023, $750 million senior notes due November 2024 and $450 million senior notes due March 2025. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 8 in this report and Note 9 of the Notes to the Consolidated Financial Statements in the 2017 Annual Report. The Company uses foreign exchange forwards and options to mitigate the currency risk of some of its U.S. dollar-denominated loan receivables held within the Aflac Japan segment. The Company has not elected to apply hedge accounting for these loan receivables due to the change in fair value of the foreign exchange forwards and the foreign currency remeasurement of the loan receivables being recorded through current period earnings, and generally offsetting each other within realized investment gains (losses). In order to economically mitigate currency risk of future yen dividends from Aflac Japan while lowering consolidated hedge costs associated with Aflac Japan's U.S. dollar investment hedging, starting in the first quarter of 2018, the Parent Company began entering into offsetting hedge positions using foreign exchange forwards. This activity is reported in the Corporate and other segment. The Company uses interest rate swaps to economically convert the variable rate investment income to a fixed rate on certain variable-rate investments. Impact of Derivatives and Hedging Instruments The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In millions) Realized Investment Other (1) Realized Investment Other (1) Realized Investment Other (1) Realized Investment Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 0 $ (2 ) $ 0 $ (1 ) $ 1 $ 2 $ 0 $ 0 Total cash flow hedges 0 (2 ) 0 (1 ) 1 2 0 0 Fair value hedges: Foreign currency forwards (2) (23 ) (53 ) (102 ) (133 ) Foreign currency options (2) (7 ) (14 ) (10 ) (7 ) Total fair value hedges (30 ) (67 ) (112 ) (140 ) Net investment hedge: Non- derivative hedging instruments 0 36 0 5 0 7 0 (13 ) Foreign currency forwards 0 0 0 4 0 0 0 (24 ) Foreign currency options 0 0 0 (5 ) 0 (8 ) 0 3 Total net investment hedge 0 36 0 4 0 (1 ) 0 (34 ) Non-qualifying strategies: Foreign currency swaps 23 17 51 43 Foreign currency forwards (154 ) 10 (129 ) (46 ) Foreign currency options 0 0 0 0 Interest rate swaps (1 ) 0 (1 ) 0 Total non- qualifying strategies (132 ) 27 (79 ) (3 ) Total $ (162 ) $ 34 $ (40 ) $ 3 $ (190 ) $ 1 $ (143 ) $ (34 ) (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) The Company reclassified an immaterial amount related to its cash flow hedges from accumulated other comprehensive income (loss) into earnings for the three- and nine -month periods ended September 30, 2018 and 2017. There was no gain or loss reclassified from accumulated other comprehensive income (loss) into earnings related to the net investment hedge for the three- and nine -month periods ended September 30, 2018 and 2017 . As of September 30, 2018 , deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial. Credit Risk Assumed through Derivatives For the foreign currency and credit default swaps associated with the Company's VIE investments for which it is the primary beneficiary, the Company bears the risk of loss due to counterparty default even though it is not a direct counterparty to those contracts. The Company is a direct counterparty to the foreign currency swaps that it has entered into in connection with certain of its senior notes and subordinated debentures; foreign currency forwards; and foreign currency options, and therefore the Company is exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet. As of September 30, 2018 , there were 15 counterparties to the Company's derivative agreements, with three comprising 51% of the aggregate notional amount. The counterparties to these derivatives are financial institutions with the following credit ratings: September 30, 2018 December 31, 2017 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 5,207 $ 79 $ (42 ) $ 4,708 $ 52 $ (37 ) A 25,378 345 (401 ) 20,604 271 (370 ) BBB 438 6 (54 ) 439 8 (67 ) Total $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) The Company engages in over-the-counter (OTC) bilateral derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. The Company mitigates the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that the Company could be required to make depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade. The Company also engages in OTC cleared derivative transactions through regulated central clearing counterparties. These positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to these derivatives. Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $301 million and $264 million as of September 30, 2018 , and December 31, 2017 , respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2018 , the Company estimates that it would be required to post a maximum of $79 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.) Offsetting of Financial Instruments and Derivatives Most of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or Aflac and its respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure. The Company has securities lending agreements with unaffiliated financial institutions that post collateral to the Company in return for the use of its fixed maturity and public equity securities (see Note 3). When the Company has entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows the Company to keep and apply collateral received if the counterparty failed to return the securities borrowed from the Company as contractually agreed. The tables below summarize the Company's derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, the Company's policy is to not offset these financial instruments in the Consolidated Balance Sheets. Offsetting of Financial Assets and Derivative Asset September 30, 2018 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 240 $ 0 $ 240 $ (118 ) $ (10 ) $ (109 ) $ 3 Total derivative assets subject to a master netting agreement or offsetting arrangement 240 0 240 (118 ) (10 ) (109 ) 3 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 190 190 190 Total derivative assets not subject to a master netting agreement or offsetting arrangement 190 190 190 Total derivative assets 430 0 430 (118 ) (10 ) (109 ) 193 Securities lending and similar arrangements 1,927 0 1,927 0 0 (1,927 ) 0 Total $ 2,357 $ 0 $ 2,357 $ (118 ) $ (10 ) $ (2,036 ) $ 193 December 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 180 $ 0 $ 180 $ (82 ) $ 0 $ (98 ) $ 0 Total derivative assets subject to a master netting agreement or offsetting arrangement 180 0 180 (82 ) 0 (98 ) 0 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 151 151 151 Total derivative assets not subject to a master netting agreement or offsetting arrangement 151 151 151 Total derivative assets 331 0 331 (82 ) 0 (98 ) 151 Securities lending and similar arrangements 592 0 592 0 0 (592 ) 0 Total $ 923 $ 0 $ 923 $ (82 ) $ 0 $ (690 ) $ 151 Offsetting of Financial Liabilities and Derivative Liabilities September 30, 2018 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ (395 ) $ 0 $ (395 ) $ 118 $ 195 $ 26 $ (56 ) OTC - cleared (1 ) 0 (1 ) 0 0 1 0 Total derivative liabilities subject to a master netting agreement or offsetting arrangement (396 ) 0 (396 ) 118 195 27 (56 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral (101 ) (101 ) (101 ) Total derivative liabilities not subject to a master netting agreement or offsetting arrangement (101 ) (101 ) (101 ) Total derivative liabilities (497 ) 0 (497 ) 118 195 27 (157 ) Securities lending and similar arrangements (1,970 ) 0 (1,970 ) 1,927 0 0 (43 ) Total $ (2,467 ) $ 0 $ (2,467 ) $ 2,045 $ 195 $ 27 $ (200 ) December 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ (346 ) $ 0 $ (346 ) $ 82 $ 245 $ 10 $ (9 ) Total derivative liabilities subject to a master netting agreement or offsetting arrangement (346 ) 0 (346 ) 82 245 10 (9 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral (128 ) (128 ) (128 ) Total derivative liabilities not subject to a master netting agreement or offsetting arrangement (128 ) (128 ) (128 ) Total derivative liabilities (474 ) 0 (474 ) 82 245 10 (137 ) Securities lending and similar arrangements (606 ) 0 (606 ) 592 0 0 (14 ) Total $ (1,080 ) $ 0 $ (1,080 ) $ 674 $ 245 $ 10 $ (151 ) For additional information on the Company's financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2017 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair Value Hierarchy U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market. The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis. September 30, 2018 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: (1) Government and agencies $ 30,888 $ 1,282 $ 0 $ 32,170 Municipalities 0 1,834 0 1,834 Mortgage- and asset-backed securities 0 161 172 333 Public utilities 0 7,209 104 7,313 Sovereign and supranational 0 1,557 0 1,557 Banks/financial institutions 0 8,916 23 8,939 Other corporate 0 29,959 191 30,150 Total fixed maturity securities 30,888 50,918 490 82,296 (1) Equity securities (1) 972 71 16 1,059 (1) Other investments 2 0 0 2 Cash and cash equivalents 3,429 0 0 3,429 Other assets: Foreign currency swaps 0 112 190 302 Foreign currency forwards 0 128 0 128 Total other assets 0 240 190 430 Total assets $ 35,291 $ 51,229 $ 696 $ 87,216 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 106 $ 101 $ 207 Foreign currency forwards 0 277 0 277 Foreign currency options 0 12 0 12 Interest rate swaps 0 1 0 1 Total liabilities $ 0 $ 396 $ 101 $ 497 (1) Includes perpetual securities December 31, 2017 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: (1) Government and agencies $ 30,109 $ 1,121 $ 0 $ 31,230 Municipalities 0 1,370 0 1,370 Mortgage- and asset-backed securities 0 269 175 444 Public utilities 0 7,886 68 7,954 Sovereign and supranational 0 1,909 0 1,909 Banks/financial institutions 0 8,908 25 8,933 Other corporate 0 32,327 146 32,473 Total fixed maturity securities 30,109 53,790 414 84,313 (1) Equity securities 1,001 6 16 1,023 Other investments 57 0 0 57 Cash and cash equivalents 3,491 0 0 3,491 Other assets: Foreign currency swaps 0 146 150 296 Foreign currency forwards 0 22 0 22 Foreign currency options 0 12 0 12 Credit default swaps 0 0 1 1 Total other assets 0 180 151 331 Total assets $ 34,658 $ 53,976 $ 581 $ 89,215 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 69 $ 128 $ 197 Foreign currency forwards 0 274 0 274 Foreign currency options 0 3 0 3 Total liabilities $ 0 $ 346 $ 128 $ 474 (1) Includes perpetual securities The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value. September 30, 2018 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,224 $ 25,868 $ 8 $ 0 $ 25,876 Municipalities 353 0 450 0 450 Mortgage and asset-backed 14 0 0 15 15 Public utilities 3,150 0 3,451 0 3,451 Sovereign and 1,516 0 1,792 0 1,792 Banks/financial institutions 1,491 0 1,643 0 1,643 Other corporate 2,673 0 3,023 0 3,023 Other investments (1) 6,542 0 25 6,494 6,519 Total assets $ 36,963 $ 25,868 $ 10,392 $ 6,509 $ 42,769 Liabilities: Other policyholders’ funds $ 6,974 $ 0 $ 0 $ 6,896 $ 6,896 Notes payable 5,264 0 5,066 263 5,329 Total liabilities $ 12,238 $ 0 $ 5,066 $ 7,159 $ 12,225 (1) Excludes policy loans of $223 and equity method investments of $242 , at carrying value December 31, 2017 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,331 $ 26,491 $ 0 $ 0 $ 26,491 Municipalities 357 0 462 0 462 Mortgage and asset-backed 26 0 8 19 27 Public utilities 3,300 0 3,698 0 3,698 Sovereign and 1,523 0 1,835 0 1,835 Banks/financial institutions 2,206 0 2,387 0 2,387 Other corporate 2,687 0 3,172 0 3,172 Other investments (1) 3,017 0 15 2,987 3,002 Total assets $ 34,447 $ 26,491 $ 11,577 $ 3,006 $ 41,074 Liabilities: Other policyholders’ funds $ 6,939 $ 0 $ 0 $ 6,841 $ 6,841 Notes payable 5,267 0 5,288 265 5,553 Total liabilities $ 12,206 $ 0 $ 5,288 $ 7,106 $ 12,394 (1) Excludes policy loans of $210 and equity method investments of $118 , at carrying value Fair Value of Financial Instruments Fixed maturity and equity securities The Company determines the fair values of fixed maturity securities and public and privately-issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes the Company obtains from outside brokers. A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the CDS market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including: 1) the most appropriate comparable security(ies) of the issuer; 2) issuer-specific CDS spreads; 3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector; or 4) bond indices that are comparative in rating, industry, maturity and region. The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value. The fixed maturity securities classified as Level 3 consist of securities with limited or no observable valuation inputs. For Level 3 securities, the Company estimates the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. The Company considers these inputs to be unobservable. The Company also considers a variety of significant valuation inputs in the valuation process, including forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, the Company has determined that certain pricing assumptions and data used by its pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities. For the periods presented, the Company has not adjusted the quotes or prices it obtains from the pricing services and brokers it uses. The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities. September 30, 2018 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: (1) Government and agencies: Third party pricing vendor $ 30,888 $ 1,282 $ 0 $ 32,170 Total government and agencies 30,888 1,282 0 32,170 Municipalities: Third party pricing vendor 0 1,834 0 1,834 Total municipalities 0 1,834 0 1,834 Mortgage- and asset-backed securities: Third party pricing vendor 0 161 0 161 Broker/other 0 0 172 172 Total mortgage- and asset-backed securities 0 161 172 333 Public utilities: Third party pricing vendor 0 7,209 0 7,209 Broker/other 0 0 104 104 Total public utilities 0 7,209 104 7,313 Sovereign and supranational: Third party pricing vendor 0 1,557 0 1,557 Total sovereign and supranational 0 1,557 0 1,557 Banks/financial institutions: Third party pricing vendor 0 8,916 0 8,916 Broker/other 0 0 23 23 Total banks/financial institutions 0 8,916 23 8,939 Other corporate: Third party pricing vendor 0 29,861 0 29,861 Broker/other 0 98 191 289 Total other corporate 0 29,959 191 30,150 Total securities available for sale $ 30,888 $ 50,918 $ 490 $ 82,296 (1) Equity securities, carried at fair value: (1) Third party pricing vendor $ 972 $ 71 $ 0 $ 1,043 Broker/other 0 0 16 16 Total equity securities $ 972 $ 71 $ 16 $ 1,059 (1) (1) Includes perpetual securities September 30, 2018 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 25,868 $ 8 $ 0 $ 25,876 Total government and agencies 25,868 8 0 25,876 Municipalities: Third party pricing vendor 0 450 0 450 Total municipalities 0 450 0 450 Mortgage- and asset-backed securities: Broker/other 0 0 15 15 Total mortgage- and asset-backed securities 0 0 15 15 Public utilities: Third party pricing vendor 0 3,451 0 3,451 Total public utilities 0 3,451 0 3,451 Sovereign and supranational: Third party pricing vendor 0 1,792 0 1,792 Total sovereign and supranational 0 1,792 0 1,792 Banks/financial institutions: Third party pricing vendor 0 1,643 0 1,643 Total banks/financial institutions 0 1,643 0 1,643 Other corporate: Third party pricing vendor 0 3,023 0 3,023 Total other corporate 0 3,023 0 3,023 Total securities held to maturity $ 25,868 $ 10,367 $ 15 $ 36,250 December 31, 2017 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: (1) Government and agencies: Third party pricing vendor $ 30,109 $ 1,121 $ 0 $ 31,230 Total government and agencies 30,109 1,121 0 31,230 Municipalities: Third party pricing vendor 0 1,370 0 1,370 Total municipalities 0 1,370 0 1,370 Mortgage- and asset-backed securities: Third party pricing vendor 0 269 0 269 Broker/other 0 0 175 175 Total mortgage- and asset-backed securities 0 269 175 444 Public utilities: Third party pricing vendor 0 7,886 0 7,886 Broker/other 0 0 68 68 Total public utilities 0 7,886 68 7,954 Sovereign and supranational: Third party pricing vendor 0 1,807 0 1,807 Broker/other 0 102 0 102 Total sovereign and supranational 0 1,909 0 1,909 Banks/financial institutions: Third party pricing vendor 0 8,908 0 8,908 Broker/other 0 0 25 25 Total banks/financial institutions 0 8,908 25 8,933 Other corporate: Third party pricing vendor 0 32,327 0 32,327 Broker/other 0 0 146 146 Total other corporate 0 32,327 146 32,473 Total securities available for sale $ 30,109 $ 53,790 $ 414 $ 84,313 (1) Equity securities, carried at fair value: Third party pricing vendor $ 1,001 $ 6 $ 0 $ 1,007 Broker/other 0 0 16 16 Total equity securities $ 1,001 $ 6 $ 16 $ 1,023 (1) Includes perpetual securities December 31, 2017 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 26,491 $ 0 $ 0 $ 26,491 Total government and agencies 26,491 0 0 26,491 Municipalities: Third party pricing vendor 0 462 0 462 Total municipalities 0 462 0 462 Mortgage- and asset-backed securities: Third party pricing vendor 0 8 0 8 Broker/other 0 0 19 19 Total mortgage- and asset-backed securities 0 8 19 27 Public utilities: Third party pricing vendor 0 3,698 0 3,698 Total public utilities 0 3,698 0 3,698 Sovereign and supranational: Third party pricing vendor 0 1,835 0 1,835 Total sovereign and supranational 0 1,835 0 1,835 Banks/financial institutions: Third party pricing vendor 0 2,387 0 2,387 Total banks/financial institutions 0 2,387 0 2,387 Other corporate: Third party pricing vendor 0 3,172 0 3,172 Total other corporate 0 3,172 0 3,172 Total securities held to maturity $ 26,491 $ 11,562 $ 19 $ 38,072 The following is a discussion of the determination of fair value of the Company's remaining financial instruments. Derivatives The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility. The fair values of the foreign currency forwards and options associated with certain investments; the foreign currency forwards and options used to hedge foreign exchange risk from the Company's net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; and the foreign currency swaps associated with certain senior notes and subordinated debentures are based on the amounts the Company would expect to receive or pay. The determination of the fair value of these derivatives is based on observable market inputs, therefore they are classified as Level 2. For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. The Company receives valuations from a third party pricing vendor for these derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, the Company determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with the Company's consolidated VIEs are classified as Level 3 of the fair value hierarchy. Other investments Other investments where fair value is disclosed above include short-term investments and loan receivables. Loan receivables include transitional real estate loans, commercial mortgage loans and middle market loans. The Company's loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. These spreads are provided by the applicable asset managers based on their knowledge of the current loan pricing environment and market conditions. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy. Other policyholders' funds The largest component of the other policyholders' funds liability is the Company's annuity line of business in Aflac Japan. The Company's annuities have fixed benefits and premiums. For this product, the Company estimates the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. The Company periodically checks the cash value against discounted cash flow projections for reasonableness. The Company considers its inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3. Notes payable During the three- and nine -month periods ended September 30, 2018 and 2017 , respectively, there were no transfers between Level 1 and 2 for assets and liabilities that are measured and carried at fair value on a recurring basis. The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Three Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 178 $ 106 $ 23 $ 196 $ 17 $ 110 $ 0 $ 630 Realized investment gains (losses) included in earnings 0 0 0 0 (1 ) (19 ) 0 (20 ) Unrealized gains (losses) included in other comprehensive income (loss) (6 ) (2 ) 0 (4 ) 0 (2 ) 0 (14 ) Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 0 Settlements 0 0 0 (1 ) 0 0 0 (1 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 172 $ 104 $ 23 $ 191 $ 16 $ 89 $ 0 $ 595 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (1 ) $ (19 ) $ 0 $ (20 ) (1) Derivative assets and liabilities are presented net Three Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 188 $ 53 $ 25 $ 77 $ 14 $ 7 $ 2 $ 366 Realized investment gains (losses) included in 0 0 0 0 0 8 (1 ) 7 Unrealized gains (losses) included in other (2 ) 0 0 1 0 0 0 (1 ) Purchases, issuances, sales and settlements: Purchases 0 24 0 25 4 0 0 53 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 (1 ) 0 0 0 (1 ) Settlements (8 ) 0 0 0 0 0 0 (8 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 178 $ 77 $ 25 $ 102 $ 18 $ 15 $ 1 $ 416 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 8 $ (1 ) $ 7 (1) Derivative assets and liabilities are presented net Nine Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 175 $ 68 $ 25 $ 146 $ 16 $ 22 $ 1 $ 453 Realized investment gains (losses) included 0 0 0 0 (1 ) 65 (1 ) 63 Unrealized gains (losses) included in other (3 ) (4 ) (2 ) (6 ) 0 2 0 (13 ) Purchases, issuances, sales and settlements: Purchases 0 40 0 55 1 0 0 96 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 0 Settlements 0 0 0 (4 ) 0 0 0 (4 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 172 $ 104 $ 23 $ 191 $ 16 $ 89 $ 0 $ 595 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (1 ) $ 65 $ (1 ) $ 63 (1) Derivative assets and liabilities are presented net Nine Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 198 $ 16 $ 25 $ 0 $ 3 $ (21 ) $ 2 $ 223 Realized investment gains (losses) included in earnings 0 0 0 0 0 36 (1 ) 35 Unrealized gains (losses) included in other comprehensive income (loss) 4 0 0 3 0 0 0 7 Purchases, issuances, sales and settlements: Purchases 0 61 0 100 16 0 0 177 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 (1 ) (1 ) 0 0 (2 ) Settlements (24 ) 0 0 0 0 0 0 (24 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 178 $ 77 $ 25 $ 102 $ 18 $ 15 $ 1 $ 416 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 36 $ (1 ) $ 35 (1) Level 3 Significant Unobservable Input Sensitivity The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. September 30, 2018 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 172 Consensus pricing Offered quotes N/A (a) Public utilities 104 Discounted cash flow Credit spreads N/A (a) Banks/financial institutions 23 Consensus pricing Offered quotes N/A (a) Other corporate 191 Discounted cash flow Credit spreads N/A (a) Equity securities 16 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 133 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) CDS spreads 12 - 101 bps 57 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) Total assets $ 696 Liabilities: Other liabilities: Foreign currency swaps $ 96 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) CDS spreads 31 - 196 bps 5 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) Total liabilities $ 101 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps December 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 175 Consensus pricing Offered quotes N/A (a) Public utilities 68 Discounted cash flow Credit spreads N/A (a) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (a) Other corporate 146 Discounted cash flow Credit spreads N/A (a) Equity securities 16 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 80 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) CDS spreads 9 - 90 bps 70 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) Credit default swaps 1 Discounted cash flow Base correlation 46.33% - 49.65% (d) CDS spreads 25 bps Recovery rate 37.24% Total assets $ 581 Liabilities: Other liabilities: Foreign currency swaps $ 120 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) CDS spreads 13 - 157 bps 8 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) Total liabilities $ 128 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps (d) Range of base correlation for the Company's bespoke tranche for attachment and detachment points corresponding to market indices Net Asset Value The Company holds certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities. Offered Quotes In circumstances where the Company's valuation model price is overridden because it implies a value that is not consistent with current market conditions, the Company will solicit bids from a limited number of brokers. The Company also receives unadjusted prices from brokers for its mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments. Interest Rates, CDS Spreads, Foreign Exchange Rates The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Some of the Company's swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. For the Company's foreign exchange or cross currency swaps that are in a net asset position, an increase in yen interest rates (all other factors held constant) will decrease the present value of the yen final settlement receivable (receive leg), thus decreasing the value of the swap as long as the derivative remains in a net asset position. Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal amounts at the termination of the swap. Assuming all other factors are held constant, an increase in yen interest rates will decrease the receive leg and decrease the net value of the swap. Likewise, holding all other factors constant, an increase in U.S. dollar interest rates will increase the swap's net value due to the decrease in the present value of the dollar final settlement payable (pay leg). A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of the Company's swaps are designed to receive payments in JPY at the termination and will thus be impacted by the USD/JPY foreign exchange rate in this way. In cases where there is no final foreign exchange receivable in JPY and the Company is paying JPY as interest payments and receiving USD, a decrease in the foreign exchange rate will lead to a decrease in the swap value. The extinguisher feature in most of the Company's VIE swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, the Company applies the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap. For additional information on the Company's investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2017 |
POLICY LIABILITIES
POLICY LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
POLICY LIABILITIES | POLICY LIABILITIES Changes in the liability for unpaid policy claims were as follows: Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Unpaid supplemental health claims, beginning of period $ 3,942 $ 3,872 $ 3,881 $ 3,707 Less reinsurance recoverables 29 30 28 27 Net balance, beginning of period 3,913 3,842 3,853 3,680 Add claims incurred during the period related to: Current year 1,760 1,759 5,381 5,278 Prior years (131 ) (126 ) (456 ) (386 ) Total incurred 1,629 1,633 4,925 4,892 Less claims paid during the period on claims incurred during: Current year 1,357 1,357 3,109 3,074 Prior years 217 234 1,751 1,697 Total paid 1,574 1,591 4,860 4,771 Effect of foreign exchange rate changes on unpaid claims (59 ) (14 ) (9 ) 69 Net balance, end of period 3,909 3,870 3,909 3,870 Add reinsurance recoverables 29 30 29 30 Unpaid supplemental health claims, end of period 3,938 3,900 3,938 3,900 Unpaid life claims, end of period 592 468 592 468 Total liability for unpaid policy claims $ 4,530 $ 4,368 $ 4,530 $ 4,368 The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $456 million for the nine -month period ended September 30, 2018 comprises approximately $325 million from Japan, which represents approximately 71% of the total. Excluding the impact of foreign exchange of a loss of approximately $13 million from December 31, 2017 to September 30, 2018 , the favorable claims development in Japan would have been approximately $312 million , representing approximately 68% of the total. The Company has experienced continued favorable claim trends in 2018 for its core health products in Japan. The Company's experience in Japan related to the average length of stay in the hospital for cancer treatment has shown continued decline in the current period. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development. The remainder of the favorable claims development related to prior years for the nine -month period ended September 30, 2018 |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The Company periodically enters into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded. The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $989 million , as of September 30, 2018 , is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $917 million and $908 million as of September 30, 2018 , and December 31, 2017 , respectively. The increase in the reinsurance recoverable balance was driven by two aggregating factors: yen strengthening and the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate weakened by approximately .5% and ceded reserves increased approximately 1.3% from December 31, 2017 , to September 30, 2018 . The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance. Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Direct premium income $ 4,720 $ 4,734 $ 14,346 $ 14,210 Ceded to other companies: Ceded Aflac Japan closed blocks (122 ) (130 ) (378 ) (390 ) Other (15 ) (12 ) (45 ) (37 ) Assumed from other companies: Retrocession activities 51 54 158 163 Other 2 2 5 5 Net premium income $ 4,636 $ 4,648 $ 14,086 $ 13,951 Direct benefits and claims $ 3,076 $ 3,157 $ 9,301 $ 9,403 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (111 ) (118 ) (343 ) (359 ) Eliminations 10 13 33 39 Other (11 ) (9 ) (34 ) (31 ) Assumed from other companies: Retrocession activities 48 53 149 159 Eliminations (10 ) (13 ) (33 ) (39 ) Other 0 0 2 2 Benefits and claims, net $ 3,002 $ 3,083 $ 9,075 $ 9,174 These reinsurance transactions are indemnity reinsurance that do not relieve the Company from its obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, the Company remains liable for the reinsured claims. As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately 110 billion yen of reserves. This reinsurance facility agreement was renewed in 2017 and is effective until December 31, 2018. There are also additional commitment periods of a one-year duration, each of which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of September 30, 2018 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE A summary of notes payable follows: (In millions) September 30, 2018 December 31, 2017 2.40% senior notes due March 2020 $ 549 $ 548 4.00% senior notes due February 2022 348 348 3.625% senior notes due June 2023 698 697 3.625% senior notes due November 2024 746 745 3.25% senior notes due March 2025 447 446 2.875% senior notes due October 2026 297 297 6.90% senior notes due December 2039 220 220 6.45% senior notes due August 2040 254 254 4.00% senior notes due October 2046 394 394 Yen-denominated senior notes and subordinated debentures: .932% senior notes due January 2027 (principal amount 60.0 billion yen) 525 528 2.108% subordinated debentures due October 2047 (principal amount 60.0 billion yen) 523 526 Yen-denominated loans: Variable interest rate loan due September 2021 (.32% in 2018 and 2017, principal amount 5.0 billion yen) 44 44 Variable interest rate loan due September 2023 (.47% in 2018 and 2017, principal amount 25.0 billion yen) 219 220 Capitalized lease obligations payable through 2025 15 22 Total notes payable $ 5,279 $ 5,289 September 30, 2018 follows: Borrower Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Aflac Incorporated uncommitted bilateral 364 days November 30, 2018 $100 million $0 million The rate quoted by the bank and agreed upon at the time of borrowing Up to 3 months None General corporate purposes Aflac Incorporated unsecured revolving 3 years March 31, 2019, or the date commitments are terminated pursuant to an event of default 100.0 billion yen 0.0 billion yen A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period No later than .30% to .50%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated unsecured revolving 5 years April 4, 2023, or the date commitments are terminated pursuant to an event of default (1) 55.0 billion yen, or the equivalent amount in U.S. dollars 0.0 billion yen A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin No later than April 4, 2023 .085% to .225%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated uncommitted bilateral None specified None specified $50 million $0 million A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day Up to 3 months None General corporate purposes Aflac (2) uncommitted revolving 364 days November 30, 2018 $250 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes Aflac Incorporated (2) uncommitted revolving 364 days April 2, 2019 37.5 billion yen 0.0 billion yen Three-month TIBOR plus 80 basis points per annum 3 months None General corporate purposes (1) Effective April 4, 2018, the prior expiration date of September 18, 2020 was extended to April 4, 2023. (2) Intercompany credit agreement The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2018 . No events of default or defaults occurred during the nine -month period ended September 30, 2018 . For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2017 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 9. INCOME TAXES For the United States, the Tax Cuts and Jobs Act (Tax Act) was signed into law on December 22, 2017. Effective January 1, 2018, the Tax Act imposes a broad number of changes in tax law, including the permanent reduction of the U.S. federal statutory corporate income tax rate from 35% to 21% . The Company expects to complete its accounting for the effects of the Tax Act over the measurement period of up to one year from the enactment date, as permitted by SEC Staff Accounting Bulletin No. 118 (SAB 118). As of the enactment date, the Company estimated provisional amounts for its deferred taxes, including related valuation allowance, resulting in a reduction of its deferred tax assets (DTAs) by approximately $1.0 billion and its deferred tax liabilities (DTLs) by $2.9 billion , for a net DTL reduction of approximately $1.9 billion . The Company believes that these amounts represent reasonable estimates in accordance with SAB 118. The provisions of ASC 740-10, Income Taxes , require that the effects of changes in tax law on deferred taxes be recognized as a component of the income tax provision in the period the tax rate change was enacted. Therefore, the $1.9 billion provisional amount of net DTL reduction was recorded in the fourth quarter of 2017 as a reduction in the “Income tax expense, Deferred” line item of the Company’s consolidated statement of earnings. As of the third quarter of 2018, the Company has no update to this estimated benefit. The following includes an overview of the existing current and deferred balances for which calculation of income tax effects of the Tax Act has not been completed: Japan deferred tax balances: The Tax Act reduces the U.S. tax rate to 21% , effective January 1, 2018. Prior to the reduction in rate, the Japan deferred tax balances were completely offset by an anticipatory foreign tax credit. As a result of the rate reduction, the Japan deferred tax balance will no longer be offset by an anticipatory foreign tax credit as all of the foreign tax credits will be used to offset the U.S. deferred tax balance of the Aflac Japan branch. The Company has not yet completed its analysis of the components of the Japan tax computation, including a complete validation of the Aflac Japan tax basis. Additional time is needed to collect, analyze, and validate the detailed data underlying the deferred tax amounts in the Aflac Japan branch. As of the fourth quarter of 2017, the Company had recorded a provisional amount of $4.5 billion of net DTL related to this item. Valuation allowances: The Company must assess whether its valuation allowance analyses are impacted by various aspects of the Tax Act with a primary focus on any unused anticipatory foreign tax credits. As the Company has recorded provisional amounts related to the Japan deferred tax balances, any corresponding determination of the need for or change in a valuation allowance is also provisional. As of the fourth quarter of 2017, the Company had recorded a provisional valuation allowance of $.7 billion against its anticipatory foreign tax credit asset. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY See Note 1 for a discussion of the stock split that occurred in March 2018. All share and per-share amounts have been adjusted to reflect the stock split for any of the periods presented. The following table is a reconciliation of the number of shares of the Company's common stock for the nine -month periods ended September 30 . (In thousands of shares) 2018 2017 Common stock - issued: Balance, beginning of period 1,345,762 1,342,498 Exercise of stock options and issuance of restricted shares 1,614 2,840 Balance, end of period 1,347,376 1,345,338 Treasury stock: Balance, beginning of period 564,852 530,877 Purchases of treasury stock: Open market 20,443 27,796 Other 361 872 Dispositions of treasury stock: Shares issued to AFL Stock Plan (850 ) (1,392 ) Exercise of stock options (430 ) (526 ) Other (113 ) (39 ) Balance, end of period 584,263 557,588 Shares outstanding, end of period 763,113 787,750 Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS). The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods. Three Months Ended Nine Months Ended (In thousands) 2018 2017 2018 2017 Anti-dilutive share-based awards 46 532 34 670 Share Repurchase Program During the first nine months of 2018 , the Company repurchased 20.4 million shares of its common stock in the open market for $923 million as part of its share repurchase program. During the first nine months of 2017 , the Company repurchased 27.8 million shares of its common stock in the open market for $1.0 billion as part of its share repurchase program. In August 2017, the Company's board of directors authorized the purchase of an additional 40 million shares of its common stock, which increased to 80 million shares in February 2018 in connection with the Company's stock split scheduled for March 2018. As of September 30, 2018 , a remaining balance of 77.6 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors. Reclassifications from Accumulated Other Comprehensive Income The tables below are reconciliations of accumulated other comprehensive income by component for the following periods. Changes in Accumulated Other Comprehensive Income Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (1,766 ) $ 4,836 $ (23 ) $ (195 ) $ 2,852 Other comprehensive (347 ) (569 ) (1 ) (2 ) (919 ) Amounts reclassified from 0 (27 ) 0 3 (24 ) Net current-period other (347 ) (596 ) (1 ) 1 (943 ) Balance, end of period $ (2,113 ) $ 4,240 $ (24 ) $ (194 ) $ 1,909 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,580 ) $ 5,173 $ (23 ) $ (169 ) $ 3,401 Other comprehensive (135 ) 296 0 (2 ) 159 Amounts reclassified from 0 (32 ) 0 3 (29 ) Net current-period other (135 ) 264 0 1 130 Balance, end of period $ (1,715 ) $ 5,437 $ (23 ) $ (168 ) $ 3,531 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (1,750 ) $ 5,964 $ (23 ) $ (163 ) $ 4,028 Cumulative effect of change 0 (148 ) 0 0 (148 ) Cumulative effect of change (325 ) 734 (3 ) (32 ) 374 Other comprehensive (38 ) (2,302 ) 2 (7 ) (2,345 ) Amounts reclassified from 0 (8 ) 0 8 0 Net current-period other (38 ) (2,310 ) 2 1 (2,345 ) Balance, end of period $ (2,113 ) $ 4,240 $ (24 ) $ (194 ) $ 1,909 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 Other comprehensive 268 653 1 (8 ) 914 Amounts reclassified from 0 (21 ) 0 8 (13 ) Net current-period other 268 632 1 0 901 Balance, end of period $ (1,715 ) $ 5,437 $ (23 ) $ (168 ) $ 3,531 All amounts in the table above are net of tax. For the nine-month period ended September 30, 2018 , see Note 1 for discussion of the amounts reclassified between AOCI and retained earnings upon the adoption of new accounting pronouncements. The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 0 Other-than-temporary impairment 37 Other gains (losses) 37 Total before tax (10 ) Tax (expense) or benefit (1) $ 27 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (5 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 2 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 24 Net of tax (1) Based on 26% blended tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (6 ) Other-than-temporary impairment 56 Other gains (losses) 50 Total before tax (18 ) Tax (expense) or benefit (1) $ 32 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (4 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 29 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Nine Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (2 ) Other-than-temporary impairment 13 Other gains (losses) 11 Total before tax (3 ) Tax (expense) or benefit (1) $ 8 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (13 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 5 Tax (expense) or benefit (1) $ (8 ) Net of tax Total reclassifications for the period $ 0 Net of tax (1) Based on 27% blended tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Nine Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (23 ) Other-than-temporary impairment 56 Other gains (losses) 33 Total before tax (12 ) Tax (expense) or benefit (1) $ 21 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (12 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 4 Tax (expense) or benefit (1) $ (8 ) Net of tax Total reclassifications for the period $ 13 Net of tax (1) Based on 35% tax rate (2) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION See Note 1 for a discussion of the stock split that occurred in March 2018. All share and per-share amounts have been adjusted to reflect the stock split for any of the periods presented. As of September 30, 2018 , the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the “Plan”). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors. The Plan, as amended on February 14, 2017, allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan. The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of September 30, 2018 , approximately 40.3 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years , and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years . Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of September 30, 2018 , the only performance-based awards issued and outstanding were restricted stock awards. Stock options and stock appreciation rights granted under the amended Plan have an exercise price of at least the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date. Time-based restricted stock awards, restricted stock units and stock options granted after January 1, 2017 generally vest on a ratable basis over three years , and awards granted prior to the amendment vest on a three years cliff basis. The Compensation Committee of the Board of Directors has the discretion to determine vesting schedules . Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares. The following table provides information on stock options outstanding and exercisable at September 30, 2018 . Stock Weighted-Average Aggregate Weighted-Average Outstanding 5,600 5.2 $ 105 $ 28.33 Exercisable 4,084 4.2 83 26.87 The Company received cash from the exercise of stock options in the amount of $42 million during the first nine months of 2018, compared with $48 million in the first nine months of 2017. The tax benefit realized as a result of stock option exercises and restricted stock releases was $17 million in the first nine months of 2018, compared with $37 million in the first nine months of 2017. As of September 30, 2018 , total compensation cost not yet recognized in the Company's financial statements related to restricted stock awards was $45 million , of which $20 million ( 799 thousand shares) was related to restricted stock awards with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 1.1 years . There are no other contractual terms covering restricted stock awards once vested. The following table summarizes restricted stock activity during the nine -month period ended September 30 . (In thousands of shares) Shares Weighted-Average Grant-Date Fair Value Per Share Restricted stock at December 31, 2017 3,635 $ 32.40 Granted in 2018 1,074 44.30 Canceled in 2018 (97 ) 34.27 Vested in 2018 (1,164 ) 31.72 Restricted stock at September 30, 2018 3,448 $ 36.28 In February 2018, the Company granted 432 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter. The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards. For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2017 |
BENEFIT PLANS
BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The Company has funded defined benefit plans in Japan and the United States, however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution. The Company provides certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents ("other postretirement benefits"). The health care plan is contributory and unfunded. Effective January 1, 2014, employees eligible for benefits included the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80 ); (2) active employees who were age 55 or older and have met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next five years ; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next five years ; and (5) current retirees. For certain employees and former employees, additional coverage is provided for all medical expenses for life. Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $7 million for both the three-month periods and $20 million and $22 million for the nine-month periods ended September 30, 2018 and 2017 , respectively. Total net periodic cost includes the following components: Three Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2018 2017 2018 2017 2018 2017 Components of net periodic Service cost $ 4 $ 4 $ 7 $ 6 $ 0 $ 0 Interest cost 1 2 9 8 0 0 Expected return on plan (1 ) (1 ) (7 ) (6 ) 0 0 Amortization of net actuarial 1 1 4 3 0 0 Net periodic (benefit) cost $ 5 $ 6 $ 13 $ 11 $ 0 $ 0 Nine Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2018 2017 2018 2017 2018 2017 Components of net periodic Service cost $ 14 $ 13 $ 21 $ 18 $ 0 $ 0 Interest cost 4 5 26 24 1 1 Expected return on plan (4 ) (3 ) (20 ) (17 ) 0 0 Amortization of net actuarial 1 2 12 10 0 0 Net periodic (benefit) cost $ 15 $ 17 $ 39 $ 35 $ 1 $ 1 During the nine months ended September 30, 2018 , Aflac Japan contributed approximately $22 million (using the weighted-average yen/dollar exchange rate for the nine -month period ending September 30, 2018 ) to the Japanese funded defined benefit plan, and Aflac U.S. contributed $60 million to the U.S. funded defined benefit plan. As a result of U.S. tax reform legislation enacted in December 2017, the Company announced it would make a one-time contribution of $500 to the U.S. 401(k) plan to all employees active on December 31, 2017. This contribution was made by January 31, 2018. The Company also announced that it would increase its matching contributions to 100% of each employee's contributions which were not in excess of 4% of the employee's annual cash compensation. This increase became effective on January 1, 2018. For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2017 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES The Company is a defendant in various lawsuits considered to be in the normal course of business. Members of the Company's senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows. See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments. Guaranty Fund Assessments The United States insurance industry has a policyholder protection system that is monitored and regulated by state insurance departments. These life and health insurance guaranty associations are state entities (in all 50 states as well as Puerto Rico and the District of Columbia) created to protect policyholders of an insolvent insurance company. All insurance companies (with limited exceptions) licensed to sell life or health insurance in a state must be members of that state’s guaranty association. Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business. In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25% . The Company recognized a discounted liability for the assessments of $62 million (undiscounted $94 million ), offset by discounted premium tax credits of $48 million (undiscounted $74 million ), for a net $14 million impact to net income in the quarter ended March 31, 2017. The Company paid a majority of these assessments by March 31, 2018, and a majority of the tax credits will be realized over the next four years . The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits. Guaranty fund assessments for the nine-month period ended September 30, 2018 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In October 2018, the Parent Company issued $550 million of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 4.750% per annum, payable semi-annually, and have a 30-year maturity. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a United States Treasury security with a maturity comparable to the remaining term of the notes, plus 25 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. In October 2018, the Parent Company issued three series of senior notes totaling 53.4 billion yen through a public debt offering under its U.S. shelf registration statement. The first series, which totaled 29.3 billion yen, bears interest at a fixed rate of 1.159% per annum, payable semi-annually, and has a 12-year maturity. The second series, which totaled 15.2 billion yen, bears interest at a fixed rate of 1.488% per annum, payable semi-annually, and has a 15-year maturity. The third series, which totaled 8.9 billion yen, bears interest at a fixed rate of 1.750% per annum, payable semi-annually, and has a 20-year |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the United States (Aflac U.S.) and, effective April 1, 2018, through Aflac Life Insurance Japan Ltd. in Japan (Aflac Japan). Prior to April 1, 2018, the Company's insurance business was marketed in Japan as a branch of Aflac. American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the United States and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 69% of the Company's total revenues in both the nine -month periods ended September 30, 2018 and 2017 , respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at September 30, 2018 , compared with 83% at December 31, 2017 . Basis of Presentation The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are adequate. The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2018 , and December 31, 2017 , the consolidated statements of earnings and comprehensive income (loss) for the three- and nine -month periods ended September 30, 2018 and 2017, and the consolidated statements of shareholders' equity and cash flows for the nine -month periods ended September 30, 2018 and 2017 . Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2017 ( 2017 Annual Report). Stock split: On February 13, 2018, the Board of Directors of the Parent Company declared a two -for-one stock split of the Company’s common stock in the form of a 100% |
Reclassifications | Reclassifications : Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. Perpetual securities have been reclassified in prior periods from a separate line item to fixed maturity securities to conform to current period reporting classifications. This reclassification had no impact on net earnings or total shareholder’s equity. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Accounting Standards Update (ASU) 2018-03 Technical Corrections and Improvements to Financial Instruments - Overall In February 2018, the FASB issued amendments to clarify certain aspects of the guidance issued in the original Financial Instruments - Overall - Recognition and Measurement pronouncement summarized below. Specifically, for entities who have chosen the measurement alternative approach for equity securities without readily determinable fair values, the amendments clarify that entities may change from a measurement alternative approach to a fair value method through an irrevocable election that would apply to a specific equity security and all identical or similar investments of the same issuer; entities should use an observable price at the date of the transaction rather than reporting date for the measurement alternative calculation; and insurance companies should use a prospective transition method when applying the measurement alternative. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted the Financial Instruments - Overall - Recognition and Measurement guidance discussed below. Early adopted as of January 1, 2018 The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2018-02 Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued amendments which allow a reclassification from accumulated other comprehensive income (AOCI) to retained earnings of the effects of the change in the U.S. federal income tax rate resulting from the Tax Cuts and Jobs Act (Tax Act) on the gross deferred tax amounts and the corresponding valuation allowances related to items remaining in AOCI. The amendments eliminate the stranded tax effects resulting from the Tax Act and also require certain disclosures about the reclassified tax effects. The amendments are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Public business entities may early adopt this guidance in any interim reporting period for which financial statements have not yet been issued. The amendments should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adopted as of January 1, 2018 The amounts reclassified from AOCI to retained earnings include the income tax effects of the change in the federal corporate tax rate enacted by the Tax Act. The Company’s policy is to follow the portfolio approach for releasing income tax effects from AOCI. The adoption of this guidance resulted in an increase to beginning 2018 AOCI of $374 million with a corresponding decrease to beginning 2018 retained earnings as of January 1, 2018. ASU 2017-09 Compensation - Stock Compensation: Scope of Modification Accounting In May 2017, the FASB issued amendments to provide guidance clarifying when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. An entity should apply modification accounting if the fair value, vesting conditions or classification of the award (as an equity instrument or liability instrument) changes as a result of the change in terms or conditions of the award. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-08 Receivables - Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Early adopted as of July 1, 2018 The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2017-07 Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued amendments requiring that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost and net periodic postretirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-05 Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued amendments that clarify the scope and accounting guidance for the derecognition of a nonfinancial asset or a financial asset that meets the definition of an "in substance nonfinancial asset." The amendments define an "in substance nonfinancial asset" and provide additional accounting guidance for partial sales of nonfinancial assets. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-01 Business Combinations: Clarifying the Definition of a Business In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to exclude transactions where substantially all the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2016-18 Statement of Cash Flows: Restricted Cash In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures. ASU 2016-16 Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of this guidance require certain equity investments to be measured at fair value with changes in fair value recognized in net earnings; separate presentation in other comprehensive income for changes in fair value of financial liabilities measured under the fair value option that are due to instrument-specific credit risk; and changes in disclosures associated with the fair value of financial instruments. The guidance also clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset (DTA) related to available-for-sale (AFS) securities in combination with the entity's other DTAs. January 1, 2018 The Company recorded a cumulative effect adjustment with an increase to beginning 2018 retained earnings and a decrease to beginning 2018 AOCI of $148 million, net of taxes. ASU 2014-09 Revenue from Contracts with Customers In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. January 1, 2018 The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures. |
Description of Accounting Pronouncements Pending Adoption | Accounting Pronouncements Pending Adoption Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued amendments to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued amendments to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Accordingly, six disclosures requirements were removed, two added and two clarified. The amendments are effective for public business entities for fiscal years beginning after December 15, 2020. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-13 Fair Value Measurement, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued amendments to the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments remove, modify, and add certain disclosures. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this update and delay adoption of the additional disclosures until their effective date. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-12 Financial Services - Insurance, Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) requirement to update assumptions for liability for future policy benefits, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application of the amendments is permitted. The Company is thoroughly evaluating the impact of adoption and it is expected that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company expects that the requirement to update assumptions for liability for future policy benefits will have the most significant impact on its results of operations, systems, processes, and controls. ASU 2018-11 Leases, Targeted Improvements In July 2018, the FASB issued targeted improvements to Topic 842 Leases. The amendments in the update provide entities with an additional (and optional) transition method to adopt the new leases standard by recording a cumulative effect adjustment to beginning retained earnings. Additionally, the amendments provide lessors with a practical expedient to not separate nonlease components from associated lease components and instead account for those components as a single component under certain conditions. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company has elected the optional transition method. The adoption of this guidance is not expected to have a significant impact on the Company’s financial position, results of operations, or disclosures. ASU 2018-10 Codification Improvements to Topic 842, Leases In July 2018, the FASB issued guidance which clarifies, corrects errors in, or makes minor improvements to the Codification related to ASU 2016-02, Leases (Topic 842). The amendments in this ASU affect narrow aspects of the guidance issued in the amendments to ASU 2016-02, including but not limited to, Residual Value Guarantees, Rate Implicit in the Lease, Lessee Reassessment of Lease Classification and Variable Lease Payments that Depend on an Index or a Rate. Amendments within this ASU follow the effective dates of Topic 842, which are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2018-01 Leases: Land Easement Practical Expedient for Transition to Topic 842 In January 2018, the FASB issued guidance which provides an entity with the option to elect a transition practical expedient to not evaluate, under Topic 842, land easements that exist or expired before the entity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. The amendments clarify that new or modified land easements should be evaluated under the new leases standard once an entity has adopted the new standard. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-12 Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued guidance which improves and simplifies the accounting rules around hedge accounting and will create more transparency around how economic results are presented on financial statements. Issues addressed in this new guidance include: 1) risk component hedging, 2) accounting for the hedged item in fair value hedges of interest rate risk, 3) recognition and presentation of the effects of hedging instruments, and 4) amounts excluded from the assessment of hedge effectiveness. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of the guidance. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current U.S. GAAP; however, the amendments require that credit losses be presented as an allowance rather than as a write-down. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (PCD financial assets). The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The amendments will be adopted following a modified-retrospective approach resulting in a cumulative effect adjustment in retained earnings as of the beginning of the year of adoption. Two exceptions to this adoption method are for PCD financial assets and debt securities for which other-than-temporary impairment (OTTI) will have been recognized before the effective date. Loans purchased with credit deterioration accounted for under current U.S. GAAP as "purchased credit impaired" (PCI) financial assets will be classified as PCD financial assets at transition and PCD guidance will be applied prospectively. Debt securities that have experienced OTTI before the effective date will follow a prospective adoption method which allows an entity to maintain the same amortized cost basis before and after the effective date. The Company has identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loan and loan receivables and reinsurance recoverables (See Notes 3 and 7 for current balances of instruments in scope). The Company is progressing towards updating its credit loss projection models and accounting systems to comply with the required changes in measurement of credit losses. The Company currently expects loans and loan receivables and held-to-maturity fixed maturity securities to be the asset classes most significantly impacted upon adoption of the guidance. The Company continues to evaluate the impact of adoption of this guidance on its financial position, results of operations, and disclosures. Standard Description Effect on Financial Statements or Other Significant Matters ASU 2016-02 Leases In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. The new standard is effective for the Company on January 1, 2019, as we do not plan to early adopt. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company is electing to use its effective date as its date of initial application. The transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. Because the Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight. The Company has identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 of the Notes to the Consolidated Financial Statements in the 2017 Annual Report for current balances of leases in scope). The leases within scope of this guidance will increase the Company's ROU assets and lease liabilities recorded on its statement of financial position, however the Company estimates leases within scope of the guidance to represent less than 1% of its total assets as of September 30, 2018. The Company estimates that the adoption of this guidance will not have a significant impact on its financial position, results of operations, or disclosures. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Revenues: Aflac Japan: Net earned premiums $ 3,159 $ 3,200 $ 9,649 $ 9,616 Net investment income, less amortized hedge costs 606 561 1,801 1,676 Other income 10 11 31 31 Total Aflac Japan 3,775 3,772 11,481 11,323 Aflac U.S.: Net earned premiums 1,426 1,393 4,280 4,172 Net investment income 187 181 544 539 Other income 3 1 7 3 Total Aflac U.S. 1,616 1,575 4,831 4,714 Corporate and other 82 69 245 204 Total adjusted revenues 5,473 5,416 16,557 16,241 Realized investment gains (losses) (1),(2),(3) 104 90 75 2 Total revenues $ 5,577 $ 5,506 $ 16,632 $ 16,243 (1) Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 and for both the nine -month periods ended September 30, 2018 , and 2017 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from net investment income when analyzing segment operations. (2) Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 , respectively, which has been reclassified from realized investment gains (losses) and reported as an increase in net investment income when analyzing operations. (3) An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 , were reclassified from realized investment gains (losses) into net investment income when analyzing operations. |
Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated | Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Pretax earnings: Aflac Japan $ 756 $ 748 $ 2,411 $ 2,308 Aflac U.S. 334 316 1,011 956 Corporate and other (29 ) (50 ) (113 ) (150 ) Pretax adjusted earnings 1,061 1,014 3,309 3,114 Realized investment gains (losses) (1),(2),(3),(4) 88 71 25 (57 ) Other income (loss) (3 ) (10 ) (73 ) (38 ) Total earnings before income taxes $ 1,146 $ 1,075 $ 3,261 $ 3,019 Income taxes applicable to pretax adjusted earnings $ 270 $ 338 $ 862 $ 1,031 Effect of foreign currency translation on after-tax (1 ) (29 ) 27 (31 ) (1) Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 for both the nine -month periods ended September 30, 2018 , and 2017 , respectively, and have been reclassified from realized investment gains (losses) and reported as a deduction from pretax adjusted earnings when analyzing segment operations. (2) Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 which has been reclassified from realized investment gains (losses) and reported as an increase in pretax adjusted earnings when analyzing operations. (3) An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 , were reclassified from realized investment gains (losses) into net investment income when analyzing operations. (4) Excluding a gain of $17 and $19 for the three-month periods and $50 and $60 for the nine -month periods ended September 30, 2018 , and 2017 , respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is included in adjusted earnings when analyzing segment operations |
Reconciliation of Assets from Segment to Consolidated | Assets were as follows: (In millions) September 30, December 31, Assets: Aflac Japan $ 116,181 $ 114,402 Aflac U.S. 19,585 19,893 Corporate and other 2,175 2,922 Total assets $ 137,941 $ 137,217 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Securities, Available-for-sale | The amortized cost for the Company's investments in debt securities, the cost for equity securities and the fair values of these investments are shown in the following tables. September 30, 2018 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value Fixed maturity securities: (1) Yen-denominated: Japan government and agencies $ 29,499 $ 2,955 $ 426 $ 32,028 Municipalities 376 25 17 384 Mortgage- and asset-backed securities 151 21 0 172 Public utilities 1,685 303 9 1,979 Sovereign and supranational 1,116 133 1 1,248 Banks/financial institutions 5,317 602 159 5,760 Other corporate 4,618 683 36 5,265 Total yen-denominated 42,762 4,722 648 46,836 U.S. dollar-denominated: U.S. government and agencies 136 7 1 142 Municipalities 1,339 123 12 1,450 Mortgage- and asset-backed securities 154 8 1 161 Public utilities 4,863 562 91 5,334 Sovereign and supranational 248 61 0 309 Banks/financial institutions 2,767 431 19 3,179 Other corporate 23,983 1,677 775 24,885 Total U.S. dollar-denominated 33,490 2,869 899 35,460 Total securities available for sale $ 76,252 (1) $ 7,591 $ 1,547 $ 82,296 (1) (1) Includes perpetual securities ( $1,408 at amortized cost and $1,591 at fair value) |
Held-to-maturity Securities | September 30, 2018 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,224 $ 4,652 $ 0 $ 25,876 Municipalities 353 97 0 450 Mortgage- and asset-backed securities 14 1 0 15 Public utilities 3,150 302 1 3,451 Sovereign and supranational 1,516 276 0 1,792 Banks/financial institutions 1,491 163 11 1,643 Other corporate 2,673 356 6 3,023 Total yen-denominated 30,421 5,847 18 36,250 Total securities held to maturity $ 30,421 $ 5,847 $ 18 $ 36,250 December 31, 2017 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturity securities: Yen-denominated: Japan government and agencies $ 21,331 $ 5,160 $ 0 $ 26,491 Municipalities 357 105 0 462 Mortgage- and asset-backed securities 26 1 0 27 Public utilities 3,300 398 0 3,698 Sovereign and supranational 1,523 312 0 1,835 Banks/financial institutions 2,206 190 9 2,387 Other corporate 2,687 485 0 3,172 Total yen-denominated 31,430 6,651 9 38,072 Total securities held to maturity $ 31,430 $ 6,651 $ 9 $ 38,072 |
Equity securities, FV-NI | September 30, 2018 (In millions) Fair Equity securities, carried at fair value through net earnings: Equity securities: (1) Yen-denominated $ 707 U.S. dollar-denominated 352 Total equity securities $ 1,059 (1) (1) Includes perpetual securities ( $66 at fair value) |
Available-for-sale Securities | December 31, 2017 (In millions) Fair Equity securities, carried at fair value: Equity securities: Yen-denominated $ 695 U.S. dollar-denominated 328 Total equity securities $ 1,023 December 31, 2017 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturity securities: (1) Yen-denominated: Japan government and agencies $ 27,980 $ 3,363 $ 271 $ 31,072 Municipalities 314 28 12 330 Mortgage- and asset-backed securities 242 29 0 271 Public utilities 1,635 352 6 1,981 Sovereign and supranational 1,380 190 1 1,569 Banks/financial institutions 4,742 811 53 5,500 Other corporate 4,085 809 7 4,887 Total yen-denominated 40,378 5,582 350 45,610 U.S dollar-denominated: U.S. government and agencies 146 13 1 158 Municipalities 872 168 0 1,040 Mortgage- and asset-backed securities 161 12 0 173 Public utilities 5,116 884 27 5,973 Sovereign and supranational 267 73 0 340 Banks/financial institutions 2,808 633 8 3,433 Other corporate 25,384 2,620 418 27,586 Total U.S. dollar-denominated 34,754 4,403 454 38,703 Total securities available for sale $ 75,132 (1) $ 9,985 $ 804 $ 84,313 (1) (1) Includes perpetual securities ( $1,462 at amortized cost and $1,789 at fair value) |
Investments Classified by Contractual Maturity Date | The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2018 , were as follows: (In millions) Amortized Fair Available for sale: (1) Due in one year or less $ 691 $ 757 Due after one year through five years 8,058 8,199 Due after five years through 10 years 10,282 10,936 Due after 10 years 56,916 62,071 Mortgage- and asset-backed securities 305 333 Total fixed maturity securities available for sale $ 76,252 $ 82,296 Held to maturity: Due in one year or less $ 528 $ 533 Due after one year through five years 541 569 Due after five years through 10 years 1,303 1,415 Due after 10 years 28,034 33,718 Mortgage- and asset-backed securities 15 15 Total fixed maturity securities held to maturity $ 30,421 $ 36,250 (1) Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) |
Investment Exposures Exceeding Ten Percent Shareholders Equity | Investment exposures that individually exceeded 10% of shareholders' equity were as follows: September 30, 2018 December 31, 2017 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A+ $49,603 $56,679 A $48,399 $56,532 (1) Japan Government Bonds (JGBs) or JGB-backed securities |
Gain (Loss) on Investments | Information regarding pretax realized gains and losses from investments is as follows: Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Realized investment gains (losses): Fixed maturity securities: (1) Available for sale: Gross gains from sales $ 60 $ 18 $ 81 $ 40 Gross losses from sales (26 ) (5 ) (99 ) (24 ) Foreign currency gains (losses) on sales and redemptions 3 3 27 (47 ) Other-than-temporary impairment losses 0 (1 ) (2 ) (5 ) Total fixed maturity securities 37 15 7 (36 ) Equity securities (1),(2) 27 39 (3) (1 ) 73 (3) Loan loss reserves (5 ) (1 ) (15 ) (4 ) Derivatives and other: Derivative gains (losses) (162 ) (40 ) (190 ) (143 ) Foreign currency gains (losses) 159 17 123 (56 ) Total derivatives and other (3 ) (23 ) (67 ) (199 ) Total realized investment gains (losses) $ 56 $ 30 $ (76 ) $ (166 ) (1) Includes perpetual securities (2) See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. (3) Includes impairments of $6 for the three-month period and $18 |
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities | The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows: (In millions) September 30, 2018 December 31, Unrealized gains (losses) on securities available for sale $ 6,044 $ 9,358 Deferred income taxes (1,804 ) (3,394 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,240 $ 5,964 See Note 1 for discussion of the accounting treatment of tax on amounts recorded in accumulated other comprehensive income pursuant to the Tax Act and for the adoption of accounting guidance on January 1, 2018 related to financial instruments. |
Investments Gross Unrealized Loss Aging | The following tables show the fair values and gross unrealized losses of the Company's available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2018 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: (1) U.S. government and U.S. dollar-denominated $ 80 $ 1 $ 80 $ 1 $ 0 $ 0 Japan government and Yen-denominated 9,221 426 9,221 426 0 0 Municipalities: U.S. dollar-denominated 490 12 490 12 0 0 Yen-denominated 224 17 224 17 0 0 Mortgage- and asset- U.S. dollar-denominated 81 1 81 1 0 0 Public utilities: U.S. dollar-denominated 1,726 91 1,721 91 5 0 Yen-denominated 381 10 381 10 0 0 Sovereign and supranational: Yen-denominated 43 1 43 1 0 0 Banks/financial institutions: U.S. dollar-denominated 552 19 517 18 35 1 Yen-denominated 2,806 170 2,806 170 0 0 Other corporate: U.S. dollar-denominated 11,731 775 11,291 744 440 31 Yen-denominated 1,134 42 1,134 42 0 0 Total $ 28,469 $ 1,565 $ 27,989 $ 1,533 $ 480 $ 32 (1) Includes perpetual securities December 31, 2017 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturity securities: (1) U.S. government and U.S. dollar-denominated $ 74 $ 1 $ 74 $ 1 $ 0 $ 0 Japan government and Yen-denominated 5,255 271 1,264 9 3,991 262 Municipalities: Yen-denominated 129 12 10 0 119 12 Public utilities: U.S. dollar-denominated 785 27 221 3 564 24 Yen-denominated 83 6 0 0 83 6 Sovereign and supranational: Yen-denominated 309 1 309 1 0 0 Banks/financial institutions: U.S. dollar-denominated 362 8 316 5 46 3 Yen-denominated 1,507 62 394 4 1,113 58 Other corporate: U.S. dollar-denominated 7,741 418 2,839 50 4,902 368 Yen-denominated 440 7 349 4 91 3 Total $ 16,685 $ 813 $ 5,776 $ 77 $ 10,909 $ 736 (1) Includes perpetual securities |
Other Investments | The table below reflects the composition of the carrying value for other investments as of the periods presented. (In millions) September 30, 2018 December 31, 2017 Other investments: Transitional real estate loans $ 4,128 $ 1,235 Commercial mortgage loans 1,026 908 Middle market loans 1,363 859 Policy loans 223 210 Short-term investments 2 57 Other 267 133 Total other investments $ 7,009 $ 3,402 |
Securities Lending Transactions Accounted for as Secured Borrowings | Details of the Company's securities lending activities were as follows: Securities Lending Transactions Accounted for as Secured Borrowings September 30, 2018 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 30-90 days Greater Total Securities lending transactions: Fixed maturity securities: Japan government and agencies $ 15 $ 1,516 1 $ 1,158 $ 2,690 Public utilities 17 0 0 0 17 Banks/financial institutions 48 0 0 0 48 Other corporate 365 0 0 0 365 Equity securities 8 0 0 0 8 Total borrowings $ 453 $ 1,516 $ 1 $ 1,158 $ 3,128 Gross amount of recognized liabilities for securities lending transactions $ 1,970 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 1,158 (1) These securities are pledged as collateral under the Company's U.S. securities lending program and can be called at its discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings December 31, 2017 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Fixed maturity securities: Japan government and agencies $ 0 $ 49 $ 49 Public utilities 73 0 73 Banks/financial institutions 54 0 54 Other corporate 415 0 415 Equity securities 15 0 15 Total borrowings $ 557 $ 49 $ 606 Gross amount of recognized liabilities for securities lending transactions $ 606 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) |
Variable Interest Entity, Consolidated | |
Investments in Variable Interest Entities | VIEs - Consolidated The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. Investments in Consolidated Variable Interest Entities September 30, 2018 December 31, 2017 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturity securities, available for sale (1) $ 4,045 $ 4,853 $ 4,538 $ 5,509 Equity securities 179 179 606 753 Other investments (2) 5,388 5,369 2,341 2,328 Other assets (3) 190 190 151 151 Total assets of consolidated VIEs $ 9,802 $ 10,591 $ 7,636 $ 8,741 Liabilities: Other liabilities (3) $ 101 $ 101 $ 128 $ 128 Total liabilities of consolidated VIEs $ 101 $ 101 $ 128 $ 128 (1) Includes perpetual securities (2) Consists of TREs, CMLs, MMLs, and alternative investments in limited partnerships (3) |
Variable Interest Entity, Not Consolidated | |
Investments in Variable Interest Entities | VIEs-Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported. Investments in Variable Interest Entities Not Consolidated September 30, 2018 December 31, 2017 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturity securities, available for sale (1) $ 4,746 $ 5,261 $ 5,004 $ 5,724 Fixed maturity securities, held to maturity 2,402 2,702 2,549 2,929 Other investments 33 33 55 55 Total investments in VIEs not consolidated $ 7,181 $ 7,996 $ 7,608 $ 8,708 (1) Includes perpetual securities |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | September 30, 2018 December 31, 2017 (In millions) Asset Liability Asset Liability Hedge Designation/ Derivative Notional Fair Value Fair Value Notional Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ 0 $ (5 ) $ 75 $ 0 $ (8 ) Total cash flow hedges 75 0 (5 ) 75 0 (8 ) Fair value hedges: Foreign currency forwards 3,172 0 (67 ) 7,640 2 (221 ) Foreign currency options 9,279 0 (12 ) 7,670 0 (2 ) Total fair value hedges 12,451 0 (79 ) 15,310 2 (223 ) Net investment hedge: Foreign currency forwards 0 0 0 5 0 0 Foreign currency options 0 0 0 434 12 (1 ) Total net investment hedge 0 0 0 439 12 (1 ) Non-qualifying strategies: Foreign currency swaps 5,373 302 (202 ) 5,386 296 (189 ) Foreign currency forwards 10,501 128 (210 ) 3,683 20 (53 ) Foreign currency options 373 0 0 770 0 0 Credit default swaps 0 0 0 88 1 0 Interest rate swaps 2,250 0 (1 ) 0 0 0 Total non-qualifying strategies 18,497 430 (413 ) 9,927 317 (242 ) Total derivatives $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) Balance Sheet Location Other assets $ 11,232 $ 430 $ 0 $ 10,948 $ 331 $ 0 Other liabilities 19,791 0 (497 ) 14,803 0 (474 ) Total derivatives $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness Three Months Ended September 30, 2018: Foreign currency Fixed maturity securities $ (106 ) $ (19 ) $ (87 ) $ 83 $ (4 ) Foreign currency Fixed maturity securities (7 ) (7 ) 0 0 0 Nine Months Ended September 30, 2018: Foreign currency forwards Fixed maturity securities $ 93 $ (88 ) $ 181 $ (195 ) $ (14 ) Foreign currency options Fixed maturity securities (10 ) (10 ) 0 0 0 Three Months Ended September 30, 2017: Foreign currency Fixed maturity and equity securities $ (114 ) $ (53 ) $ (61 ) $ 61 $ 0 Foreign currency options Fixed maturity securities (14 ) (14 ) 0 0 0 Nine Months Ended September 30, 2017: Foreign currency forwards Fixed maturity and equity securities $ 193 $ (151 ) $ 344 $ (326 ) $ 18 Foreign currency options Fixed maturity securities 3 (8 ) 11 (10 ) 1 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In millions) Realized Investment Other (1) Realized Investment Other (1) Realized Investment Other (1) Realized Investment Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 0 $ (2 ) $ 0 $ (1 ) $ 1 $ 2 $ 0 $ 0 Total cash flow hedges 0 (2 ) 0 (1 ) 1 2 0 0 Fair value hedges: Foreign currency forwards (2) (23 ) (53 ) (102 ) (133 ) Foreign currency options (2) (7 ) (14 ) (10 ) (7 ) Total fair value hedges (30 ) (67 ) (112 ) (140 ) Net investment hedge: Non- derivative hedging instruments 0 36 0 5 0 7 0 (13 ) Foreign currency forwards 0 0 0 4 0 0 0 (24 ) Foreign currency options 0 0 0 (5 ) 0 (8 ) 0 3 Total net investment hedge 0 36 0 4 0 (1 ) 0 (34 ) Non-qualifying strategies: Foreign currency swaps 23 17 51 43 Foreign currency forwards (154 ) 10 (129 ) (46 ) Foreign currency options 0 0 0 0 Interest rate swaps (1 ) 0 (1 ) 0 Total non- qualifying strategies (132 ) 27 (79 ) (3 ) Total $ (162 ) $ 34 $ (40 ) $ 3 $ (190 ) $ 1 $ (143 ) $ (34 ) (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) |
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk | The counterparties to these derivatives are financial institutions with the following credit ratings: September 30, 2018 December 31, 2017 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 5,207 $ 79 $ (42 ) $ 4,708 $ 52 $ (37 ) A 25,378 345 (401 ) 20,604 271 (370 ) BBB 438 6 (54 ) 439 8 (67 ) Total $ 31,023 $ 430 $ (497 ) $ 25,751 $ 331 $ (474 ) |
Offsetting Assets | Offsetting of Financial Assets and Derivative Asset September 30, 2018 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 240 $ 0 $ 240 $ (118 ) $ (10 ) $ (109 ) $ 3 Total derivative assets subject to a master netting agreement or offsetting arrangement 240 0 240 (118 ) (10 ) (109 ) 3 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 190 190 190 Total derivative assets not subject to a master netting agreement or offsetting arrangement 190 190 190 Total derivative assets 430 0 430 (118 ) (10 ) (109 ) 193 Securities lending and similar arrangements 1,927 0 1,927 0 0 (1,927 ) 0 Total $ 2,357 $ 0 $ 2,357 $ (118 ) $ (10 ) $ (2,036 ) $ 193 December 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement OTC - bilateral $ 180 $ 0 $ 180 $ (82 ) $ 0 $ (98 ) $ 0 Total derivative assets subject to a master netting agreement or offsetting arrangement 180 0 180 (82 ) 0 (98 ) 0 Derivative assets not subject to a master netting agreement or offsetting arrangement OTC - bilateral 151 151 151 Total derivative assets not subject to a master netting agreement or offsetting arrangement 151 151 151 Total derivative assets 331 0 331 (82 ) 0 (98 ) 151 Securities lending and similar arrangements 592 0 592 0 0 (592 ) 0 Total $ 923 $ 0 $ 923 $ (82 ) $ 0 $ (690 ) $ 151 |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities September 30, 2018 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ (395 ) $ 0 $ (395 ) $ 118 $ 195 $ 26 $ (56 ) OTC - cleared (1 ) 0 (1 ) 0 0 1 0 Total derivative liabilities subject to a master netting agreement or offsetting arrangement (396 ) 0 (396 ) 118 195 27 (56 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral (101 ) (101 ) (101 ) Total derivative liabilities not subject to a master netting agreement or offsetting arrangement (101 ) (101 ) (101 ) Total derivative liabilities (497 ) 0 (497 ) 118 195 27 (157 ) Securities lending and similar arrangements (1,970 ) 0 (1,970 ) 1,927 0 0 (43 ) Total $ (2,467 ) $ 0 $ (2,467 ) $ 2,045 $ 195 $ 27 $ (200 ) December 31, 2017 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement OTC - bilateral $ (346 ) $ 0 $ (346 ) $ 82 $ 245 $ 10 $ (9 ) Total derivative liabilities subject to a master netting agreement or offsetting arrangement (346 ) 0 (346 ) 82 245 10 (9 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement OTC - bilateral (128 ) (128 ) (128 ) Total derivative liabilities not subject to a master netting agreement or offsetting arrangement (128 ) (128 ) (128 ) Total derivative liabilities (474 ) 0 (474 ) 82 245 10 (137 ) Securities lending and similar arrangements (606 ) 0 (606 ) 592 0 0 (14 ) Total $ (1,080 ) $ 0 $ (1,080 ) $ 674 $ 245 $ 10 $ (151 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis. September 30, 2018 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: (1) Government and agencies $ 30,888 $ 1,282 $ 0 $ 32,170 Municipalities 0 1,834 0 1,834 Mortgage- and asset-backed securities 0 161 172 333 Public utilities 0 7,209 104 7,313 Sovereign and supranational 0 1,557 0 1,557 Banks/financial institutions 0 8,916 23 8,939 Other corporate 0 29,959 191 30,150 Total fixed maturity securities 30,888 50,918 490 82,296 (1) Equity securities (1) 972 71 16 1,059 (1) Other investments 2 0 0 2 Cash and cash equivalents 3,429 0 0 3,429 Other assets: Foreign currency swaps 0 112 190 302 Foreign currency forwards 0 128 0 128 Total other assets 0 240 190 430 Total assets $ 35,291 $ 51,229 $ 696 $ 87,216 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 106 $ 101 $ 207 Foreign currency forwards 0 277 0 277 Foreign currency options 0 12 0 12 Interest rate swaps 0 1 0 1 Total liabilities $ 0 $ 396 $ 101 $ 497 (1) Includes perpetual securities December 31, 2017 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturity securities: (1) Government and agencies $ 30,109 $ 1,121 $ 0 $ 31,230 Municipalities 0 1,370 0 1,370 Mortgage- and asset-backed securities 0 269 175 444 Public utilities 0 7,886 68 7,954 Sovereign and supranational 0 1,909 0 1,909 Banks/financial institutions 0 8,908 25 8,933 Other corporate 0 32,327 146 32,473 Total fixed maturity securities 30,109 53,790 414 84,313 (1) Equity securities 1,001 6 16 1,023 Other investments 57 0 0 57 Cash and cash equivalents 3,491 0 0 3,491 Other assets: Foreign currency swaps 0 146 150 296 Foreign currency forwards 0 22 0 22 Foreign currency options 0 12 0 12 Credit default swaps 0 0 1 1 Total other assets 0 180 151 331 Total assets $ 34,658 $ 53,976 $ 581 $ 89,215 Liabilities: Other liabilities: Foreign currency swaps $ 0 $ 69 $ 128 $ 197 Foreign currency forwards 0 274 0 274 Foreign currency options 0 3 0 3 Total liabilities $ 0 $ 346 $ 128 $ 474 (1) |
Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost | The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value. September 30, 2018 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,224 $ 25,868 $ 8 $ 0 $ 25,876 Municipalities 353 0 450 0 450 Mortgage and asset-backed 14 0 0 15 15 Public utilities 3,150 0 3,451 0 3,451 Sovereign and 1,516 0 1,792 0 1,792 Banks/financial institutions 1,491 0 1,643 0 1,643 Other corporate 2,673 0 3,023 0 3,023 Other investments (1) 6,542 0 25 6,494 6,519 Total assets $ 36,963 $ 25,868 $ 10,392 $ 6,509 $ 42,769 Liabilities: Other policyholders’ funds $ 6,974 $ 0 $ 0 $ 6,896 $ 6,896 Notes payable 5,264 0 5,066 263 5,329 Total liabilities $ 12,238 $ 0 $ 5,066 $ 7,159 $ 12,225 (1) Excludes policy loans of $223 and equity method investments of $242 , at carrying value December 31, 2017 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturity securities: Government and agencies $ 21,331 $ 26,491 $ 0 $ 0 $ 26,491 Municipalities 357 0 462 0 462 Mortgage and asset-backed 26 0 8 19 27 Public utilities 3,300 0 3,698 0 3,698 Sovereign and 1,523 0 1,835 0 1,835 Banks/financial institutions 2,206 0 2,387 0 2,387 Other corporate 2,687 0 3,172 0 3,172 Other investments (1) 3,017 0 15 2,987 3,002 Total assets $ 34,447 $ 26,491 $ 11,577 $ 3,006 $ 41,074 Liabilities: Other policyholders’ funds $ 6,939 $ 0 $ 0 $ 6,841 $ 6,841 Notes payable 5,267 0 5,288 265 5,553 Total liabilities $ 12,206 $ 0 $ 5,288 $ 7,106 $ 12,394 (1) Excludes policy loans of $210 and equity method investments of $118 |
Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources | The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities. September 30, 2018 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: (1) Government and agencies: Third party pricing vendor $ 30,888 $ 1,282 $ 0 $ 32,170 Total government and agencies 30,888 1,282 0 32,170 Municipalities: Third party pricing vendor 0 1,834 0 1,834 Total municipalities 0 1,834 0 1,834 Mortgage- and asset-backed securities: Third party pricing vendor 0 161 0 161 Broker/other 0 0 172 172 Total mortgage- and asset-backed securities 0 161 172 333 Public utilities: Third party pricing vendor 0 7,209 0 7,209 Broker/other 0 0 104 104 Total public utilities 0 7,209 104 7,313 Sovereign and supranational: Third party pricing vendor 0 1,557 0 1,557 Total sovereign and supranational 0 1,557 0 1,557 Banks/financial institutions: Third party pricing vendor 0 8,916 0 8,916 Broker/other 0 0 23 23 Total banks/financial institutions 0 8,916 23 8,939 Other corporate: Third party pricing vendor 0 29,861 0 29,861 Broker/other 0 98 191 289 Total other corporate 0 29,959 191 30,150 Total securities available for sale $ 30,888 $ 50,918 $ 490 $ 82,296 (1) Equity securities, carried at fair value: (1) Third party pricing vendor $ 972 $ 71 $ 0 $ 1,043 Broker/other 0 0 16 16 Total equity securities $ 972 $ 71 $ 16 $ 1,059 (1) (1) December 31, 2017 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturity securities: (1) Government and agencies: Third party pricing vendor $ 30,109 $ 1,121 $ 0 $ 31,230 Total government and agencies 30,109 1,121 0 31,230 Municipalities: Third party pricing vendor 0 1,370 0 1,370 Total municipalities 0 1,370 0 1,370 Mortgage- and asset-backed securities: Third party pricing vendor 0 269 0 269 Broker/other 0 0 175 175 Total mortgage- and asset-backed securities 0 269 175 444 Public utilities: Third party pricing vendor 0 7,886 0 7,886 Broker/other 0 0 68 68 Total public utilities 0 7,886 68 7,954 Sovereign and supranational: Third party pricing vendor 0 1,807 0 1,807 Broker/other 0 102 0 102 Total sovereign and supranational 0 1,909 0 1,909 Banks/financial institutions: Third party pricing vendor 0 8,908 0 8,908 Broker/other 0 0 25 25 Total banks/financial institutions 0 8,908 25 8,933 Other corporate: Third party pricing vendor 0 32,327 0 32,327 Broker/other 0 0 146 146 Total other corporate 0 32,327 146 32,473 Total securities available for sale $ 30,109 $ 53,790 $ 414 $ 84,313 (1) Equity securities, carried at fair value: Third party pricing vendor $ 1,001 $ 6 $ 0 $ 1,007 Broker/other 0 0 16 16 Total equity securities $ 1,001 $ 6 $ 16 $ 1,023 (1) |
Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources | December 31, 2017 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 26,491 $ 0 $ 0 $ 26,491 Total government and agencies 26,491 0 0 26,491 Municipalities: Third party pricing vendor 0 462 0 462 Total municipalities 0 462 0 462 Mortgage- and asset-backed securities: Third party pricing vendor 0 8 0 8 Broker/other 0 0 19 19 Total mortgage- and asset-backed securities 0 8 19 27 Public utilities: Third party pricing vendor 0 3,698 0 3,698 Total public utilities 0 3,698 0 3,698 Sovereign and supranational: Third party pricing vendor 0 1,835 0 1,835 Total sovereign and supranational 0 1,835 0 1,835 Banks/financial institutions: Third party pricing vendor 0 2,387 0 2,387 Total banks/financial institutions 0 2,387 0 2,387 Other corporate: Third party pricing vendor 0 3,172 0 3,172 Total other corporate 0 3,172 0 3,172 Total securities held to maturity $ 26,491 $ 11,562 $ 19 $ 38,072 September 30, 2018 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturity securities: Government and agencies: Third party pricing vendor $ 25,868 $ 8 $ 0 $ 25,876 Total government and agencies 25,868 8 0 25,876 Municipalities: Third party pricing vendor 0 450 0 450 Total municipalities 0 450 0 450 Mortgage- and asset-backed securities: Broker/other 0 0 15 15 Total mortgage- and asset-backed securities 0 0 15 15 Public utilities: Third party pricing vendor 0 3,451 0 3,451 Total public utilities 0 3,451 0 3,451 Sovereign and supranational: Third party pricing vendor 0 1,792 0 1,792 Total sovereign and supranational 0 1,792 0 1,792 Banks/financial institutions: Third party pricing vendor 0 1,643 0 1,643 Total banks/financial institutions 0 1,643 0 1,643 Other corporate: Third party pricing vendor 0 3,023 0 3,023 Total other corporate 0 3,023 0 3,023 Total securities held to maturity $ 25,868 $ 10,367 $ 15 $ 36,250 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Transfers between Hierarchy Levels and Level 3 Rollforward During the three- and nine -month periods ended September 30, 2018 and 2017 , respectively, there were no transfers between Level 1 and 2 for assets and liabilities that are measured and carried at fair value on a recurring basis. The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Three Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 178 $ 106 $ 23 $ 196 $ 17 $ 110 $ 0 $ 630 Realized investment gains (losses) included in earnings 0 0 0 0 (1 ) (19 ) 0 (20 ) Unrealized gains (losses) included in other comprehensive income (loss) (6 ) (2 ) 0 (4 ) 0 (2 ) 0 (14 ) Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 0 Settlements 0 0 0 (1 ) 0 0 0 (1 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 172 $ 104 $ 23 $ 191 $ 16 $ 89 $ 0 $ 595 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (1 ) $ (19 ) $ 0 $ (20 ) (1) Derivative assets and liabilities are presented net Three Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 188 $ 53 $ 25 $ 77 $ 14 $ 7 $ 2 $ 366 Realized investment gains (losses) included in 0 0 0 0 0 8 (1 ) 7 Unrealized gains (losses) included in other (2 ) 0 0 1 0 0 0 (1 ) Purchases, issuances, sales and settlements: Purchases 0 24 0 25 4 0 0 53 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 (1 ) 0 0 0 (1 ) Settlements (8 ) 0 0 0 0 0 0 (8 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 178 $ 77 $ 25 $ 102 $ 18 $ 15 $ 1 $ 416 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 8 $ (1 ) $ 7 (1) Derivative assets and liabilities are presented net Nine Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 175 $ 68 $ 25 $ 146 $ 16 $ 22 $ 1 $ 453 Realized investment gains (losses) included 0 0 0 0 (1 ) 65 (1 ) 63 Unrealized gains (losses) included in other (3 ) (4 ) (2 ) (6 ) 0 2 0 (13 ) Purchases, issuances, sales and settlements: Purchases 0 40 0 55 1 0 0 96 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 0 Settlements 0 0 0 (4 ) 0 0 0 (4 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 172 $ 104 $ 23 $ 191 $ 16 $ 89 $ 0 $ 595 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (1 ) $ 65 $ (1 ) $ 63 (1) Derivative assets and liabilities are presented net Nine Months Ended Fixed Maturity Securities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Other Foreign Credit Total Balance, beginning of period $ 198 $ 16 $ 25 $ 0 $ 3 $ (21 ) $ 2 $ 223 Realized investment gains (losses) included in earnings 0 0 0 0 0 36 (1 ) 35 Unrealized gains (losses) included in other comprehensive income (loss) 4 0 0 3 0 0 0 7 Purchases, issuances, sales and settlements: Purchases 0 61 0 100 16 0 0 177 Issuances 0 0 0 0 0 0 0 0 Sales 0 0 0 (1 ) (1 ) 0 0 (2 ) Settlements (24 ) 0 0 0 0 0 0 (24 ) Transfers into Level 3 0 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 0 Balance, end of period $ 178 $ 77 $ 25 $ 102 $ 18 $ 15 $ 1 $ 416 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 0 $ 36 $ (1 ) $ 35 (1) |
Fair Value Measurement Inputs and Valuation Techniques | The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. September 30, 2018 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 172 Consensus pricing Offered quotes N/A (a) Public utilities 104 Discounted cash flow Credit spreads N/A (a) Banks/financial institutions 23 Consensus pricing Offered quotes N/A (a) Other corporate 191 Discounted cash flow Credit spreads N/A (a) Equity securities 16 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 133 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) CDS spreads 12 - 101 bps 57 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) Total assets $ 696 Liabilities: Other liabilities: Foreign currency swaps $ 96 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) CDS spreads 31 - 196 bps 5 Discounted cash flow Interest rates (USD) 3.27% - 3.30% (b) Interest rates (JPY) .36% - .96% (c) Total liabilities $ 101 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps December 31, 2017 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturity securities: Mortgage- and asset-backed securities $ 175 Consensus pricing Offered quotes N/A (a) Public utilities 68 Discounted cash flow Credit spreads N/A (a) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (a) Other corporate 146 Discounted cash flow Credit spreads N/A (a) Equity securities 16 Net asset value Offered quotes N/A (a) Other assets: Foreign currency swaps 80 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) CDS spreads 9 - 90 bps 70 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) Credit default swaps 1 Discounted cash flow Base correlation 46.33% - 49.65% (d) CDS spreads 25 bps Recovery rate 37.24% Total assets $ 581 Liabilities: Other liabilities: Foreign currency swaps $ 120 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) CDS spreads 13 - 157 bps 8 Discounted cash flow Interest rates (USD) 2.40% - 2.54% (b) Interest rates (JPY) .26% - .85% (c) Total liabilities $ 128 (a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps (c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps |
POLICY LIABILITIES (Tables)
POLICY LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims Adjustment Expense | Changes in the liability for unpaid policy claims were as follows: Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Unpaid supplemental health claims, beginning of period $ 3,942 $ 3,872 $ 3,881 $ 3,707 Less reinsurance recoverables 29 30 28 27 Net balance, beginning of period 3,913 3,842 3,853 3,680 Add claims incurred during the period related to: Current year 1,760 1,759 5,381 5,278 Prior years (131 ) (126 ) (456 ) (386 ) Total incurred 1,629 1,633 4,925 4,892 Less claims paid during the period on claims incurred during: Current year 1,357 1,357 3,109 3,074 Prior years 217 234 1,751 1,697 Total paid 1,574 1,591 4,860 4,771 Effect of foreign exchange rate changes on unpaid claims (59 ) (14 ) (9 ) 69 Net balance, end of period 3,909 3,870 3,909 3,870 Add reinsurance recoverables 29 30 29 30 Unpaid supplemental health claims, end of period 3,938 3,900 3,938 3,900 Unpaid life claims, end of period 592 468 592 468 Total liability for unpaid policy claims $ 4,530 $ 4,368 $ 4,530 $ 4,368 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance. Three Months Ended Nine Months Ended (In millions) 2018 2017 2018 2017 Direct premium income $ 4,720 $ 4,734 $ 14,346 $ 14,210 Ceded to other companies: Ceded Aflac Japan closed blocks (122 ) (130 ) (378 ) (390 ) Other (15 ) (12 ) (45 ) (37 ) Assumed from other companies: Retrocession activities 51 54 158 163 Other 2 2 5 5 Net premium income $ 4,636 $ 4,648 $ 14,086 $ 13,951 Direct benefits and claims $ 3,076 $ 3,157 $ 9,301 $ 9,403 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (111 ) (118 ) (343 ) (359 ) Eliminations 10 13 33 39 Other (11 ) (9 ) (34 ) (31 ) Assumed from other companies: Retrocession activities 48 53 149 159 Eliminations (10 ) (13 ) (33 ) (39 ) Other 0 0 2 2 Benefits and claims, net $ 3,002 $ 3,083 $ 9,075 $ 9,174 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A summary of notes payable follows: (In millions) September 30, 2018 December 31, 2017 2.40% senior notes due March 2020 $ 549 $ 548 4.00% senior notes due February 2022 348 348 3.625% senior notes due June 2023 698 697 3.625% senior notes due November 2024 746 745 3.25% senior notes due March 2025 447 446 2.875% senior notes due October 2026 297 297 6.90% senior notes due December 2039 220 220 6.45% senior notes due August 2040 254 254 4.00% senior notes due October 2046 394 394 Yen-denominated senior notes and subordinated debentures: .932% senior notes due January 2027 (principal amount 60.0 billion yen) 525 528 2.108% subordinated debentures due October 2047 (principal amount 60.0 billion yen) 523 526 Yen-denominated loans: Variable interest rate loan due September 2021 (.32% in 2018 and 2017, principal amount 5.0 billion yen) 44 44 Variable interest rate loan due September 2023 (.47% in 2018 and 2017, principal amount 25.0 billion yen) 219 220 Capitalized lease obligations payable through 2025 15 22 Total notes payable $ 5,279 $ 5,289 |
Schedule of Line of Credit Facilities | A summary of the Company's lines of credit as of September 30, 2018 follows: Borrower Type Term Expiration Date Capacity Amount Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment Fee Business Purpose Aflac Incorporated uncommitted bilateral 364 days November 30, 2018 $100 million $0 million The rate quoted by the bank and agreed upon at the time of borrowing Up to 3 months None General corporate purposes Aflac Incorporated unsecured revolving 3 years March 31, 2019, or the date commitments are terminated pursuant to an event of default 100.0 billion yen 0.0 billion yen A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period No later than .30% to .50%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated unsecured revolving 5 years April 4, 2023, or the date commitments are terminated pursuant to an event of default (1) 55.0 billion yen, or the equivalent amount in U.S. dollars 0.0 billion yen A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin No later than April 4, 2023 .085% to .225%, depending on the Parent Company's debt ratings as of the date of determination General corporate purposes, including a capital contingency plan for the operations of the Parent Company Aflac Incorporated uncommitted bilateral None specified None specified $50 million $0 million A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day Up to 3 months None General corporate purposes Aflac (2) uncommitted revolving 364 days November 30, 2018 $250 million $0 million USD three-month LIBOR plus 75 basis points per annum 3 months None General corporate purposes Aflac Incorporated (2) uncommitted revolving 364 days April 2, 2019 37.5 billion yen 0.0 billion yen Three-month TIBOR plus 80 basis points per annum 3 months None General corporate purposes (1) Effective April 4, 2018, the prior expiration date of September 18, 2020 was extended to April 4, 2023. (2) Intercompany credit agreement |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following table is a reconciliation of the number of shares of the Company's common stock for the nine -month periods ended September 30 . (In thousands of shares) 2018 2017 Common stock - issued: Balance, beginning of period 1,345,762 1,342,498 Exercise of stock options and issuance of restricted shares 1,614 2,840 Balance, end of period 1,347,376 1,345,338 Treasury stock: Balance, beginning of period 564,852 530,877 Purchases of treasury stock: Open market 20,443 27,796 Other 361 872 Dispositions of treasury stock: Shares issued to AFL Stock Plan (850 ) (1,392 ) Exercise of stock options (430 ) (526 ) Other (113 ) (39 ) Balance, end of period 584,263 557,588 Shares outstanding, end of period 763,113 787,750 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods. Three Months Ended Nine Months Ended (In thousands) 2018 2017 2018 2017 Anti-dilutive share-based awards 46 532 34 670 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Reclassifications from Accumulated Other Comprehensive Income The tables below are reconciliations of accumulated other comprehensive income by component for the following periods. Changes in Accumulated Other Comprehensive Income Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (1,766 ) $ 4,836 $ (23 ) $ (195 ) $ 2,852 Other comprehensive (347 ) (569 ) (1 ) (2 ) (919 ) Amounts reclassified from 0 (27 ) 0 3 (24 ) Net current-period other (347 ) (596 ) (1 ) 1 (943 ) Balance, end of period $ (2,113 ) $ 4,240 $ (24 ) $ (194 ) $ 1,909 All amounts in the table above are net of tax. Three Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,580 ) $ 5,173 $ (23 ) $ (169 ) $ 3,401 Other comprehensive (135 ) 296 0 (2 ) 159 Amounts reclassified from 0 (32 ) 0 3 (29 ) Net current-period other (135 ) 264 0 1 130 Balance, end of period $ (1,715 ) $ 5,437 $ (23 ) $ (168 ) $ 3,531 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (1,750 ) $ 5,964 $ (23 ) $ (163 ) $ 4,028 Cumulative effect of change 0 (148 ) 0 0 (148 ) Cumulative effect of change (325 ) 734 (3 ) (32 ) 374 Other comprehensive (38 ) (2,302 ) 2 (7 ) (2,345 ) Amounts reclassified from 0 (8 ) 0 8 0 Net current-period other (38 ) (2,310 ) 2 1 (2,345 ) Balance, end of period $ (2,113 ) $ 4,240 $ (24 ) $ (194 ) $ 1,909 All amounts in the table above are net of tax. Nine Months Ended (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 Other comprehensive 268 653 1 (8 ) 914 Amounts reclassified from 0 (21 ) 0 8 (13 ) Net current-period other 268 632 1 0 901 Balance, end of period $ (1,715 ) $ 5,437 $ (23 ) $ (168 ) $ 3,531 |
Reclassification Out Of Accumulated Other Comprehensive Income | The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 0 Other-than-temporary impairment 37 Other gains (losses) 37 Total before tax (10 ) Tax (expense) or benefit (1) $ 27 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (5 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 2 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 24 Net of tax (1) Based on 26% blended tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Three Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (6 ) Other-than-temporary impairment 56 Other gains (losses) 50 Total before tax (18 ) Tax (expense) or benefit (1) $ 32 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (4 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 29 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Nine Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (2 ) Other-than-temporary impairment 13 Other gains (losses) 11 Total before tax (3 ) Tax (expense) or benefit (1) $ 8 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (13 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 5 Tax (expense) or benefit (1) $ (8 ) Net of tax Total reclassifications for the period $ 0 Net of tax (1) Based on 27% blended tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). (In millions) Nine Months Ended Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ (23 ) Other-than-temporary impairment 56 Other gains (losses) 33 Total before tax (12 ) Tax (expense) or benefit (1) $ 21 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (12 ) Acquisition and operating expenses (2) Prior service (cost) credit 0 Acquisition and operating expenses (2) 4 Tax (expense) or benefit (1) $ (8 ) Net of tax Total reclassifications for the period $ 13 Net of tax (1) Based on 35% tax rate (2) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Outstanding and Exercisable | The following table provides information on stock options outstanding and exercisable at September 30, 2018 . Stock Weighted-Average Aggregate Weighted-Average Outstanding 5,600 5.2 $ 105 $ 28.33 Exercisable 4,084 4.2 83 26.87 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes restricted stock activity during the nine -month period ended September 30 . (In thousands of shares) Shares Weighted-Average Grant-Date Fair Value Per Share Restricted stock at December 31, 2017 3,635 $ 32.40 Granted in 2018 1,074 44.30 Canceled in 2018 (97 ) 34.27 Vested in 2018 (1,164 ) 31.72 Restricted stock at September 30, 2018 3,448 $ 36.28 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $7 million for both the three-month periods and $20 million and $22 million for the nine-month periods ended September 30, 2018 and 2017 , respectively. Total net periodic cost includes the following components: Three Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2018 2017 2018 2017 2018 2017 Components of net periodic Service cost $ 4 $ 4 $ 7 $ 6 $ 0 $ 0 Interest cost 1 2 9 8 0 0 Expected return on plan (1 ) (1 ) (7 ) (6 ) 0 0 Amortization of net actuarial 1 1 4 3 0 0 Net periodic (benefit) cost $ 5 $ 6 $ 13 $ 11 $ 0 $ 0 Nine Months Ended September 30, Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2018 2017 2018 2017 2018 2017 Components of net periodic Service cost $ 14 $ 13 $ 21 $ 18 $ 0 $ 0 Interest cost 4 5 26 24 1 1 Expected return on plan (4 ) (3 ) (20 ) (17 ) 0 0 Amortization of net actuarial 1 2 12 10 0 0 Net periodic (benefit) cost $ 15 $ 17 $ 39 $ 35 $ 1 $ 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Feb. 13, 2018 | Sep. 30, 2018 | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Significant Accounting Policies [Line Items] | |||||||
Stock Split, Conversion Ratio | 2 | ||||||
Common stock as a percentage of two-for-one stock split dividend | 100.00% | ||||||
Aflac Japan | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of the Company's total assets | 84.00% | 83.00% | |||||
Percentage of the Company's total revenues | 69.00% | 69.00% | |||||
Upper Limit | Accounting Standards Update 2016-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimation of Percent of Leases Within Scope of the Guidance to Total Assets | 1.00% | ||||||
Accumulated other comprehensive income (loss): | Accounting Standards Update 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of change in accounting principle, net of income taxes | $ 0 | [1] | $ (148) | $ (148) | [1] | ||
Accumulated other comprehensive income (loss): | Accounting Standards Update 2018-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of change in accounting principle, net of income taxes | 0 | [1] | 374 | 374 | [1] | ||
Retained earnings | Accounting Standards Update 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of change in accounting principle, net of income taxes | 0 | [1] | 148 | 148 | [1] | ||
Retained earnings | Accounting Standards Update 2018-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of change in accounting principle, net of income taxes | $ 0 | [1] | $ (374) | $ (374) | [1] | ||
[1] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018. |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Number of Reportable Insurance Business Segments | segment | 2 | ||||
Net earned premiums | $ 4,636 | $ 4,648 | $ 14,086 | $ 13,951 | |
Net investment income | 870 | 811 | 2,569 | 2,408 | |
Total adjusted revenues | 5,473 | 5,416 | 16,557 | 16,241 | |
Realized investment gains (losses) | [1],[2],[3] | 104 | 90 | 75 | 2 |
Total revenues | 5,577 | 5,506 | 16,632 | 16,243 | |
Gain (loss) on change in fair value of derivative, corporate | 9 | 18 | |||
Aflac Japan | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net earned premiums | 3,159 | 3,200 | 9,649 | 9,616 | |
Net investment income, less amortized hedge costs | 606 | 561 | 1,801 | 1,676 | |
Other income (loss) | 10 | 11 | 31 | 31 | |
Total revenues | 3,775 | 3,772 | 11,481 | 11,323 | |
Hedge costs | 59 | 60 | 168 | 168 | |
Aflac U.S. | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net earned premiums | 1,426 | 1,393 | 4,280 | 4,172 | |
Net investment income | 187 | 181 | 544 | 539 | |
Other income (loss) | 3 | 1 | 7 | 3 | |
Total revenues | 1,616 | 1,575 | 4,831 | 4,714 | |
Corporate and other | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | $ 82 | $ 69 | $ 245 | $ 204 | |
[1] | Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 and for both the nine -month periods ended September 30, 2018 , and 2017 | ||||
[2] | Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 | ||||
[3] | An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | $ 1,061 | $ 1,014 | $ 3,309 | $ 3,114 | |
Realized investment gains (losses) | [1],[2],[3],[4] | 88 | 71 | 25 | (57) |
Other income (loss) | (3) | (10) | (73) | (38) | |
Earnings before income taxes | 1,146 | 1,075 | 3,261 | 3,019 | |
Income taxes applicable to pretax adjusted earnings | 270 | 338 | 862 | 1,031 | |
Effect of foreign currency translation on after tax adjusted earnings | (1) | (29) | 27 | (31) | |
Gain (loss) on change in fair value of derivative, corporate | 9 | 18 | |||
Gain (loss) on change in fair value of derivative, interest rate component | 17 | 19 | 50 | 60 | |
Aflac Japan | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | 756 | 748 | 2,411 | 2,308 | |
Hedge costs | 59 | 60 | 168 | 168 | |
Aflac U.S. | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | 334 | 316 | 1,011 | 956 | |
Corporate and other | |||||
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Pretax adjusted earnings | $ (29) | $ (50) | $ (113) | $ (150) | |
[1] | Amortized hedge costs related to hedging U.S. dollar-denominated investments held in Aflac Japan were $59 and $60 for the three- month periods and $168 for both the nine -month periods ended September 30, 2018 , and 2017 | ||||
[2] | Excluding a gain of $17 and $19 for the three-month periods and $50 and $60 for the nine -month periods ended September 30, 2018 , and 2017 | ||||
[3] | Amortized hedge costs in Aflac Japan were partially offset by derivatives entered into as part of corporate activities and resulted in a benefit of $9 for the three-month period and $18 for the nine -month period ended September 30, 2018 | ||||
[4] | An immaterial amount of net interest cash flows from derivatives associated with certain investment strategies in the three- and nine -month periods ended September 30, 2018 |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 137,941 | $ 137,217 |
Aflac Japan | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 116,181 | 114,402 |
Aflac U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 19,585 | 19,893 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,175 | $ 2,922 |
INVESTMENTS - Available-for-sal
INVESTMENTS - Available-for-sale Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | $ 76,252 | [1],[2] | $ 75,132 | [3] | |
Gross Unrealized Gains | 7,591 | 9,985 | |||
Gross Unrealized Losses | 1,547 | 804 | |||
Fair Value | [4] | 82,296 | [1],[2] | 84,313 | [3] |
Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 42,762 | 40,378 | |||
Gross Unrealized Gains | 4,722 | 5,582 | |||
Gross Unrealized Losses | 648 | 350 | |||
Fair Value | 46,836 | 45,610 | |||
Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 33,490 | 34,754 | |||
Gross Unrealized Gains | 2,869 | 4,403 | |||
Gross Unrealized Losses | 899 | 454 | |||
Fair Value | 35,460 | 38,703 | |||
Japan government and agencies | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 29,499 | 27,980 | |||
Gross Unrealized Gains | 2,955 | 3,363 | |||
Gross Unrealized Losses | 426 | 271 | |||
Fair Value | 32,028 | 31,072 | |||
Municipalities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 1,834 | 1,370 | |||
Municipalities | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 376 | 314 | |||
Gross Unrealized Gains | 25 | 28 | |||
Gross Unrealized Losses | 17 | 12 | |||
Fair Value | 384 | 330 | |||
Municipalities | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 1,339 | 872 | |||
Gross Unrealized Gains | 123 | 168 | |||
Gross Unrealized Losses | 12 | 0 | |||
Fair Value | 1,450 | 1,040 | |||
Mortgage- and asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 333 | 444 | |||
Mortgage- and asset-backed securities | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 151 | 242 | |||
Gross Unrealized Gains | 21 | 29 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 172 | 271 | |||
Mortgage- and asset-backed securities | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 154 | 161 | |||
Gross Unrealized Gains | 8 | 12 | |||
Gross Unrealized Losses | 1 | 0 | |||
Fair Value | 161 | 173 | |||
Public utilities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 7,313 | 7,954 | |||
Public utilities | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 1,685 | 1,635 | |||
Gross Unrealized Gains | 303 | 352 | |||
Gross Unrealized Losses | 9 | 6 | |||
Fair Value | 1,979 | 1,981 | |||
Public utilities | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 4,863 | 5,116 | |||
Gross Unrealized Gains | 562 | 884 | |||
Gross Unrealized Losses | 91 | 27 | |||
Fair Value | 5,334 | 5,973 | |||
Sovereign and supranational | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 1,557 | 1,909 | |||
Sovereign and supranational | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 1,116 | 1,380 | |||
Gross Unrealized Gains | 133 | 190 | |||
Gross Unrealized Losses | 1 | 1 | |||
Fair Value | 1,248 | 1,569 | |||
Sovereign and supranational | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 248 | 267 | |||
Gross Unrealized Gains | 61 | 73 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 309 | 340 | |||
Banks/financial institutions | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 8,939 | 8,933 | |||
Banks/financial institutions | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 5,317 | 4,742 | |||
Gross Unrealized Gains | 602 | 811 | |||
Gross Unrealized Losses | 159 | 53 | |||
Fair Value | 5,760 | 5,500 | |||
Banks/financial institutions | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 2,767 | 2,808 | |||
Gross Unrealized Gains | 431 | 633 | |||
Gross Unrealized Losses | 19 | 8 | |||
Fair Value | 3,179 | 3,433 | |||
Other corporate | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | 30,150 | 32,473 | |||
Other corporate | Yen-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 4,618 | 4,085 | |||
Gross Unrealized Gains | 683 | 809 | |||
Gross Unrealized Losses | 36 | 7 | |||
Fair Value | 5,265 | 4,887 | |||
Other corporate | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 23,983 | 25,384 | |||
Gross Unrealized Gains | 1,677 | 2,620 | |||
Gross Unrealized Losses | 775 | 418 | |||
Fair Value | 24,885 | 27,586 | |||
U.S. government and agencies | Dollar-denominated | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost or Amortized Cost | 136 | 146 | |||
Gross Unrealized Gains | 7 | 13 | |||
Gross Unrealized Losses | 1 | 1 | |||
Fair Value | 142 | 158 | |||
Fixed maturity securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Perpetual securities, amortized cost | 1,408 | 1,462 | |||
Perpetual securities, fair value | $ 1,591 | $ 1,789 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[3] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[4] | Includes perpetual securities |
INVESTMENTS - Held-to-Maturity
INVESTMENTS - Held-to-Maturity Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | $ 30,421 | $ 31,430 |
Gross Unrealized Gains | 5,847 | 6,651 |
Gross Unrealized Losses | 18 | 9 |
Fair Value | 36,250 | 38,072 |
Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 30,421 | 31,430 |
Gross Unrealized Gains | 5,847 | 6,651 |
Gross Unrealized Losses | 18 | 9 |
Fair Value | 36,250 | 38,072 |
Japan government and agencies | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 21,224 | 21,331 |
Gross Unrealized Gains | 4,652 | 5,160 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 25,876 | 26,491 |
Municipalities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 353 | 357 |
Fair Value | 450 | 462 |
Municipalities | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 353 | 357 |
Gross Unrealized Gains | 97 | 105 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 450 | 462 |
Mortgage- and asset-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 14 | 26 |
Fair Value | 15 | 27 |
Mortgage- and asset-backed securities | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 14 | 26 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15 | 27 |
Public utilities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,150 | 3,300 |
Fair Value | 3,451 | 3,698 |
Public utilities | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,150 | 3,300 |
Gross Unrealized Gains | 302 | 398 |
Gross Unrealized Losses | 1 | 0 |
Fair Value | 3,451 | 3,698 |
Sovereign and supranational | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 1,516 | 1,523 |
Fair Value | 1,792 | 1,835 |
Sovereign and supranational | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 1,516 | 1,523 |
Gross Unrealized Gains | 276 | 312 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,792 | 1,835 |
Banks/financial institutions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 1,491 | 2,206 |
Fair Value | 1,643 | 2,387 |
Banks/financial institutions | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 1,491 | 2,206 |
Gross Unrealized Gains | 163 | 190 |
Gross Unrealized Losses | 11 | 9 |
Fair Value | 1,643 | 2,387 |
Other corporate | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,673 | 2,687 |
Fair Value | 3,023 | 3,172 |
Other corporate | Yen-denominated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,673 | 2,687 |
Gross Unrealized Gains | 356 | 485 |
Gross Unrealized Losses | 6 | 0 |
Fair Value | $ 3,023 | $ 3,172 |
INVESTMENTS - Equity Securities
INVESTMENTS - Equity Securities (Details) $ in Millions | Sep. 30, 2018USD ($) | |
Equity Securities, FV-NI [Line Items] | ||
Fair Value | $ 1,059 | [1],[2] |
Yen-denominated | ||
Equity Securities, FV-NI [Line Items] | ||
Fair Value | 707 | |
Dollar-denominated | ||
Equity Securities, FV-NI [Line Items] | ||
Fair Value | 352 | |
Equity securities | ||
Equity Securities, FV-NI [Line Items] | ||
Perpetual securities, fair value | $ 66 | |
[1] | Includes perpetual securities ( $66 | |
[2] | Includes perpetual securities |
INVESTMENTS - Equity Securiti_2
INVESTMENTS - Equity Securities, Prior Period (Details) $ in Millions | Dec. 31, 2017USD ($) |
Investment [Line Items] | |
Equity securities, available-for-sale | $ 1,023 |
Yen-denominated | |
Investment [Line Items] | |
Equity securities, available-for-sale | 695 |
Dollar-denominated | |
Investment [Line Items] | |
Equity securities, available-for-sale | $ 328 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017investment | Jun. 30, 2017USD ($)investment | Mar. 31, 2017investment | Sep. 30, 2018USD ($)investment | Dec. 31, 2017USD ($) | |
Schedule of Investments [Line Items] | ||||||
Held to maturity securities transferred to available for sale securities, number of investments | investment | 0 | 3 | 0 | 0 | ||
Debt Securities, Held-to-maturity, Transfer, Amount | $ 773 | |||||
Debt Securities, Held-to-maturity, Transfer, Unrealized Gain (Loss) | $ 47 | |||||
Equity securities, FV-NI, unrealized gain (loss) | $ 25 | $ 1 | ||||
Allowance for loan loss | 25 | 25 | $ 11 | |||
Transitional real estate loan commitments | 720 | 720 | ||||
Commercial mortgage loan commitments | 86 | 86 | ||||
Middle market loan program unfunded amount | 155 | 155 | $ 109 | |||
Middle market loan commitments | 896 | 896 | ||||
Limited partnerships investment commitments | $ 1,000 | $ 1,000 | ||||
Percentage that the lending policy requires that the fair value of the securities received as collateral be of the fair value of the loaned securities | 102.00% | 102.00% | ||||
Percentage that the lending policy requires that the fair value of the unrestricted cash received as collateral be of the fair value of the loaned securities | 100.00% | 100.00% |
INVESTMENTS - Contractual and E
INVESTMENTS - Contractual and Economic Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Available for sale: | |||||
Due in one year or less | [1] | $ 691 | |||
Due after one year through five years | [1] | 8,058 | |||
Due after five years through 10 years | [1] | 10,282 | |||
Due after 10 years | [1] | 56,916 | |||
Mortgage- and asset-backed securities | [1] | 305 | |||
Total fixed maturity securities, available for sale, amortized cost | 76,252 | [1],[2] | $ 75,132 | [3] | |
Held to maturity: | |||||
Due in one year or less | 528 | ||||
Due after one year through five years | 541 | ||||
Due after five years through 10 years | 1,303 | ||||
Due after 10 years | 28,034 | ||||
Mortgage- and asset-backed securities | 15 | ||||
Total fixed maturity securities, held to maturity, amortized cost | 30,421 | 31,430 | |||
Available for sale: | |||||
Due in one year or less | [1] | 757 | |||
Due after one year through five years | [1] | 8,199 | |||
Due after five years through 10 years | [1] | 10,936 | |||
Due after 10 years | [1] | 62,071 | |||
Mortgage- and asset-backed securities | [1] | 333 | |||
Total fixed maturity securities, available for sale, fair value | [4] | 82,296 | [1],[2] | 84,313 | [3] |
Held to maturity: | |||||
Due in one year or less | 533 | ||||
Due after one year through five years | 569 | ||||
Due after five years through 10 years | 1,415 | ||||
Due after 10 years | 33,718 | ||||
Mortgage- and asset-backed securities | 15 | ||||
Total fixed maturity securities, held to maturity, fair value | $ 36,250 | $ 38,072 | |||
[1] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[2] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[3] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[4] | Includes perpetual securities |
INVESTMENTS - Investment Exposu
INVESTMENTS - Investment Exposures Individually Exceeded 10% of Shareholders' Equity (Details) - Japan National Government - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Summary of Investment Holdings [Line Items] | |||
Credit Rating | [1] | A+ | A |
Amortized Cost | [1] | $ 49,603 | $ 48,399 |
Fair Value | [1] | $ 56,679 | $ 56,532 |
[1] | Japan Government Bonds (JGBs) or JGB-backed securities |
INVESTMENTS - Information Regar
INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Gain (Loss) on Securities [Line Items] | |||||||
Other-than-temporary impairment losses realized | $ (5) | $ (17) | |||||
Loan loss reserves | (5) | $ (1) | (15) | $ (4) | |||
Derivative gains (losses) | (162) | (40) | (190) | (143) | |||
Foreign currency gains (losses) | 159 | 17 | 123 | (56) | |||
Total realized investment gains (losses) | 56 | 30 | (76) | (166) | |||
Other-than-temporary impairment losses | (8) | (27) | |||||
Derivatives and other | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Total realized investment gains (losses) | (3) | (23) | (67) | (199) | |||
Equity securities | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Total realized investment gains (losses) | [1],[2] | 27 | 39 | [3] | (1) | 73 | [3] |
Other-than-temporary impairment losses | (6) | (18) | |||||
Available-for-sale securities | Fixed maturities | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Gross gains from sales | [1] | 60 | 18 | 81 | 40 | ||
Gross losses from sales | [1] | (26) | (5) | (99) | (24) | ||
Foreign exchange gains (losses) | [1] | 3 | 3 | 27 | (47) | ||
Other-than-temporary impairment losses realized | [1] | 0 | (1) | (2) | (5) | ||
Total realized investment gains (losses) | [1] | $ 37 | $ 15 | $ 7 | $ (36) | ||
[1] | Includes perpetual securities | ||||||
[2] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||||||
[3] | Includes impairments of $6 for the three-month period and $18 |
INVESTMENTS - Net Effect on Sha
INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Investments [Abstract] | |||
Unrealized Gains (Losses) on Available-for-sale Securities | [1] | $ 6,044 | $ 9,358 |
Deferred income taxes | [1] | (1,804) | (3,394) |
Shareholders' equity, unrealized gains (losses) on investment securities | [1],[2] | $ 4,240 | $ 5,964 |
[1] | See Note 1 for discussion of the accounting treatment of tax on amounts recorded in accumulated other comprehensive income pursuant to the Tax Act and for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||
[2] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. |
INVESTMENTS - Fair Value and Gr
INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) - Fixed maturity securities - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | $ 28,469 | $ 16,685 |
Total Unrealized Losses | [1] | 1,565 | 813 |
Less than 12 months Fair Value | [1] | 27,989 | 5,776 |
Less than 12 months Unrealized Losses | [1] | 1,533 | 77 |
12 months or longer Fair Value | [1] | 480 | 10,909 |
12 months or longer Unrealized Losses | [1] | 32 | 736 |
Dollar-denominated | U.S. government and agencies | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 80 | 74 |
Total Unrealized Losses | [1] | 1 | 1 |
Less than 12 months Fair Value | [1] | 80 | 74 |
Less than 12 months Unrealized Losses | [1] | 1 | 1 |
12 months or longer Fair Value | [1] | 0 | 0 |
12 months or longer Unrealized Losses | [1] | 0 | 0 |
Dollar-denominated | Municipalities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 490 | |
Total Unrealized Losses | [1] | 12 | |
Less than 12 months Fair Value | [1] | 490 | |
Less than 12 months Unrealized Losses | [1] | 12 | |
12 months or longer Fair Value | [1] | 0 | |
12 months or longer Unrealized Losses | [1] | 0 | |
Dollar-denominated | Mortgage- and asset-backed securities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 81 | |
Total Unrealized Losses | [1] | 1 | |
Less than 12 months Fair Value | [1] | 81 | |
Less than 12 months Unrealized Losses | [1] | 1 | |
12 months or longer Fair Value | [1] | 0 | |
12 months or longer Unrealized Losses | [1] | 0 | |
Dollar-denominated | Public utilities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 1,726 | 785 |
Total Unrealized Losses | [1] | 91 | 27 |
Less than 12 months Fair Value | [1] | 1,721 | 221 |
Less than 12 months Unrealized Losses | [1] | 91 | 3 |
12 months or longer Fair Value | [1] | 5 | 564 |
12 months or longer Unrealized Losses | [1] | 0 | 24 |
Dollar-denominated | Banks/financial institutions | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 552 | 362 |
Total Unrealized Losses | [1] | 19 | 8 |
Less than 12 months Fair Value | [1] | 517 | 316 |
Less than 12 months Unrealized Losses | [1] | 18 | 5 |
12 months or longer Fair Value | [1] | 35 | 46 |
12 months or longer Unrealized Losses | [1] | 1 | 3 |
Dollar-denominated | Other corporate | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 11,731 | 7,741 |
Total Unrealized Losses | [1] | 775 | 418 |
Less than 12 months Fair Value | [1] | 11,291 | 2,839 |
Less than 12 months Unrealized Losses | [1] | 744 | 50 |
12 months or longer Fair Value | [1] | 440 | 4,902 |
12 months or longer Unrealized Losses | [1] | 31 | 368 |
Yen-denominated | Japan government and agencies | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 9,221 | 5,255 |
Total Unrealized Losses | [1] | 426 | 271 |
Less than 12 months Fair Value | [1] | 9,221 | 1,264 |
Less than 12 months Unrealized Losses | [1] | 426 | 9 |
12 months or longer Fair Value | [1] | 0 | 3,991 |
12 months or longer Unrealized Losses | [1] | 0 | 262 |
Yen-denominated | Municipalities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 224 | 129 |
Total Unrealized Losses | [1] | 17 | 12 |
Less than 12 months Fair Value | [1] | 224 | 10 |
Less than 12 months Unrealized Losses | [1] | 17 | 0 |
12 months or longer Fair Value | [1] | 0 | 119 |
12 months or longer Unrealized Losses | [1] | 0 | 12 |
Yen-denominated | Public utilities | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 381 | 83 |
Total Unrealized Losses | [1] | 10 | 6 |
Less than 12 months Fair Value | [1] | 381 | 0 |
Less than 12 months Unrealized Losses | [1] | 10 | 0 |
12 months or longer Fair Value | [1] | 0 | 83 |
12 months or longer Unrealized Losses | [1] | 0 | 6 |
Yen-denominated | Sovereign and supranational | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 43 | 309 |
Total Unrealized Losses | [1] | 1 | 1 |
Less than 12 months Fair Value | [1] | 43 | 309 |
Less than 12 months Unrealized Losses | [1] | 1 | 1 |
12 months or longer Fair Value | [1] | 0 | 0 |
12 months or longer Unrealized Losses | [1] | 0 | 0 |
Yen-denominated | Banks/financial institutions | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 2,806 | 1,507 |
Total Unrealized Losses | [1] | 170 | 62 |
Less than 12 months Fair Value | [1] | 2,806 | 394 |
Less than 12 months Unrealized Losses | [1] | 170 | 4 |
12 months or longer Fair Value | [1] | 0 | 1,113 |
12 months or longer Unrealized Losses | [1] | 0 | 58 |
Yen-denominated | Other corporate | |||
Investments, Unrealized Loss Position [Line Items] | |||
Total Fair Value | [1] | 1,134 | 440 |
Total Unrealized Losses | [1] | 42 | 7 |
Less than 12 months Fair Value | [1] | 1,134 | 349 |
Less than 12 months Unrealized Losses | [1] | 42 | 4 |
12 months or longer Fair Value | [1] | 0 | 91 |
12 months or longer Unrealized Losses | [1] | $ 0 | $ 3 |
[1] | Includes perpetual securities |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Investment Holdings [Line Items] | |||
Other investments | [1] | $ 7,009 | $ 3,402 |
Transitional real estate loans | |||
Investment Holdings [Line Items] | |||
Other investments | 4,128 | 1,235 | |
Commercial mortgage loans | |||
Investment Holdings [Line Items] | |||
Other investments | 1,026 | 908 | |
Middle market loans | |||
Investment Holdings [Line Items] | |||
Other investments | 1,363 | 859 | |
Policy loans | |||
Investment Holdings [Line Items] | |||
Other investments | 223 | 210 | |
Short-term investments | |||
Investment Holdings [Line Items] | |||
Other investments | 2 | 57 | |
Other investments | |||
Investment Holdings [Line Items] | |||
Other investments | $ 267 | $ 133 | |
[1] | Includes $5,388 in 2018 and $2,341 in 2017 |
INVESTMENTS - Investments in Co
INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Variable Interest Entity [Line Items] | |||||
Available for sale, fixed maturity securities, amortized cost | $ 76,252 | [1],[2] | $ 75,132 | [3] | |
Available for sale, fixed maturity securities | [4] | 82,296 | [1],[2] | 84,313 | [3] |
Equity securities | [4],[5] | 1,059 | |||
Available for sale securities, equity securities | 1,023 | ||||
Other investments | [6] | 7,009 | 3,402 | ||
Asset derivatives | 430 | 331 | |||
Assets, fair value disclosure | 87,216 | 89,215 | |||
Liability derivatives | 497 | 474 | |||
Liabilities | 114,707 | 112,619 | |||
Liabilities, fair value disclosure | 497 | 474 | |||
Variable Interest Entity, Consolidated | |||||
Variable Interest Entity [Line Items] | |||||
Available for sale, fixed maturity securities, amortized cost | [7],[8] | 4,045 | 4,538 | ||
Available for sale, fixed maturity securities | [7],[8] | 4,853 | 5,509 | ||
Available-for-sale equity securities, amortized cost basis | 606 | ||||
Equity securities, FV-NI, cost | 179 | ||||
Equity securities | 179 | ||||
Available for sale securities, equity securities | 753 | ||||
Other investments | [9] | 5,388 | 2,341 | ||
Other investments, fair value | [9] | 5,369 | 2,328 | ||
Asset derivatives, amortized cost | [10] | 190 | 151 | ||
Asset derivatives | [10] | 190 | 151 | ||
Assets, amortized cost | 9,802 | 7,636 | |||
Assets, fair value disclosure | 10,591 | 8,741 | |||
Liability derivatives, amortized cost | [10] | 101 | 128 | ||
Liability derivatives | [10] | 101 | 128 | ||
Liabilities | 101 | 128 | |||
Liabilities, fair value disclosure | $ 101 | $ 128 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[3] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[4] | Includes perpetual securities | ||||
[5] | Includes perpetual securities ( $66 | ||||
[6] | Includes $5,388 in 2018 and $2,341 in 2017 | ||||
[7] | Includes perpetual securities | ||||
[8] | Includes perpetual securities, see Notes 1 and 3 of the Notes to the Consolidated Financial Statements | ||||
[9] | Consists of TREs, CMLs, MMLs, and alternative investments in limited partnerships | ||||
[10] | Consists entirely of derivatives |
INVESTMENTS - Investments in Va
INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Variable Interest Entity [Line Items] | |||||
Available for sale, fixed maturity securities, amortized cost | $ 76,252 | [1],[2] | $ 75,132 | [3] | |
Available for sale, fixed maturity securities | [4] | 82,296 | [1],[2] | 84,313 | [3] |
Securities held to maturity, fixed maturities, amortized cost | 30,421 | 31,430 | |||
Held to maturity, fixed maturity securities, fair value | 36,250 | 38,072 | |||
Other investments | [5] | 7,009 | 3,402 | ||
Assets, fair value disclosure | 87,216 | 89,215 | |||
Variable Interest Entity, Not Consolidated | |||||
Variable Interest Entity [Line Items] | |||||
Available for sale, fixed maturity securities, amortized cost | [6] | 4,746 | 5,004 | ||
Available for sale, fixed maturity securities | [6] | 5,261 | 5,724 | ||
Securities held to maturity, fixed maturities, amortized cost | 2,402 | 2,549 | |||
Held to maturity, fixed maturity securities, fair value | 2,702 | 2,929 | |||
Other investments | 33 | 55 | |||
Other investments, fair value | 33 | 55 | |||
Assets, amortized cost | 7,181 | 7,608 | |||
Assets, fair value disclosure | $ 7,996 | $ 8,708 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[3] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[4] | Includes perpetual securities | ||||
[5] | Includes $5,388 in 2018 and $2,341 in 2017 | ||||
[6] | Includes perpetual securities |
INVESTMENTS - Securities Lendin
INVESTMENTS - Securities Lending Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 3,128 | $ 606 | |
Gross amount of recognized liabilities for securities lending | 1,970 | 606 | |
Amounts related to agreements not included in offsetting disclosure in Note 4 | 1,158 | 0 | |
Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 2,690 | 49 | |
Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 17 | 73 | |
Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 48 | 54 | |
Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 365 | 415 | |
Equity securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 8 | 15 | |
Maturity Overnight and Continuous | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 453 | 557 |
Maturity Overnight and Continuous | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 15 | 0 |
Maturity Overnight and Continuous | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 17 | 73 |
Maturity Overnight and Continuous | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 48 | 54 |
Maturity Overnight and Continuous | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 365 | 415 |
Maturity Overnight and Continuous | Equity securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | [1] | 8 | 15 |
Maturity up to 30 Days | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,516 | 49 | |
Maturity up to 30 Days | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,516 | 49 | |
Maturity up to 30 Days | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | 0 | |
Maturity up to 30 Days | Equity securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | $ 0 | |
Maturity 30 to 90 Days | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1 | ||
Maturity 30 to 90 Days | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1 | ||
Maturity 30 to 90 Days | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity 30 to 90 Days | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity 30 to 90 Days | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity 30 to 90 Days | Equity securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity Greater than 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,158 | ||
Maturity Greater than 90 Days [Member] | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1,158 | ||
Maturity Greater than 90 Days [Member] | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity Greater than 90 Days [Member] | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity Greater than 90 Days [Member] | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0 | ||
Maturity Greater than 90 Days [Member] | Equity securities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 0 | ||
[1] | These securities are pledged as collateral under the Company's U.S. securities lending program and can be called at its discretion; therefore, they are classified as Overnight and Continuous. |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)yrcounterparties | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)yrcounterparties | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Cash flow hedging activity, maximum time period | yr | 8 | 8 | |||
Number of counterparties | counterparties | 15 | 15 | |||
Number of counterparties that comprise majority of aggregate notional amount of swaps | counterparties | 3 | 3 | |||
Percentage of notional amount of swaps from certain number of counterparties | 51.00% | 51.00% | |||
Derivative, Net Liability Position, Aggregate Fair Value | $ 301 | $ 301 | $ 264 | ||
Additional Collateral, Aggregate Fair Value | 79 | 79 | |||
Net investment hedge | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | $ 0 | 0 | $ 0 | |
2.40% senior notes due March 2020 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt instrument, principal amount | 550 | 550 | |||
4.00% senior notes due February 2022 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt instrument, principal amount | 350 | 350 | |||
3.625% senior notes due June 2023 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt instrument, principal amount | 700 | 700 | |||
3.625% senior notes due November 2024 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt instrument, principal amount | 750 | 750 | |||
3.25% senior notes due March 2025 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt instrument, principal amount | $ 450 | $ 450 |
DERIVATIVE INSTRUMENTS - Summar
DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | $ 31,023 | $ 25,751 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 430 | 331 |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (497) | (474) |
Asset derivatives fair value | 240 | 180 |
Liability derivatives fair value | (396) | (346) |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 11,232 | 10,948 |
Asset derivatives fair value | 430 | 331 |
Liability derivatives fair value | 0 | 0 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 19,791 | 14,803 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (497) | (474) |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (5) | (8) |
Cash flow hedges | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (5) | (8) |
Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 12,451 | 15,310 |
Asset derivatives fair value | 0 | 2 |
Liability derivatives fair value | (79) | (223) |
Fair value hedges | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 3,172 | 7,640 |
Asset derivatives fair value | 0 | 2 |
Liability derivatives fair value | (67) | (221) |
Fair value hedges | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 9,279 | 7,670 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | (12) | (2) |
Net investment hedge | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 0 | 439 |
Asset derivatives fair value | 0 | 12 |
Liability derivatives fair value | 0 | (1) |
Net investment hedge | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 0 | 5 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 0 | 0 |
Net investment hedge | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 0 | 434 |
Asset derivatives fair value | 0 | 12 |
Liability derivatives fair value | 0 | (1) |
Non-qualifying strategies | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 18,497 | 9,927 |
Asset derivatives fair value | 430 | 317 |
Liability derivatives fair value | (413) | (242) |
Non-qualifying strategies | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 5,373 | 5,386 |
Asset derivatives fair value | 302 | 296 |
Liability derivatives fair value | (202) | (189) |
Non-qualifying strategies | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 10,501 | 3,683 |
Asset derivatives fair value | 128 | 20 |
Liability derivatives fair value | (210) | (53) |
Non-qualifying strategies | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 373 | 770 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | 0 | 0 |
Non-qualifying strategies | Credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 0 | 88 |
Asset derivatives fair value | 0 | 1 |
Liability derivatives fair value | 0 | 0 |
Non-qualifying strategies | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 2,250 | 0 |
Asset derivatives fair value | 0 | 0 |
Liability derivatives fair value | $ (1) | $ 0 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fixed maturity securities | Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized for derivatives | $ (106) | $ 93 | ||
Gains (losses) on derivatives excluded from effectiveness testing | (19) | (88) | ||
Gains (losses) on derivatives included in effectiveness testing | (87) | 181 | ||
Gains (losses) recognized for hedged items | 83 | (195) | ||
Ineffectiveness recognized for fair value hedge | (4) | (14) | ||
Fixed maturity securities | Foreign currency options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized for derivatives | (7) | $ (14) | (10) | $ 3 |
Gains (losses) on derivatives excluded from effectiveness testing | (7) | (14) | (10) | (8) |
Gains (losses) on derivatives included in effectiveness testing | 0 | 0 | 0 | 11 |
Gains (losses) recognized for hedged items | 0 | 0 | 0 | (10) |
Ineffectiveness recognized for fair value hedge | $ 0 | 0 | $ 0 | 1 |
Fixed-maturity securities and equity securities | Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) recognized for derivatives | (114) | 193 | ||
Gains (losses) on derivatives excluded from effectiveness testing | (53) | (151) | ||
Gains (losses) on derivatives included in effectiveness testing | (61) | 344 | ||
Gains (losses) recognized for hedged items | 61 | (326) | ||
Ineffectiveness recognized for fair value hedge | $ 0 | $ 18 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized foreign currency translation gains (losses) during period | $ (383) | $ (58) | $ (51) | $ 325 | |
Derivative gains (losses) | (162) | (40) | (190) | (143) | |
Derivative and non-derivative hedging instruments gain (loss) recognized in other comprehensive income effective portion before tax | [1] | 34 | 3 | 1 | (34) |
Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 1 | 0 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | (2) | (1) | 2 | 0 |
Cash flow hedges | Foreign currency swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 1 | 0 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | (2) | (1) | 2 | 0 |
Fair value hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | (30) | (67) | (112) | (140) | |
Fair value hedges | Foreign currency forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | (23) | (53) | (102) | (133) |
Fair value hedges | Foreign currency options | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | (7) | (14) | (10) | (7) |
Net investment hedge | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 36 | 4 | (1) | (34) |
Net investment hedge | Non-derivative hedging instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 36 | 5 | 7 | (13) |
Net investment hedge | Foreign currency forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 0 | 4 | 0 | (24) |
Net investment hedge | Foreign currency options | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 0 | (5) | (8) | 3 |
Non-qualifying strategies | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (132) | 27 | (79) | (3) | |
Non-qualifying strategies | Foreign currency swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 23 | 17 | 51 | 43 | |
Non-qualifying strategies | Foreign currency forwards | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (154) | 10 | (129) | (46) | |
Non-qualifying strategies | Foreign currency options | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | 0 | 0 | 0 | |
Non-qualifying strategies | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (1) | $ 0 | $ (1) | $ 0 | |
[1] | Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). | ||||
[2] | Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value and Notional Amounts of Derivatives With Counterparty Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | $ 31,023 | $ 25,751 |
Asset Derivatives Fair Value | 430 | 331 |
Liability Derivatives Fair Value | (497) | (474) |
AA | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 5,207 | 4,708 |
Asset Derivatives Fair Value | 79 | 52 |
Liability Derivatives Fair Value | (42) | (37) |
A | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 25,378 | 20,604 |
Asset Derivatives Fair Value | 345 | 271 |
Liability Derivatives Fair Value | (401) | (370) |
BBB | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Notional Amount of Derivatives | 438 | 439 |
Asset Derivatives Fair Value | 6 | 8 |
Liability Derivatives Fair Value | $ (54) | $ (67) |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | $ 240 | $ 180 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in the balance sheet | 240 | 180 |
Financial instruments, amount not offset | (118) | (82) |
Derivative, collateral, obligation to return securities | (10) | 0 |
Derivative, collateral, obligation to return cash | (109) | (98) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 3 | 0 |
Derivative asset, not subject to master netting arrangement | 190 | 151 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 190 | 151 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 430 | 331 |
Net amount of derivative assets presented in balance sheet | 430 | 331 |
Derivative asset, fair value, amount offset against collateral | 193 | 151 |
Gross amounts of recognized financial instruments | 2,357 | 923 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 2,357 | 923 |
Carrying value of financial instruments not offset in balance sheet | (118) | (82) |
Securities collateral, not offset in balance sheet | (10) | 0 |
Cash collateral, not offset in balance sheet | (2,036) | (690) |
Financial instruments, amount of assets offset against collateral | 193 | 151 |
Over the Counter - Bilateral | ||
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | 240 | 180 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in the balance sheet | 240 | 180 |
Financial instruments, amount not offset | (118) | (82) |
Derivative, collateral, obligation to return securities | (10) | 0 |
Derivative, collateral, obligation to return cash | (109) | (98) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 3 | 0 |
Derivative asset, not subject to master netting arrangement | 190 | 151 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 190 | 151 |
Securities lending and similar arrangements | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 1,927 | 592 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of assets presented in balance sheet | 1,927 | 592 |
Carrying value of financial instruments not offset in balance sheet | 0 | 0 |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | (1,927) | (592) |
Financial instruments, amount of assets offset against collateral | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Offs_2
DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | $ (396) | $ (346) |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | (396) | (346) |
Financial instruments, amount not offset | 118 | 82 |
Derivative, collateral, right to reclaim securities | 195 | 245 |
Derivative, collateral, right to reclaim cash | 27 | 10 |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | (56) | (9) |
Derivative liability, not subject to master netting arrangement | (101) | (128) |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | (101) | (128) |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (497) | (474) |
Net amount of derivative liabilities presented in balance sheet | (497) | (474) |
Derivative liability, fair value, amount offset against collateral | (157) | (137) |
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities | (2,467) | (1,080) |
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities | 0 | 0 |
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities | (2,467) | (1,080) |
Carrying value of financial instruments, liabilities not offset in balance sheet | 2,045 | 674 |
Securities Collateral, Liabilities Not Offset in Balance Sheet | 195 | 245 |
Cash Collateral, Liabilities Not Offset in Balance Sheet | 27 | 10 |
Financial instruments, amount of liabilities offset against collateral | (200) | (151) |
Over the Counter - Bilateral | ||
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | (395) | (346) |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | (395) | (346) |
Financial instruments, amount not offset | 118 | 82 |
Derivative, collateral, right to reclaim securities | 195 | 245 |
Derivative, collateral, right to reclaim cash | 26 | 10 |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | (56) | (9) |
Derivative liability, not subject to master netting arrangement | (101) | (128) |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | (101) | (128) |
Over the Counter - Cleared | ||
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | (1) | |
Gross amount of assets offset in balance sheet | 0 | |
Derivative liability, fair value, amount not offset against collateral | (1) | |
Financial instruments, amount not offset | 0 | |
Derivative, collateral, right to reclaim securities | 0 | |
Derivative, collateral, right to reclaim cash | 1 | |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | 0 | |
Securities lending and similar arrangements | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities | (1,970) | (606) |
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities | 0 | 0 |
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities | (1,970) | (606) |
Carrying value of financial instruments, liabilities not offset in balance sheet | 1,927 | 592 |
Securities Collateral, Liabilities Not Offset in Balance Sheet | 0 | 0 |
Cash Collateral, Liabilities Not Offset in Balance Sheet | 0 | 0 |
Financial instruments, amount of liabilities offset against collateral | $ (43) | $ (14) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Assets: | |||||
Available for sale, fixed maturity securities | [2] | $ 82,296 | [1],[3] | $ 84,313 | [4] |
Equity securities, available-for-sale | 1,023 | ||||
Equity securities | [2],[5] | 1,059 | |||
Asset derivatives | 430 | 331 | |||
Other investments | 2 | 57 | |||
Cash and cash equivalents | 3,429 | 3,491 | |||
Total assets | 87,216 | 89,215 | |||
Liabilities: | |||||
Liability derivatives | 497 | 474 | |||
Total liabilities | 497 | 474 | |||
Foreign currency swaps | |||||
Assets: | |||||
Asset derivatives | 302 | 296 | |||
Liabilities: | |||||
Liability derivatives | 207 | 197 | |||
Foreign currency forwards | |||||
Assets: | |||||
Asset derivatives | 128 | 22 | |||
Liabilities: | |||||
Liability derivatives | 277 | 274 | |||
Foreign currency options | |||||
Assets: | |||||
Asset derivatives | 12 | ||||
Liabilities: | |||||
Liability derivatives | 12 | 3 | |||
Interest rate swaps | |||||
Liabilities: | |||||
Liability derivatives | 1 | ||||
Credit default swaps | |||||
Assets: | |||||
Asset derivatives | 1 | ||||
Government and agencies | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 32,170 | 31,230 | |||
Municipalities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Mortgage- and asset-backed securities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 333 | 444 | |||
Public utilities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 7,313 | 7,954 | |||
Sovereign and supranational | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 1,557 | 1,909 | |||
Banks/financial institutions | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 8,939 | 8,933 | |||
Other corporate | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 30,150 | 32,473 | |||
Level 1 | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 30,888 | 30,109 | |||
Equity securities, available-for-sale | 1,001 | ||||
Equity securities | 972 | ||||
Asset derivatives | 0 | 0 | |||
Other investments | 2 | 57 | |||
Cash and cash equivalents | 3,429 | 3,491 | |||
Total assets | 35,291 | 34,658 | |||
Liabilities: | |||||
Total liabilities | 0 | 0 | |||
Level 1 | Foreign currency swaps | |||||
Assets: | |||||
Asset derivatives | 0 | 0 | |||
Liabilities: | |||||
Liability derivatives | 0 | 0 | |||
Level 1 | Foreign currency forwards | |||||
Assets: | |||||
Asset derivatives | 0 | 0 | |||
Liabilities: | |||||
Liability derivatives | 0 | 0 | |||
Level 1 | Foreign currency options | |||||
Assets: | |||||
Asset derivatives | 0 | ||||
Liabilities: | |||||
Liability derivatives | 0 | 0 | |||
Level 1 | Interest rate swaps | |||||
Liabilities: | |||||
Liability derivatives | 0 | ||||
Level 1 | Credit default swaps | |||||
Assets: | |||||
Asset derivatives | 0 | ||||
Level 1 | Government and agencies | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 30,888 | 30,109 | |||
Level 1 | Municipalities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 1 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 1 | Public utilities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 1 | Sovereign and supranational | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 1 | Banks/financial institutions | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 1 | Other corporate | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 2 | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 50,918 | 53,790 | |||
Equity securities, available-for-sale | 6 | ||||
Equity securities | 71 | ||||
Asset derivatives | 240 | 180 | |||
Other investments | 0 | 0 | |||
Cash and cash equivalents | 0 | 0 | |||
Total assets | 51,229 | 53,976 | |||
Liabilities: | |||||
Total liabilities | 396 | 346 | |||
Level 2 | Foreign currency swaps | |||||
Assets: | |||||
Asset derivatives | 112 | 146 | |||
Liabilities: | |||||
Liability derivatives | 106 | 69 | |||
Level 2 | Foreign currency forwards | |||||
Assets: | |||||
Asset derivatives | 128 | 22 | |||
Liabilities: | |||||
Liability derivatives | 277 | 274 | |||
Level 2 | Foreign currency options | |||||
Assets: | |||||
Asset derivatives | 12 | ||||
Liabilities: | |||||
Liability derivatives | 12 | 3 | |||
Level 2 | Interest rate swaps | |||||
Liabilities: | |||||
Liability derivatives | 1 | ||||
Level 2 | Credit default swaps | |||||
Assets: | |||||
Asset derivatives | 0 | ||||
Level 2 | Government and agencies | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 1,282 | 1,121 | |||
Level 2 | Municipalities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Level 2 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 161 | 269 | |||
Level 2 | Public utilities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 7,209 | 7,886 | |||
Level 2 | Sovereign and supranational | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 1,557 | 1,909 | |||
Level 2 | Banks/financial institutions | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 8,916 | 8,908 | |||
Level 2 | Other corporate | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 29,959 | 32,327 | |||
Level 3 | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 490 | 414 | |||
Equity securities, available-for-sale | 16 | ||||
Equity securities | 16 | ||||
Asset derivatives | 190 | 151 | |||
Other investments | 0 | 0 | |||
Cash and cash equivalents | 0 | 0 | |||
Total assets | 696 | 581 | |||
Liabilities: | |||||
Total liabilities | 101 | 128 | |||
Level 3 | Foreign currency swaps | |||||
Assets: | |||||
Asset derivatives | 190 | 150 | |||
Liabilities: | |||||
Liability derivatives | 101 | 128 | |||
Level 3 | Foreign currency forwards | |||||
Assets: | |||||
Asset derivatives | 0 | 0 | |||
Liabilities: | |||||
Liability derivatives | 0 | 0 | |||
Level 3 | Foreign currency options | |||||
Assets: | |||||
Asset derivatives | 0 | ||||
Liabilities: | |||||
Liability derivatives | 0 | 0 | |||
Level 3 | Interest rate swaps | |||||
Liabilities: | |||||
Liability derivatives | 0 | ||||
Level 3 | Credit default swaps | |||||
Assets: | |||||
Asset derivatives | 1 | ||||
Level 3 | Government and agencies | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 3 | Municipalities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 3 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Level 3 | Public utilities | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Level 3 | Sovereign and supranational | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Level 3 | Banks/financial institutions | |||||
Assets: | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Level 3 | Other corporate | |||||
Assets: | |||||
Available for sale, fixed maturity securities | $ 191 | $ 146 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities | ||||
[3] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[4] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[5] | Includes perpetual securities ( $66 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other investments | [1] | $ 7,009 | $ 3,402 | ||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 30,421 | 31,430 | |||
Held to maturity, fixed maturity securities, fair value | 36,250 | 38,072 | |||
Other investments carried at amortized cost | 6,542 | [2] | 3,017 | [3] | |
Other investments carried at amortized cost, fair value | 6,519 | [2] | 3,002 | [3] | |
Total financial instruments assets not carried at fair value | 36,963 | 34,447 | |||
Assets fair value disclosure financial instruments carried at cost | 42,769 | 41,074 | |||
Liabilities: | |||||
Other policyholder funds | 6,974 | 6,939 | |||
Other policyholders' funds fair value disclosure | 6,896 | 6,841 | |||
Notes payable | 5,264 | 5,267 | |||
Notes payable fair value disclosure | 5,329 | 5,553 | |||
Total financial instrument liabilities not carried at fair value | 12,238 | 12,206 | |||
Liabilities fair value disclosure financial instruments carried at cost | 12,225 | 12,394 | |||
Government and agencies | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 21,224 | 21,331 | |||
Held to maturity, fixed maturity securities, fair value | 25,876 | 26,491 | |||
Municipalities | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 353 | 357 | |||
Held to maturity, fixed maturity securities, fair value | 450 | 462 | |||
Mortgage- and asset-backed securities | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 14 | 26 | |||
Held to maturity, fixed maturity securities, fair value | 15 | 27 | |||
Public utilities | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 3,150 | 3,300 | |||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 | |||
Sovereign and supranational | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 1,516 | 1,523 | |||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 | |||
Banks/financial institutions | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 1,491 | 2,206 | |||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 | |||
Other corporate | |||||
Assets: | |||||
Securities held to maturity, fixed maturities, amortized cost | 2,673 | 2,687 | |||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 | |||
Policy loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other investments | 223 | 210 | |||
Equity method investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other investments | 242 | 118 | |||
Level 1 | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 25,868 | 26,491 | |||
Other investments carried at amortized cost, fair value | 0 | [2] | 0 | [3] | |
Assets fair value disclosure financial instruments carried at cost | 25,868 | 26,491 | |||
Liabilities: | |||||
Other policyholders' funds fair value disclosure | 0 | 0 | |||
Notes payable fair value disclosure | 0 | 0 | |||
Liabilities fair value disclosure financial instruments carried at cost | 0 | 0 | |||
Level 1 | Government and agencies | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 25,868 | 26,491 | |||
Level 1 | Municipalities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 1 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 1 | Public utilities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 1 | Sovereign and supranational | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 1 | Banks/financial institutions | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 1 | Other corporate | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 2 | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 10,367 | 11,562 | |||
Other investments carried at amortized cost, fair value | 25 | [2] | 15 | [3] | |
Assets fair value disclosure financial instruments carried at cost | 10,392 | 11,577 | |||
Liabilities: | |||||
Other policyholders' funds fair value disclosure | 0 | 0 | |||
Notes payable fair value disclosure | 5,066 | 5,288 | |||
Liabilities fair value disclosure financial instruments carried at cost | 5,066 | 5,288 | |||
Level 2 | Government and agencies | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 8 | 0 | |||
Level 2 | Municipalities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 450 | 462 | |||
Level 2 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 8 | |||
Level 2 | Public utilities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 | |||
Level 2 | Sovereign and supranational | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 | |||
Level 2 | Banks/financial institutions | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 | |||
Level 2 | Other corporate | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 | |||
Level 3 | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 15 | 19 | |||
Other investments carried at amortized cost, fair value | 6,494 | [2] | 2,987 | [3] | |
Assets fair value disclosure financial instruments carried at cost | 6,509 | 3,006 | |||
Liabilities: | |||||
Other policyholders' funds fair value disclosure | 6,896 | 6,841 | |||
Notes payable fair value disclosure | 263 | 265 | |||
Liabilities fair value disclosure financial instruments carried at cost | 7,159 | 7,106 | |||
Level 3 | Government and agencies | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 3 | Municipalities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 3 | Mortgage- and asset-backed securities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 15 | 19 | |||
Level 3 | Public utilities | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 3 | Sovereign and supranational | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 3 | Banks/financial institutions | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | 0 | 0 | |||
Level 3 | Other corporate | |||||
Assets: | |||||
Held to maturity, fixed maturity securities, fair value | $ 0 | $ 0 | |||
[1] | Includes $5,388 in 2018 and $2,341 in 2017 | ||||
[2] | Excludes policy loans of $223 and equity method investments of $242 | ||||
[3] | Excludes policy loans of $210 and equity method investments of $118 |
FAIR VALUE MEASUREMENTS - Fai_3
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | [2] | $ 82,296 | [1],[3] | $ 84,313 | [4] |
Equity securities | [2],[5] | 1,059 | |||
Equity securities, available-for-sale | 1,023 | ||||
Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 30,888 | 30,109 | |||
Equity securities | 972 | ||||
Equity securities, available-for-sale | 1,001 | ||||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 50,918 | 53,790 | |||
Equity securities | 71 | ||||
Equity securities, available-for-sale | 6 | ||||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 490 | 414 | |||
Equity securities | 16 | ||||
Equity securities, available-for-sale | 16 | ||||
Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 1,043 | ||||
Equity securities, available-for-sale | 1,007 | ||||
Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 972 | ||||
Equity securities, available-for-sale | 1,001 | ||||
Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 71 | ||||
Equity securities, available-for-sale | 6 | ||||
Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 0 | ||||
Equity securities, available-for-sale | 0 | ||||
Net asset value valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 16 | ||||
Equity securities, available-for-sale | 16 | ||||
Net asset value valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 0 | ||||
Equity securities, available-for-sale | 0 | ||||
Net asset value valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 0 | ||||
Equity securities, available-for-sale | 0 | ||||
Net asset value valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities | 16 | ||||
Equity securities, available-for-sale | 16 | ||||
Government and agencies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 32,170 | 31,230 | |||
Government and agencies | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 30,888 | 30,109 | |||
Government and agencies | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,282 | 1,121 | |||
Government and agencies | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Government and agencies | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 32,170 | 31,230 | |||
Government and agencies | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 30,888 | 30,109 | |||
Government and agencies | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,282 | 1,121 | |||
Government and agencies | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Municipalities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Municipalities | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Municipalities | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Municipalities | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Municipalities | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Municipalities | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Municipalities | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,834 | 1,370 | |||
Municipalities | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 333 | 444 | |||
Mortgage- and asset-backed securities | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 161 | 269 | |||
Mortgage- and asset-backed securities | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 161 | 269 | |||
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 161 | 269 | |||
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Public utilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 7,313 | 7,954 | |||
Public utilities | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Public utilities | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 7,209 | 7,886 | |||
Public utilities | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Public utilities | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 7,209 | 7,886 | |||
Public utilities | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Public utilities | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 7,209 | 7,886 | |||
Public utilities | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Public utilities | Discounted cash flow technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Public utilities | Discounted cash flow technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Public utilities | Discounted cash flow technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Public utilities | Discounted cash flow technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Sovereign and supranational | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,557 | 1,909 | |||
Sovereign and supranational | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Sovereign and supranational | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,557 | 1,909 | |||
Sovereign and supranational | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Sovereign and supranational | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,557 | 1,807 | |||
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 1,557 | 1,807 | |||
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Sovereign and supranational | Consensus pricing valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 102 | ||||
Sovereign and supranational | Consensus pricing valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | ||||
Sovereign and supranational | Consensus pricing valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 102 | ||||
Sovereign and supranational | Consensus pricing valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | ||||
Banks/financial institutions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 8,939 | 8,933 | |||
Banks/financial institutions | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Banks/financial institutions | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 8,916 | 8,908 | |||
Banks/financial institutions | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Banks/financial institutions | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 8,916 | 8,908 | |||
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 8,916 | 8,908 | |||
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Banks/financial institutions | Consensus pricing valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Banks/financial institutions | Consensus pricing valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Banks/financial institutions | Consensus pricing valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Banks/financial institutions | Consensus pricing valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Other corporate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 30,150 | 32,473 | |||
Other corporate | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Other corporate | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 29,959 | 32,327 | |||
Other corporate | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 191 | 146 | |||
Other corporate | Third party pricing vendor valuation technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 29,861 | 32,327 | |||
Other corporate | Third party pricing vendor valuation technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Other corporate | Third party pricing vendor valuation technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 29,861 | 32,327 | |||
Other corporate | Third party pricing vendor valuation technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Other corporate | Discounted cash flow technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 289 | 146 | |||
Other corporate | Discounted cash flow technique | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 0 | 0 | |||
Other corporate | Discounted cash flow technique | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | 98 | 0 | |||
Other corporate | Discounted cash flow technique | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale, fixed maturity securities | $ 191 | $ 146 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities | ||||
[3] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[4] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[5] | Includes perpetual securities ( $66 |
FAIR VALUE MEASUREMENTS - Fai_4
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Amortized Cost (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | $ 36,250 | $ 38,072 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 25,868 | 26,491 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 10,367 | 11,562 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 15 | 19 |
Government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 25,876 | 26,491 |
Government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 25,868 | 26,491 |
Government and agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 8 | 0 |
Government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Government and agencies | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 25,876 | 26,491 |
Government and agencies | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 25,868 | 26,491 |
Government and agencies | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 8 | 0 |
Government and agencies | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 450 | 462 |
Municipalities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 450 | 462 |
Municipalities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 450 | 462 |
Municipalities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Municipalities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 450 | 462 |
Municipalities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 15 | 27 |
Mortgage- and asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 8 |
Mortgage- and asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 15 | 19 |
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 8 | |
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | |
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 8 | |
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 15 | 19 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 15 | 19 |
Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 |
Public utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 |
Public utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 |
Public utilities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Public utilities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,451 | 3,698 |
Public utilities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 |
Sovereign and supranational | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 |
Sovereign and supranational | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,792 | 1,835 |
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Banks/financial institutions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 |
Banks/financial institutions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Banks/financial institutions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 |
Banks/financial institutions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Banks/financial institutions | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 1,643 | 2,387 |
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 |
Other corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 |
Other corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 |
Other corporate | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 0 | 0 |
Other corporate | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | 3,023 | 3,172 |
Other corporate | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity, fixed maturity securities, fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Investments and Derivatives Carried at Fair Value Classified as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ 630 | $ 366 | $ 453 | $ 223 | |
Realized investment gains (losses) included in earnings | (20) | 7 | 63 | 35 | |
Unrealized gains (losses) included in other comprehensive income (loss) | (14) | (1) | (13) | 7 | |
Purchases | 0 | 53 | 96 | 177 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | (1) | 0 | (2) | |
Settlements | (1) | (8) | (4) | (24) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 595 | 416 | 595 | 416 | |
Change in unrealized gains (losses) still held | (20) | 7 | 63 | 35 | |
Foreign currency swaps | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Balance, beginning of period | [1] | 110 | 7 | 22 | (21) |
Realized gains or losses included in earnings | [1] | (19) | 8 | 65 | 36 |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | (2) | 0 | 2 | 0 |
Purchases | [1] | 0 | 0 | 0 | 0 |
Issuances | [1] | 0 | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 | 0 |
Settlements | [1] | 0 | 0 | 0 | 0 |
Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Balance, end of period | [1] | 89 | 15 | 89 | 15 |
Changes in unrealized gain (losses) still held | [1] | (19) | 8 | 65 | 36 |
Credit default swaps | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Balance, beginning of period | [1] | 0 | 2 | 1 | 2 |
Realized gains or losses included in earnings | [1] | 0 | (1) | (1) | (1) |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | 0 | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 | 0 |
Issuances | [1] | 0 | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 | 0 |
Settlements | [1] | 0 | 0 | 0 | 0 |
Transfers into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Balance, end of period | [1] | 0 | 1 | 0 | 1 |
Changes in unrealized gain (losses) still held | [1] | 0 | (1) | (1) | (1) |
Fixed maturity securities | Mortgage- and asset-backed securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 178 | 188 | 175 | 198 | |
Realized investment gains (losses) included in earnings | 0 | 0 | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | (6) | (2) | (3) | 4 | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | 0 | (8) | 0 | (24) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 172 | 178 | 172 | 178 | |
Change in unrealized gains (losses) still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | Public utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 106 | 53 | 68 | 16 | |
Realized investment gains (losses) included in earnings | 0 | 0 | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | (2) | 0 | (4) | 0 | |
Purchases | 0 | 24 | 40 | 61 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 104 | 77 | 104 | 77 | |
Change in unrealized gains (losses) still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | Banks/financial institutions | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 23 | 25 | 25 | 25 | |
Realized investment gains (losses) included in earnings | 0 | 0 | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | (2) | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 23 | 25 | 23 | 25 | |
Change in unrealized gains (losses) still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | Other corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 196 | 77 | 146 | 0 | |
Realized investment gains (losses) included in earnings | 0 | 0 | 0 | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | (4) | 1 | (6) | 3 | |
Purchases | 0 | 25 | 55 | 100 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | (1) | 0 | (1) | |
Settlements | (1) | 0 | (4) | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 191 | 102 | 191 | 102 | |
Change in unrealized gains (losses) still held | 0 | 0 | 0 | 0 | |
Equity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 17 | 14 | 16 | 3 | |
Realized investment gains (losses) included in earnings | (1) | 0 | (1) | 0 | |
Unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Purchases | 0 | 4 | 1 | 16 | |
Issuances | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | (1) | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 16 | 18 | 16 | 18 | |
Change in unrealized gains (losses) still held | $ (1) | $ 0 | $ (1) | $ 0 | |
[1] | Derivative assets and liabilities are presented net |
FAIR VALUE MEASUREMENTS - Fai_5
FAIR VALUE MEASUREMENTS - Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Millions | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | [2] | $ 82,296 | [1],[3] | $ 84,313 | [4] |
Available for sale securities, equity securities | 1,023 | ||||
Equity securities | [2],[5] | 1,059 | |||
Asset derivatives | 430 | 331 | |||
Liability derivatives | 497 | 474 | |||
Assets, fair value disclosure | 87,216 | 89,215 | |||
Liabilities, fair value disclosure | 497 | 474 | |||
Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 490 | 414 | |||
Available for sale securities, equity securities | 16 | ||||
Equity securities | 16 | ||||
Asset derivatives | 190 | 151 | |||
Assets, fair value disclosure | 696 | 581 | |||
Liabilities, fair value disclosure | 101 | 128 | |||
Net asset value valuation technique | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale securities, equity securities | 16 | ||||
Equity securities | 16 | ||||
Net asset value valuation technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale securities, equity securities | 16 | ||||
Equity securities | 16 | ||||
Foreign currency swaps | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | 302 | 296 | |||
Liability derivatives | 207 | 197 | |||
Foreign currency swaps | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | 190 | 150 | |||
Liability derivatives | 101 | 128 | |||
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Discounted cash flow technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | 133 | 80 | |||
Liability derivatives | 96 | 120 | |||
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Discounted cash flow technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | 57 | 70 | |||
Liability derivatives | $ 5 | $ 8 | |||
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | 0.0012 | 0.0009 | |||
Derivative liability, measurement input | 0.0031 | 0.0013 | |||
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | 0.0101 | 0.0090 | |||
Derivative liability, measurement input | 0.0196 | 0.0157 | |||
Credit default swaps | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | $ 1 | ||||
Credit default swaps | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | 1 | ||||
Credit default swaps | Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Discounted cash flow technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Asset derivatives | $ 1 | ||||
Credit default swaps | Credit Spread | Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | 0.0025 | ||||
Credit default swaps | Base Correlation | Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [6] | 0.4633 | |||
Credit default swaps | Base Correlation | Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [6] | 0.4965 | |||
Credit default swaps | Recovery Rate | Fair Value, Unobservable Input, Base Correlation, CDS Spreads, Recovery Rate | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | 0.3724 | ||||
Dollar-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | $ 35,460 | $ 38,703 | |||
Available for sale securities, equity securities | $ 328 | ||||
Equity securities | $ 352 | ||||
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [7] | 0.0327 | 0.0240 | ||
Derivative liability, measurement input | [7] | 0.0327 | 0.0240 | ||
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [7] | 0.0330 | 0.0254 | ||
Derivative liability, measurement input | [7] | 0.0330 | 0.0254 | ||
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [7] | 0.0327 | 0.0240 | ||
Derivative liability, measurement input | [7] | 0.0327 | 0.0240 | ||
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [7] | 0.0330 | 0.0254 | ||
Derivative liability, measurement input | [7] | 0.0330 | 0.0254 | ||
Yen-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | $ 46,836 | $ 45,610 | |||
Available for sale securities, equity securities | $ 695 | ||||
Equity securities | $ 707 | ||||
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [8] | 0.0036 | 0.0026 | ||
Derivative liability, measurement input | [8] | 0.0036 | 0.0026 | ||
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [8] | 0.0096 | 0.0085 | ||
Derivative liability, measurement input | [8] | 0.0096 | 0.0085 | ||
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [8] | 0.0036 | 0.0026 | ||
Derivative liability, measurement input | [8] | 0.0036 | 0.0026 | ||
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Derivative asset, measurement input | [8] | 0.0096 | 0.0085 | ||
Derivative liability, measurement input | [8] | 0.0096 | 0.0085 | ||
Mortgage- and asset-backed securities | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | $ 333 | $ 444 | |||
Mortgage- and asset-backed securities | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 172 | 175 | |||
Mortgage- and asset-backed securities | Dollar-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 161 | 173 | |||
Mortgage- and asset-backed securities | Yen-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 172 | 271 | |||
Banks/financial institutions | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 8,939 | 8,933 | |||
Banks/financial institutions | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Banks/financial institutions | Consensus pricing valuation technique | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Banks/financial institutions | Consensus pricing valuation technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 23 | 25 | |||
Banks/financial institutions | Dollar-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 3,179 | 3,433 | |||
Banks/financial institutions | Yen-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 5,760 | 5,500 | |||
Public utilities | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 7,313 | 7,954 | |||
Public utilities | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Public utilities | Discounted cash flow technique | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Public utilities | Discounted cash flow technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 104 | 68 | |||
Public utilities | Dollar-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 5,334 | 5,973 | |||
Public utilities | Yen-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 1,979 | 1,981 | |||
Other corporate | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 30,150 | 32,473 | |||
Other corporate | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 191 | 146 | |||
Other corporate | Discounted cash flow technique | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 289 | 146 | |||
Other corporate | Discounted cash flow technique | Level 3 | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 191 | 146 | |||
Other corporate | Dollar-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | 24,885 | 27,586 | |||
Other corporate | Yen-denominated | |||||
Fair Value Measurement Inputs and Valuation Techniques | |||||
Available for sale, fixed maturity securities | $ 5,265 | $ 4,887 | |||
[1] | Includes perpetual securities ( $1,408 at amortized cost and $1,591 | ||||
[2] | Includes perpetual securities | ||||
[3] | Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument) | ||||
[4] | Includes perpetual securities ( $1,462 at amortized cost and $1,789 | ||||
[5] | Includes perpetual securities ( $66 | ||||
[6] | Range of base correlation for the Company's bespoke tranche for attachment and detachment points corresponding to market indices | ||||
[7] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps | ||||
[8] | Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
POLICY LIABILITIES - Changes in
POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Liability for Unpaid Claims and Claims Expenses | ||||
Net balance, beginning of period | $ 4,392 | |||
Less claims paid during the period on claims incurred during: | ||||
Net balance, end of period | $ 4,530 | 4,530 | ||
Total liability for unpaid policy claims | 4,530 | $ 4,368 | 4,530 | $ 4,368 |
Health insurance | ||||
Liability for Unpaid Claims and Claims Expenses | ||||
Unpaid supplemental health claims, beginning of period | 3,942 | 3,872 | 3,881 | 3,707 |
Less reinsurance recoverables | 29 | 30 | 28 | 27 |
Net balance, beginning of period | 3,913 | 3,842 | 3,853 | 3,680 |
Add claims incurred during the period related to: | ||||
Current year | 1,760 | 1,759 | 5,381 | 5,278 |
Prior years | (131) | (126) | (456) | (386) |
Total incurred | 1,629 | 1,633 | 4,925 | 4,892 |
Less claims paid during the period on claims incurred during: | ||||
Current year | 1,357 | 1,357 | 3,109 | 3,074 |
Prior years | 217 | 234 | 1,751 | 1,697 |
Total paid | 1,574 | 1,591 | 4,860 | 4,771 |
Effect of foreign exchange rate changes on unpaid claims | (59) | (14) | (9) | 69 |
Net balance, end of period | 3,909 | 3,870 | 3,909 | 3,870 |
Add reinsurance recoverables | 29 | 30 | 29 | 30 |
Total liability for unpaid policy claims | 3,938 | 3,900 | 3,938 | 3,900 |
Life insurance | ||||
Less claims paid during the period on claims incurred during: | ||||
Total liability for unpaid policy claims | $ 592 | $ 468 | $ 592 | $ 468 |
POLICY LIABILITIES - Additional
POLICY LIABILITIES - Additional Information (Details) - Health insurance - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Prior years claims and claims adjustment expense | $ (131) | $ (126) | $ (456) | $ (386) |
Aflac Japan | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Prior years claims and claims adjustment expense | $ (325) | |||
Percentage of total prior year claims and claims adjustment expense | 71.00% | |||
Liability for unpaid claims and claims adjustment expense, foreign currency translation gain (loss) | $ (13) | |||
Prior year claims and claims adjustment expense excluding effect of foreign currency | $ (312) | |||
Percentage of total prior year claims and claims adjustment expense excluding effect of foreign currency | 68.00% |
REINSURANCE - Additional Infor
REINSURANCE - Additional Information (Details) $ in Millions, ¥ in Billions | 9 Months Ended | ||
Sep. 30, 2018JPY (¥) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Effects of Reinsurance [Line Items] | |||
Percent change in spot yen/dollar exchange rate | (0.50%) | ||
Percent change in ceded reserves | 1.30% | ||
Aflac Japan | |||
Effects of Reinsurance [Line Items] | |||
Committed reinsurance facility | ¥ | ¥ 110 | ||
Aflac Japan | Closed Block | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance deferred profit liability | $ 989 | ||
Reinsurance recoverable | $ 917 | $ 908 |
REINSURANCE - Effect of Reinsu
REINSURANCE - Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effects of Reinsurance [Line Items] | ||||
Direct premium income | $ 4,720 | $ 4,734 | $ 14,346 | $ 14,210 |
Net premium income | 4,636 | 4,648 | 14,086 | 13,951 |
Direct benefits and claims | 3,076 | 3,157 | 9,301 | 9,403 |
Benefits and claims, net | 3,002 | 3,083 | 9,075 | 9,174 |
All other | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded premiums | (15) | (12) | (45) | (37) |
Assumed premiums earned | 2 | 2 | 5 | 5 |
Ceded benefits and claims | (11) | (9) | (34) | (31) |
Assumed benefits and claims from other companies | 0 | 0 | 2 | 2 |
Aflac Japan | ||||
Effects of Reinsurance [Line Items] | ||||
Net premium income | 3,159 | 3,200 | 9,649 | 9,616 |
Aflac Japan | Closed Block | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded premiums | (122) | (130) | (378) | (390) |
Assumed premiums earned | 51 | 54 | 158 | 163 |
Ceded benefits and claims | (111) | (118) | (343) | (359) |
Assumed benefits and claims from other companies | 48 | 53 | 149 | 159 |
Intercompany eliminations | ||||
Effects of Reinsurance [Line Items] | ||||
Ceded benefits and claims | 10 | 13 | 33 | 39 |
Assumed benefits and claims from other companies | $ (10) | $ (13) | $ (33) | $ (39) |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Details) $ in Millions | Sep. 30, 2018USD ($) |
Lines of credit | |
Debt Instrument [Line Items] | |
Debt instrument, debt default, amount | $ 0 |
Notes Payable | |
Debt Instrument [Line Items] | |
Debt instrument, debt default, amount | $ 0 |
NOTES PAYABLE - Summary of Note
NOTES PAYABLE - Summary of Notes Payable (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Notes payable | $ 5,279 | $ 5,289 |
2.40% senior notes due March 2020 | ||
Debt Instrument [Line Items] | ||
Notes payable | 549 | 548 |
4.00% senior notes due February 2022 | ||
Debt Instrument [Line Items] | ||
Notes payable | 348 | 348 |
3.625% senior notes due June 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable | 698 | 697 |
3.625% senior notes due November 2024 | ||
Debt Instrument [Line Items] | ||
Notes payable | 746 | 745 |
3.25% senior notes due March 2025 | ||
Debt Instrument [Line Items] | ||
Notes payable | 447 | 446 |
2.875% senior notes due October 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable | 297 | 297 |
6.90% senior notes due December 2039 | ||
Debt Instrument [Line Items] | ||
Notes payable | 220 | 220 |
6.45% senior notes due August 2040 | ||
Debt Instrument [Line Items] | ||
Notes payable | 254 | 254 |
4.00% senior notes due October 2046 | ||
Debt Instrument [Line Items] | ||
Notes payable | 394 | 394 |
.932% senior notes due January 2027 | ||
Debt Instrument [Line Items] | ||
Notes payable | 525 | 528 |
2.108% subordinated notes due October 2047 | ||
Debt Instrument [Line Items] | ||
Notes payable | 523 | 526 |
Yen-denominated loan variable interest rate due September 2021 | ||
Debt Instrument [Line Items] | ||
Notes payable | 44 | 44 |
Yen-denominated loan variable interest rate due September 2023 | ||
Debt Instrument [Line Items] | ||
Notes payable | 219 | 220 |
Capitalized lease obligations | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 15 | $ 22 |
NOTES PAYABLE - Summary of No_2
NOTES PAYABLE - Summary of Notes Payable (Parenthetical) (Details) $ in Millions, ¥ in Billions | Sep. 30, 2018USD ($) | Sep. 30, 2018JPY (¥) | Dec. 31, 2017JPY (¥) |
2.40% senior notes due March 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% |
Debt instrument, principal amount | $ 550 | ||
4.00% senior notes due February 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% |
Debt instrument, principal amount | $ 350 | ||
3.625% senior notes due June 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% |
Debt instrument, principal amount | $ 700 | ||
3.625% senior notes due November 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% |
Debt instrument, principal amount | $ 750 | ||
3.25% senior notes due March 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% |
Debt instrument, principal amount | $ 450 | ||
2.875% senior notes due October 2026 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% |
6.90% senior notes due December 2039 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% |
6.45% senior notes due August 2040 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% |
4.00% senior notes due October 2046 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% |
.932% senior notes due January 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.932% | 0.932% | 0.932% |
Debt instrument, principal amount | ¥ | ¥ 60 | ¥ 60 | |
2.108% subordinated notes due October 2047 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.108% | 2.108% | 2.108% |
Debt instrument, principal amount | ¥ | ¥ 60 | ¥ 60 | |
Yen-denominated loan variable interest rate due September 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.32% | 0.32% | 0.32% |
Debt instrument, principal amount | ¥ | ¥ 5 | ¥ 5 | |
Yen-denominated loan variable interest rate due September 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 0.47% | 0.47% | 0.47% |
Debt instrument, principal amount | ¥ | ¥ 25 | ¥ 25 |
NOTES PAYABLE - Summary of Line
NOTES PAYABLE - Summary of Lines of Credit (Details) - 9 months ended Sep. 30, 2018 ¥ in Millions, $ in Millions | USD ($) | JPY (¥) |
$100 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | The rate quoted by the bank and agreed upon at the time of borrowing | |
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ | $ 100 | |
Line of credit facility, amount outstanding | $ | $ 0 | |
100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period | |
Line of credit facility term | 3 years | |
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
55.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin | |
Line of credit facility term | 5 years | |
Line of credit facility, maximum borrowing capacity | ¥ | 55,000 | |
Line of credit facility, amount outstanding | ¥ | 0 | |
$50 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day | |
Line of credit facility, maximum borrowing capacity | $ | $ 50 | |
Line of credit facility, amount outstanding | $ | $ 0 | |
$250 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | USD three-month LIBOR plus 75 basis points per annum | |
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | $ | $ 250 | |
Line of credit facility, amount outstanding | $ | $ 0 | |
Debt instrument, term | 3 months | |
37.5 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, interest rate description | Three-month TIBOR plus 80 basis points per annum | |
Line of credit facility term | 364 days | |
Line of credit facility, maximum borrowing capacity | ¥ | 37,500 | |
Line of credit facility, amount outstanding | ¥ | ¥ 0 | |
Debt instrument, term | 3 months | |
Lower Limit | 100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.30% | |
Lower Limit | 55.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.085% | |
Upper Limit | $100 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term | 3 months | |
Upper Limit | 100.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.50% | |
Upper Limit | 55.0 billion yen line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, commitment fee percentage | 0.225% | |
Upper Limit | $50 million line of credit | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, term | 3 months |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||||
U.S. federal statutory corporate income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% | |
Income Tax Expense, Gross, Continuing Operations, Adjustment of Deferred Tax Assets | $ 1,000 | |||||
Income Tax Benefit, Gross, Continuing Operations, Adjustment of Deferred Tax Liabilities | 2,900 | |||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax Asset (Liability) | (1,900) | |||||
Deferred Tax Assets, Valuation Allowance | 700 | $ 700 | ||||
Aflac Japan | ||||||
Income Taxes [Line Items] | ||||||
Deferred Tax Liabilities, Net | $ 4,500 | $ 4,500 |
SHAREHOLDERS' EQUITY - Reconcil
SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Common Stock Issued [Roll Forward] | ||
Balance, beginning of period | 1,345,762 | 1,342,498 |
Exercise of stock options and issuance of restricted shares | 1,614 | 2,840 |
Balance, end of period | 1,347,376 | 1,345,338 |
Treasury Stock [Roll Forward] | ||
Balance, beginning of period | 564,852 | 530,877 |
Balance, end of period | 584,263 | 557,588 |
Shares outstanding, end of period | 763,113 | 787,750 |
Treasury Stock | ||
Treasury Stock [Roll Forward] | ||
Stock acquired in open market, shares | 20,443 | 27,796 |
Other purchases | 361 | 872 |
Shares issued to AFL Stock Plan | (850) | (1,392) |
Exercise of stock options | (430) | (526) |
Other dispositions | (113) | (39) |
SHAREHOLDERS' EQUITY - Anti-Dil
SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Anti-dilutive share-based awards | 46 | 532 | 34 | 670 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Feb. 28, 2018 | Aug. 31, 2017 | |
Stockholders Equity Note [Line Items] | ||||
Common stock, share repurchase, dollar amount | $ 923 | $ 1,053 | ||
Remaining common stock available for purchase under share repurchase authorizations | 77.6 | |||
Share Repurchase Program | ||||
Stockholders Equity Note [Line Items] | ||||
Stock acquired in open market, shares | 20.4 | 27.8 | ||
Common stock, share repurchase, dollar amount | $ 923 | $ 1,000 | ||
Share Repurchase Authorization 2017 | ||||
Stockholders Equity Note [Line Items] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Before Stock Split | 40 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 80 |
SHAREHOLDERS' EQUITY - Changes
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance, beginning of period | [1] | $ 2,852 | $ 3,401 | $ 4,028 | $ 2,630 |
Other comprehensive income loss before reclassifications net of tax | [1] | (919) | 159 | (2,345) | 914 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (24) | (29) | 0 | (13) |
Other comprehensive income (loss), net of tax | [1] | (943) | 130 | (2,345) | 901 |
Balance, end of period | [1] | 1,909 | 3,531 | 1,909 | 3,531 |
Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (148) | |||
Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 374 | |||
Unrealized foreign currency translation gains (losses) | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance, beginning of period | [1] | (1,766) | (1,580) | (1,750) | (1,983) |
Other comprehensive income loss before reclassifications net of tax | [1] | (347) | (135) | (38) | 268 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | [1] | (347) | (135) | (38) | 268 |
Balance, end of period | [1] | (2,113) | (1,715) | (2,113) | (1,715) |
Unrealized foreign currency translation gains (losses) | Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | |||
Unrealized foreign currency translation gains (losses) | Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (325) | |||
Unrealized gains (losses) on investment securities | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance, beginning of period | [1] | 4,836 | 5,173 | 5,964 | 4,805 |
Other comprehensive income loss before reclassifications net of tax | [1] | (569) | 296 | (2,302) | 653 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (27) | (32) | (8) | (21) |
Other comprehensive income (loss), net of tax | [1] | (596) | 264 | (2,310) | 632 |
Balance, end of period | [1] | 4,240 | 5,437 | 4,240 | 5,437 |
Unrealized gains (losses) on investment securities | Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (148) | |||
Unrealized gains (losses) on investment securities | Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 734 | |||
Unrealized gains (losses) on derivatives | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance, beginning of period | [1] | (23) | (23) | (23) | (24) |
Other comprehensive income loss before reclassifications net of tax | [1] | (1) | 0 | 2 | 1 |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | [1] | (1) | 0 | 2 | 1 |
Balance, end of period | [1] | (24) | (23) | (24) | (23) |
Unrealized gains (losses) on derivatives | Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | |||
Unrealized gains (losses) on derivatives | Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | (3) | |||
Pension liability adjustment | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Balance, beginning of period | [1] | (195) | (169) | (163) | (168) |
Other comprehensive income loss before reclassifications net of tax | [1] | (2) | (2) | (7) | (8) |
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 3 | 3 | 8 | 8 |
Other comprehensive income (loss), net of tax | [1] | 1 | 1 | 1 | 0 |
Balance, end of period | [1] | $ (194) | $ (168) | (194) | $ (168) |
Pension liability adjustment | Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | 0 | |||
Pension liability adjustment | Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income net of tax | [1] | $ (32) | |||
[1] | All amounts in the table above are net of tax. |
SHAREHOLDERS' EQUITY - Reclassi
SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other-than-temporary impairment losses realized | $ (5) | $ (17) | |||||||||
Other than temporary impairment losses realized | $ (8) | $ (27) | |||||||||
Other gains (losses) | [1] | 61 | 38 | (59) | (139) | ||||||
Total before tax | 1,146 | 1,075 | 3,261 | 3,019 | |||||||
Income tax (expense) or benefit | (301) | (359) | (866) | (998) | |||||||
Net of tax | $ 845 | $ 716 | $ 2,395 | $ 2,021 | |||||||
Blended statutory income tax rate | 26.00% | 27.00% | |||||||||
U.S. federal statutory corporate income tax rate | 21.00% | 35.00% | 21.00% | 35.00% | 35.00% | ||||||
Reclassification Out Of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net of tax | $ 24 | $ 29 | $ 0 | $ 13 | |||||||
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on investment securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other-than-temporary impairment losses realized | 0 | (2) | |||||||||
Other than temporary impairment losses realized | (6) | (23) | |||||||||
Other gains (losses) | 37 | 56 | 13 | 56 | |||||||
Total before tax | 37 | 50 | 11 | 33 | |||||||
Income tax (expense) or benefit | (10) | [2] | (18) | [3] | (3) | [4] | (12) | [3] | |||
Net of tax | 27 | 32 | 8 | 21 | |||||||
Reclassification Out Of Accumulated Other Comprehensive Income | Pension liability adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Acquisition and operating expenses, actuarial gains (losses) | [5] | (5) | (4) | (13) | (12) | ||||||
Acquisition and operating expenses, prior service (cost) credit | [5] | 0 | 0 | 0 | 0 | ||||||
Income tax (expense) or benefit | 2 | [2] | 1 | [3] | 5 | [4] | 4 | [3] | |||
Net of tax | $ (3) | $ (3) | $ (8) | $ (8) | |||||||
[1] | See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments. | ||||||||||
[2] | Based on 26% | ||||||||||
[3] | Based on 35% | ||||||||||
[4] | Based on 27% | ||||||||||
[5] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from stock options exercised | $ 42 | $ 48 | ||
Tax benefit from exercise of stock options | $ 17 | $ 37 | ||
Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable | 75,000 | |||
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights | 38,000 | |||
Shares available for future grants under the long-term incentive plan | 40,300 | |||
Long-term incentive plan awards, term (in years) | 10 years | |||
Long-term incentive plan awards, vesting period | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 45 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares | 3,448 | 3,635 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 1 month 6 days | |||
Restricted stock awards, grants in period | 1,074 | |||
Performance based Vesting Condition | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 20 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares | 799 | |||
Restricted stock awards, grants in period | 432 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding - Stock Option Shares | shares | 5,600 |
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 5 years 2 months 12 days |
Options Outstanding - Aggregate Intrinsic Value | $ | $ 105 |
Options Outstanding - Weighted-Average Exercise Price Per Share | $ / shares | $ 28.33 |
Options Exercisable - Stock Option Shares | shares | 4,084 |
Options Exercisable - Weighted-Average Remaining Term (Yrs.) | 4 years 2 months 12 days |
Options Exercisable - Aggregate Intrinsic Value | $ | $ 83 |
Options Exercisable - Weighted-Average Exercise Price Per Share | $ / shares | $ 26.87 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Beginning Balance | shares | 3,635 |
Granted | shares | 1,074 |
Canceled | shares | (97) |
Vested | shares | (1,164) |
Ending Balance | shares | 3,448 |
Weighted-Average Grant-Date Fair Value Per Share | |
Beginning Balance | $ / shares | $ 32.40 |
Granted | $ / shares | 44.30 |
Cancelled | $ / shares | 34.27 |
Vested | $ / shares | 31.72 |
Ending Balance | $ / shares | $ 36.28 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Amount of years active employees have left to meet rule of 80 in order to be eligible for postretirement medical benefits | 5 years | |||||
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits | 5 years | |||||
Net periodic (benefit) cost, excluding service cost | $ 7,000,000 | $ 7,000,000 | $ 20,000,000 | $ 22,000,000 | ||
Defined contribution plan, special contribution, per employee | $ 500 | |||||
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 100.00% | |||||
Lower Limit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Health care plan, retirement age and years of service combined years for eligibility (rule of 80) | 80 years | |||||
Health care plan, retirement age for eligibility, (in years) | 55 years | |||||
Health care plan, number of years of service for eligibility | 15 years | |||||
Upper Limit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 4.00% | |||||
Japan | Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Employer contributions | 22,000,000 | |||||
U.S. | Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Employer contributions | $ 60,000,000 |
BENEFIT PLANS - Net Periodic (B
BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 0 | 0 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | 0 | 0 | 1 | 1 |
Japan | Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 4 | 14 | 13 |
Interest cost | 1 | 2 | 4 | 5 |
Expected return on plan assets | (1) | (1) | (4) | (3) |
Amortization of net actuarial loss | 1 | 1 | 1 | 2 |
Net periodic (benefit) cost | 5 | 6 | 15 | 17 |
U.S. | Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 7 | 6 | 21 | 18 |
Interest cost | 9 | 8 | 26 | 24 |
Expected return on plan assets | (7) | (6) | (20) | (17) |
Amortization of net actuarial loss | 4 | 3 | 12 | 10 |
Net periodic (benefit) cost | $ 13 | $ 11 | $ 39 | $ 35 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017 | Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Loss contingency accrual, insurance-related assessment, discount rate | 4.25% | |
Loss contingency, discounted amount of insurance-related assessment liability | $ 62 | |
Loss contingency, undiscounted amount of insurance-related assessment liability | 94 | |
Loss contingency, insurance-related assessment, discounted amount of premium tax offset | 48 | |
Loss contingency, insurance-related assessment, undiscounted amount of premium tax offset | 74 | |
Loss contingency, loss in period | $ 14 | |
Loss contingency, discounted amount of insurance-related assessment liability, realization period for associated asset offsets (in years) | four years |
SUBSEQUENT EVENTS Additional In
SUBSEQUENT EVENTS Additional Information (Detail) - 1 months ended Oct. 31, 2018 - Subsequent events $ in Millions, ¥ in Billions | USD ($)series | JPY (¥)series |
Subsequent Event [Line Items] | ||
Number of Series of Senior Notes Issued Through a U.S. Public Debt Offering | series | 3 | 3 |
Senior notes | ||
Subsequent Event [Line Items] | ||
Debt instrument, principal amount | ¥ 53.4 | |
1.159% senior notes due October 2030 | ||
Subsequent Event [Line Items] | ||
Debt instrument, principal amount | ¥ 29.3 | |
Debt instrument, interest rate | 1.159% | 1.159% |
Debt instrument, term | 12 years | |
1.488% senior notes due October 2033 | ||
Subsequent Event [Line Items] | ||
Debt instrument, principal amount | ¥ 15.2 | |
Debt instrument, interest rate | 1.488% | 1.488% |
Debt instrument, term | 15 years | |
1.750% senior notes due October 2038 | ||
Subsequent Event [Line Items] | ||
Debt instrument, principal amount | ¥ 8.9 | |
Debt instrument, interest rate | 1.75% | 1.75% |
Debt instrument, term | 20 years | |
4.750% senior notes due January 2049 | ||
Subsequent Event [Line Items] | ||
Debt instrument, principal amount | $ | $ 550 | |
Debt instrument, interest rate | 4.75% | 4.75% |
Debt Instrument, Redemption, Description | These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a United States Treasury security with a maturity comparable to the remaining term of the notes, plus 25 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. | |
Debt instrument, term | 30 years |