Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 14, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Registrant Name | LINCOLN NATIONAL CORP | ||
Entity Central Index Key | 59,558 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 204,293,812 | ||
Entity Public Float | $ 12 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost: 2018 – $92,429; 2017 – $86,993) | $ 94,024 | $ 94,840 |
Equity securities (cost: 2017 – $247) | 246 | |
Trading securities | 1,950 | 1,620 |
Equity securities | 99 | |
Mortgage loans on real estate | 13,260 | 10,762 |
Real estate | 12 | 11 |
Policy loans | 2,509 | 2,399 |
Derivative investments | 1,107 | 915 |
Other investments | 2,255 | 2,296 |
Total investments | 115,216 | 113,089 |
Cash and invested cash | 2,345 | 1,628 |
Deferred acquisition costs and value of business acquired | 10,264 | 8,403 |
Premiums and fees receivable | 570 | 396 |
Accrued investment income | 1,119 | 1,078 |
Reinsurance recoverables | 17,748 | 4,907 |
Funds withheld reinsurance assets | 557 | 593 |
Goodwill | 1,782 | 1,368 |
Other assets | 15,713 | 6,082 |
Separate account assets | 132,833 | 144,219 |
Total assets | 298,147 | 281,763 |
Liabilities | ||
Future contract benefits | 34,648 | 22,887 |
Other contract holder funds | 91,233 | 80,209 |
Short-term debt | 450 | |
Long-term debt | 5,839 | 4,894 |
Reinsurance related embedded derivatives | 3 | 57 |
Funds withheld reinsurance liabilities | 1,740 | 1,761 |
Payables for collateral on investments | 4,805 | 4,417 |
Other liabilities | 12,696 | 5,547 |
Separate account liabilities | 132,833 | 144,219 |
Total liabilities | 283,797 | 264,441 |
Contingencies and Commitments (See Note 14) | ||
Stockholders' Equity | ||
Preferred stock - 10,000,000 shares authorized | ||
Common stock – 800,000,000 shares authorized; 205,862,760 and 218,090,114 shares issued and outstanding as of December 31, 2018, and December 31, 2017, respectively | 5,392 | 5,693 |
Retained earnings | 8,551 | 8,399 |
Accumulated other comprehensive income (loss) | 407 | 3,230 |
Total stockholders' equity | 14,350 | 17,322 |
Total liabilities and stockholders' equity | $ 298,147 | $ 281,763 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 92,429 | $ 86,993 |
Equity securities (cost) | $ 247 | |
Stockholders' Equity | ||
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock - shares issued (in shares) | 205,862,760 | 218,090,114 |
Common stock - shares outstanding (in shares) | 205,862,760 | 218,090,114 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Insurance premiums | $ 4,601 | $ 3,256 | $ 2,987 |
Fee income | 5,986 | 5,619 | 5,244 |
Net investment income | 5,085 | 4,990 | 4,874 |
Realized gain (loss): | |||
Total other-than-temporary impairment losses on securities | (7) | (18) | (145) |
Portion of loss recognized in other comprehensive income | 43 | ||
Net other-than-temporary impairment losses on securities recognized in earnings | (7) | (18) | (102) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | 148 | (152) | (237) |
Total realized gain (loss) | 141 | (170) | (339) |
Amortization of deferred gain on business sold through reinsurance | 9 | 23 | 73 |
Other revenues | 602 | 539 | 491 |
Total revenues | 16,424 | 14,257 | 13,330 |
Expenses | |||
Interest credited | 2,617 | 2,590 | 2,564 |
Benefits | 6,786 | 5,160 | 4,692 |
Commissions and other expenses | 4,763 | 4,176 | 4,277 |
Interest and debt expense | 297 | 253 | 331 |
Strategic digitization expense | 76 | 43 | 8 |
Impairment of intangibles | 905 | ||
Total expenses | 14,539 | 13,127 | 11,872 |
Income (loss) before taxes | 1,885 | 1,130 | 1,458 |
Federal income tax expense (benefit) | 244 | (949) | 266 |
Net income (loss) | 1,641 | 2,079 | 1,192 |
Other comprehensive income (loss), net of tax | |||
Unrealized investment gains (losses) | (3,449) | 1,643 | 709 |
Foreign currency translation adjustment | (9) | 13 | (22) |
Funded status of employee benefit plans | (7) | 8 | 34 |
Total other comprehensive income (loss), net of tax | (3,465) | 1,664 | 721 |
Comprehensive income (loss) | $ (1,824) | $ 3,743 | $ 1,913 |
Net Income (Loss) Per Common Share | |||
Basic (in dollars per share) | $ 7.60 | $ 9.36 | $ 5.09 |
Diluted (in dollars per share) | 7.40 | 9.22 | 5.03 |
Cash Dividends Declared Per Common Share | $ 1.36 | $ 1.20 | $ 1.04 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-year at Dec. 31, 2015 | $ 6,298 | $ 6,474 | $ 845 | |
Stock compensation/issued for benefit plans | 70 | |||
Net income (loss) | 1,192 | $ 1,192 | ||
Retirement of common stock/cancellation of shares | (499) | (380) | ||
Common stock dividends declared | (243) | |||
Other comprehensive income (loss), net of tax | 721 | 721 | ||
Balance as of end-of-period at Dec. 31, 2016 | 5,869 | 7,043 | 1,566 | 14,478 |
Stock compensation/issued for benefit plans | 94 | |||
Net income (loss) | 2,079 | 2,079 | ||
Retirement of common stock/cancellation of shares | (270) | (455) | ||
Common stock dividends declared | (268) | |||
Other comprehensive income (loss), net of tax | 1,664 | 1,664 | ||
Balance as of end-of-period at Dec. 31, 2017 | 5,693 | 8,399 | 3,230 | 17,322 |
Cumulative effect from adoption of new accounting standards at Dec. 31, 2017 | (642) | 642 | ||
Stock compensation/issued for benefit plans | 45 | |||
Net income (loss) | 1,641 | 1,641 | ||
Retirement of common stock/cancellation of shares | (346) | (554) | ||
Common stock dividends declared | (293) | |||
Other comprehensive income (loss), net of tax | (3,465) | (3,465) | ||
Balance as of end-of-period at Dec. 31, 2018 | $ 5,392 | $ 8,551 | $ 407 | $ 14,350 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 1,641 | $ 2,079 | $ 1,192 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | (81) | 16 | 143 |
Trading securities purchases, sales and maturities, net | (118) | 121 | 168 |
Change in premiums and fees receivable | (87) | 34 | (54) |
Change in accrued investment income | (17) | (16) | 8 |
Change in future contract benefits and other contract holder funds | (105) | (1,720) | (1,024) |
Change in reinsurance related assets and liabilities | 718 | 128 | 226 |
Change in accrued expenses | (101) | 113 | (27) |
Change in federal income tax accruals | 154 | (1,119) | 69 |
Realized (gain) loss | (141) | 170 | 339 |
Amortization of deferred gain on business sold through reinsurance | (9) | (23) | (73) |
Impairment of intangibles | 905 | ||
Other | 89 | 100 | 305 |
Net cash provided by (used in) operating activities | 1,943 | 788 | 1,272 |
Cash Flows from Investing Activities | |||
Purchases of available-for-sale securities and equity securities | (12,650) | (10,148) | (11,113) |
Sales of available-for-sale securities and equity securities | 3,668 | 1,612 | 2,959 |
Maturities of available-for-sale securities | 6,004 | 5,886 | 5,364 |
Purchase of common stock in acquisition, net of cash acquired | (1,410) | ||
Sale of business, net | (12) | ||
Purchases of alternative investments | (314) | (357) | (302) |
Sales and repayments of alternative investments | 178 | 184 | 238 |
Issuance of mortgage loans on real estate | (2,927) | (2,058) | (2,155) |
Repayment and maturities of mortgage loans on real estate | 1,085 | 1,184 | 942 |
Issuance and repayment of policy loans, net | 21 | 51 | 92 |
Net change in collateral on investments, derivatives and related settlements | 735 | (429) | 415 |
Other | (193) | (113) | (106) |
Net cash provided by (used in) investing activities | (5,815) | (4,188) | (3,666) |
Cash Flows from Financing Activities | |||
Payment of long-term debt, including current maturities | (537) | (600) | |
Issuance of long-term debt, net of issuance costs | 1,094 | 395 | |
Payment related to early extinguishment of debt | (23) | (59) | |
Proceeds from sales leaseback transaction | 88 | 62 | 85 |
Deposits of fixed account values, including the fixed portion of variable | 13,638 | 10,797 | 10,053 |
Withdrawals of fixed account values, including the fixed portion of variable | (6,007) | (5,825) | (5,505) |
Transfers to and from separate accounts, net | (2,469) | (1,787) | (1,308) |
Common stock issued for benefit plans | (6) | 46 | 26 |
Repurchase of common stock | (900) | (725) | (879) |
Dividends paid to common stockholders | (289) | (262) | (238) |
Net cash provided by (used in) financing activities | 4,589 | 2,306 | 1,970 |
Net increase (decrease) in cash, invested cash and restricted cash | 717 | (1,094) | (424) |
Cash, invested cash and restricted cash as of beginning-of-year | 1,628 | 2,722 | 3,146 |
Cash, invested cash and restricted cash as of end-of-year | $ 2,345 | $ 1,628 | $ 2,722 |
Nature Of Operations, Basis Of
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies | |
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies | 1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations Lincoln National Corporation and its majority-owned subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments. See Note 21 for additional details. The collective group of businesses uses “Lincoln Financial Group” as its marketing identity. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and The Lincoln National Life Insurance Company (“LNL”) completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life” or “LLACB”). We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: · Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; · Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and · Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: · Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. · Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). · State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. · Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be other-than-temporary. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: · The estimated range and average period until recovery; · The estimated range and average holding period to maturity; · Remaining payment terms of the security; · Current delinquencies and nonperforming assets of underlying collateral; · Expected future default rates; · Collateral value by vintage, geographic region, industry concentration or property type; · Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and · Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: · The current economic environment and market conditions; · Our business strategy and current business plans; · The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; · Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; · The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; · The capital risk limits approved by management; and · Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: · Historical and implied volatility of the security; · Length of time and extent to which the fair value has been less than amortized cost; · Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; · Failure, if any, of the issuer of the security to make scheduled payments; and · Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; · Fundamentals of the industry in which the issuer operates; · Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; · Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); · Expectations regarding defaults and recovery rates; · Changes to the rating of the security by a rating agency; and · Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; · Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; · Susceptibility to fair value fluctuations for changes in the interest rate environment; · Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; · Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; · Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and · Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity Securities As of January 1, 2018, equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the valuation allowance, and subsequent recoveries, if any, are credited to the valuation allowance. We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss may occur. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). General valuation allowances are primarily based on loss history adjusted for current conditions. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses. Our periodic evaluation of the adequacy of the valuation allowances is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a valuation allowance. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a valuation allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Residential mortgage loan pools exclude loans that have been impaired as those loans are evaluated individually using the evaluation framework for specific valuation allowances described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 60 or more days past due and/ |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the FASB and the impact of the adoption on our financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers and all related amendments This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods and services and defines a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. Although the standard and all related amendments supersede nearly all existing revenue recognition guidance under GAAP, the guidance does not amend the accounting for insurance and investment contracts recognized in accordance with ASC Topic 944, Financial Services – Insurance, leases, financial instruments and guarantees. January 1, 2018 We adopted the standard and all related amendments using the modified retrospective method. Our primary sources of revenue are recognized in accordance with ASC Topic 944, Financial Services – Insurance; as such, revenue within the scope of the new standard primarily includes commissions and advisory fees earned by our broker-dealer operation, as well as group protection administrative service fees. The adoption did not have a material impact on our consolidated financial condition, results of operations, stockholders’ equity or cash flows. There were no material changes in the timing or measurement of revenues based upon the guidance. As a result, there is no cumulative effect on retained earnings. For more information, see Note 21. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities These amendments require, among other things, the fair value measurement of investments in equity securities and certain other ownership interests that do not result in consolidation and are not accounted for under the equity method of accounting. The change in fair value of the impacted investments in equity securities must be recognized in net income in the period of the change in fair value. In addition, the amendments include certain enhancements to the presentation and disclosure requirements for financial assets and financial liabilities. The guidance does not apply to Federal Home Loan Bank (“FHLB”) stock. Early adoption of the ASU is generally not permitted, except as defined in the ASU. January 1, 2018 At the time of adoption, we had equity securities classified as AFS with a total carrying value of $246 million. We classified, prospectively, $110 million of equity securities within the scope of this ASU in a separate line on our Consolidated Balance Sheets. The remaining securities, consisting of $136 million of FHLB stock, are classified in other investments on our Consolidated Balance Sheets and carried at cost. The cumulative effect adjustment of adopting this ASU was $1 million. ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income These amendments require a reclassification from AOCI to retained earnings for stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act (“Tax Act”) of 2017. The amount of the reclassification is equal to the impact of the change in deferred taxes related to amounts recorded in AOCI resulting from the change in the statutory corporate tax rate from 35% to 21% . Early adoption is permitted and retrospective application is required. January 1, 2018 We retrospectively reclassified $641 million of stranded tax effects from AOCI to retained earnings in the period of adoption. Future Adoption of New Accounting Standards The following table provides a description of future adoptions of new accounting standards that may have an impact on our financial statements when adopted: Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-02, Leases and all related amendments This standard establishes a new accounting model for leases. Lessees will recognize most leases on the balance sheet as a right-of-use asset and a related lease liability. The lease liability is measured as the present value of the lease payments over the lease term with the right-of-use asset measured at the lease liability amount and including adjustments for certain lease incentives and initial direct costs. Lease expense recognition will continue to differentiate between finance leases and operating leases resulting in a similar pattern of lease expense recognition as under current GAAP. This ASU permits a modified retrospective adoption approach that includes a number of optional practical expedients that entities may elect upon adoption. Early adoption is permitted. January 1, 2019 The adoption of this standard and related amendments will result in the recognition of approximately $240 million in right-of-use assets and lease liabilities on our Consolidated Balance Sheets as of January 1, 2019. Comparative periods will continue to be measured and presented under historical guidance, and only the period of adoption will be subject to this ASU. Additionally, there is not a significant difference in our pattern of lease expense recognition under this ASU, and there is no impact on cash flows. ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities These amendments require an entity to shorten the amortization period for certain callable debt securities held at a premium so that the premium is amortized to the earliest call date. Early adoption is permitted, and the ASU requires adoption under a modified retrospective basis through a cumulative effect adjustment to the beginning balance of retained earnings. January 1, 2019 We do not expect the adoption of this guidance to have a material impact on our consolidated financial condition and results of operations. ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities These amendments change both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. These amendments retain the threshold of highly effective for hedging relationships, remove the requirement to bifurcate between the portions of the hedging relationship that are effective and ineffective, record hedge item and hedging instrument results in the same financial statement line item, require quantitative assessment initially for all hedging relationships unless the hedging relationship meets the definition of either the shortcut method or critical terms match method and allow the contractual specified index rate to be designated as the hedged risk in a cash flow hedge of interest rate risk of a variable rate financial instrument. These amendments also eliminate the benchmark interest rate concept for variable rate instruments. Early adoption is permitted. January 1, 2019 We do not expect the adoption of this guidance to have a material impact on our consolidated financial condition and results of operations. Standard Description Projected Date of Adoption Effect on Financial Statements or Other Significant Matters ASU 2016-13, Measurement of Credit Losses on Financial Instruments These amendments adopt a new model to measure and recognize credit losses for most financial assets. The method used to measure estimated credit losses for AFS debt securities will be unchanged from current GAAP; however, the amendments require credit losses to be recognized through an allowance rather than as a reduction to the amortized cost of those debt securities. The amendments will permit entities to recognize improvements in credit loss estimates on AFS debt securities by reducing the allowance account immediately through earnings. The amendments will be adopted through a cumulative effect adjustment to the beginning balance of retained earnings as of the first reporting period in which the amendments are effective. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. January 1, 2020 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations, with a primary focus on our fixed maturity securities, mortgage loans and reinsurance recoverables. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and DAC. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. Early adoption is permitted. January 1, 2021 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition [Abstract] | |
Acquisitions | 3 . Acquisition As previously announced, on May 1, 2018 , we completed the acquisition of 100% of the capital stock of Liberty Life, which operates a group benefits business (“Liberty Group Business”) and individual life and individual and group annuity business (the “Liberty Life Business”), from Liberty Mutual Insurance Company in a transaction accounted for under the acquisition method of accounting pursuant to Business Combinations Topic 805 (“Topic 805”). The acquisition enables us to increase our market share within the group protection marketplace. In connection with the acquisition and pursuant to the Master Transaction Agreement (“MTA”), dated January 18, 2018, which was attached as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on January 22, 2018, Liberty Life sold the Liberty Life Business on May 1, 2018, by entering into reinsurance agreements and related ancillary documents (including administrative services agreements and transition services agreements) with Protective Life Insurance Company and its wholly-owned subsidiary, Protective Life and Annuity Insurance Company (together with Protective Life Insurance Company, “Protective”), providing for the reinsurance and administration of the Liberty Life Business. Liberty Life’s excess capital of $1.8 billion was paid to Liberty Mutual Insurance Company through an extraordinary dividend at the acquisition date. We paid $1.5 billion of cash to Liberty Mutual Insurance Company to acquire the Liberty Group Business. We recognized $85 million of acquisition-related costs, pre-tax, for the year ended December 31, 2018. These costs are included in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). The acquisition date fair values of certain assets and liabilities, including future contract benefits, intangible assets and related weighted average expected lives, commercial mortgage loans, reinsurance recoverables and deferred income taxes, are provisional and subject to revision within one year of the acquisition date. Since the May 1, 2018 acquisition date, we have adjusted provisional assets acquired by $(5) million and provisional liabilities acquired by $27 million for an increase in provisional goodwill of $32 million. Under the terms of the MTA, a final balance sheet will be agreed upon at a later date. As such, our estimates of fair values are pending finalization, which may result in adjustments to goodwill. The following table presents the preliminary fair values (in millions) of the net assets acquired related to the Liberty Group Business as of December 31, 2018: Preliminary Fair Value Assets Investments $ 2,493 Mortgage loans on real estate 658 Cash and invested cash 107 Reinsurance recoverables 76 Premiums and fees receivable 83 Accrued investment income 24 Other intangible assets acquired 640 Other assets acquired 142 Separate account assets 99 Total assets acquired $ 4,322 Liabilities Future contract benefits $ 2,930 Other contract holder funds 46 Other liabilities acquired 144 Separate account liabilities 99 Total liabilities assumed $ 3,219 Net identifiable assets acquired $ 1,103 Goodwill 414 Net assets acquired $ 1,517 Identifiable Intangible Assets The following table presents the fair value of identifiable intangible assets acquired (dollars in millions): Weighted- Average Amortization Fair Value Period VOCRA $ 576 20 VODA 31 13 VOBA 30 3 Insurance licenses 3 N/A Total identifiable intangible assets $ 640 VOCRA and VODA are included in other assets on our Consolidated Balance Sheets and reflect the estimated fair value of these intangible assets related to the Liberty Group Business as of May 1, 2018. The value of the identifiable intangible assets was estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected premiums, persistency rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. The carrying values of VOCRA and VODA are amortized using a straight-line method and reviewed at least annually for indicators of impairment in value that are other-than-temporary. For information on VOBA, see Notes 1 and 8. The value of insurance licenses acquired was estimated using the comparable transaction method under the market approach based on arms-length transactions in which certificate authority companies with life and health insurance licenses were purchased. The value of insurance licenses has an indefinite useful life. Goodwill Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from assets acquired and liabilities assumed that could not be individually identified. The goodwill recorded as part of the acquisition is attributable to expected synergies and other benefits that management believes will result from the acquisition, including an increase in distribution strength. The goodwill resulting from the acquisition was allocated to the Group Protection segment. The goodwill is not expected to be deductible for income tax purposes. For more information on goodwill, see Notes 1 and 10. Future Contract Benefits Unpaid claims acquired reflected within future contract benefits were recorded at estimated fair value. The reserve discount rate was based on the investment yield of the assets acquired with adjustments for risk margin. The actuarial classifications and methodologies were adjusted to be consistent with our accounting policies and reserve methodologies. Financial Information Since the acquisition date of May 1, 2018, the revenues and net income of the business acquired have been included in our Consolidated Statements of Comprehensive Income (Loss) in the Group Protection segment and were $1.5 billion and $36 million, respectively, for the period ended December 31, 2018. The following unaudited pro forma condensed consolidated results of operations of the Company assume that the acquisition of Liberty Life was completed on January 1, 2017 (in millions): For the Years Ended December 31, 2018 2017 Revenue $ 17,163 $ 16,189 Net income 1,707 2,066 Pro forma adjustments include the revenue and net income of the acquired business for each period as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves and investments. Other pro forma adjustments include the incremental increase to interest expense attributable to financing the acquisition, and the impact of reflecting acquisition and integration costs and investment expenses directly attributable to the business combination in 2017 instead of in 2018. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under our accounting policy. Reinsurance Pursuant to the reinsurance agreements, the Liberty Life Business was sold to Protective for a ceding commission of $423 million. Our amounts recoverable from reinsurers increased significantly to $17.7 billion as of December 31, 2018, from $4.9 billion as of December 31, 2017, primarily as a result of this reinsurance transaction. As such, Protective now represents our largest reinsurance exposure. As we are not relieved of our liability, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance recoverable from Protective. To support its obligations under the reinsurance agreements, Protective has established trust accounts for our benefit that fully collateralize the related reinsurance recoverable. We recorded a deferred tax asset attributed to a tax loss carryforward arising from the reinsurance transaction with Protective. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Consolidated VIEs Reinsurance Related Notes In July 2013, we formed a new limited liability company, Lincoln Financial Limited Liability Company I (“LFLLCI”), and we became the sole equity owner of LFLLCI through our capital contribution. The activities of LFLLCI relate solely to our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont V (“LRCVV”), and are primarily to acquire, hold and issue notes with LRCVV as well as pay and collect interest on the notes. LFLLCI holds a surplus note issued by LRCVV that had an outstanding principal balance of $600 million as of December 31, 2018. LFLLCI issued a long-term note to LRCVV that has a principal balance that moves concurrently with any variability in the face amount of the surplus note LFLLCI received from LRCVV. We concluded that LFLLCI is a VIE and that LNC is the primary beneficiary as we have the power to direct the most significant activities affecting the performance of LFLLCI. Asset and liability information (dollars in millions) for the consolidated VIEs included on our Consolidated Balance Sheets was as follows: As of December 31, 2018 As of December 31, 2017 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Total return swap 1 600 - 1 573 - Total assets 1 $ 600 $ - 1 $ 573 $ - There were no gains or losses for consolidated VIEs recognized on our Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018 and 2017. Unconsolidated VIEs Reinsurance Related Notes Effective September 30, 2014, we entered into a new transaction with a non-affiliated VIE whose primary activities are to acquire, hold and issue notes and loans, pay and collect interest on the notes and loans, and enter into derivative instruments. We issued a long-term senior note to the non-affiliated VIE in exchange for a corporate bond AFS security of like principal and duration that was assigned to one of our subsidiaries. The outstanding principal balance of this long-term senior note was $885 million as of December 31, 2018, and it is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS security up to a maximum amount of $1.1 billion. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the senior note provide us with a set-off right with the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. The VIE has entered into a total return swap with an unaffiliated third party that supports any necessary principal funding of the corporate bond AFS security required by our subsidiaries while the security is outstanding. Effective October 1, 2017, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, restructured the $275 million, long-term surplus note which was originally issued to a non-affiliated VIE in October 2015 in exchange for two corporate bond AFS securities of like principal and duration. The activities of the VIE are primarily to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. As of December 31, 2018 , the principal balance of the long-term surplus note was zero and we do not currently have any exposure to this VIE. Structured Securities Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our RMBS, CMBS, CLOs and CDOs. We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 5. Limited Partnerships and Limited Liability Companies We invest in certain LPs and limited liability companies (“LLCs”), including qualified affordable housing projects, that we have concluded are VIEs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $1.7 billion and $1.5 billion as of December 31, 2018 and 2017, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $20 million and $31 million as of December 31, 2018 and 2017, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We receive returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits, which are recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss) and were $1 million and $3 million for the years ended December 31, 2018 and 2017, respectively. Our exposure to loss is limited to the capital we invest in the LPs and LLCs, and there have been no indicators of impairment that would require us to recognize an impairment loss related to the LPs and LLCs as of December 31, 2018. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | 5 . Investments AFS Securities In 2018, we adopted ASU 2016-01, which resulted in a new classification and measurement of our equity securities. See Note 2 for additional information. The amortized cost, gross unrealized gains, losses and OTTI and fair value of AFS securities (in millions) were as follows: As of December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,623 $ 2,980 $ 2,263 $ (8 ) $ 80,348 ABS 916 42 6 (14 ) 966 U.S. government bonds 390 29 2 - 417 Foreign government bonds 406 42 - - 448 RMBS 3,308 118 67 (14 ) 3,373 CMBS 811 6 16 (3 ) 804 CLOs 1,746 3 24 (5 ) 1,730 State and municipal bonds 4,647 716 18 - 5,345 Hybrid and redeemable preferred securities 582 45 34 - 593 Total AFS securities $ 92,429 $ 3,981 $ 2,430 $ (44 ) $ 94,024 As of December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 75,701 $ 6,862 $ 354 $ (7 ) $ 82,216 ABS 903 51 7 (27 ) 974 U.S. government bonds 527 41 1 - 567 Foreign government bonds 395 56 - - 451 RMBS 3,327 155 39 (22 ) 3,465 CMBS 590 10 2 (2 ) 600 CLOs 803 2 2 (5 ) 808 State and municipal bonds 4,172 953 6 - 5,119 Hybrid and redeemable preferred securities 575 87 22 - 640 Total fixed maturity securities 86,993 8,217 433 (63 ) 94,840 Equity AFS securities 247 16 17 - 246 Total AFS securities $ 87,240 $ 8,233 $ 450 $ (63 ) $ 95,086 (1) Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2018 , were as follows: Amortized Fair Cost Value Due in one year or less $ 3,699 $ 3,729 Due after one year through five years 17,061 17,084 Due after five years through ten years 18,228 18,135 Due after ten years 46,660 48,203 Subtotal 85,648 87,151 Structured securities (ABS, MBS, CLOs) 6,781 6,873 Total fixed maturity AFS securities $ 92,429 $ 94,024 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2018 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 32,493 $ 1,530 $ 7,228 $ 735 $ 39,721 $ 2,265 ABS 117 2 143 14 260 16 U.S. government bonds 70 1 23 1 93 2 RMBS 472 10 863 60 1,335 70 CMBS 470 11 82 5 552 16 CLOs 1,124 21 103 3 1,227 24 State and municipal bonds 404 8 96 10 500 18 Hybrid and redeemable preferred securities 96 6 133 28 229 34 Total AFS securities $ 35,246 $ 1,589 $ 8,671 $ 856 $ 43,917 $ 2,445 Total number of AFS securities in an unrealized loss position 3,414 As of December 31, 2017 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 4,854 $ 68 $ 4,893 $ 288 $ 9,747 $ 356 ABS 62 1 151 15 213 16 U.S. government bonds 156 - 19 1 175 1 RMBS 302 4 641 36 943 40 CMBS 113 - 60 3 173 3 CLOs 281 2 72 - 353 2 State and municipal bonds 34 - 93 6 127 6 Hybrid and redeemable preferred securities 20 - 126 22 146 22 Total fixed maturity securities 5,822 75 6,055 371 11,877 446 Equity AFS securities 22 14 8 3 30 17 Total AFS securities $ 5,844 $ 89 $ 6,063 $ 374 $ 11,907 $ 463 Total number of AFS securities in an unrealized loss position 1,128 The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 395 $ 124 $ 1 45 Six months or greater, but less than nine months 96 49 - 11 Nine months or greater, but less than twelve months 11 8 - 2 Twelve months or greater 143 74 8 32 Total $ 645 $ 255 $ 9 90 As of December 31, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 156 $ 57 $ 1 26 Six months or greater, but less than nine months 2 1 - 4 Nine months or greater, but less than twelve months 15 8 - 7 Twelve months or greater 215 78 10 49 Total $ 388 $ 144 $ 11 86 (1) We may reflect a security in more than one aging category based on various purchase dates. We regularly review our investment holdings for OTTI. Our gross unrealized losses, including the portion of OTTI recognized in OCI, on fixed maturity AFS securities increased by $ 2.0 billion for the year ended December 31, 2018 . As discussed further below, we believe the unrealized loss position as of December 31, 2018 , did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the estimated future cash flows were equal to or greater than the amortized cost basis of the debt securities. Based upon this evaluation as of December 31, 2018 , management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums and fees and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities. As of December 31, 2018 , the unrealized losses associated with our corporate bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost for each temporarily-impaired security. As of December 31, 2018 , the unrealized losses associated with our MBS and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each temporarily-impaired security. As of December 31, 2018 , the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each temporarily-impaired security. Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 378 $ 430 $ 382 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 5 13 84 Credit losses on securities for which an OTTI was previously recognized 2 7 17 Decreases attributable to: Securities sold, paid down or matured (30 ) (72 ) (53 ) Balance as of end-of-year $ 355 $ 378 $ 430 During 2018 , 2017 and 2016 , we recorded credit losses on securities for which an OTTI was not previously recognized as we determined the cash flows expected to be collected would not be sufficient to recover the entire amortized cost basis of the debt security. The credit losses we recorded on securities for which an OTTI was not previously recognized were attributable primarily to one or a combination of the following reasons: · Failure of the issuer of the security to make scheduled payments; · Deterioration of creditworthiness of the issuer; · Deterioration of conditions specifically related to the security; · Deterioration of fundamentals of the industry in which the issuer operates; and · Deterioration of the rating of the security by a rating agency. We recognize the OTTI attributed to the noncredit portion as a separate component in OCI referred to as unrealized OTTI on fixed maturity AFS securities. Determination of Credit Losses on Corporate Bonds As of December 31, 2018 and 2017, we reviewed our corporate bond portfolio for potential shortfalls in contractual principal and interest based on numerous subjective and objective inputs. The factors used to determine the amount of credit loss for each individual security, include, but are not limited to, near-term risk, substantial discrepancy between book and market value, sector or company-specific volatility, negative operating trends and trading levels wider than peers. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by Standard & Poor’s (“S&P”) Rating Services or Baa3 or higher by Moody’s Investors Service (“Moody’s”), are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2018 and 2017, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2018 and 2017, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.2 billion and $3.5 billion, respectively, and a fair value of $3.0 billion and $ 3.5 billion, respectively. Based upon the analysis discussed above, we believed as of December 31, 2018 and 2017, that we would recover the amortized cost of each corporate bond. Determination of Credit Losses on MBS and ABS As of December 31, 2018 and 2017, default rates were projected by considering underlying MBS and ABS loan performance and collateral type. Projected default rates on existing delinquencies vary depending on loan type and severity of delinquency status. In addition, we estimate the potential contributions of currently performing loans that may become delinquent in the future based on the change in delinquencies and loan liquidations experienced in the recent history. Finally, we develop a default rate timing curve by aggregating the defaults for all loans in the pool (delinquent loans, foreclosure and real estate owned and new delinquencies from currently performing loans) and the associated loan-level loss severities. We use certain available loan characteristics such as lien status, loan sizes and occupancy to estimate the loss severity of loans. Second lien loans are assigned 100% severity, if defaulted. For first lien loans, we assume a minimum of 30% severity, with higher severity assumed for investor properties and further adjusted by housing price assumptions. With the default rate timing curve and loan-level loss severity, we derive the future expected credit losses. Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2018 2017 Fixed maturity securities: Corporate bonds $ 1,639 $ 1,335 ABS 17 15 U.S. government bonds 43 115 Foreign government bonds 23 23 RMBS 79 86 CMBS 7 2 CLOs 104 3 State and municipal bonds 16 17 Hybrid and redeemable preferred securities 22 24 Total trading securities $ 1,950 $ 1,620 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2018 , 2017 and 2016 , was $(58) million, $7 million and $(3) million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2018 As of December 31, 2017 Commercial Residential Total Commercial Residential Total Current $ 13,029 $ 239 $ 13,268 $ 10,762 $ - $ 10,762 60 to 90 days past due - 1 1 - - - Greater than 90 days past due - - - 3 - 3 Valuation allowance - - - (3 ) - (3 ) Unamortized premium (discount) (17 ) 8 (9 ) - - - Total carrying value $ 13,012 $ 248 $ 13,260 $ 10,762 $ - $ 10,762 We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss has occurred. For our commercial mortgage loans, no specifically identified loans were impaired as of December 31, 2018. Three mortgage loans were impaired as of December 31, 2017, with an aggregate principal balance of $11 million for which a specific valuation allowance of $3 million was established resulting in a net carrying value of $8 million. For our residential mortgage loans, no specifically identified loans were impaired as of December 31, 2018 or 2017. The general allowance established on residential mortgage loans as of December 31, 2018, was less than $1 million. The changes in the valuation allowance associated with impaired commercial mortgage loans on real estate (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 3 $ 2 $ 2 Additions - 1 1 Charge-offs, net of recoveries (3 ) - (1 ) Balance as of end-of-year $ - $ 3 $ 2 The average carrying value for impaired commercial mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2018 2017 2016 Average carrying value for impaired mortgage loans on real estate $ 5 $ 6 $ 7 Interest income recognized on impaired mortgage loans on real estate 1 - - Interest income collected on impaired mortgage loans on real estate 1 - - As described in Note 1, we use the loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2018 As of December 31, 2017 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 11,716 90.1% 2.30 $ 9,642 89.6% 2.26 65% to 74% 1,238 9.5% 1.76 1,000 9.3% 1.94 75% to 100% 58 0.4% 0.95 112 1.0% 0.97 Greater than 100% - 0.0% 0.00 8 0.1% 0.82 Total $ 13,012 100.0% $ 10,762 100.0% As described in Note 1, we use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2018 As of December 31, 2017 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 247 99.6% $ - 0.0% Nonperforming 1 0.4% - 0.0% Total $ 248 100.0% $ - 0.0% Our commercial mortgage loan portfolio is geographically diversified throughout the U.S. with the largest concentrations in California, which accounted for 23% and 21% of commercial mortgage loans on real estate as of December 31, 2018 and 2017, respectively, and Texas, which accounted for 12 % of commercial mortgage loans on real estate as of December 31, 2018 and 2017. Our residential mortgage loan portfolio is geographically diversified throughout the U.S. with the largest concentrations in California and Florida, which accounted for 34% and 19% , respectively, of residential mortgage loans on real estate as of December 31, 2018. We did not have residential mortgage loan exposure as of December 31, 2017. Alternative Investments As of December 31, 2018 and 2017, alternative investments included investments in 237 and 224 different partnerships, respectively, and the portfolios represented approximately 1% of our overall invested assets. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2018 2017 2016 Fixed maturity AFS securities $ 4,209 $ 4,163 $ 4,138 Equity AFS securities - 12 11 Trading securities 84 94 100 Equity securities 4 - - Mortgage loans on real estate 496 440 422 Real estate 1 2 2 Policy loans 123 135 140 Invested cash 26 11 14 Commercial mortgage loan prepayment and bond make-whole premiums 79 139 120 Alternative investments 222 165 75 Consent fees 4 6 5 Other investments 23 2 5 Investment income 5,271 5,169 5,032 Investment expense (186 ) (179 ) (158 ) Net investment income $ 5,085 $ 4,990 $ 4,874 Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2018 2017 2016 Fixed maturity AFS securities: (1) Gross gains $ 38 $ 19 $ 70 Gross losses (80 ) (44 ) (133 ) Gross OTTI (7 ) (20 ) (101 ) Equity AFS securities: Gross gains - 6 7 Gross OTTI - - (1 ) Gain (loss) on other investments (2) (13 ) (12 ) (68 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (22 ) (21 ) (24 ) Total realized gain (loss) related to certain investments (84 ) (72 ) (250 ) Realized gain (loss) on the mark-to-market on certain instruments (3) 4 (11 ) 20 Indexed annuity and IUL contracts net derivatives results: (4) Gross gain (loss) (51 ) (22 ) (1 ) Associated amortization of DAC, VOBA, DSI and DFEL 12 (2 ) (4 ) Variable annuity net derivatives results: (5) Gross gain (loss) 295 (71 ) (138 ) Associated amortization of DAC, VOBA, DSI and DFEL (35 ) 8 34 Total realized gain (loss) $ 141 $ (170 ) $ (339 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. (2) Includes market adjustments on equity securities still held of $(17) million for the year ended December 31, 2018. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives and trading securities. (4) Represents the net difference between the change in fair value of the S&P 500 Index® (“S&P 500”) call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (5) Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. Details underlying write-downs taken as a result of OTTI (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (5 ) $ (13 ) $ (80 ) ABS (1 ) (2 ) (5 ) RMBS (1 ) (2 ) (11 ) CMBS - (2 ) (2 ) State and municipal bonds - (1 ) (3 ) Total fixed maturity AFS securities (7 ) (20 ) (101 ) Equity AFS securities - - (1 ) Gross OTTI recognized in net income (loss) (7 ) (20 ) (102 ) Associated amortization of DAC, VOBA, DSI and DFEL - 2 - Net OTTI recognized in net income (loss) $ (7 ) $ (18 ) $ (102 ) We recognized less than $1 million of OTTI in OCI for the years ended December 31, 2018 and 2017. We recognized $55 million of gross OTTI in OCI, offset by $12 million for the change in DAC, VOBA, DSI and DFEL, for the year ended December 31, 2016. Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 637 $ 637 $ 765 $ 765 Securities pledged under securities lending agreements (2) 88 85 222 213 Securities pledged under repurchase agreements (3) 150 185 530 588 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,930 5,923 2,900 4,235 Total payables for collateral on investments $ 4,805 $ 6,830 $ 4,417 $ 5,801 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. The collateral requirements are generally 80% to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2018 2017 2016 Collateral payable for derivative investments $ (128 ) $ (129 ) $ (493 ) Securities pledged under securities lending agreements (134 ) 6 (26 ) Securities pledged under repurchase agreements (380 ) (5 ) (138 ) Investments pledged for FHLBI 1,030 (450 ) 995 Total increase (decrease) in payables for collateral on investments $ 388 $ (578 ) $ 338 We have elected not to offset our repurchase agreements and securities lending transactions in our financial statements. The remaining contractual maturities of repurchase agreements and securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2018 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ - $ 150 $ 150 Securities Lending Corporate bonds 88 - - - 88 Total gross secured borrowings $ 88 $ - $ - $ 150 $ 238 As of December 31, 2017 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 280 $ 150 $ 530 Securities Lending Corporate bonds 222 - - - 222 Total gross secured borrowings $ 222 $ 100 $ 280 $ 150 $ 752 We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the financial statements. In addition, we receive securities in connection with securities borrowing agreements which we are permitted to sell or re-pledge. As of December 31, 2018, the fair value of all collateral received that we are permitted to sell or re-pledge was $537 million. As of December 31, 2018, we have re-pledged $378 million of this collateral to cover initial margin on certain derivative investments. Investment Commitments As of December 31, 2018 , our investment commitments were $ 2.1 billion, which included $ 843 million of LPs, $804 million of mortgage loans on real estate and $ 476 million of private placement securities. Concentrations of Financial Instruments As of December 31, 2018 and 2017, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $ 1.4 billion and $ 1.3 billion, respectively, or 1% of our invested assets portfolio, and our investments in securities issued by the Federal National Mortgage Association with a fair value of $ 1.3 billion and $ 1. 0 billion, respectively, or 1 % of our invested assets portfolio. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2018, our most significant investments in one industry were our investments in securities in the consumer non-cyclical industry and the financial services industry with a fair value of $14.5 billion and $14.2 billion, respectively, or 13% and 12% , respectively, of our invested assets portfolio. As of December 31, 2017, our most significant investments in one industry were our investments in securities in the consumer non-cyclical industry and the utilities industry with a fair value of $15.0 billion and $14.3 billion, respectively, or 13% of our invested assets portfolio. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 6. Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 20 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets and anticipated issuances of fixed-rate securities. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets. Interest Rate Cap Corridor s We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks. Treasury and Reverse Treasury Locks We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps designated and qualifying as cash flow hedges, to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate. Equity Market Contracts We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: Call Options Based on the S&P 500 Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Consumer Price Index Swaps We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. Equity Futures We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Put Options We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. Total Return Swaps We use total return swaps to hedge the liability exposure on certain options in variable annuity products. In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. Variance Swaps We use variance swaps to hedge the liability exposure on certain options in variable annuity products. Variance swaps are contracts entered into at no cost whose payoff is the difference between the realized variance rate of an underlying index and the fixed variance rate determined as of inception of the contract. Credit Contracts We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: Credit Default Swaps – Buying Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We buy credit default swaps to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Credit Default Swaps – Selling Protection We use credit default swaps to hedge the liability exposure on certain options in variable annuity products. We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. Embedded Derivatives We have embedded derivatives that include: GLB Reserves Embedded Derivatives We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with GWB and GIB features. Changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities hedge the income statement effect of changes in embedded derivative GLB reserves caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the benefit reserves and the embedded derivative reserves based on the specific characteristics of each GLB feature. Indexed Annuity and IUL Contracts Embedded Derivatives Our indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase S&P 500 call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain Modco arrangements and coinsurance with funds withheld reinsurance arrangements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance arrangements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of December 31, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,741 $ 70 $ 9 $ 3,007 $ 46 $ 84 Foreign currency contracts (1) 2,326 167 39 1,804 79 79 Total cash flow hedges 5,067 237 48 4,811 125 163 Fair value hedges: Interest rate contracts (1) 1,268 55 137 1,438 254 174 Non-Qualifying Hedges Interest rate contracts (1) 100,628 464 138 72,937 657 127 Foreign currency contracts (1) 47 - - 22 - - Equity market contracts (1) 30,487 676 162 31,090 562 557 Credit contracts (1) - - - 52 - - Embedded derivatives: GLB direct (2) - 123 - - 903 - GLB ceded (2) (3) - 72 - - 51 67 Reinsurance related (4) - - 3 - - 57 Indexed annuity and IUL contracts (2) (5) - 902 1,305 - 11 1,418 Total derivative instruments $ 137,497 $ 2,529 $ 1,793 $ 110,350 $ 2,563 $ 2,563 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. Beginning in the first quarter 2017, consistent with changes enacted by the Chicago Mercantile Exchange (“CME”), the Company offset the variation margin payments with the derivative balances that are cleared through CME. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of December 31, 2018 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 12,968 $ 16,828 $ 49,713 $ 23,715 $ 1,413 $ 104,637 Foreign currency contracts (2) 102 268 728 1,166 109 2,373 Equity market contracts 20,876 5,225 1,236 14 3,136 30,487 Total derivative instruments with notional amounts $ 33,946 $ 22,321 $ 51,677 $ 24,895 $ 4,658 $ 137,497 (1) As of December 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067 . (2) As of December 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . The change in our unrealized gain (loss) on derivative instruments in AOCI (in millions) was as follows: For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ (29 ) $ 49 $ 132 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cumulative effect from adoption of new accounting standard (6 ) - - Cash flow hedges: Interest rate contracts 100 7 (205 ) Foreign currency contracts 44 20 (10 ) Change in foreign currency exchange rate adjustment 111 (137 ) 96 Change in DAC, VOBA, DSI and DFEL (13 ) 2 3 Income tax benefit (expense) (51 ) 38 41 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 4 4 5 Interest rate contracts (2) (7 ) (18 ) (10 ) Interest rate contracts (3) - - 1 Foreign currency contracts (1) 27 18 11 Foreign currency contracts (3) - 9 7 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Income tax benefit (expense) (5 ) (4 ) (5 ) Balance as of end-of-year $ 139 $ (29 ) $ 49 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The gains (losses) on derivative instruments (in millions) recorded within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2018 2017 2016 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 $ 4 $ 5 Interest rate contracts (2) (7 ) (18 ) (10 ) Interest rate contracts (3) - - 1 Foreign currency contracts (1) - 18 11 Foreign currency contracts (3) 27 9 7 Total cash flow hedges 24 13 14 Fair value hedges: Interest rate contracts (1) (14 ) (23 ) (28 ) Interest rate contracts (2) 13 27 32 Interest rate contracts (3) 37 7 16 Total fair value hedges 36 11 20 Non-Qualifying Hedges Interest rate contracts (3) (150 ) 103 181 Foreign currency contracts (3) 5 - (14 ) Equity market contracts (3) 444 (1,427 ) (1,253 ) Equity market contracts (4) (18 ) 29 12 Credit contracts (3) - 1 (5 ) Embedded derivatives: GLB (3) (692 ) 1,055 582 Reinsurance related (3) 54 10 34 Indexed annuity and IUL contracts (3) 81 (400 ) (120 ) Total derivative instruments $ (216 ) $ (605 ) $ (549 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) recognized as a component of OCI (in millions) on derivative instruments designated and qualifying as cash flow hedges were as follows: For the Years Ended December 31, 2018 2017 2016 Offset to net investment income $ 4 $ 22 $ 16 Offset to realized gain (loss) 27 9 8 Offset to interest and debt expense (7 ) (18 ) (10 ) As of December 31, 2018 , $ 37 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 2018 and 2017 , there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. As of December 31, 2018, we did no t have any exposure related to credit default swaps for which we are the seller. As of December 31, 2017, information related to our credit default swaps for which we are the seller (dollars in millions) was as follows: Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2022 (3) (4) BBB+ 1 $ 1 $ 52 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: As of As of December 31, December 31, 2018 2017 Maximum potential payout $ - $ 52 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ - $ 52 Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, we would have been required to post collateral if the market value was less than zero. Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of December 31, 2018 , the NPR adjustment was less than $ 1 million. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, our insurance subsidiaries have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of December 31, 2018 or 2017 . The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2018 As of December 31, 2017 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNC Counter- LNC Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNC) Party) LNC) Party) AA- $ 33 $ (3 ) $ 116 $ (1 ) A+ 296 (96 ) 242 (453 ) A 106 (56 ) 170 (120 ) A- 4 - 237 (3 ) BBB+ 197 - - (4 ) $ 636 $ (155 ) $ 765 $ (581 ) Balance Sheet Offsetting Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows: As of December 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,330 $ 1,097 $ 2,427 Gross amounts offset (223 ) - (223 ) Net amount of assets 1,107 1,097 2,204 Gross amounts not offset: Cash collateral (636 ) - (636 ) Non-cash collateral (58 ) - (58 ) Net amount $ 413 $ 1,097 $ 1,510 Financial Liabilities Gross amount of recognized liabilities $ 784 $ 1,308 $ 2,092 Gross amounts offset (103 ) - (103 ) Net amount of liabilities 681 1,308 1,989 Gross amounts not offset: Cash collateral (155 ) - (155 ) Non-cash collateral (190 ) - (190 ) Net amount $ 336 $ 1,308 $ 1,644 As of December 31, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,301 $ 965 $ 2,266 Gross amounts offset (386 ) - (386 ) Net amount of assets 915 965 1,880 Gross amounts not offset: Cash collateral (765 ) - (765 ) Net amount $ 150 $ 965 $ 1,115 Financial Liabilities Gross amount of recognized liabilities $ 955 $ 1,542 $ 2,497 Gross amounts offset (296 ) - (296 ) Net amount of liabilities 659 1,542 2,201 Gross amounts not offset: Cash collateral (581 ) - (581 ) Net amount $ 78 $ 1,542 $ 1,620 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7. Federal Income Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2018 2017 2016 Current $ 91 $ 210 $ 88 Deferred 153 (1,159 ) 178 Federal income tax expense (benefit) $ 244 $ (949 ) $ 266 A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2018 2017 2016 Tax rate times pre-tax income (loss) $ 396 $ 396 $ 510 Effect of: Tax-preferred investment income (87 ) (280 ) (196 ) Tax credits (39 ) (29 ) (28 ) Change in uncertain tax positions 1 (17 ) (14 ) Excess tax benefits from share-based compensation (5 ) (12 ) (8 ) Goodwill impairment - 316 - Deferred tax impact from the Tax Cuts and Jobs Act (19 ) (1,322 ) - Other items (3 ) (1 ) 2 Federal income tax expense (benefit) $ 244 $ (949 ) $ 266 Effective tax rate 13% -84% 18% The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). Tax-preferred investment income as reflected above relates primarily to the separate account dividends-received deduction, which generated a total tax benefit of $84 million, $264 million and $182 million for the years ended December 31, 2018 , 2017 and 2016 , respectively . As a result of the Tax Act, the recorded tax benefit for the separate account dividends-received deduction was substantially less in our 2018 income tax provision as compared to prior years. The current year also includes a tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our adoption of a recent Internal Revenue Service pronouncement related to variable annuity contracts. As a result of the enactment of the Tax Act on December 22, 2017, we remeasured our existing deferred tax balances at the 21% marginal corporate income tax rate and recognized a $1.3 billion tax benefit in 2017. The SEC previously issued rules that allow for a one-year measurement period after the enactment of the Tax Act to finalize calculations and recording of the related tax impacts. Subsequent to the enactment date, we completed our review of the provisions of the Tax Act, including the impact of the reduction in the U.S. federal corporate income tax rate and the impact of specific life insurance provisions on our financial statements. The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2018 2017 Current $ (24 ) $ (35 ) Deferred (1,158 ) (2,095 ) Total federal income tax asset (liability) $ (1,182 ) $ (2,130 ) Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2018 2017 Deferred Tax Assets Future contract benefits and other contract holder funds $ 649 $ 795 Reinsurance related embedded derivative asset 1 12 Compensation and benefit plans 179 182 Intangibles 40 - Tax credits - 76 Net operating losses 264 - Other 56 7 Total deferred tax assets $ 1,189 $ 1,072 Deferred Tax Liabilities DAC $ 1,339 $ 1,080 VOBA 305 108 Net unrealized gain on AFS securities 338 1,643 Net unrealized gain on trading securities 27 41 Intangibles - 9 Investment activity 332 96 Other 6 190 Total deferred tax liabilities $ 2,347 $ 3,167 Net deferred tax asset (liability) $ (1,158 ) $ (2,095 ) As of December 31, 2018, we had no remaining deferred tax assets related to tax credits; however, we have $1.3 billion of net operating losses to carry forward to future years. Although realization is not assured, management believes that it is more likely than not that we will realize the benefits of our deferred tax assets, and, accordingly, no valuation allowance has been recorded. As of December 31, 2018 and 2017 , $ 16 million and $ 11 million , respectively, of our unrecognized tax benefits presented below, if recognized, would have affected our federal income tax expense (benefit) and our effective tax rate. We are not aware of any events for which it is likely that unrecognized tax benefits will significantly increase or decrease within the next year. A reconciliation of the unrecognized tax benefits (in millions) was as follows: For the Years Ended December 31, 2018 2017 Balance as of beginning-of-year $ 11 $ 1 Increases for prior year tax positions - 9 Increases for current year tax positions 5 1 Balance as of end-of-year $ 16 $ 11 We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2018 , 2017 and 2016 , we recognized interest and penalty expense (benefit) related to uncertain tax positions of zero , zero and $(3) million, respectively. There was no accrued interest and penalty expense related to the unrecognized tax benefits as of December 31, 2018 and 2017. We are subject to examination by U.S. federal, state, local and non-U.S. income authorities. We are currently not under examination by the Internal Revenue Service; however, tax years 2015 and forward remain open under the applicable statute of limitations. We are currently under examination by several state and local taxing jurisdictions; however, we do not expect these examinations will materially impact us. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended |
Dec. 31, 2018 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC, VOBA, DSI and DFEL | 8. DAC, VOBA, DSI and DFEL Changes in DAC (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 7,887 $ 8,243 $ 8,617 Business acquired (sold) through reinsurance (246 ) - - Deferrals 1,600 1,348 1,344 Amortization, net of interest: Amortization, excluding unlocking, net of interest (951 ) (965 ) (981 ) Unlocking (115 ) 61 (276 ) Adjustment related to realized gains (losses) (47 ) (12 ) 22 Adjustment related to unrealized gains (losses) 1,320 (788 ) (483 ) Balance as of end-of-year $ 9,448 $ 7,887 $ 8,243 Changes in VOBA (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 516 $ 891 $ 893 Business acquired (sold) through reinsurance (11 ) - - Business acquired 30 - - Deferrals 7 7 3 Amortization: Amortization, excluding unlocking (127 ) (105 ) (108 ) Unlocking (60 ) (48 ) 36 Accretion of interest (1) 48 52 52 Adjustment related to realized gains (losses) (2 ) (1 ) (2 ) Adjustment related to unrealized gains (losses) 415 (280 ) 17 Balance as of end-of-year $ 816 $ 516 $ 891 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9% . Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2018 , was as follows: 2019 $ 81 2020 77 2021 73 2022 67 2023 64 Changes in DSI (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 238 $ 243 $ 256 Business acquired (sold) through reinsurance (21 ) - - Deferrals 47 29 24 Amortization, net of interest: Amortization, excluding unlocking, net of interest (28 ) (30 ) (32 ) Unlocking - (4 ) (2 ) Adjustment related to realized gains (losses) (1 ) (1 ) (1 ) Adjustment related to unrealized gains (losses) 13 1 (2 ) Balance as of end-of-year $ 248 $ 238 $ 243 Changes in DFEL (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 1,445 $ 1,874 $ 1,952 Deferrals 875 755 631 Amortization, net of interest: Amortization, excluding unlocking, net of interest (482 ) (396 ) (365 ) Unlocking (53 ) 1 (63 ) Adjustment related to realized (gains) losses (20 ) (14 ) (3 ) Adjustment related to unrealized (gains) losses 1,004 (775 ) (278 ) Balance as of end-of-year $ 2,769 $ 1,445 $ 1,874 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance | 9. Reinsurance The following summarizes reinsurance amounts (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance transaction with Swiss Re Life & Health America, Inc. (“Swiss Re”): For the Years Ended December 31, 2018 2017 2016 Direct insurance premiums and fee income $ 12,041 $ 10,269 $ 9,551 Reinsurance assumed 89 91 93 Reinsurance ceded (1,543 ) (1,485 ) (1,413 ) Total insurance premiums and fee income $ 10,587 $ 8,875 $ 8,231 Direct insurance benefits $ 8,592 $ 6,770 $ 6,195 Reinsurance recoveries netted against benefits (1,806 ) (1,610 ) (1,503 ) Total benefits $ 6,786 $ 5,160 $ 4,692 Our insurance companies cede insurance to other companies. The portion of our life insurance and annuity risks exceeding each of our insurance companies’ retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. As of December 31, 2018 , the policy for our reinsurance program was to retain up to $20 million on a single insured life. As the amount we retain varies by policy, we reinsured approximately 25% of the mortality risk on newly issued life insurance contracts in 2018 . Approximately 46% and 38% of our total individual life in-force amount was reinsured as of December 31, 2018 and 2017 , respectively. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. The amounts recoverable from reinsurers were $17.7 billion and $4.9 billion as of December 31, 2018 and 2017 , respectively. As disclosed in Note 3, Protective represents our largest reinsurance exposure following the sale of the Liberty Life Business that resulted in amounts recoverable from Protective of $12.1 billion as of December 31, 2018 . Protective has funded trusts, of which the balance in the trusts changes as a result of ongoing reinsurance activity, to support the business ceded, which totaled $13.7 billion as of December 31, 2018 . Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain liabilities and obligations under the indemnity reinsurance agreements. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance receivable from Swiss Re, which totaled $1.5 billion and $1.8 billion as of December 31, 2018 and 2017 , respectively. Swiss Re has funded a trust, with a balance of $ 2.4 billion as of December 31, 2018 , to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. Our liabilities for funds withheld and embedded derivatives as of December 31, 2018 , included $ 177 million and $24 million, respectively, related to the business sold to Swiss Re. Portions of our deferred annuity business have been reinsured on either a coinsurance or a Modco basis with other companies to limit our exposure to interest rate risks. As of December 31, 2018 and 2017 , the reserves associated with these reinsurance arrangements totaled $ 433 million and $530 million, respectively. In addition, effective October 1, 2018, we entered into a Modco agreement with Athene to reinsure fixed and fixed indexed annuity products, which resulted in a $7.5 billion deposit asset reflected within other assets on our Consolidated Balance Sheets as of December 31, 2018. The Modco account includes fixed maturity AFS securities, trading securities, commercial mortgage loans, derivative investments and cash that had carrying values of $6.5 billion, $559 million, $72 million, $60 million and $265 million, respectively, as of December 31, 2018. As described in Note 1, we recorded a deferred gain on business sold through reinsurance related to the transaction with Athene and amortized $8 million of the gain during 2018. |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 10. Goodwill and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2018 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 (1,554 ) - - 634 Group Protection 274 - 414 - 688 Total goodwill $ 3,522 $ (2,154 ) $ 414 $ - $ 1,782 For the Year Ended December 31, 2017 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 (649 ) - (905 ) 634 Group Protection 274 - - - 274 Total goodwill $ 3,522 $ (1,249 ) $ - $ (905 ) $ 1,368 The fair values of our reporting units (Level 3 fair value estimates) are comprised of the value of in-force (i.e., existing) business and the value of new business. Specifically, new business is representative of cash flows and profitability associated with policies or contracts we expect to issue in the future, reflecting our forecasts of future sales volume and product mix over a 10-year period. To determine the values of in-force and new business, we use a discounted cash flows technique that applies a discount rate reflecting the market expected, weighted-average rate of return adjusted for the risk factors associated with operations to the projected future cash flows for each reporting unit. As of October 1, 2018, we performed our annual quantitative goodwill impairment test for our reporting units, and the fair value was in excess of each reporting unit’s carrying value for Annuities, Retirement Plan Services, Life Insurance and Group Protection. As of October 1, 2017, the date of our annual quantitative assessment of goodwill, our Annuities, Retirement Plan Services and Group Protection reporting units had fair values that exceeded the carrying value of each reporting unit. Our early adoption of ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” resulted in impairment of the Life Insurance reporting unit goodwill of $905 million during the fourth quarter of 2017 driven primarily from the impact of the December 22, 2017, enactment of the Tax Act that increased the carrying value of the Life Insurance reporting unit in excess of its fair value. The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2018 As of December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 51 100 47 Group Protection: VOCRA 576 5 - - VODA 31 - - - Insurance licenses (1) 3 - - - Total $ 715 $ 56 $ 105 $ 47 (1) No amortization recorded as the intangible asset has indefinite life. Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2018 , was as follows: 2019 $ 26 2020 37 2021 37 2022 37 2023 37 Thereafter 477 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 11. Guaranteed Benefit Features Information on the GDB features outstanding (dollars in millions) was as follows: As of December 31, 2018 (1) 2017 (1) Return of Net Deposits Total account value $ 89,783 $ 96,941 Net amount at risk (2) 1,002 81 Average attained age of contract holders 65 years 64 years Minimum Return Total account value $ 88 $ 108 Net amount at risk (2) 18 18 Average attained age of contract holders 77 years 76 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 23,365 $ 26,596 Net amount at risk (2) 2,007 417 Average attained age of contract holders 71 years 70 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 100 $ 110 $ 115 Changes in reserves 77 8 34 Benefits paid (16 ) (18 ) (39 ) Balance as of end-of-year $ 161 $ 100 $ 110 Variable Annuity Contracts Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of December 31, 2018 2017 Asset Type Domestic equity $ 54,060 $ 59,647 International equity 18,359 20,837 Fixed income 37,942 40,626 Total $ 110,361 $ 121,110 Percent of total variable annuity separate account values 99% 99% Secondary Guarantee Products Future contract benefits and other contract holder funds include reserves for our secondary guarantee products sold through our Life Insurance segment. Reserves on UL and VUL products with secondary guarantees represented 35 % of total life insurance in-force reserves as of December 31, 2018 and 2017. UL and VUL products with secondary guarantees represented 36% , 27% and 33% of total sales for the years ended December 31, 2018, 2017 and 2016 , respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 12 Months Ended |
Dec. 31, 2018 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 12. Liability for Unpaid Claims Changes in the liability for unpaid claims (in millions), were as follows: For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 2,222 $ 2,242 $ 2,307 Reinsurance recoverable 57 69 71 Net balance as of beginning-of-year 2,165 2,173 2,236 Business acquired (1) 2,842 - - Incurred related to: Current year 2,531 1,346 1,395 Prior years: Interest 120 69 71 All other incurred (2) (208 ) (76 ) (156 ) Total incurred 2,443 1,339 1,310 Paid related to: Current year (1,197 ) (798 ) (806 ) Prior years (1,061 ) (549 ) (567 ) Total paid (2,258 ) (1,347 ) (1,373 ) Net balance as of end-of-year 5,192 2,165 2,173 Reinsurance recoverable 143 57 69 Balance as of end-of-year $ 5,335 $ 2,222 $ 2,242 (1) Represents Liberty group life and disability reserves, net, as of May 1, 2018, subject to finalization of acquisition date fair values. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably . The majority of the reserves included above are for long-term disability claims. The interest rate assumption is an important part of the reserving process due to the long benefit period for these claims. Interest accrued on prior years reserves has been calculated on the opening reserve balance less one-half of the prior year’s incurred claim payments at our average reserve discount rate. Long-term disability benefits may extend for many years, and claim development schedules do not reflect these longer benefit periods. As a result, we use longer term retrospective runoff studies, experience studies and prospective studies to develop our liability estimates. Long-term disability reserves are discounted using rates ranging from 3.25% to 5% . The discount rates vary by year of claim incurral. A reconciliation of future contract benefits as reported in our Consolidated Balance Sheets to the liability for unpaid claims (in millions), was as follows: As of December 31, 2018 2017 2016 Future contract benefits $ 34,648 $ 22,887 $ 21,576 Less: Life insurance and annuity reserves and claims due 27,732 19,066 17,634 Accident and health life insurance reserves 1,581 1,599 1,700 Liability for unpaid claims $ 5,335 $ 2,222 $ 2,242 |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term and Long-Term Debt [Abstract] | |
Short-Term and Long-Term Debt | 13. Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2018 2017 Short-Term Debt Current maturities of long-term debt $ - $ 450 Total short-term debt $ - $ 450 Long-Term Debt, Excluding Current Portion Senior notes: 8.75% notes, due 2019 (1) $ - $ 287 6.25% notes, due 2020 (1) 300 300 4.85% notes, due 2021 (1) 300 300 4.20% notes, due 2022 (1) 300 300 LIBOR + 100 bps loan, due 2023 200 - 4.00% notes, due 2023 (1) 500 350 3.35% notes, due 2025 (1) 300 300 3.63% notes, due 2026 (1) 400 400 3.80% notes, due 2028 (1) 500 - 6.15% notes, due 2036 (1) 348 348 6.30% notes, due 2037 (1)(2) 375 375 7.00% notes, due 2040 (1)(2) 500 500 4.35% notes, due 2048 (1) 450 - Total senior notes 4,473 3,460 Capital securities: LIBOR + 236 bps, due 2066 (3) 722 722 LIBOR + 204 bps, due 2067 (3) 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) (3 ) (8 ) Unamortized debt issuance costs (33 ) (25 ) Unamortized adjustments from discontinued hedges 123 - Fair value hedge on interest rate swap agreements 66 254 Total unamortized premiums (discounts), unamortized debt issuance costs and fair value hedge on interest rate swap agreements 153 221 Total long-term debt $ 5,839 $ 4,894 (1) We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. (2) Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (3) To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities . Details underlying the recognition of a gain (loss) on the early extinguishment of debt (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2018 2017 2016 Principal balance outstanding prior to payoff (1) $ 287 $ - $ 350 Unamortized debt issuance costs and discounts prior to payoff (1 ) 5 (3 ) Amount paid to retire debt (309 ) - (410 ) Gain (loss) on early extinguishment of debt, pre-tax $ (23 ) $ 5 $ (63 ) (1) During the first quarter of 2018, we repurchased $287 million of our 8.75% senior notes due 2019. During the fourth quarter of 2016, we repurchased $200 million of our 8.75% senior notes due 2019 and $150 million of our 6.15% senior notes due 2036 . Future principal payments due on long-term debt (in millions) as of December 31, 2018, were as follows: 2019 $ - 2020 300 2021 300 2022 300 2023 700 Thereafter 4,086 Total $ 5,686 For our long-term debt outstanding, unsecured senior debt, which consists of senior notes, fixed-rate notes and other notes with varying interest rates, ranks highest in priority, followed by capital securities. Credit Facilities and Letters of Credit Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), and LOCs (in millions) were as follows: As of December 31, 2018 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility Jun-2021 $ 2,500 $ 1,001 LOC facility (1) Dec-2019 350 350 LOC facility (1) Aug-2031 990 953 LOC facility (1) Oct-2031 1,006 1,006 Total $ 4,846 $ 3,310 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. On June 30, 2016, we refinanced our existing credit agreement with a syndicate of banks. This agreement (the “credit facility”) allows for the borrowing and issuance of LOCs of up to $2.5 billion, $1.75 billion of which is available only to reimburse the banks for drawn LOCs. The credit facility is unsecured and has a commitment termination date of June 30, 2021 . The LOCs under the facility are used primarily to satisfy reserve credit requirements of (i) our domestic insurance companies for which reserve credit is provided by our affiliated reinsurance companies and (ii) certain ceding companies of our legacy reinsurance business. The credit facility contains or includes: · Customary terms and conditions, including covenants restricting our ability to incur liens, merge or consolidate with another entity where we are not the surviving entity and dispose of all or substantially all of our assets; · Financial covenants including maintenance of a minimum consolidated net worth (as defined in the facility) equal to the sum of $10.5 billion plus 50% of the aggregate net proceeds of equity issuances received by us in accordance with the terms of the credit facility; and a debt-to-capital ratio as defined in accordance with the credit facility not to exceed 0.35 to 1.00 ; and · Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit facility provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2018, we were in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2018, we were in compliance with all such covenants. Shelf Registration We currently have an effective shelf registration statement, which allows us to issue, in unlimited amounts, securities, including debt securities, preferred stock, common stock, warrants, stock purchase contracts, stock purchase units and depository shares. Certain Debt Covenants on Capital Securities Our $1.2 billion in principal amount of capital securities outstanding contain certain covenants that require us to make interest payments in accordance with an alternative coupon satisfaction mechanism (“ACSM”) if we determine that one of the following trigger events exists as of the 30th day prior to an interest payment date (“determination date”): · LNL’s risk-based capital (“RBC”) ratio is less than 175% (based on the most recent annual financial statement filed with the State of Indiana); or · (i) The sum of our consolidated net income for the four trailing fiscal quarters ending on the quarter that is two quarters prior to the most recently completed quarter prior to the determination date is zero or negative; and (ii) our consolidated stockholders’ equity (excluding AOCI and any increase in stockholders’ equity resulting from the issuance of preferred stock during a quarter), or “adjusted stockholders’ equity,” as of (x) the most recently completed quarter and (y) the end of the quarter that is two quarters before the most recently completed quarter, has declined by 10% or more as compared to the quarter that is 10 fiscal quarters prior to the last completed quarter, or the “benchmark quarter.” The ACSM would generally require us to use commercially reasonable efforts to satisfy our obligation to pay interest in full on the capital securities with the net proceeds from sales of our common stock and warrants to purchase our common stock with an exercise price greater than the market price. We would have to utilize the ACSM until the trigger events no longer existed. Our failure to pay interest pursuant to the ACSM will not result in an event of default with respect to the capital securities nor will a nonpayment of interest unless it lasts for 10 consecutive years, although such breaches may result in monetary damages to the holders of the capital securities. As of December 31, 2018, we were in compliance with all such covenants. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 14. Contingencies and Commitments Contingencies Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. LNC is involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2018. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LNC’s financial condition. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of December 31, 2018 , we estimate the aggregate range of reasonably possible losses to be up to approximately $ 50 million. For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews . Certain reinsurers have sought rate increases on certain yearly renewable term treaties. We are disputing the requested rate increases under these treaties. We have initiated and will initiate arbitration proceedings, as necessary, under these treaties in order to protect our contractual rights. Additionally, reinsurers may initiate arbitration proceedings against us. We believe it is unlikely the outcome of these disputes will have a material adverse effect on our financial condition. For more information about reinsurance, see Note 9. Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed plaintiff’s complaint in its entirety. The court ordered that plaintiff will have until February 26, 2019, to file a motion seeking leave to amend. Hanks v. The Lincoln Life and Annuity Company of New York (“LLANY”) and Voya Retirement Insurance and Annuity Company (“Voya”) , filed in the U.S. District Court for the Southern District of New York, No. 1:16-cv-6399, is a putative class action that was served on LLANY on August 12, 2016. Plaintiff owns a universal life policy originally issued by Aetna (now Voya) and alleges that (i) Voya breached the terms of the policy when it increased non-guaranteed cost of insurance rates on Plaintiff’s policy; and (ii) LLANY, as reinsurer and administrator of Plaintiff’s policy, engaged in wrongful conduct related to the cost of insurance increase and was unjustly enriched as a result. Plaintiff seeks to represent all owners of Aetna life insurance policies that were subject to non-guaranteed cost of insurance rate increases in 2016 and seeks damages on their behalf. We are vigorously defending this matter. EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:17-cv-02592, is a civil action filed on February 1, 2017. Plaintiffs own Legend Series universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased cost of insurance rates beginning in 2016. We are vigorously defending this matter. In re: Lincoln National COI Litigation , pending in the U.S. District Court for the Eastern District of Pennsylvania, Master File No. 2:16-cv-06605-GJP, is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order dated March 20, 2017. In addition to consolidating a number of existing matters, the order also covers any future cases filed in the same district related to the same subject matter. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2016. Plaintiffs seek to represent classes of policyowners and seek damages on their behalf. We are vigorously defending this matter. In re: Lincoln National 2017 COI Rate Litigation , Master File No. 2:17-cv-04150 is a consolidated litigation matter related to multiple putative class action filings that were consolidated by an order of the court in March 2018. Plaintiffs own universal life insurance policies originally issued by former Jefferson-Pilot (now LNL). Plaintiffs allege that LNL and LNC breached the terms of policyholders’ contracts by increasing non-guaranteed cost of insurance rates beginning in 2017. Plaintiffs seek to represent classes of policyholders and seek damages on their behalf. We are vigorously defending this matter. Iwanski v. First Penn-Pacific Life Insurance Company (“FPP”), No. 2:18-cv-01573 filed in the U.S. District Court for the District Court, Eastern District of Pennsylvania is a putative class action that was filed on April 13, 2018. Plaintiff alleges that defendant FPP breached the terms of his life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued by FPP containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. We are vigorously defending this matter. TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company , filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. We are vigorously defending this matter. LSH Co. and Wells Fargo Bank, National Association, as securities intermediary for LSH Co. v. Lincoln National Corporation and The Lincoln National Life Insurance Company , pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-05529, is a civil action filed on December 21, 2018. Plaintiffs own universal life insurance policies originally issued by Jefferson-Pilot (now LNL). Plaintiffs allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates in 2016 and 2017. Because the majority of policies at issue experienced a rate change in 2016, we expect the case will be consolidated with the In re: Lincoln National COI Litigation and EFG Bank cases, discussed above. We are vigorously defending this matter. Commitments Operating Leases We lease office space and certain equipment under various long-term lease agreements. Rental expense on operating leases for the years ended December 31, 2018 , 2017 and 2016 , was $ 50 million, $43 million and $44 million, respectively. Our future minimum lease payments (in millions) as of December 31, 2018 , were as follows: 2019 $ 44 2020 41 2021 40 2022 36 2023 33 Thereafter 88 Total $ 282 Capital Leases In 2018 and 2017, we entered into sale-leaseback transactions on $88 million and $62 million, respectively, (net of amortization) of assets. These transactions have been classified as other assets on our Consolidated Balance Sheets. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. Total accumulated amortization of all capital leased assets under sale-leaseback transactions as of December 31, 2018 and 2017, was $282 million and $101 million, respectively. Future minimum lease payments under capital leases (in millions) as of December 31, 2018, were as follows: 2019 $ 97 2020 58 2021 68 2022 67 2023 91 Thereafter 28 Total minimum lease payments 409 Less: Amount representing interest 45 Present value of minimum lease payments $ 364 Football Stadium Naming Rights Commitment In 2002, we entered into an agreement with the Philadelphia Eagles to name the Eagles’ new stadium Lincoln Financial Field. In exchange for the naming rights, we agreed to pay $140 million over a 20 -year period through annual payments to the Philadelphia Eagles, which average approximately $7 million per year. The total amount includes a maximum annual increase related to the Consumer Price Index. This future commitment has not been recorded as a liability on our Consolidated Balance Sheets as it is being accounted for in a manner consistent with the accounting for operating leases under the Leases Topic of the FASB ASC. Vulnerability from Concentrations As of December 31, 2018 , we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. For information on our investment and reinsurance concentrations, see Notes 5 and 9, respectively. Although we do not have any significant concentration of customers, our American Legacy Variable Annuity (“ALVA”) product offered in our Annuities segment is significant to this segment. The ALVA product accounted for 11% , 14% and 21% of Annuities’ variable annuity product deposits in 2018, 2017 and 2016, respectively, and represented approximately 38% , 40% and 41% of the segment’s total variable annuity product account values as of December 31, 2018, 2017 and 2016, respectively. In addition, fund choices for certain of our other variable annuity products offered in our Annuities segment include American Fund Insurance Series SM (“AFIS”) funds. For the Annuities segment, AFIS funds accounted for 16% , 20% and 23% of variable annuity product deposits in 2018, 2017 and 2016, respectively, and represented 45% , 47% and 47% of the segment’s total variable annuity product account values as of December 31, 2018, 2017 and 2016, respectively. Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $(17) million and $(16) million as of December 31, 2018 and 2017 , respectively. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 15. Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows: For the Years Ended December 31, 2018 2017 2016 Common Stock Balance as of beginning-of-year 218,090,114 226,335,105 243,835,893 Stock issued for exercise of warrants 212,670 344,901 79,397 Stock compensation/issued for benefit plans 800,325 1,793,234 1,732,812 Retirement/cancellation of shares (13,240,349 ) (10,383,126 ) (19,312,997 ) Balance as of end-of-year 205,862,760 218,090,114 226,335,105 Common Stock as of End-of-Year Basic basis 205,862,760 218,090,114 226,335,105 Diluted basis 209,034,686 221,309,830 230,126,820 Our common stock is without par value. Average Shares A reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share was as follows: For the Years Ended December 31, 2018 2017 2016 Weighted-average shares, as used in basic calculation 215,936,448 222,128,687 234,181,717 Shares to cover exercise of outstanding warrants 568,602 761,353 1,089,221 Shares to cover non-vested stock 1,534,142 1,626,908 1,109,490 Average stock options outstanding during the year 1,739,029 2,360,372 2,256,720 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (81,260 ) (109,034 ) (248,402 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) (1,074,406 ) (1,414,857 ) (1,508,620 ) Shares repurchasable from measured but unrecognized stock option expense (14,600 ) (53,241 ) (49,839 ) Average deferred compensation shares 944,151 920,792 - Weighted-average shares, as used in diluted calculation 219,552,106 226,220,980 236,830,287 In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. For the years ended December 31, 2018 and 2017, the effect of settling this obligation in LNC stock (“equity classification”) was more dilutive than the scenario of settling in cash (“liability classification”). Therefore, for our EPS calculation for these periods, we added these shares to the denominator and adjusted the numerator to present net income as if the shares had been accounted for under equity classification by removing the mark-to-market adjustment included in net income attributable to these deferred units of LNC stock. The amount of this adjustment was $18 million and $ (7) million for the years ended December 31, 2018 and 2017, respectively. As o f December 31, 2018 , we had 275,068 outstanding warrants. The warrants, each representing the right to purchase one share of our common stock had an exercise price of $9.73 as of December 31, 2018 , subject to adjustment. The warrants expire on July 10, 2019, and are listed on the New York Stock Exchange under the symbol “LNC WS.” AOCI The following summarizes the components and changes in AOCI (in millions): For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,486 $ 1,784 $ 991 Cumulative effect from adoption of new accounting standards 674 - - Unrealized holding gains (losses) arising during the year (6,274 ) 3,032 1,600 Change in foreign currency exchange rate adjustment (107 ) 134 (99 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,748 (705 ) (456 ) Income tax benefit (expense) 981 (797 ) (370 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (42 ) (39 ) (158 ) Associated amortization of DAC, VOBA, DSI and DFEL (20 ) (20 ) (23 ) Income tax benefit (expense) 13 21 63 Balance as of end-of-year $ 557 $ 3,486 $ 1,784 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 44 $ 25 $ 26 (Increases) attributable to: Cumulative effect from adoption of new accounting standards 9 - - Gross OTTI recognized in OCI during the year - - (55 ) Change in DAC, VOBA, DSI and DFEL - - 12 Income tax benefit (expense) - - 15 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities (19 ) 34 54 Change in DAC, VOBA, DSI and DFEL (6 ) (5 ) (12 ) Income tax benefit (expense) 5 (10 ) (15 ) Balance as of end-of-year $ 33 $ 44 $ 25 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ (29 ) $ 49 $ 132 Cumulative effect from adoption of new accounting standard (6 ) - - Unrealized holding gains (losses) arising during the year 144 27 (215 ) Change in foreign currency exchange rate adjustment 111 (137 ) 96 Change in DAC, VOBA, DSI and DFEL (13 ) 2 3 Income tax benefit (expense) (51 ) 38 41 Less: Reclassification adjustment for gains (losses) included in net income (loss) 24 13 14 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Income tax benefit (expense) (5 ) (4 ) (5 ) Balance as of end-of-year $ 139 $ (29 ) $ 49 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (14 ) $ (27 ) $ (5 ) Foreign currency translation adjustment arising during the year (9 ) 13 (22 ) Balance as of end-of-year $ (23 ) $ (14 ) $ (27 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (257 ) $ (265 ) $ (299 ) Cumulative effect from adoption of new accounting standard (35 ) - - Adjustment arising during the year (12 ) 18 43 Income tax benefit (expense) 5 (10 ) (9 ) Balance as of end-of-year $ (299 ) $ (257 ) $ (265 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (42 ) $ (39 ) $ (158 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (20 ) (20 ) (23 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (62 ) (59 ) (181 ) operations before taxes Income tax benefit (expense) 13 21 63 Federal income tax expense (benefit) Reclassification, net of income tax $ (49 ) $ (38 ) $ (118 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 8 $ 5 $ 3 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - (1 ) - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 8 4 3 operations before taxes Income tax benefit (expense) (2 ) (1 ) - Federal income tax expense (benefit) Reclassification, net of income tax $ 6 $ 3 $ 3 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 4 $ 4 $ 5 Net investment income Interest rate contracts (7 ) (18 ) (10 ) Interest and debt expense Interest rate contracts - - 1 Total realized gain (loss) Foreign currency contracts 27 18 11 Net investment income Foreign currency contracts - 9 7 Total realized gain (loss) Total gross reclassifications 24 13 14 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 22 12 13 operations before taxes Income tax benefit (expense) (5 ) (4 ) (5 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 17 $ 8 $ 8 Net income (loss) |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Commissions And Other Expenses [Abstract] | |
Commissions and Other Expenses | 16. Commissions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2018 2017 2016 Commissions $ 2,256 $ 1,986 $ 1,910 General and administrative expenses 1,953 1,766 1,687 Expenses associated with reserve financing and unrelated LOCs 84 87 80 DAC and VOBA deferrals and interest, net of amortization (402 ) (350 ) (70 ) Broker-dealer expenses 465 438 418 Specifically identifiable intangible asset amortization 9 4 4 Taxes, licenses and fees 313 245 248 Acquisition and integration costs related to mergers and acquisitions 85 - - Total $ 4,763 $ 4,176 $ 4,277 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Retirement and Deferred Compensation Plans | 17. Retirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain U.S. defined benefit pension plans in which certain U.S. employees and agents are participants, and a U.K. plan we retained after the sale of the Lincoln UK business. Our defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with the minimum funding requirements in both the U.S. and the U.K. In accordance with such practice, we were not required to make contributions but elected to contribute $ 8 million and $10 million for the years ended December 31, 2018 and 2017, respectively. We do not expect to be required to make any contributions to these pension plans in 2019. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired employees and agents. Total net periodic cost (recovery) for these plans was $(2) million, $(3) million and $5 million during 2018, 2017 and 2016, respectively. In 2019, we expect to make benefit payments of approximately $110 million for these plans. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2018 2017 2018 2017 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,356 $ 1,566 $ 64 $ 60 Projected benefit obligation 1,477 1,674 74 87 Funded status $ (121 ) $ (108 ) $ (10 ) $ (27 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 52 $ 45 $ - $ - Other liabilities (173 ) (153 ) (10 ) (27 ) Net amount recognized $ (121 ) $ (108 ) $ (10 ) $ (27 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 4.14% 3.62% 4.50% 4.00% Net periodic benefit cost: Weighted-average discount rate 3.75% 4.01% 4.00% 4.50% Expected return on plan assets 6.46% 6.71% 6.50% 6.50% The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2018, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2018 2017 Fixed maturity securities: Corporate bonds $ 249 $ 292 U.S. government bonds 252 291 Foreign government bonds 216 231 State and municipal bonds 28 32 Common and preferred stock 485 615 Cash and invested cash 125 103 Other investments 65 62 Total $ 1,420 $ 1,626 See “Fair Value Measurement” in Note 1 for discussion on how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 20 for a summary of our fair value measurement of our pension plans’ assets by the three-level fair value hierarchy. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible employees and agents. We administer these plans in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. For the years ended December 31, 2018, 2017 and 2016, expenses for these plans were $93 million, $88 million and $86 million, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former employees, agents and non-employee directors. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select our stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For the years ended December 31, 2018, 2017 and 2016, expenses for these plans were $4 million, $35 million and $33 million, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. Information (in millions) with respect to these plans was as follows: As of December 31, 2018 2017 Total liabilities (1) $ 547 $ 588 Investments dedicated to fund liabilities (2) 170 182 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets . |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Stock-Based Incentive Compensation Plans | 18. Stock-Based Incentive Compensation Plans We sponsor stock-based incentive compensation plans for our employees and directors and for the employees and agents of our subsidiaries that provide for the issuance of stock options, performance shares, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) among other types of awards. We issue new shares to satisfy option exercises and vested performance shares and RSUs. Total compensation expense (in millions) by award type for all of our stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2018 2017 2016 Stock options $ 5 $ 10 $ 9 Performance shares 15 13 11 SARs (1 ) 2 3 RSUs 32 25 23 Total $ 51 $ 50 $ 46 Recognized tax benefit $ 11 $ 18 $ 16 Total unrecognized compensation expense (in millions) and expected weighted-average life (in years) by award type for all of our stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2018 2017 2016 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 9 1.1 $ 9 1.4 $ 8 1.4 Performance shares 14 0.9 12 1.2 12 1.4 SARs - 2.7 2 3.2 2 3.6 RSUs 50 1.2 32 1.1 25 1.2 Total unrecognized stock-based incentive compensation expense $ 73 $ 55 $ 47 Stock Options The option price assumptions used for our stock option awards were as follows: For the Years Ended December 31, 2018 2017 2016 Weighted-average fair value per option granted $ 18.74 $ 18.27 $ 9.32 Assumptions: Dividend yield 2.1% 2.0% 2.8% Expected volatility 27.2% 31.5% 35.9% Risk-free interest rate 2.5 - 2.9% 1.7 - 2.1% 1.0 - 1.6% Expected life (in years) 5.8 5.5 5.7 The fair value of options is determined using a Black-Scholes options valuation model with the assumptions disclosed in the table above. The dividend yield is based on the expected dividend rate during the expected life of the option. Expected volatility is based on the implied volatility of exchange-traded securities and the historical volatility of the LNC stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the options granted represents the weighted-average period of time from the grant date to the date of exercise, expiration or cancellation based upon historical behavior. We award to certain agents stock options that have a maximum contractual term of five years and generally vest ratably over a two -year period depending on the satisfaction of the performance conditions. Information with respect to our incentive plans involving stock options with performance conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 271,724 $ 54.37 Granted – original 32,400 78.41 Exercised (includes shares tendered) (55,594 ) 47.13 Forfeited or expired (19,694 ) 55.45 Outstanding as of December 31, 2018 228,836 $ 59.43 2.27 $ 1 Vested or expected to vest as of December 31, 2018 (1) 214,570 $ 58.54 2.18 $ 1 Exercisable as of December 31, 2018 200,304 $ 57.51 2.08 $ 1 (1) Includes estimated forfeitures. The total fair value of stock options with performance conditions that vested during the years ended December 31, 2018 , 201 7 and 2016 , was $1 million, $2 million and $1 million, respectively. The total intrinsic value of such options exercised during the years ended December 31, 2018 , 2017 and 2016 , was $2 million, $12 million and $3 million, respectively. Generally, stock options have a maximum contractual term of ten years and vest ratably over a three -year period based solely on a service condition. Information with respect to our incentive plans involving stock options with service conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 2,192,139 $ 46.02 Granted – original 481,404 77.81 Exercised (includes shares tendered) (239,633 ) 33.13 Forfeited or expired (79,894 ) 67.55 Outstanding as of December 31, 2018 2,354,016 $ 53.11 6.83 $ 17 Vested or expected to vest as of December 31, 2018 (1) 2,134,763 $ 52.14 6.70 $ 16 Exercisable as of December 31, 2018 1,448,275 $ 44.94 5.83 $ 14 (1) Includes estimated forfeitures. The total fair value of stock options with service conditions that vested during the years ended December 31, 2018 , 2017 and 2016 was $6 million. The total intrinsic value of such options exercised during the years ended December 31, 2018 , 2017 and 2016 , was $11 million, $23 million and $22 million, respectively. Performance Shares LNC performance shares vest, if at all, on the third anniversary of the grant date; depending on the achievement level of performance measures pre-determined by the Compensation Committee for the three-year performance period, payout could range from zero to 200% of the target award. Information with respect to our performance shares was as follows: Weighted- Average Grant-Date Shares Fair Value Nonvested as of December 31, 2017 556,949 $ 53.65 Granted 156,676 89.89 Vested (137,308 ) 68.35 Forfeited (30,092 ) 69.62 Nonvested as of December 31, 2018 546,225 $ 59.46 SARs Under our incentive compensation plan, we issue SARs to certain planners and advisers who have full-time contracts with us. The SARs under this plan are rights on our stock that are cash settled and become exercisable in increments of 25% over the four -year period following the SARs grant date. SARs are granted with an exercise price equal to the fair market value of our stock at the date of grant and, unless cancelled earlier due to certain terminations of employment, expire five years from the date of grant. Generally, such SARs are transferable only upon death. We recognize compensation expense for SARs based on the fair value method using the Black-Scholes option-pricing model. Compensation expense and the related liability are recognized on a straight-line basis over the vesting period of the SARs. The SARs liability is marked-to-market through net income, which causes volatility in net income (loss) as a result of changes in the market value of our stock and reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). The SARs liability as of December 31, 2018 and 2017 , was $1 million and $3 million, respectively, and reported within other liabilities on our Consolidated Balance Sheets. The option price assumptions used for our SARs were as follows: For the Years Ended December 31, 2018 2017 2016 Weighted-average fair value per SAR granted $ 19.09 $ 20.06 $ 10.25 Assumptions: Dividend yield 1.6% 1.5% 2.9% Expected volatility 27.0% 34.4% 35.8% Risk-free interest rate 2.8% 2.2% 1.4% Expected life (in years) 5.0 5.0 5.0 The assumptions above are the same as those discussed for options above, except the dividend yield is based on the current dividend rate at the date of grant, expected volatility is based on the implied volatility of exchange-traded securities and the expected life represents the contractual term. Information with respect to our SARs plan (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 162,188 $ 50.22 Granted – original 14,692 78.41 Exercised (includes shares tendered) (39,661 ) 44.55 Forfeited or expired (7,212 ) 54.82 Outstanding as of December 31, 2018 130,007 $ 54.88 2.10 $ - Vested or expected to vest as of December 31, 2018 (1) 124,916 $ 54.75 2.06 $ - Exercisable as of December 31, 2018 84,783 $ 52.55 1.60 $ - (1) Includes estimated forfeitures. The payment for SARs exercised was $1 million, $3 million and $2 million during the years ended December 31, 2018 , 2017 and 2016 , respectively . RSUs LNC RSUs generally cliff-vest on the third anniversary of the grant date, based solely on a service condition. Information with respect to our RSUs was as follows: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2017 1,494,732 $ 51.83 Granted 741,967 76.11 Vested (429,039 ) 58.22 Forfeited (114,784 ) 64.16 Outstanding as of December 31, 2018 1,692,876 $ 60.02 |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Information and Restrictions | 19. Statutory Information and Restrictions The Company’s domestic life insurance subsidiaries prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Our insurance subsidiaries are subject to the applicable laws and regulations of their respective states. Changes in these laws and regulations could change capital levels or capital requirements for our insurance subsidiaries. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, First Penn-Pacific Life Insurance Company (“FPP”), LLACB, Lincoln Reinsurance Company of South Carolina, LLANY , Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV, Lincoln Reinsurance Company of Vermont V, Lincoln Reinsurance Company of Vermont VI and Lincoln Reinsurance Company of Vermont VII. As of December 31, 2018 2017 U.S. capital and surplus $ 8,510 $ 8,263 For the Years Ended December 31, 2018 2017 2016 U.S. net gain (loss) from operations, after-tax $ 692 $ 1,329 $ 1,111 U.S. net income (loss) 1,019 1,468 1,002 U.S. dividends to LNC holding company 925 974 970 Comparison of 2018 to 2017 Statutory net income (loss) decreased due primarily to lower dividends from affiliates, acquisition and integration costs incurred as part of our acquisition of LLACB, and unfavorable reserve strain on certain products. See Note 3 for information regarding our acquisition. Comparison of 2017 to 2016 Statutory net income (loss) increased due primarily to higher dividends from affiliates, higher realized gains on investments, and increased other revenue, partially offset by unfavorable reserve strain on certain products. The states of domicile of the Company’s insurance subsidiaries have adopted certain prescribed accounting practices that differ from those found in NAIC SAP. These prescribed practices are the use of continuous Commissioners Annuity Reserve Valuation Method (“CARVM”) in the calculation of reserves as prescribed by the state of New York, the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, and the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. The Vermont reinsurance subsidiaries also have certain accounting practices permitted by the state of Vermont that differ from those found in NAIC SAP. One permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2018 and 2017. Another permitted practice involves the acquisition of an LLC note in exchange for a variable value surplus note that is recognized as an admitted asset and a form of surplus as of December 31, 2018. Lastly, the state of Vermont has permitted a practice to account for certain excess of loss reinsurance treaties with unaffiliated reinsurers as an asset and form of surplus as of December 31, 2018. These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of Actuarial Guideline 48 (“AG48”). The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2018 2017 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 36 $ 54 Conservative valuation rate on certain annuities (55 ) (50 ) Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,959 1,965 LLC notes and variable value surplus notes 1,634 1,585 Excess of loss reinsurance treaties 330 185 (1) These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48. The New York State Department of Financial Services did not recognize the NAIC revisions to Actuarial Guideline 38 in applying the New York law governing the reserves to be held for UL and VUL products containing secondary guarantees. The change, which was effective as of December 31, 2013, impacted our New York-domiciled insurance subsidiary, LLANY. Although LLANY discontinued the sale of these products in early 2013, the change affected those policies previously sold. As a result, we phased in an increase in reserves over five years, from 2013 to 2017, resulting in a total increase of $450 million. The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75% and 100% , which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2018, the combined RBC ratio of LNL, LLANY and FPP reported to their respective states of domicile and the NAIC was in excess of four times the aforementioned company action level. Our insurance subsidiaries are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, our Indiana insurance subsidiaries, including our primary insurance subsidiary, LNL, may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10% of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiaries, LLANY, a New York-domiciled insurance company, and LLACB, a New Hampshire-domiciled company, are bound by similar restrictions, under the laws of New York and New Hampshire, respectively. Under both New York and New Hampshire law, the applicable statutory limitation on dividends is equal to the lesser of 10% of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect our domestic insurance subsidiaries could pay dividends of approximately $825 million in 2019 without prior approval from the respective Commissioner of Insurance. All payments of principal and interest on surplus notes between LNC and our insurance subsidiaries must be approved by the respective Commissioner of Insurance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 20. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 94,024 $ 94,024 $ 94,840 $ 94,840 Equity securities - - 246 246 Trading securities 1,950 1,950 1,620 1,620 Equity securities 99 99 - - Mortgage loans on real estate 13,260 13,092 10,762 10,877 Derivative investments (1) 1,107 1,107 915 915 Other investments 2,255 2,255 2,296 2,296 Cash and invested cash 2,345 2,345 1,628 1,628 Other assets: GLB direct embedded derivatives 123 123 903 903 GLB ceded embedded derivatives 72 72 51 51 Indexed annuity ceded embedded derivatives 902 902 11 11 Separate account assets 132,833 132,833 144,219 144,219 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,305 ) (1,305 ) (1,418 ) (1,418 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (542 ) (542 ) (592 ) (592 ) Account values of certain investment contracts (34,535 ) (36,358 ) (32,370 ) (36,200 ) Short-term debt - - (450 ) (452 ) Long-term debt (5,839 ) (5,604 ) (4,894 ) (5,042 ) Reinsurance related embedded derivatives (3 ) (3 ) (57 ) (57 ) Other liabilities: Derivative liabilities (1) (160 ) (160 ) (338 ) (338 ) GLB ceded embedded derivatives - - (67 ) (67 ) Benefit Plans’ Assets (2) 1,420 1,420 1,626 1,626 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. Other Investments The carrying value of our assets classified as other investments approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 1 within the fair value hierarchy. Separate Account Assets Separate account assets are primarily carried at fair value. A portion of our separate account assets includes LPs, which are accounted for using the equity method of accounting. The carrying value is based on our proportional share of the net assets of the LPs and approximates fair value. The inputs used to measure the fair value of the separate account asset LPs are classified as Level 3 within the fair value hierarchy. Other Contract Holder Funds Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2018 and 2017 , the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. Short-Term and Long-Term Debt The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. Financial Instruments Carried at Fair Value We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2018 or 2017 , and we noted no changes in our valuation methodologies between these periods. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described above: As of December 31, 2018 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 77,079 $ 3,269 $ 80,348 ABS - 937 29 966 U.S. government bonds 399 18 - 417 Foreign government bonds - 339 109 448 RMBS - 3,366 7 3,373 CMBS - 802 2 804 CLOs - 1,625 105 1,730 State and municipal bonds - 5,345 - 5,345 Hybrid and redeemable preferred securities 67 451 75 593 Trading securities 43 1,840 67 1,950 Equity securities 16 58 25 99 Derivative investments (1) - 727 705 1,432 Other investments 150 - - 150 Cash and invested cash - 2,345 - 2,345 Other assets: GLB direct embedded derivatives - - 123 123 GLB ceded embedded derivatives - - 72 72 Indexed annuity ceded embedded derivatives - - 902 902 Separate account assets 665 132,135 - 132,800 Total assets $ 1,340 $ 227,067 $ 5,490 $ 233,897 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,305 ) $ (1,305 ) Reinsurance related embedded derivatives - (3 ) - (3 ) Other liabilities: Derivative liabilities (1) - (314 ) (171 ) (485 ) Total liabilities $ - $ (317 ) $ (1,476 ) $ (1,793 ) Benefit Plans’ Assets $ 158 $ 1,262 $ - $ 1,420 As of December 31, 2017 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 79,125 $ 3,091 $ 82,216 ABS - 947 27 974 U.S. government bonds 556 6 5 567 Foreign government bonds - 341 110 451 RMBS - 3,453 12 3,465 CMBS - 594 6 600 CLOs - 717 91 808 State and municipal bonds - 5,119 - 5,119 Hybrid and redeemable preferred securities 71 493 76 640 Equity AFS securities 28 56 162 246 Trading securities 73 1,498 49 1,620 Derivative investments (1) - 994 603 1,597 Other investments 150 - - 150 Cash and invested cash - 1,628 - 1,628 Other assets: GLB direct embedded derivatives - - 903 903 GLB ceded embedded derivatives - - 51 51 Indexed annuity ceded embedded derivatives - - 11 11 Separate account assets 814 143,405 - 144,219 Total assets $ 1,692 $ 238,376 $ 5,197 $ 245,265 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,418 ) $ (1,418 ) Long-term debt - (1,127 ) - (1,127 ) Reinsurance related embedded derivatives - (57 ) - (57 ) Other liabilities: Derivative liabilities (1) - (447 ) (573 ) (1,020 ) GLB ceded embedded derivatives - - (67 ) (67 ) Total liabilities $ - $ (1,631 ) $ (2,058 ) $ (3,689 ) Benefit Plans’ Assets $ 210 $ 1,416 $ - $ 1,626 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Year Ended December 31, 2018 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 10 $ (199 ) $ 429 $ (62 ) $ 3,269 ABS 27 - (1 ) 5 (2 ) 29 U.S. government bonds 5 - - (5 ) - - Foreign government bonds 110 - (1 ) - - 109 RMBS 12 - - 7 (12 ) 7 CMBS 6 - - 35 (39 ) 2 CLOs 91 - - 218 (204 ) 105 Hybrid and redeemable preferred securities 76 - (1 ) - - 75 Equity AFS securities 162 - - - (162 ) - Trading securities 49 (5 ) - 30 (7 ) 67 Equity securities - (1 ) - - 26 25 Derivative investments 30 170 (69 ) 403 - 534 Other assets: (6) GLB direct embedded derivatives 903 (780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 (117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,418 ) 198 - (85 ) - (1,305 ) Other liabilities – GLB ceded embedded derivatives (6) (67 ) 67 - - - - Total, net $ 3,139 $ (437 ) $ (271 ) $ 2,045 $ (462 ) $ 4,014 For the Year Ended December 31, 2017 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 2,405 $ 19 $ 198 $ 99 $ 370 $ 3,091 ABS 33 - (1 ) - (5 ) 27 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (1 ) - - 110 RMBS 3 - - 20 (11 ) 12 CMBS 7 - 1 54 (56 ) 6 CLOs 68 - - 124 (101 ) 91 State and municipal bonds - (1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 15 (1 ) (14 ) 76 Equity AFS securities 177 1 (2 ) (13 ) (1 ) 162 Trading securities 65 3 8 (26 ) (1 ) 49 Derivative investments (93 ) (27 ) 129 21 - 30 Other assets: (6) GLB direct embedded derivatives - 903 - - - 903 GLB ceded embedded derivatives 203 (152 ) - - - 51 Indexed annuity ceded embedded derivatives - - - 11 - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,139 ) (400 ) - 121 - (1,418 ) Other liabilities: (6) GLB direct embedded derivatives (371 ) 371 - - - - GLB ceded embedded derivatives - (67 ) - - - (67 ) Total, net $ 1,545 $ 650 $ 347 $ 410 $ 187 $ 3,139 For the Year Ended December 31, 2016 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 1,993 $ 4 $ (31 ) $ 58 $ 381 $ 2,405 ABS 45 - (2 ) 14 (24 ) 33 U.S. government bonds - - - 8 (8 ) - Foreign government bonds 111 - - - - 111 RMBS 1 - - 66 (64 ) 3 CMBS 10 2 (1 ) 27 (31 ) 7 CLOs 551 - - 138 (621 ) 68 Hybrid and redeemable preferred securities 94 - (3 ) (15 ) - 76 Equity AFS securities 164 5 (4 ) 12 - 177 Trading securities 73 4 - 5 (17 ) 65 Derivative investments 555 (483 ) (1 ) (164 ) - (93 ) Other assets – GLB ceded embedded derivatives (6) 268 (65 ) - - - 203 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,100 ) (120 ) - 81 - (1,139 ) VIEs’ liabilities – derivative instruments (7) (4 ) 4 - - - - Other liabilities: Credit default swaps (7) (9 ) (6 ) - 15 - - GLB direct embedded derivatives (6) (953 ) 582 - - - (371 ) Total, net $ 1,799 $ (73 ) $ (42 ) $ 245 $ (384 ) $ 1,545 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, include financial instruments acquired from Liberty Life as follows: corporate bonds of $67 million and ABS of $17 million. (3) Transfers into or out of Level 3 for AFS and trading securities are reported at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are displayed at cost on our Consolidated Balance Sheets. (5) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (7) The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 947 $ (161 ) $ (3 ) $ (277 ) $ (77 ) $ 429 ABS 22 (17 ) - - - 5 U.S. government bonds - (5 ) - - - (5 ) RMBS 7 - - - - 7 CMBS 39 - - (4 ) - 35 CLOs 218 - - - - 218 Trading securities 54 (24 ) - - - 30 Equity securities 1 (1 ) - - - - Derivative investments 365 464 (426 ) - - 403 Other assets – indexed annuity ceded embedded derivatives 1,030 - - (22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (284 ) - - 199 - (85 ) Total, net $ 2,399 $ 256 $ (429 ) $ (104 ) $ (77 ) $ 2,045 For the Year Ended December 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 747 $ (200 ) $ (98 ) $ (206 ) $ (144 ) $ 99 RMBS 20 - - - - 20 CMBS 55 - - (1 ) - 54 CLOs 124 - - - - 124 Hybrid and redeemable preferred securities - - - (1 ) - (1 ) Equity AFS securities 18 (31 ) - - - (13 ) Trading securities 2 (27 ) - (1 ) - (26 ) Derivative investments 197 234 (410 ) - - 21 Other assets – indexed annuity ceded embedded derivatives 11 - - - - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (71 ) - - 192 - 121 Total, net $ 1,103 $ (24 ) $ (508 ) $ (17 ) $ (144 ) $ 410 For the Year Ended December 31, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 460 $ (62 ) $ (23 ) $ (177 ) $ (140 ) $ 58 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 8 - 8 RMBS 67 - - (1 ) - 66 CMBS 31 (1 ) - (3 ) - 27 CLOs 140 - - (2 ) - 138 Hybrid and redeemable preferred securities - (15 ) - - - (15 ) Equity AFS securities 18 (6 ) - - - 12 Trading securities 6 - - (1 ) - 5 Derivative investments 176 (169 ) (171 ) - - (164 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (70 ) - - 151 - 81 Other liabilities – credit default swaps - 15 - - - 15 Total, net $ 843 $ (238 ) $ (194 ) $ (26 ) $ (140 ) $ 245 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Years Ended December 31, 2018 2017 2016 Derivative investments $ 90 $ (266 ) $ (431 ) Embedded derivatives: Indexed annuity and IUL contracts (38 ) (14 ) (16 ) GLB (75 ) 1,904 1,122 VIEs’ liabilities – derivative instruments - - 4 Total, net (1) $ (23 ) $ 1,624 $ 679 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ (140 ) $ (62 ) ABS - (2 ) (2 ) RMBS - (12 ) (12 ) CMBS 1 (40 ) (39 ) CLOs - (204 ) (204 ) Equity AFS securities - (162 ) (162 ) Trading securities - (7 ) (7 ) Equity securities 26 - 26 Total, net $ 105 $ (567 ) $ (462 ) For the Year Ended December 31, 2017 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 458 $ (88 ) $ 370 ABS 16 (21 ) (5 ) U.S. government bonds 5 - 5 RMBS - (11 ) (11 ) CMBS 3 (59 ) (56 ) CLOs 30 (131 ) (101 ) State and municipal bonds 2 (1 ) 1 Hybrid and redeemable preferred securities - (14 ) (14 ) Equity AFS securities - (1 ) (1 ) Trading securities 4 (5 ) (1 ) Total, net $ 518 $ (331 ) $ 187 For the Year Ended December 31, 2016 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 605 $ (224 ) $ 381 ABS 4 (28 ) (24 ) U.S. government bonds - (8 ) (8 ) RMBS 3 (67 ) (64 ) CMBS - (31 ) (31 ) CLOs - (621 ) (621 ) Trading securities 1 (18 ) (17 ) Total, net $ 613 $ (997 ) $ (384 ) Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2018 , 2017 and 2016, transfers in and out of Level 3 were attributable primarily to the securities’ observable market information no longer being available or becoming available. In 2018, transfers into or out of Level 3 also include FHLB stock between equity securities and other investments at cost on our Consolidated Balance Sheets. Transfers into and out of Levels 1 and 2 are generally the result of a change in the type of input used to measure the fair value of an asset or liability at the end of the reporting period. When quoted prices in active markets become available, transfers from Level 2 to Level 1 will result. When quoted prices in active markets become unavailable, but we are able to employ a valuation methodology using significant observable inputs, transfers from Level 1 to Level 2 will result. For the years ended December 31, 2018, 2017 and 2016 , the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fair value. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2018 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,456 Discounted cash flow Liquidity/duration adjustment (1) 0.6 % - 28.6 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 2.9 % - 2.9 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.3 % - 3.3 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 1.6 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.4 % Other assets: GLB direct and ceded embedded derivatives 195 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.03 % - 0.41 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 902 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,305 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) (1) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement. Changes in any of the significant inputs presented in the table above may result in a significant change in the fair value measurement of the asset or liability as follows: · Investments – An increase in the liquidity/duration adjustment input would result in a decrease in the fair value measurement. · Indexed annuity and IUL contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. · GLB embedded derivatives – Assuming our GLB direct embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would result in an increase in the fair value measurement. For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input will not affect the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see “Summary of Significant Accounting Policies” above . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | 21. Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. As discussed in Note 3, we completed the acquisition of Liberty Life during the second quarter of 2018. Related results are included within the Group Protection segment. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations . The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), IUL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products. The Group Protection segment offers group non-medical insurance products, including short and long-disability, absence management services, term life, dental, vision and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. Other Operations includes investments related to the excess capital in our insurance subsidiaries; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; strategic digitization expense; and other corporate investments. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: · Realized gains and losses associated with the following (“excluded realized gain (loss)”): § Sales or disposals and impairments of securities; § Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities; § Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities; § Changes in the fair value of the embedded derivatives of our GLB riders reflected within variable annuity net derivative results accounted for at fair value; § Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; § Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value; and § Changes in the fair value of equity securities; · Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders; · Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; · Gains (losses) on early extinguishment of debt; · Losses from the impairment of intangible assets; · Income (loss) from discontinued operations; · Acquisition and integration costs related to mergers and acquisitions; and · Income (loss) from the initial adoption of new accounting standards, regulations, and policy changes including the net impact from the Tax Cuts and Jobs Act. Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: · Excluded realized gain (loss); · Revenue adjustments from the initial adoption of new accounting standards; · Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and · Amortization of deferred gains arising from reserve changes on business sold through reinsurance. We use our prevailing corporate federal income tax rates of 21% and 35 %, where applicable, while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our segment measures of performance to the GAAP measures presented in our consolidated results of operations. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. Segment information (in millions) was as follows: For the Years Ended December 31, 2018 2017 2016 Revenues Operating revenues: Annuities $ 4,383 $ 4,378 $ 4,033 Retirement Plan Services 1,178 1,165 1,103 Life Insurance 6,922 6,558 6,246 Group Protection 3,757 2,201 2,130 Other Operations 235 287 332 Excluded realized gain (loss), pre-tax (46 ) (336 ) (518 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 3 Amortization of DFEL associated with benefit ratio unlocking, pre-tax (5 ) 3 1 Total revenues $ 16,424 $ 14,257 $ 13,330 For the Years Ended December 31, 2018 2017 2016 Net Income (Loss) Income (loss) from operations: Annuities $ 1,102 $ 1,074 $ 935 Retirement Plan Services 171 149 127 Life Insurance 645 536 515 Group Protection 187 103 65 Other Operations (225 ) (108 ) (102 ) Excluded realized gain (loss), after-tax (37 ) (218 ) (337 ) Gain (loss) on early extinguishment of debt, after-tax (18 ) (3 ) (41 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax - - 2 Benefit ratio unlocking, after-tax (136 ) 129 28 Net impact from the Tax Cuts and Jobs Act 19 1,322 - Impairment of intangibles, after-tax - (905 ) - Acquisition and integration costs related to mergers and acquisitions, after-tax (67 ) - - Net income (loss) $ 1,641 $ 2,079 $ 1,192 For the Years Ended December 31, 2018 2017 2016 Net Investment Income Annuities $ 1,005 $ 1,038 $ 1,033 Retirement Plan Services 899 899 859 Life Insurance 2,697 2,643 2,562 Group Protection 260 168 176 Other Operations 224 242 244 Total net investment income $ 5,085 $ 4,990 $ 4,874 For the Years Ended December 31, 2018 2017 2016 Amortization of DAC and VOBA, Net of Interest Annuities $ 410 $ 401 $ 383 Retirement Plan Services 28 27 28 Life Insurance 711 469 734 Group Protection 92 79 126 Total amortization of DAC and VOBA, net of interest $ 1,241 $ 976 $ 1,271 For the Years Ended December 31, 2018 2017 2016 Federal Income Tax Expense (Benefit) Annuities $ 183 $ 199 $ 242 Retirement Plan Services 29 55 47 Life Insurance 147 244 238 Group Protection 50 55 35 Other Operations (77 ) (130 ) (109 ) Excluded realized gain (loss) (9 ) (118 ) (181 ) Gain (loss) on early extinguishment of debt (5 ) (2 ) (22 ) Reserve changes (net of related amortization) on business sold through reinsurance - - 1 Benefit ratio unlocking (36 ) 70 15 Net impact from the Tax Cuts and Jobs Act (19 ) (1,322 ) - Acquisition and integration costs related to mergers and acquisitions (19 ) - - Total federal income tax expense (benefit) $ 244 $ (949 ) $ 266 As of December 31, 2018 2017 Assets Annuities $ 145,458 $ 144,721 Retirement Plan Services 35,736 37,072 Life Insurance 81,533 81,381 Group Protection 8,495 4,033 Other Operations 26,925 14,556 Total assets $ 298,147 $ 281,763 Revenue from Contracts with Customers As discussed in Note 2, we adopted ASU 2014-09, Revenue from Contracts with Customers, as of January 1, 2018, that applies primarily to commissions and advisory fees earned by our broker dealer operation. The following table illustrates the revenue recognized from contracts with customers reported within fee income and other revenues on our Consolidated Statements of Comprehensive Income (Loss) and timing of revenue recognition by segment (in millions): For the Year Ended December 31, 2018 Retirement Plan Life Group Other Annuities Services Insurance Protection Operations Total Revenue from Contracts with Customers Fee income $ 534 $ 167 $ 22 $ - $ - $ 723 Other revenues 479 17 10 114 - 620 Total revenue from contracts with customers $ 1,013 $ 184 $ 32 $ 114 $ - $ 1,343 Timing of Revenue Recognition Satisfaction of performance obligation: Transferred at a point in time $ 90 $ 5 $ 7 $ - $ - $ 102 Transferred over time 923 179 25 114 - 1,241 Total revenue from contracts with customers $ 1,013 $ 184 $ 32 $ 114 $ - $ 1,343 Revenue recognized from contracts with customers included in fee income consists primarily of wholesaling-related 12b-1 fees and net investment advisory fees. The 12b-1 fees are received from separate account fund sponsors as compensation for servicing the underlying mutual funds. The net investment advisory fees are related to asset management of certain separate account funds. Such revenues are recorded based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers, and on a contractual percentage of the customer’s managed assets over the period advisory services are provided, respectively. Revenue recognized from contracts with customers included in other revenues primarily relates to our retail sales network and consists of commission revenue for the sale of non-affiliated securities recorded on a trade-date basis and advisory fee income. Advisory fee income is asset-based revenues recorded as earned based on a contractual percentage of customer account values. Other revenues earned by our Group Protection segment consist of fees from administrative services performed, which are recognized as performance obligations are met over the terms of the underlying agreements. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flow Data | 22 . Supplemental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2018 2017 2016 Interest paid $ 281 $ 248 $ 274 Income taxes paid (received) 90 170 197 Significant non-cash investing and financing transactions: Investments received in financing transactions 263 - - |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Results of Operations (Unaudited) | 23. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations (in millions, except per share data) were as follows: For the Three Months Ended March 31, June 30, September 30, December 31, (1) 2018 Total revenues $ 3,609 $ 4,020 $ 4,264 $ 4,531 Total expenses 3,174 3,569 3,732 4,064 Net income (loss) 367 385 490 399 Earnings (loss) per common share – basic: Net income (loss) 1.68 1.76 2.27 1.89 Earnings (loss) per common share – diluted: Net income (loss) 1.64 1.70 2.24 1.80 2017 Total revenues $ 3,500 $ 3,577 $ 3,511 $ 3,669 Total expenses 3,025 3,044 3,001 4,057 Net income (loss) 435 411 418 816 Earnings (loss) per common share – basic: Net income (loss) 1.93 1.84 1.89 3.73 Earnings (loss) per common share – diluted: Net income (loss) 1.89 1.81 1.87 3.67 (1) Fourth quarter 2017 results include a goodwill impairment charge and the impacts of remeasuring our existing deferred tax balances for the impact of the Tax Act as disclosed elsewhere herein . |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) Column A Column B Column C Column D As of December 31, 2018 Fair Carrying Type of Investment Cost Value Value Fixed Maturity Available-For-Sale Securities (1) Bonds: U.S. government bonds $ 390 $ 417 $ 417 Foreign government bonds 406 448 448 State and municipal bonds 4,647 5,345 5,345 Public utilities 13,330 13,773 13,773 All other corporate bonds 66,293 66,575 66,575 Mortgage-backed and asset-backed securities 6,781 6,873 6,873 Hybrid and redeemable preferred securities 582 593 593 Total fixed maturity available-for-sale securities 92,429 94,024 94,024 Equity Securities Common stocks: Banks, trusts and insurance companies 59 54 54 Industrial, miscellaneous and all other 36 25 25 Non-redeemable preferred securities 21 20 20 Total equity securities 116 99 99 Trading securities 1,823 1,950 1,950 Mortgage loans on real estate 13,260 13,092 13,260 Real estate 12 N/A 12 Policy loans 2,509 N/A 2,509 Derivative investments (2) 466 1,107 1,107 Other investments 2,255 2,255 2,255 Total investments $ 112,870 $ 115,216 (1) Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. (2) Derivative investment assets were offset by $160 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Registrant [Abstract] | |
Condensed financial information of registrant | LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS (Parent Company Only) (in millions, except share data) As of December 31, 2018 2017 ASSETS Investments in subsidiaries (1) $ 18,251 $ 20,488 Derivative investments 92 187 Other investments 90 77 Cash and invested cash 420 620 Loans and accrued interest to subsidiaries (1) 2,376 2,328 Other assets 59 16 Total assets $ 21,288 $ 23,716 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Common dividends payable $ 76 $ 72 Short-term debt - 450 Long-term debt 5,839 4,894 Loans from subsidiaries (1) 553 476 Payables for collateral on investments 21 65 Other liabilities 449 437 Total liabilities 6,938 6,394 Contingencies and Commitments Stockholders’ Equity Preferred stock – 10,000,000 shares authorized - - Common stock – 800,000,000 shares authorized 5,392 5,693 Retained earnings 8,551 8,399 Accumulated other comprehensive income (loss) 407 3,230 Total stockholders’ equity 14,350 17,322 Total liabilities and stockholders’ equity $ 21,288 $ 23,716 (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parent Company Only) (in millions) For the Years Ended December 31, 2018 2017 2016 Revenues Dividends from subsidiaries (1) $ 1,025 $ 1,069 $ 1,035 Interest from subsidiaries (1) 148 133 123 Net investment income 7 2 3 Realized gain (loss) 3 (3 ) - Total revenues 1,183 1,201 1,161 Expenses Operating and administrative expenses 18 40 46 Interest – subsidiaries (1) 34 21 16 Interest – other 288 247 327 Total expenses 340 308 389 Income (loss) before federal income taxes, equity in income (loss) of subsidiaries, less dividends 843 893 772 Federal income tax expense (benefit) (42 ) (20 ) (95 ) Income (loss) before equity in income (loss) of subsidiaries, less dividends 885 913 867 Equity in income (loss) of subsidiaries, less dividends 756 1,166 325 Net income (loss) 1,641 2,079 1,192 Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) (3,449 ) 1,643 709 Foreign currency translation adjustment (9 ) 13 (22 ) Funded status of employee benefit plans (7 ) 8 34 Total other comprehensive income (loss), net of tax (3,465 ) 1,664 721 Comprehensive income (loss) $ (1,824 ) $ 3,743 $ 1,913 (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF CASH FLOWS (Parent Company Only) (in millions) For the Years Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income (loss) $ 1,641 $ 2,079 $ 1,192 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in (income) loss of subsidiaries greater than distributions (1) (756 ) (1,166 ) (325 ) Realized (gain) loss (3 ) 3 - Change in federal income tax accruals 15 107 120 Other (27 ) 20 54 Net cash provided by (used in) operating activities 870 1,043 1,041 Cash Flows from Investing Activities Capital contribution to subsidiaries (1) (502 ) (60 ) - Net change in collateral on investments, derivatives and related settlements 89 (42 ) (23 ) Net cash provided by (used in) investing activities (413 ) (102 ) (23 ) Cash Flows from Financing Activities Payment of long-term debt, including current maturities (537 ) - (350 ) Issuance of long-term debt, net of issuance costs 1,094 - 395 Payment related to early extinguishment of debt (23 ) - (59 ) Increase (decrease) in loans from subsidiaries, net (1) 52 (230 ) 37 Increase (decrease) in loans to subsidiaries, net (1) (48 ) 239 (20 ) Common stock issued for benefit plans (6 ) 46 26 Repurchase of common stock (900 ) (725 ) (879 ) Dividends paid to common stockholders (289 ) (262 ) (238 ) Net cash provided by (used in) financing activities (657 ) (932 ) (1,088 ) Net increase (decrease) in cash, invested cash and restricted cash (200 ) 9 (70 ) Cash, invested cash and restricted cash as of beginning-of-year 620 611 681 Cash, invested cash and restricted cash as of end-of-year $ 420 $ 620 $ 611 (1) Eliminated in consolidation. |
SCHEDULE III - CONSOLIDATED SUP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F Other Future Contract DAC and Contract Unearned Holder Insurance Segment VOBA Benefits Premiums (1) Funds Premiums As of or For the Year Ended December 31, 2018 Annuities $ 3,660 $ 3,509 $ - $ 23,493 $ 390 Retirement Plan Services 243 8 - 19,761 - Life Insurance 6,151 13,139 - 40,997 817 Group Protection 210 5,396 - 197 3,383 Other Operations - 12,596 - 6,785 11 Total $ 10,264 $ 34,648 $ - $ 91,233 $ 4,601 As of or For the Year Ended December 31, 2017 Annuities $ 3,583 $ 1,943 $ - $ 21,713 $ 475 Retirement Plan Services 194 4 - 18,719 - Life Insurance 4,446 12,658 - 39,459 773 Group Protection 180 2,262 - 161 1,998 Other Operations - 6,020 - 157 10 Total $ 8,403 $ 22,887 $ - $ 80,209 $ 3,256 As of or For the Year Ended December 31, 2016 Annuities $ 3,597 $ 2,485 $ - $ 21,202 $ 331 Retirement Plan Services 201 4 - 17,878 - Life Insurance 5,145 11,400 - 39,332 703 Group Protection 191 2,280 - 168 1,939 Other Operations - 5,407 - 323 14 Total $ 9,134 $ 21,576 $ - $ 78,903 $ 2,987 (1) Unearned premiums are included in Column C, future contract benefits. LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As of or For the Year Ended December 31, 2018 Annuities $ 1,005 $ 1,465 $ 373 $ 1,428 $ - Retirement Plan Services 899 557 28 393 - Life Insurance 2,697 4,759 711 660 - Group Protection 260 2,460 92 967 - Other Operations 224 162 - 507 - Total $ 5,085 $ 9,403 $ 1,204 $ 3,955 $ - As of or For the Year Ended December 31, 2017 Annuities $ 1,038 $ 1,084 $ 430 $ 1,397 $ - Retirement Plan Services 899 538 27 396 - Life Insurance 2,643 4,593 468 721 - Group Protection 168 1,353 79 611 - Other Operations 242 182 - 343 - Total $ 4,990 $ 7,750 $ 1,004 $ 3,468 $ - As of or For the Year Ended December 31, 2016 Annuities $ 1,033 $ 1,130 $ 388 $ 1,296 $ - Retirement Plan Services 859 515 28 386 - Life Insurance 2,562 4,071 734 688 - Group Protection 176 1,324 126 580 - Other Operations 244 216 - 453 - Total $ 4,874 $ 7,256 $ 1,276 $ 3,403 $ - |
SCHEDULE IV - CONSOLIDATED REIN
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE IV – CONSOLIDATED REINSURANCE (in millions) Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2018 Individual life insurance in-force (1) $ 1,420,500 $ 667,900 $ 8,700 $ 761,300 1.1% Premiums: Life insurance and annuities (2) 9,742 1,509 81 8,314 1.0% Accident and health insurance 2,299 34 8 2,273 0.4% Total premiums $ 12,041 $ 1,543 $ 89 $ 10,587 As of or For the Year Ended December 31, 2017 Individual life insurance in-force (1) $ 1,075,600 $ 286,600 $ 9,500 $ 798,500 1.2% Premiums: Life insurance and annuities (2) 8,949 1,465 80 7,564 1.1% Accident and health insurance 1,320 20 11 1,311 0.8% Total premiums $ 10,269 $ 1,485 $ 91 $ 8,875 As of or For the Year Ended December 31, 2016 Individual life insurance in-force (1) $ 1,035,600 $ 288,000 $ 10,200 $ 757,800 1.3% Premiums: Life insurance and annuities (2) 8,277 1,392 80 6,965 1.1% Accident and health insurance 1,274 21 13 1,266 1.0% Total premiums $ 9,551 $ 1,413 $ 93 $ 8,231 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Nature Of Operations, Basis O_2
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies | |
Nature Of Operations | Nature of Operations Lincoln National Corporation and its majority-owned subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments. See Note 21 for additional details. The collective group of businesses uses “Lincoln Financial Group” as its marketing identity. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL, indexed universal life insurance (“IUL”), term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. |
Basis Of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and The Lincoln National Life Insurance Company (“LNL”) completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life” or “LLACB”). We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, other-than-temporary impairment (“OTTI”) and asset valuation allowances, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. |
Business Combinations | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement | Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: · Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; · Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and · Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Available-For-Sale Securities – Fair Valuation Methodologies And Associated Inputs | Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: · Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. · Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). · State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. · Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
AFS Securities – Evaluation For Recovery Of Amortized Cost | AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be other-than-temporary. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are other-than-temporarily impaired: · The estimated range and average period until recovery; · The estimated range and average holding period to maturity; · Remaining payment terms of the security; · Current delinquencies and nonperforming assets of underlying collateral; · Expected future default rates; · Collateral value by vintage, geographic region, industry concentration or property type; · Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and · Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: · The current economic environment and market conditions; · Our business strategy and current business plans; · The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; · Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; · The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; · The capital risk limits approved by management; and · Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: · Historical and implied volatility of the security; · Length of time and extent to which the fair value has been less than amortized cost; · Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; · Failure, if any, of the issuer of the security to make scheduled payments; and · Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; · Fundamentals of the industry in which the issuer operates; · Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; · Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); · Expectations regarding defaults and recovery rates; · Changes to the rating of the security by a rating agency; and · Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: · Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; · Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; · Susceptibility to fair value fluctuations for changes in the interest rate environment; · Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; · Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; · Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and · Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. We further monitor the cash flows of all of our AFS securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. |
Trading Securities | Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Equity Securities | Equity Securities As of January 1, 2018, equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. |
Alternative Investments | Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. |
Payables for Collateral on Investments | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the valuation allowance, and subsequent recoveries, if any, are credited to the valuation allowance. We establish a valuation allowance to provide for the risk of credit losses inherent in our portfolio. The valuation allowance includes specific valuation allowances for loans that are deemed to be impaired as well as general valuation allowances for pools of loans with similar risk characteristics where a property risk or market specific risk has not been identified but for which we anticipate a loss may occur. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). General valuation allowances are primarily based on loss history adjusted for current conditions. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses. Our periodic evaluation of the adequacy of the valuation allowances is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) a valuation allowance. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a valuation allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the valuation allowances to increase or decrease over time as such evaluations are revised. Residential mortgage loan pools exclude loans that have been impaired as those loans are evaluated individually using the evaluation framework for specific valuation allowances described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status. There is generally a higher risk of experiencing credit losses when a residential mortgage loan is nonperforming. |
Policy Loans | Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Real Estate | Real Estate Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. |
Derivative Instruments | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. W e categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. |
Cash And Invested Cash | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less . |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of UL insurance, VUL insurance, traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 15 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated lower lapse experience. Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that generally results in amortization less than 30 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities. We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as AFS and certain derivatives and embedded derivatives . Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products. These assumptions include, but are not limited to, capital markets, investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. |
Reinsurance | Reinsurance Our insurance subsidiaries enter into reinsurance agreements in the normal course of business to limit our exposure to the risk of loss and to enhance our capital management. In order for a reinsurance agreement to qualify for reinsurance accounting, the agreement must satisfy certain risk transfer conditions that include, among other items, a reasonable possibility of a significant loss for the assuming entity. When we apply reinsurance accounting, premiums, benefits and DAC amortization are reported net of insurance ceded on our Consolidated Statements of Comprehensive Income (Loss). Amounts currently recoverable, such as ceded reserves, are reported in reinsurance recoverables and amounts currently payable to the reinsurers, such as premiums, are included in other liabilities on our Consolidated Balance Sheets. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to our insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, if there is a contractual right of offset. We use deposit accounting to recognize reinsurance agreements that do not transfer significant insurance risk. This accounting treatment results in amounts paid or received by our insurance subsidiaries to be considered on deposit with the reinsurer and such amounts are reported in other assets and other liabilities, respectively, on our Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, deposit assets or liabilities are adjusted. |
Goodwill | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test where the fair value of the reporting unit is determined and compared to the carrying value of the reporting unit. If the fair value of the reporting unit is greater than the reporting unit’s carrying value, then the carrying value of the reporting unit is deemed to be recoverable. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). The results of one goodwill impairment test on one reporting unit cannot subsidize the results of another reporting unit. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issuance costs associated with line-of-credit arrangements, assets under capital leases and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds, obligations under capital leases, deferred gain on business sold through reinsurance and other accrued expenses. Other assets and other liabilities on our Consolidated Balance Sheets include guaranteed living benefit (“GLB”) features and remaining guaranteed interest and similar contracts that are carried at fair value, which may be reported in either other assets or other liabilities. The fair value of these items represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Specifically identifiable intangible assets also includes the value of customer relationships acquired (“VOCRA”) and value of distribution agreements (“VODA”) that were acquired through our business combination during 2018. See Note 3 for more information regarding specifically identifiable intangible assets acquired. Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on our Consolidated Balance Sheets are related to capital leases. These assets under capital leases are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. Other liabilities on our Consolidated Balance Sheets as of December 31, 2018, includes a deferred gain on business sold through reinsurance attributable to our annuity reinsurance agreement with Athene Holding Ltd. (“Athene”) effective October 1, 2018. We are recognizing the gain related to this transaction over the period over which the majority of account values are expected to run off, or 20 years. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that may include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80. The highest contract value is increased by purchase payments and is decreased by withdrawals subsequent to that anniversary date in the same proportion that withdrawals reduce the contract value. As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 49 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include, but are not limited to, assumptions for capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, rider utilization, etc.), mortality, risk margins, maintenance expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. |
Future Contract Benefits and Other Contract Holder Funds | Future Contract Benefits and Other Contract Holder Funds Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well as the carrying value of DFEL discussed above. The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that accrue to the benefit of the contract holders, excluding surrender charges. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25% to 7.75% depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.25% to 12.75% . These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on our Consolidated Statements of Comprehensive Income (Loss). The liability for future claim reserves for long-term disability contracts for incurred and reported claims are calculated based on assumptions as to interest, claim resolution rates and offsets for other insurance including social security. Claim resolution rate assumptions and social security offsets are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for assets supporting the liabilities. The incurred but not reported claim reserves are based on our experiences as to the reporting lags and ultimate loss experience. Claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. Claim reserves do not include a provision for adverse deviation. With respect to our future contract benefits and other contract holder funds , we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2018 and 2017 , participating policies comprised less than 1 % of the face amount of business in force, and dividend expenses were $56 million, $57 million and $59 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on our Consolidated Balance Sheets, which represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The fair value of our indexed annuity contracts is based on their approximate surrender values. |
Borrowed Funds | Borrowed Funds LNC’s short-term borrowings are defined as borrowings with contractual or expected maturities of one year or less. Long-term borrowings have contractual or expected maturities greater than one year. |
Contingencies and Commitments | Contingencies and Commitments Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. |
Fee Income | Fee Income Fee income for investment and interest-sensitive life insurance contracts consists of asset-based fees, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue as performance obligations are met, over the period underlying customer assets are owned or advisory services are provided. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. |
Insurance Premiums | Insurance Premiums Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group insurance products consist primarily of term life, disability and dental. |
Net Investment Income | Net Investment Income Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For CLOs and MBS, included in the trading and AFS fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for other-than-temporary impairments of investments, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. |
Other Revenues | Other Revenues Other revenues consists primarily of fees attributable to broker-dealer services recorded as performance obligations are met, either at the time of sale or over time based on a contractual percentage of customer account values, changes in the market value of our seed capital investments, and proceeds from reinsurance recaptures. Other revenues earned by our Group Protection segment consist of fees from administrative services performed, which are recognized as performance obligations are met over the terms of the underlying agreements. |
Interest Credited | Interest Credited Interest credited includes interest credited to contract holder account balances. Interest crediting rates associated with funds invested in the general account of LNC’s insurance subsidiaries during 2016 through 2018 ranged from 1% to 10% . |
Benefits | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Strategic Digitization Expense | Strategic Digitization Expense Strategic digitization expense consists primarily of costs related to our enterprise-wide digitization initiative. |
Pensions and Other Post Retirement Benefit Plan | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date our stock awards are approved, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholders’ equity. We apply an estimated forfeiture rate to our accrual of compensation cost. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts and costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. |
Income Taxes | Income Taxes We file a U.S. consolidated income tax return that includes all of our eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside of the U.S. are taxed, and income tax expense is recorded, based on applicable foreign statutes. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Foreign Currency Translation | Foreign Currency Translation The balance sheet accounts and income statement items of foreign subsidiaries, reported in functional currencies other than the U.S. dollar are translated at the current and average exchange rates for the year, respectively. Resulting translation adjustments and other translation adjustments for foreign currency transactions that affect cash flows are reported in AOCI, a component of stockholders’ equity. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of dilutive convertible preferred securities, nonvested stock, stock options, performance share units and warrants outstanding during the year. Our deferred compensation plans allow participants the option to diversify from LNC stock to other investment alternatives. When calculating our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude these shares from our calculation, unless the effect of settlement in shares would be more dilutive to our diluted EPS calculation. For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares because using diluted shares would be anti-dilutive to the calculation. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisition [Abstract] | |
Schedule Of Fair Value Of Net Assets Acquired | Preliminary Fair Value Assets Investments $ 2,493 Mortgage loans on real estate 658 Cash and invested cash 107 Reinsurance recoverables 76 Premiums and fees receivable 83 Accrued investment income 24 Other intangible assets acquired 640 Other assets acquired 142 Separate account assets 99 Total assets acquired $ 4,322 Liabilities Future contract benefits $ 2,930 Other contract holder funds 46 Other liabilities acquired 144 Separate account liabilities 99 Total liabilities assumed $ 3,219 Net identifiable assets acquired $ 1,103 Goodwill 414 Net assets acquired $ 1,517 |
Schedule Of Fair Value Of Identifiable Intangible Assets Acquired | Weighted- Average Amortization Fair Value Period VOCRA $ 576 20 VODA 31 13 VOBA 30 3 Insurance licenses 3 N/A Total identifiable intangible assets $ 640 |
Schedule Of Pro Forma Information | For the Years Ended December 31, 2018 2017 Revenue $ 17,163 $ 16,189 Net income 1,707 2,066 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity Asset and Liability information | As of December 31, 2018 As of December 31, 2017 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Total return swap 1 600 - 1 573 - Total assets 1 $ 600 $ - 1 $ 573 $ - |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,623 $ 2,980 $ 2,263 $ (8 ) $ 80,348 ABS 916 42 6 (14 ) 966 U.S. government bonds 390 29 2 - 417 Foreign government bonds 406 42 - - 448 RMBS 3,308 118 67 (14 ) 3,373 CMBS 811 6 16 (3 ) 804 CLOs 1,746 3 24 (5 ) 1,730 State and municipal bonds 4,647 716 18 - 5,345 Hybrid and redeemable preferred securities 582 45 34 - 593 Total AFS securities $ 92,429 $ 3,981 $ 2,430 $ (44 ) $ 94,024 As of December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 75,701 $ 6,862 $ 354 $ (7 ) $ 82,216 ABS 903 51 7 (27 ) 974 U.S. government bonds 527 41 1 - 567 Foreign government bonds 395 56 - - 451 RMBS 3,327 155 39 (22 ) 3,465 CMBS 590 10 2 (2 ) 600 CLOs 803 2 2 (5 ) 808 State and municipal bonds 4,172 953 6 - 5,119 Hybrid and redeemable preferred securities 575 87 22 - 640 Total fixed maturity securities 86,993 8,217 433 (63 ) 94,840 Equity AFS securities 247 16 17 - 246 Total AFS securities $ 87,240 $ 8,233 $ 450 $ (63 ) $ 95,086 (1) Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Available-For-Sale Securities By Contractual Maturities | Amortized Fair Cost Value Due in one year or less $ 3,699 $ 3,729 Due after one year through five years 17,061 17,084 Due after five years through ten years 18,228 18,135 Due after ten years 46,660 48,203 Subtotal 85,648 87,151 Structured securities (ABS, MBS, CLOs) 6,781 6,873 Total fixed maturity AFS securities $ 92,429 $ 94,024 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of December 31, 2018 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 32,493 $ 1,530 $ 7,228 $ 735 $ 39,721 $ 2,265 ABS 117 2 143 14 260 16 U.S. government bonds 70 1 23 1 93 2 RMBS 472 10 863 60 1,335 70 CMBS 470 11 82 5 552 16 CLOs 1,124 21 103 3 1,227 24 State and municipal bonds 404 8 96 10 500 18 Hybrid and redeemable preferred securities 96 6 133 28 229 34 Total AFS securities $ 35,246 $ 1,589 $ 8,671 $ 856 $ 43,917 $ 2,445 Total number of AFS securities in an unrealized loss position 3,414 As of December 31, 2017 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Fair Losses and Fair Losses and Fair Losses and Value OTTI Value OTTI Value OTTI Fixed maturity AFS securities: Corporate bonds $ 4,854 $ 68 $ 4,893 $ 288 $ 9,747 $ 356 ABS 62 1 151 15 213 16 U.S. government bonds 156 - 19 1 175 1 RMBS 302 4 641 36 943 40 CMBS 113 - 60 3 173 3 CLOs 281 2 72 - 353 2 State and municipal bonds 34 - 93 6 127 6 Hybrid and redeemable preferred securities 20 - 126 22 146 22 Total fixed maturity securities 5,822 75 6,055 371 11,877 446 Equity AFS securities 22 14 8 3 30 17 Total AFS securities $ 5,844 $ 89 $ 6,063 $ 374 $ 11,907 $ 463 Total number of AFS securities in an unrealized loss position 1,128 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of December 31, 2018 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 395 $ 124 $ 1 45 Six months or greater, but less than nine months 96 49 - 11 Nine months or greater, but less than twelve months 11 8 - 2 Twelve months or greater 143 74 8 32 Total $ 645 $ 255 $ 9 90 As of December 31, 2017 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 156 $ 57 $ 1 26 Six months or greater, but less than nine months 2 1 - 4 Nine months or greater, but less than twelve months 15 8 - 7 Twelve months or greater 215 78 10 49 Total $ 388 $ 144 $ 11 86 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 378 $ 430 $ 382 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 5 13 84 Credit losses on securities for which an OTTI was previously recognized 2 7 17 Decreases attributable to: Securities sold, paid down or matured (30 ) (72 ) (53 ) Balance as of end-of-year $ 355 $ 378 $ 430 |
Fair Value Of Trading Securities | As of December 31, 2018 2017 Fixed maturity securities: Corporate bonds $ 1,639 $ 1,335 ABS 17 15 U.S. government bonds 43 115 Foreign government bonds 23 23 RMBS 79 86 CMBS 7 2 CLOs 104 3 State and municipal bonds 16 17 Hybrid and redeemable preferred securities 22 24 Total trading securities $ 1,950 $ 1,620 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of December 31, 2018 As of December 31, 2017 Commercial Residential Total Commercial Residential Total Current $ 13,029 $ 239 $ 13,268 $ 10,762 $ - $ 10,762 60 to 90 days past due - 1 1 - - - Greater than 90 days past due - - - 3 - 3 Valuation allowance - - - (3 ) - (3 ) Unamortized premium (discount) (17 ) 8 (9 ) - - - Total carrying value $ 13,012 $ 248 $ 13,260 $ 10,762 $ - $ 10,762 |
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 3 $ 2 $ 2 Additions - 1 1 Charge-offs, net of recoveries (3 ) - (1 ) Balance as of end-of-year $ - $ 3 $ 2 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2018 2017 2016 Average carrying value for impaired mortgage loans on real estate $ 5 $ 6 $ 7 Interest income recognized on impaired mortgage loans on real estate 1 - - Interest income collected on impaired mortgage loans on real estate 1 - - |
Net Investment Income | For the Years Ended December 31, 2018 2017 2016 Fixed maturity AFS securities $ 4,209 $ 4,163 $ 4,138 Equity AFS securities - 12 11 Trading securities 84 94 100 Equity securities 4 - - Mortgage loans on real estate 496 440 422 Real estate 1 2 2 Policy loans 123 135 140 Invested cash 26 11 14 Commercial mortgage loan prepayment and bond make-whole premiums 79 139 120 Alternative investments 222 165 75 Consent fees 4 6 5 Other investments 23 2 5 Investment income 5,271 5,169 5,032 Investment expense (186 ) (179 ) (158 ) Net investment income $ 5,085 $ 4,990 $ 4,874 |
Realized Gain (Loss) Related To Certain Investments | For the Years Ended December 31, 2018 2017 2016 Fixed maturity AFS securities: (1) Gross gains $ 38 $ 19 $ 70 Gross losses (80 ) (44 ) (133 ) Gross OTTI (7 ) (20 ) (101 ) Equity AFS securities: Gross gains - 6 7 Gross OTTI - - (1 ) Gain (loss) on other investments (2) (13 ) (12 ) (68 ) Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (22 ) (21 ) (24 ) Total realized gain (loss) related to certain investments (84 ) (72 ) (250 ) Realized gain (loss) on the mark-to-market on certain instruments (3) 4 (11 ) 20 Indexed annuity and IUL contracts net derivatives results: (4) Gross gain (loss) (51 ) (22 ) (1 ) Associated amortization of DAC, VOBA, DSI and DFEL 12 (2 ) (4 ) Variable annuity net derivatives results: (5) Gross gain (loss) 295 (71 ) (138 ) Associated amortization of DAC, VOBA, DSI and DFEL (35 ) 8 34 Total realized gain (loss) $ 141 $ (170 ) $ (339 ) (1) These amounts are represented net of related fair value hedging activity. See Note 6 for more information. (2) Includes market adjustments on equity securities still held of $(17) million for the year ended December 31, 2018. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives and trading securities. (4) Represents the net difference between the change in fair value of the S&P 500 Index® (“S&P 500”) call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (5) Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. |
OTTI Recognized In Net Income (Loss) And OCI | For the Years Ended December 31, 2018 2017 2016 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (5 ) $ (13 ) $ (80 ) ABS (1 ) (2 ) (5 ) RMBS (1 ) (2 ) (11 ) CMBS - (2 ) (2 ) State and municipal bonds - (1 ) (3 ) Total fixed maturity AFS securities (7 ) (20 ) (101 ) Equity AFS securities - - (1 ) Gross OTTI recognized in net income (loss) (7 ) (20 ) (102 ) Associated amortization of DAC, VOBA, DSI and DFEL - 2 - Net OTTI recognized in net income (loss) $ (7 ) $ (18 ) $ (102 ) |
Payables For Collateral On Investments | As of December 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 637 $ 637 $ 765 $ 765 Securities pledged under securities lending agreements (2) 88 85 222 213 Securities pledged under repurchase agreements (3) 150 185 530 588 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 3,930 5,923 2,900 4,235 Total payables for collateral on investments $ 4,805 $ 6,830 $ 4,417 $ 5,801 (1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. (2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102 % and 105 % of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. (3) Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. The collateral requirements are generally 80% to 95 % of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. (4) Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Years Ended December 31, 2018 2017 2016 Collateral payable for derivative investments $ (128 ) $ (129 ) $ (493 ) Securities pledged under securities lending agreements (134 ) 6 (26 ) Securities pledged under repurchase agreements (380 ) (5 ) (138 ) Investments pledged for FHLBI 1,030 (450 ) 995 Total increase (decrease) in payables for collateral on investments $ 388 $ (578 ) $ 338 |
Schedule Of Securities Pledged By Contractual Maturity | As of December 31, 2018 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ - $ 150 $ 150 Securities Lending Corporate bonds 88 - - - 88 Total gross secured borrowings $ 88 $ - $ - $ 150 $ 238 As of December 31, 2017 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ 100 $ 280 $ 150 $ 530 Securities Lending Corporate bonds 222 - - - 222 Total gross secured borrowings $ 222 $ 100 $ 280 $ 150 $ 752 |
Commercial [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2018 As of December 31, 2017 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 11,716 90.1% 2.30 $ 9,642 89.6% 2.26 65% to 74% 1,238 9.5% 1.76 1,000 9.3% 1.94 75% to 100% 58 0.4% 0.95 112 1.0% 0.97 Greater than 100% - 0.0% 0.00 8 0.1% 0.82 Total $ 13,012 100.0% $ 10,762 100.0% |
Residential [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2018 As of December 31, 2017 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 247 99.6% $ - 0.0% Nonperforming 1 0.4% - 0.0% Total $ 248 100.0% $ - 0.0% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of December 31, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,741 $ 70 $ 9 $ 3,007 $ 46 $ 84 Foreign currency contracts (1) 2,326 167 39 1,804 79 79 Total cash flow hedges 5,067 237 48 4,811 125 163 Fair value hedges: Interest rate contracts (1) 1,268 55 137 1,438 254 174 Non-Qualifying Hedges Interest rate contracts (1) 100,628 464 138 72,937 657 127 Foreign currency contracts (1) 47 - - 22 - - Equity market contracts (1) 30,487 676 162 31,090 562 557 Credit contracts (1) - - - 52 - - Embedded derivatives: GLB direct (2) - 123 - - 903 - GLB ceded (2) (3) - 72 - - 51 67 Reinsurance related (4) - - 3 - - 57 Indexed annuity and IUL contracts (2) (5) - 902 1,305 - 11 1,418 Total derivative instruments $ 137,497 $ 2,529 $ 1,793 $ 110,350 $ 2,563 $ 2,563 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. (3) Reported in other liabilities on our Consolidated Balance Sheets. (4) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (5) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of December 31, 2018 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 12,968 $ 16,828 $ 49,713 $ 23,715 $ 1,413 $ 104,637 Foreign currency contracts (2) 102 268 728 1,166 109 2,373 Equity market contracts 20,876 5,225 1,236 14 3,136 30,487 Total derivative instruments with notional amounts $ 33,946 $ 22,321 $ 51,677 $ 24,895 $ 4,658 $ 137,497 (1) As of December 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067 . (2) As of December 31, 2018 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ (29 ) $ 49 $ 132 Other comprehensive income (loss): Unrealized holding gains (losses) arising during the period: Cumulative effect from adoption of new accounting standard (6 ) - - Cash flow hedges: Interest rate contracts 100 7 (205 ) Foreign currency contracts 44 20 (10 ) Change in foreign currency exchange rate adjustment 111 (137 ) 96 Change in DAC, VOBA, DSI and DFEL (13 ) 2 3 Income tax benefit (expense) (51 ) 38 41 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 4 4 5 Interest rate contracts (2) (7 ) (18 ) (10 ) Interest rate contracts (3) - - 1 Foreign currency contracts (1) 27 18 11 Foreign currency contracts (3) - 9 7 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Income tax benefit (expense) (5 ) (4 ) (5 ) Balance as of end-of-year $ 139 $ (29 ) $ 49 (1) The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Years Ended December 31, 2018 2017 2016 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 $ 4 $ 5 Interest rate contracts (2) (7 ) (18 ) (10 ) Interest rate contracts (3) - - 1 Foreign currency contracts (1) - 18 11 Foreign currency contracts (3) 27 9 7 Total cash flow hedges 24 13 14 Fair value hedges: Interest rate contracts (1) (14 ) (23 ) (28 ) Interest rate contracts (2) 13 27 32 Interest rate contracts (3) 37 7 16 Total fair value hedges 36 11 20 Non-Qualifying Hedges Interest rate contracts (3) (150 ) 103 181 Foreign currency contracts (3) 5 - (14 ) Equity market contracts (3) 444 (1,427 ) (1,253 ) Equity market contracts (4) (18 ) 29 12 Credit contracts (3) - 1 (5 ) Embedded derivatives: GLB (3) (692 ) 1,055 582 Reinsurance related (3) 54 10 34 Indexed annuity and IUL contracts (3) 81 (400 ) (120 ) Total derivative instruments $ (216 ) $ (605 ) $ (549 ) (1) Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). (2) Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). (3) Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (4) Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges | For the Years Ended December 31, 2018 2017 2016 Offset to net investment income $ 4 $ 22 $ 16 Offset to realized gain (loss) 27 9 8 Offset to interest and debt expense (7 ) (18 ) (10 ) |
Open Credit Default Swap Liabilities | Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2022 (3) (4) BBB+ 1 $ 1 $ 52 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of As of December 31, December 31, 2018 2017 Maximum potential payout $ - $ 52 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ - $ 52 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of December 31, 2018 As of December 31, 2017 Collateral Collateral Collateral Collateral Posted by Posted by Posted by Posted by S&P Counter- LNC Counter- LNC Credit Party (Held by Party (Held by Rating of (Held by Counter- (Held by Counter- Counterparty LNC) Party) LNC) Party) AA- $ 33 $ (3 ) $ 116 $ (1 ) A+ 296 (96 ) 242 (453 ) A 106 (56 ) 170 (120 ) A- 4 - 237 (3 ) BBB+ 197 - - (4 ) $ 636 $ (155 ) $ 765 $ (581 ) |
Schedule Of Offsetting Assets And Liabilities | As of December 31, 2018 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,330 $ 1,097 $ 2,427 Gross amounts offset (223 ) - (223 ) Net amount of assets 1,107 1,097 2,204 Gross amounts not offset: Cash collateral (636 ) - (636 ) Non-cash collateral (58 ) - (58 ) Net amount $ 413 $ 1,097 $ 1,510 Financial Liabilities Gross amount of recognized liabilities $ 784 $ 1,308 $ 2,092 Gross amounts offset (103 ) - (103 ) Net amount of liabilities 681 1,308 1,989 Gross amounts not offset: Cash collateral (155 ) - (155 ) Non-cash collateral (190 ) - (190 ) Net amount $ 336 $ 1,308 $ 1,644 As of December 31, 2017 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,301 $ 965 $ 2,266 Gross amounts offset (386 ) - (386 ) Net amount of assets 915 965 1,880 Gross amounts not offset: Cash collateral (765 ) - (765 ) Net amount $ 150 $ 965 $ 1,115 Financial Liabilities Gross amount of recognized liabilities $ 955 $ 1,542 $ 2,497 Gross amounts offset (296 ) - (296 ) Net amount of liabilities 659 1,542 2,201 Gross amounts not offset: Cash collateral (581 ) - (581 ) Net amount $ 78 $ 1,542 $ 1,620 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Taxes [Abstract] | |
Federal Income Tax Expense | For the Years Ended December 31, 2018 2017 2016 Current $ 91 $ 210 $ 88 Deferred 153 (1,159 ) 178 Federal income tax expense (benefit) $ 244 $ (949 ) $ 266 |
Reconciliation of effective tax rate differences | For the Years Ended December 31, 2018 2017 2016 Tax rate times pre-tax income (loss) $ 396 $ 396 $ 510 Effect of: Tax-preferred investment income (87 ) (280 ) (196 ) Tax credits (39 ) (29 ) (28 ) Change in uncertain tax positions 1 (17 ) (14 ) Excess tax benefits from share-based compensation (5 ) (12 ) (8 ) Goodwill impairment - 316 - Deferred tax impact from the Tax Cuts and Jobs Act (19 ) (1,322 ) - Other items (3 ) (1 ) 2 Federal income tax expense (benefit) $ 244 $ (949 ) $ 266 Effective tax rate 13% -84% 18% |
Federal Income Tax Asset Liability | As of December 31, 2018 2017 Current $ (24 ) $ (35 ) Deferred (1,158 ) (2,095 ) Total federal income tax asset (liability) $ (1,182 ) $ (2,130 ) |
Significant components of deferred tax assets and liabilities | As of December 31, 2018 2017 Deferred Tax Assets Future contract benefits and other contract holder funds $ 649 $ 795 Reinsurance related embedded derivative asset 1 12 Compensation and benefit plans 179 182 Intangibles 40 - Tax credits - 76 Net operating losses 264 - Other 56 7 Total deferred tax assets $ 1,189 $ 1,072 Deferred Tax Liabilities DAC $ 1,339 $ 1,080 VOBA 305 108 Net unrealized gain on AFS securities 338 1,643 Net unrealized gain on trading securities 27 41 Intangibles - 9 Investment activity 332 96 Other 6 190 Total deferred tax liabilities $ 2,347 $ 3,167 Net deferred tax asset (liability) $ (1,158 ) $ (2,095 ) |
Reconciliation Of Unrecognized Tax Benefits | For the Years Ended December 31, 2018 2017 Balance as of beginning-of-year $ 11 $ 1 Increases for prior year tax positions - 9 Increases for current year tax positions 5 1 Balance as of end-of-year $ 16 $ 11 |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 7,887 $ 8,243 $ 8,617 Business acquired (sold) through reinsurance (246 ) - - Deferrals 1,600 1,348 1,344 Amortization, net of interest: Amortization, excluding unlocking, net of interest (951 ) (965 ) (981 ) Unlocking (115 ) 61 (276 ) Adjustment related to realized gains (losses) (47 ) (12 ) 22 Adjustment related to unrealized gains (losses) 1,320 (788 ) (483 ) Balance as of end-of-year $ 9,448 $ 7,887 $ 8,243 |
VOBA | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 516 $ 891 $ 893 Business acquired (sold) through reinsurance (11 ) - - Business acquired 30 - - Deferrals 7 7 3 Amortization: Amortization, excluding unlocking (127 ) (105 ) (108 ) Unlocking (60 ) (48 ) 36 Accretion of interest (1) 48 52 52 Adjustment related to realized gains (losses) (2 ) (1 ) (2 ) Adjustment related to unrealized gains (losses) 415 (280 ) 17 Balance as of end-of-year $ 816 $ 516 $ 891 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9% . |
Estimated Future Amortization Of VOBA | 2019 $ 81 2020 77 2021 73 2022 67 2023 64 |
DSI | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 238 $ 243 $ 256 Business acquired (sold) through reinsurance (21 ) - - Deferrals 47 29 24 Amortization, net of interest: Amortization, excluding unlocking, net of interest (28 ) (30 ) (32 ) Unlocking - (4 ) (2 ) Adjustment related to realized gains (losses) (1 ) (1 ) (1 ) Adjustment related to unrealized gains (losses) 13 1 (2 ) Balance as of end-of-year $ 248 $ 238 $ 243 |
DFEL | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 1,445 $ 1,874 $ 1,952 Deferrals 875 755 631 Amortization, net of interest: Amortization, excluding unlocking, net of interest (482 ) (396 ) (365 ) Unlocking (53 ) 1 (63 ) Adjustment related to realized (gains) losses (20 ) (14 ) (3 ) Adjustment related to unrealized (gains) losses 1,004 (775 ) (278 ) Balance as of end-of-year $ 2,769 $ 1,445 $ 1,874 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss) | For the Years Ended December 31, 2018 2017 2016 Direct insurance premiums and fee income $ 12,041 $ 10,269 $ 9,551 Reinsurance assumed 89 91 93 Reinsurance ceded (1,543 ) (1,485 ) (1,413 ) Total insurance premiums and fee income $ 10,587 $ 8,875 $ 8,231 Direct insurance benefits $ 8,592 $ 6,770 $ 6,195 Reinsurance recoveries netted against benefits (1,806 ) (1,610 ) (1,503 ) Total benefits $ 6,786 $ 5,160 $ 4,692 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Changes In Carrying Amount Of Goodwill, By Reportable Segment | For the Year Ended December 31, 2018 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 (1,554 ) - - 634 Group Protection 274 - 414 - 688 Total goodwill $ 3,522 $ (2,154 ) $ 414 $ - $ 1,782 For the Year Ended December 31, 2017 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ (600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 (649 ) - (905 ) 634 Group Protection 274 - - - 274 Total goodwill $ 3,522 $ (1,249 ) $ - $ (905 ) $ 1,368 |
Schedule Of Intangible Assets By Reportable Segment | As of December 31, 2018 As of December 31, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 51 100 47 Group Protection: VOCRA 576 5 - - VODA 31 - - - Insurance licenses (1) 3 - - - Total $ 715 $ 56 $ 105 $ 47 (1) No amortization recorded as the intangible asset has indefinite life. |
Future estimated amortization of specifically identifiable intangible assets | 2019 $ 26 2020 37 2021 37 2022 37 2023 37 Thereafter 477 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of December 31, 2018 (1) 2017 (1) Return of Net Deposits Total account value $ 89,783 $ 96,941 Net amount at risk (2) 1,002 81 Average attained age of contract holders 65 years 64 years Minimum Return Total account value $ 88 $ 108 Net amount at risk (2) 18 18 Average attained age of contract holders 77 years 76 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 23,365 $ 26,596 Net amount at risk (2) 2,007 417 Average attained age of contract holders 71 years 70 years (1) Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. (2) Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Summary Of Guaranteed Death Benefit Liabilities | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 100 $ 110 $ 115 Changes in reserves 77 8 34 Benefits paid (16 ) (18 ) (39 ) Balance as of end-of-year $ 161 $ 100 $ 110 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of December 31, 2018 2017 Asset Type Domestic equity $ 54,060 $ 59,647 International equity 18,359 20,837 Fixed income 37,942 40,626 Total $ 110,361 $ 121,110 Percent of total variable annuity separate account values 99% 99% |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Years Ended December 31, 2018 2017 2016 Balance as of beginning-of-year $ 2,222 $ 2,242 $ 2,307 Reinsurance recoverable 57 69 71 Net balance as of beginning-of-year 2,165 2,173 2,236 Business acquired (1) 2,842 - - Incurred related to: Current year 2,531 1,346 1,395 Prior years: Interest 120 69 71 All other incurred (2) (208 ) (76 ) (156 ) Total incurred 2,443 1,339 1,310 Paid related to: Current year (1,197 ) (798 ) (806 ) Prior years (1,061 ) (549 ) (567 ) Total paid (2,258 ) (1,347 ) (1,373 ) Net balance as of end-of-year 5,192 2,165 2,173 Reinsurance recoverable 143 57 69 Balance as of end-of-year $ 5,335 $ 2,222 $ 2,242 (1) Represents Liberty group life and disability reserves, net, as of May 1, 2018, subject to finalization of acquisition date fair values. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably . |
Schedule Of Reconciliation | As of December 31, 2018 2017 2016 Future contract benefits $ 34,648 $ 22,887 $ 21,576 Less: Life insurance and annuity reserves and claims due 27,732 19,066 17,634 Accident and health life insurance reserves 1,581 1,599 1,700 Liability for unpaid claims $ 5,335 $ 2,222 $ 2,242 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-Term and Long-Term Debt [Abstract] | |
Schedule Of Changes In Long Term Debt | As of December 31, 2018 2017 Short-Term Debt Current maturities of long-term debt $ - $ 450 Total short-term debt $ - $ 450 Long-Term Debt, Excluding Current Portion Senior notes: 8.75% notes, due 2019 (1) $ - $ 287 6.25% notes, due 2020 (1) 300 300 4.85% notes, due 2021 (1) 300 300 4.20% notes, due 2022 (1) 300 300 LIBOR + 100 bps loan, due 2023 200 - 4.00% notes, due 2023 (1) 500 350 3.35% notes, due 2025 (1) 300 300 3.63% notes, due 2026 (1) 400 400 3.80% notes, due 2028 (1) 500 - 6.15% notes, due 2036 (1) 348 348 6.30% notes, due 2037 (1)(2) 375 375 7.00% notes, due 2040 (1)(2) 500 500 4.35% notes, due 2048 (1) 450 - Total senior notes 4,473 3,460 Capital securities: LIBOR + 236 bps, due 2066 (3) 722 722 LIBOR + 204 bps, due 2067 (3) 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) (3 ) (8 ) Unamortized debt issuance costs (33 ) (25 ) Unamortized adjustments from discontinued hedges 123 - Fair value hedge on interest rate swap agreements 66 254 Total unamortized premiums (discounts), unamortized debt issuance costs and fair value hedge on interest rate swap agreements 153 221 Total long-term debt $ 5,839 $ 4,894 (1) We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. (2) Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (3) To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities . |
Schedule Of Extinguishment Of Debt | For the Years Ended December 31, 2018 2017 2016 Principal balance outstanding prior to payoff (1) $ 287 $ - $ 350 Unamortized debt issuance costs and discounts prior to payoff (1 ) 5 (3 ) Amount paid to retire debt (309 ) - (410 ) Gain (loss) on early extinguishment of debt, pre-tax $ (23 ) $ 5 $ (63 ) (1) During the first quarter of 2018, we repurchased $287 million of our 8.75% senior notes due 2019. During the fourth quarter of 2016, we repurchased $200 million of our 8.75% senior notes due 2019 and $150 million of our 6.15% senior notes due 2036 . |
Future Principal Payments | 2019 $ - 2020 300 2021 300 2022 300 2023 700 Thereafter 4,086 Total $ 5,686 |
Credit facilities and letters of credit | As of December 31, 2018 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility Jun-2021 $ 2,500 $ 1,001 LOC facility (1) Dec-2019 350 350 LOC facility (1) Aug-2031 990 953 LOC facility (1) Oct-2031 1,006 1,006 Total $ 4,846 $ 3,310 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contingencies and Commitments [Abstract] | |
Future Rental Commitments | 2019 $ 44 2020 41 2021 40 2022 36 2023 33 Thereafter 88 Total $ 282 |
Future Capital Lease Commitments | 2019 $ 97 2020 58 2021 68 2022 67 2023 91 Thereafter 28 Total minimum lease payments 409 Less: Amount representing interest 45 Present value of minimum lease payments $ 364 |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Years Ended December 31, 2018 2017 2016 Common Stock Balance as of beginning-of-year 218,090,114 226,335,105 243,835,893 Stock issued for exercise of warrants 212,670 344,901 79,397 Stock compensation/issued for benefit plans 800,325 1,793,234 1,732,812 Retirement/cancellation of shares (13,240,349 ) (10,383,126 ) (19,312,997 ) Balance as of end-of-year 205,862,760 218,090,114 226,335,105 Common Stock as of End-of-Year Basic basis 205,862,760 218,090,114 226,335,105 Diluted basis 209,034,686 221,309,830 230,126,820 |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Years Ended December 31, 2018 2017 2016 Weighted-average shares, as used in basic calculation 215,936,448 222,128,687 234,181,717 Shares to cover exercise of outstanding warrants 568,602 761,353 1,089,221 Shares to cover non-vested stock 1,534,142 1,626,908 1,109,490 Average stock options outstanding during the year 1,739,029 2,360,372 2,256,720 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (81,260 ) (109,034 ) (248,402 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) (1,074,406 ) (1,414,857 ) (1,508,620 ) Shares repurchasable from measured but unrecognized stock option expense (14,600 ) (53,241 ) (49,839 ) Average deferred compensation shares 944,151 920,792 - Weighted-average shares, as used in diluted calculation 219,552,106 226,220,980 236,830,287 |
Components And Changes In Accumulated OCI | For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 3,486 $ 1,784 $ 991 Cumulative effect from adoption of new accounting standards 674 - - Unrealized holding gains (losses) arising during the year (6,274 ) 3,032 1,600 Change in foreign currency exchange rate adjustment (107 ) 134 (99 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds 1,748 (705 ) (456 ) Income tax benefit (expense) 981 (797 ) (370 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) (42 ) (39 ) (158 ) Associated amortization of DAC, VOBA, DSI and DFEL (20 ) (20 ) (23 ) Income tax benefit (expense) 13 21 63 Balance as of end-of-year $ 557 $ 3,486 $ 1,784 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 44 $ 25 $ 26 (Increases) attributable to: Cumulative effect from adoption of new accounting standards 9 - - Gross OTTI recognized in OCI during the year - - (55 ) Change in DAC, VOBA, DSI and DFEL - - 12 Income tax benefit (expense) - - 15 Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities (19 ) 34 54 Change in DAC, VOBA, DSI and DFEL (6 ) (5 ) (12 ) Income tax benefit (expense) 5 (10 ) (15 ) Balance as of end-of-year $ 33 $ 44 $ 25 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ (29 ) $ 49 $ 132 Cumulative effect from adoption of new accounting standard (6 ) - - Unrealized holding gains (losses) arising during the year 144 27 (215 ) Change in foreign currency exchange rate adjustment 111 (137 ) 96 Change in DAC, VOBA, DSI and DFEL (13 ) 2 3 Income tax benefit (expense) (51 ) 38 41 Less: Reclassification adjustment for gains (losses) included in net income (loss) 24 13 14 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Income tax benefit (expense) (5 ) (4 ) (5 ) Balance as of end-of-year $ 139 $ (29 ) $ 49 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (14 ) $ (27 ) $ (5 ) Foreign currency translation adjustment arising during the year (9 ) 13 (22 ) Balance as of end-of-year $ (23 ) $ (14 ) $ (27 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (257 ) $ (265 ) $ (299 ) Cumulative effect from adoption of new accounting standard (35 ) - - Adjustment arising during the year (12 ) 18 43 Income tax benefit (expense) 5 (10 ) (9 ) Balance as of end-of-year $ (299 ) $ (257 ) $ (265 ) |
Schedule of Reclassifications Out Of AOCI | For the Years Ended December 31, 2018 2017 2016 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (42 ) $ (39 ) $ (158 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (20 ) (20 ) (23 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (62 ) (59 ) (181 ) operations before taxes Income tax benefit (expense) 13 21 63 Federal income tax expense (benefit) Reclassification, net of income tax $ (49 ) $ (38 ) $ (118 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ 8 $ 5 $ 3 Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - (1 ) - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) 8 4 3 operations before taxes Income tax benefit (expense) (2 ) (1 ) - Federal income tax expense (benefit) Reclassification, net of income tax $ 6 $ 3 $ 3 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 4 $ 4 $ 5 Net investment income Interest rate contracts (7 ) (18 ) (10 ) Interest and debt expense Interest rate contracts - - 1 Total realized gain (loss) Foreign currency contracts 27 18 11 Net investment income Foreign currency contracts - 9 7 Total realized gain (loss) Total gross reclassifications 24 13 14 Associated amortization of DAC, VOBA, DSI and DFEL (2 ) (1 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 22 12 13 operations before taxes Income tax benefit (expense) (5 ) (4 ) (5 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 17 $ 8 $ 8 Net income (loss) |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commissions And Other Expenses [Abstract] | |
Details underlying commissions and other expenses | For the Years Ended December 31, 2018 2017 2016 Commissions $ 2,256 $ 1,986 $ 1,910 General and administrative expenses 1,953 1,766 1,687 Expenses associated with reserve financing and unrelated LOCs 84 87 80 DAC and VOBA deferrals and interest, net of amortization (402 ) (350 ) (70 ) Broker-dealer expenses 465 438 418 Specifically identifiable intangible asset amortization 9 4 4 Taxes, licenses and fees 313 245 248 Acquisition and integration costs related to mergers and acquisitions 85 - - Total $ 4,763 $ 4,176 $ 4,277 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Obligations, funded status and assumptions | As of or For the Years Ended December 31, 2018 2017 2018 2017 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,356 $ 1,566 $ 64 $ 60 Projected benefit obligation 1,477 1,674 74 87 Funded status $ (121 ) $ (108 ) $ (10 ) $ (27 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 52 $ 45 $ - $ - Other liabilities (173 ) (153 ) (10 ) (27 ) Net amount recognized $ (121 ) $ (108 ) $ (10 ) $ (27 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 4.14% 3.62% 4.50% 4.00% Net periodic benefit cost: Weighted-average discount rate 3.75% 4.01% 4.00% 4.50% Expected return on plan assets 6.46% 6.71% 6.50% 6.50% |
Fair value measurements of pension plan assets on a recurring basis | As of December 31, 2018 2017 Fixed maturity securities: Corporate bonds $ 249 $ 292 U.S. government bonds 252 291 Foreign government bonds 216 231 State and municipal bonds 28 32 Common and preferred stock 485 615 Cash and invested cash 125 103 Other investments 65 62 Total $ 1,420 $ 1,626 |
Deferred compensation plans liabilities and investments | As of December 31, 2018 2017 Total liabilities (1) $ 547 $ 588 Investments dedicated to fund liabilities (2) 170 182 (1) Reported in other liabilities on our Consolidated Balance Sheets. Reported in other assets on our Consolidated Balance Sheets |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Compensation Expense By Award Type | For the Years Ended December 31, 2018 2017 2016 Stock options $ 5 $ 10 $ 9 Performance shares 15 13 11 SARs (1 ) 2 3 RSUs 32 25 23 Total $ 51 $ 50 $ 46 Recognized tax benefit $ 11 $ 18 $ 16 |
Total unrecognized compensation expense for all stock-based incentive compensation plans | For the Years Ended December 31, 2018 2017 2016 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 9 1.1 $ 9 1.4 $ 8 1.4 Performance shares 14 0.9 12 1.2 12 1.4 SARs - 2.7 2 3.2 2 3.6 RSUs 50 1.2 32 1.1 25 1.2 Total unrecognized stock-based incentive compensation expense $ 73 $ 55 $ 47 |
Option price assumptions used for stock option incentive plans | For the Years Ended December 31, 2018 2017 2016 Weighted-average fair value per option granted $ 18.74 $ 18.27 $ 9.32 Assumptions: Dividend yield 2.1% 2.0% 2.8% Expected volatility 27.2% 31.5% 35.9% Risk-free interest rate 2.5 - 2.9% 1.7 - 2.1% 1.0 - 1.6% Expected life (in years) 5.8 5.5 5.7 |
Summary of activity for stock options with performance conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 271,724 $ 54.37 Granted – original 32,400 78.41 Exercised (includes shares tendered) (55,594 ) 47.13 Forfeited or expired (19,694 ) 55.45 Outstanding as of December 31, 2018 228,836 $ 59.43 2.27 $ 1 Vested or expected to vest as of December 31, 2018 (1) 214,570 $ 58.54 2.18 $ 1 Exercisable as of December 31, 2018 200,304 $ 57.51 2.08 $ 1 (1) Includes estimated forfeitures. |
Summary of activity for stock options with service conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 2,192,139 $ 46.02 Granted – original 481,404 77.81 Exercised (includes shares tendered) (239,633 ) 33.13 Forfeited or expired (79,894 ) 67.55 Outstanding as of December 31, 2018 2,354,016 $ 53.11 6.83 $ 17 Vested or expected to vest as of December 31, 2018 (1) 2,134,763 $ 52.14 6.70 $ 16 Exercisable as of December 31, 2018 1,448,275 $ 44.94 5.83 $ 14 (1) Includes estimated forfeitures. |
Summary of activity for performance shares | Weighted- Average Grant-Date Shares Fair Value Nonvested as of December 31, 2017 556,949 $ 53.65 Granted 156,676 89.89 Vested (137,308 ) 68.35 Forfeited (30,092 ) 69.62 Nonvested as of December 31, 2018 546,225 $ 59.46 |
Option price assumptions used for stock appreciation rights plan | For the Years Ended December 31, 2018 2017 2016 Weighted-average fair value per SAR granted $ 19.09 $ 20.06 $ 10.25 Assumptions: Dividend yield 1.6% 1.5% 2.9% Expected volatility 27.0% 34.4% 35.8% Risk-free interest rate 2.8% 2.2% 1.4% Expected life (in years) 5.0 5.0 5.0 |
Summary of activity for stock appreciation rights plan | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2017 162,188 $ 50.22 Granted – original 14,692 78.41 Exercised (includes shares tendered) (39,661 ) 44.55 Forfeited or expired (7,212 ) 54.82 Outstanding as of December 31, 2018 130,007 $ 54.88 2.10 $ - Vested or expected to vest as of December 31, 2018 (1) 124,916 $ 54.75 2.06 $ - Exercisable as of December 31, 2018 84,783 $ 52.55 1.60 $ - (1) Includes estimated forfeitures. |
Summary of activity for restricted stock units | Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2017 1,494,732 $ 51.83 Granted 741,967 76.11 Vested (429,039 ) 58.22 Forfeited (114,784 ) 64.16 Outstanding as of December 31, 2018 1,692,876 $ 60.02 |
Statutory Information and Res_2
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Capital and Surplus | As of December 31, 2018 2017 U.S. capital and surplus $ 8,510 $ 8,263 For the Years Ended December 31, 2018 2017 2016 U.S. net gain (loss) from operations, after-tax $ 692 $ 1,329 $ 1,111 U.S. net income (loss) 1,019 1,468 1,002 U.S. dividends to LNC holding company 925 974 970 |
Net Gain Loss From Operations, Net Income Loss, Dividends to LNC Holding Company | As of December 31, 2018 2017 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 36 $ 54 Conservative valuation rate on certain annuities (55 ) (50 ) Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,959 1,965 LLC notes and variable value surplus notes 1,634 1,585 Excess of loss reinsurance treaties 330 185 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of December 31, 2018 As of December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Assets AFS securities: Fixed maturity securities $ 94,024 $ 94,024 $ 94,840 $ 94,840 Equity securities - - 246 246 Trading securities 1,950 1,950 1,620 1,620 Equity securities 99 99 - - Mortgage loans on real estate 13,260 13,092 10,762 10,877 Derivative investments (1) 1,107 1,107 915 915 Other investments 2,255 2,255 2,296 2,296 Cash and invested cash 2,345 2,345 1,628 1,628 Other assets: GLB direct embedded derivatives 123 123 903 903 GLB ceded embedded derivatives 72 72 51 51 Indexed annuity ceded embedded derivatives 902 902 11 11 Separate account assets 132,833 132,833 144,219 144,219 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,305 ) (1,305 ) (1,418 ) (1,418 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (542 ) (542 ) (592 ) (592 ) Account values of certain investment contracts (34,535 ) (36,358 ) (32,370 ) (36,200 ) Short-term debt - - (450 ) (452 ) Long-term debt (5,839 ) (5,604 ) (4,894 ) (5,042 ) Reinsurance related embedded derivatives (3 ) (3 ) (57 ) (57 ) Other liabilities: Derivative liabilities (1) (160 ) (160 ) (338 ) (338 ) GLB ceded embedded derivatives - - (67 ) (67 ) Benefit Plans’ Assets (2) 1,420 1,420 1,626 1,626 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of December 31, 2018 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 77,079 $ 3,269 $ 80,348 ABS - 937 29 966 U.S. government bonds 399 18 - 417 Foreign government bonds - 339 109 448 RMBS - 3,366 7 3,373 CMBS - 802 2 804 CLOs - 1,625 105 1,730 State and municipal bonds - 5,345 - 5,345 Hybrid and redeemable preferred securities 67 451 75 593 Trading securities 43 1,840 67 1,950 Equity securities 16 58 25 99 Derivative investments (1) - 727 705 1,432 Other investments 150 - - 150 Cash and invested cash - 2,345 - 2,345 Other assets: GLB direct embedded derivatives - - 123 123 GLB ceded embedded derivatives - - 72 72 Indexed annuity ceded embedded derivatives - - 902 902 Separate account assets 665 132,135 - 132,800 Total assets $ 1,340 $ 227,067 $ 5,490 $ 233,897 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,305 ) $ (1,305 ) Reinsurance related embedded derivatives - (3 ) - (3 ) Other liabilities: Derivative liabilities (1) - (314 ) (171 ) (485 ) Total liabilities $ - $ (317 ) $ (1,476 ) $ (1,793 ) Benefit Plans’ Assets $ 158 $ 1,262 $ - $ 1,420 As of December 31, 2017 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Total Assets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value Assets Investments: Fixed maturity AFS securities: Corporate bonds $ - $ 79,125 $ 3,091 $ 82,216 ABS - 947 27 974 U.S. government bonds 556 6 5 567 Foreign government bonds - 341 110 451 RMBS - 3,453 12 3,465 CMBS - 594 6 600 CLOs - 717 91 808 State and municipal bonds - 5,119 - 5,119 Hybrid and redeemable preferred securities 71 493 76 640 Equity AFS securities 28 56 162 246 Trading securities 73 1,498 49 1,620 Derivative investments (1) - 994 603 1,597 Other investments 150 - - 150 Cash and invested cash - 1,628 - 1,628 Other assets: GLB direct embedded derivatives - - 903 903 GLB ceded embedded derivatives - - 51 51 Indexed annuity ceded embedded derivatives - - 11 11 Separate account assets 814 143,405 - 144,219 Total assets $ 1,692 $ 238,376 $ 5,197 $ 245,265 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,418 ) $ (1,418 ) Long-term debt - (1,127 ) - (1,127 ) Reinsurance related embedded derivatives - (57 ) - (57 ) Other liabilities: Derivative liabilities (1) - (447 ) (573 ) (1,020 ) GLB ceded embedded derivatives - - (67 ) (67 ) Total liabilities $ - $ (1,631 ) $ (2,058 ) $ (3,689 ) Benefit Plans’ Assets $ 210 $ 1,416 $ - $ 1,626 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | For the Year Ended December 31, 2018 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 10 $ (199 ) $ 429 $ (62 ) $ 3,269 ABS 27 - (1 ) 5 (2 ) 29 U.S. government bonds 5 - - (5 ) - - Foreign government bonds 110 - (1 ) - - 109 RMBS 12 - - 7 (12 ) 7 CMBS 6 - - 35 (39 ) 2 CLOs 91 - - 218 (204 ) 105 Hybrid and redeemable preferred securities 76 - (1 ) - - 75 Equity AFS securities 162 - - - (162 ) - Trading securities 49 (5 ) - 30 (7 ) 67 Equity securities - (1 ) - - 26 25 Derivative investments 30 170 (69 ) 403 - 534 Other assets: (6) GLB direct embedded derivatives 903 (780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 (117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,418 ) 198 - (85 ) - (1,305 ) Other liabilities – GLB ceded embedded derivatives (6) (67 ) 67 - - - - Total, net $ 3,139 $ (437 ) $ (271 ) $ 2,045 $ (462 ) $ 4,014 For the Year Ended December 31, 2017 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 2,405 $ 19 $ 198 $ 99 $ 370 $ 3,091 ABS 33 - (1 ) - (5 ) 27 U.S. government bonds - - - - 5 5 Foreign government bonds 111 - (1 ) - - 110 RMBS 3 - - 20 (11 ) 12 CMBS 7 - 1 54 (56 ) 6 CLOs 68 - - 124 (101 ) 91 State and municipal bonds - (1 ) - - 1 - Hybrid and redeemable preferred securities 76 - 15 (1 ) (14 ) 76 Equity AFS securities 177 1 (2 ) (13 ) (1 ) 162 Trading securities 65 3 8 (26 ) (1 ) 49 Derivative investments (93 ) (27 ) 129 21 - 30 Other assets: (6) GLB direct embedded derivatives - 903 - - - 903 GLB ceded embedded derivatives 203 (152 ) - - - 51 Indexed annuity ceded embedded derivatives - - - 11 - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,139 ) (400 ) - 121 - (1,418 ) Other liabilities: (6) GLB direct embedded derivatives (371 ) 371 - - - - GLB ceded embedded derivatives - (67 ) - - - (67 ) Total, net $ 1,545 $ 650 $ 347 $ 410 $ 187 $ 3,139 For the Year Ended December 31, 2016 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 1,993 $ 4 $ (31 ) $ 58 $ 381 $ 2,405 ABS 45 - (2 ) 14 (24 ) 33 U.S. government bonds - - - 8 (8 ) - Foreign government bonds 111 - - - - 111 RMBS 1 - - 66 (64 ) 3 CMBS 10 2 (1 ) 27 (31 ) 7 CLOs 551 - - 138 (621 ) 68 Hybrid and redeemable preferred securities 94 - (3 ) (15 ) - 76 Equity AFS securities 164 5 (4 ) 12 - 177 Trading securities 73 4 - 5 (17 ) 65 Derivative investments 555 (483 ) (1 ) (164 ) - (93 ) Other assets – GLB ceded embedded derivatives (6) 268 (65 ) - - - 203 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) (1,100 ) (120 ) - 81 - (1,139 ) VIEs’ liabilities – derivative instruments (7) (4 ) 4 - - - - Other liabilities: Credit default swaps (7) (9 ) (6 ) - 15 - - GLB direct embedded derivatives (6) (953 ) 582 - - - (371 ) Total, net $ 1,799 $ (73 ) $ (42 ) $ 245 $ (384 ) $ 1,545 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, include financial instruments acquired from Liberty Life as follows: corporate bonds of $67 million and ABS of $17 million. (3) Transfers into or out of Level 3 for AFS and trading securities are reported at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are displayed at cost on our Consolidated Balance Sheets. (5) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (7) The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 947 $ (161 ) $ (3 ) $ (277 ) $ (77 ) $ 429 ABS 22 (17 ) - - - 5 U.S. government bonds - (5 ) - - - (5 ) RMBS 7 - - - - 7 CMBS 39 - - (4 ) - 35 CLOs 218 - - - - 218 Trading securities 54 (24 ) - - - 30 Equity securities 1 (1 ) - - - - Derivative investments 365 464 (426 ) - - 403 Other assets – indexed annuity ceded embedded derivatives 1,030 - - (22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (284 ) - - 199 - (85 ) Total, net $ 2,399 $ 256 $ (429 ) $ (104 ) $ (77 ) $ 2,045 For the Year Ended December 31, 2017 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 747 $ (200 ) $ (98 ) $ (206 ) $ (144 ) $ 99 RMBS 20 - - - - 20 CMBS 55 - - (1 ) - 54 CLOs 124 - - - - 124 Hybrid and redeemable preferred securities - - - (1 ) - (1 ) Equity AFS securities 18 (31 ) - - - (13 ) Trading securities 2 (27 ) - (1 ) - (26 ) Derivative investments 197 234 (410 ) - - 21 Other assets – indexed annuity ceded embedded derivatives 11 - - - - 11 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (71 ) - - 192 - 121 Total, net $ 1,103 $ (24 ) $ (508 ) $ (17 ) $ (144 ) $ 410 For the Year Ended December 31, 2016 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 460 $ (62 ) $ (23 ) $ (177 ) $ (140 ) $ 58 ABS 15 - - (1 ) - 14 U.S. government bonds - - - 8 - 8 RMBS 67 - - (1 ) - 66 CMBS 31 (1 ) - (3 ) - 27 CLOs 140 - - (2 ) - 138 Hybrid and redeemable preferred securities - (15 ) - - - (15 ) Equity AFS securities 18 (6 ) - - - 12 Trading securities 6 - - (1 ) - 5 Derivative investments 176 (169 ) (171 ) - - (164 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (70 ) - - 151 - 81 Other liabilities – credit default swaps - 15 - - - 15 Total, net $ 843 $ (238 ) $ (194 ) $ (26 ) $ (140 ) $ 245 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Years Ended December 31, 2018 2017 2016 Derivative investments $ 90 $ (266 ) $ (431 ) Embedded derivatives: Indexed annuity and IUL contracts (38 ) (14 ) (16 ) GLB (75 ) 1,904 1,122 VIEs’ liabilities – derivative instruments - - 4 Total, net (1) $ (23 ) $ 1,624 $ 679 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Components Of The Transfers In And Out Of Level 3 | The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ (140 ) $ (62 ) ABS - (2 ) (2 ) RMBS - (12 ) (12 ) CMBS 1 (40 ) (39 ) CLOs - (204 ) (204 ) Equity AFS securities - (162 ) (162 ) Trading securities - (7 ) (7 ) Equity securities 26 - 26 Total, net $ 105 $ (567 ) $ (462 ) For the Year Ended December 31, 2017 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 458 $ (88 ) $ 370 ABS 16 (21 ) (5 ) U.S. government bonds 5 - 5 RMBS - (11 ) (11 ) CMBS 3 (59 ) (56 ) CLOs 30 (131 ) (101 ) State and municipal bonds 2 (1 ) 1 Hybrid and redeemable preferred securities - (14 ) (14 ) Equity AFS securities - (1 ) (1 ) Trading securities 4 (5 ) (1 ) Total, net $ 518 $ (331 ) $ 187 For the Year Ended December 31, 2016 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 605 $ (224 ) $ 381 ABS 4 (28 ) (24 ) U.S. government bonds - (8 ) (8 ) RMBS 3 (67 ) (64 ) CMBS - (31 ) (31 ) CLOs - (621 ) (621 ) Trading securities 1 (18 ) (17 ) Total, net $ 613 $ (997 ) $ (384 ) |
Fair Value Inputs Quantitative Information | Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,456 Discounted cash flow Liquidity/duration adjustment (1) 0.6 % - 28.6 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 2.9 % - 2.9 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.3 % - 3.3 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 1.6 % Equity securities 20 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.4 % Other assets: GLB direct and ceded embedded derivatives 195 Discounted cash flow Long-term lapse rate (2) 1 % - 30 % Utilization of guaranteed withdrawals (3) 85 % - 100 % Claims utilization factor (4) 60 % - 100 % Premiums utilization factor (4) 80 % - 115 % NPR (5) 0.03 % - 0.41 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 902 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,305 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) (1) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment. (2) The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period. (3) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (4) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal. (5) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. (6) The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die. (7) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. (8) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Years Ended December 31, 2018 2017 2016 Revenues Operating revenues: Annuities $ 4,383 $ 4,378 $ 4,033 Retirement Plan Services 1,178 1,165 1,103 Life Insurance 6,922 6,558 6,246 Group Protection 3,757 2,201 2,130 Other Operations 235 287 332 Excluded realized gain (loss), pre-tax (46 ) (336 ) (518 ) Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax - 1 3 Amortization of DFEL associated with benefit ratio unlocking, pre-tax (5 ) 3 1 Total revenues $ 16,424 $ 14,257 $ 13,330 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Years Ended December 31, 2018 2017 2016 Net Income (Loss) Income (loss) from operations: Annuities $ 1,102 $ 1,074 $ 935 Retirement Plan Services 171 149 127 Life Insurance 645 536 515 Group Protection 187 103 65 Other Operations (225 ) (108 ) (102 ) Excluded realized gain (loss), after-tax (37 ) (218 ) (337 ) Gain (loss) on early extinguishment of debt, after-tax (18 ) (3 ) (41 ) Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax - - 2 Benefit ratio unlocking, after-tax (136 ) 129 28 Net impact from the Tax Cuts and Jobs Act 19 1,322 - Impairment of intangibles, after-tax - (905 ) - Acquisition and integration costs related to mergers and acquisitions, after-tax (67 ) - - Net income (loss) $ 1,641 $ 2,079 $ 1,192 |
Reconciliation of Net Investment Income From Segments to Consolidated | For the Years Ended December 31, 2018 2017 2016 Net Investment Income Annuities $ 1,005 $ 1,038 $ 1,033 Retirement Plan Services 899 899 859 Life Insurance 2,697 2,643 2,562 Group Protection 260 168 176 Other Operations 224 242 244 Total net investment income $ 5,085 $ 4,990 $ 4,874 |
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | For the Years Ended December 31, 2018 2017 2016 Amortization of DAC and VOBA, Net of Interest Annuities $ 410 $ 401 $ 383 Retirement Plan Services 28 27 28 Life Insurance 711 469 734 Group Protection 92 79 126 Total amortization of DAC and VOBA, net of interest $ 1,241 $ 976 $ 1,271 |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss) | For the Years Ended December 31, 2018 2017 2016 Federal Income Tax Expense (Benefit) Annuities $ 183 $ 199 $ 242 Retirement Plan Services 29 55 47 Life Insurance 147 244 238 Group Protection 50 55 35 Other Operations (77 ) (130 ) (109 ) Excluded realized gain (loss) (9 ) (118 ) (181 ) Gain (loss) on early extinguishment of debt (5 ) (2 ) (22 ) Reserve changes (net of related amortization) on business sold through reinsurance - - 1 Benefit ratio unlocking (36 ) 70 15 Net impact from the Tax Cuts and Jobs Act (19 ) (1,322 ) - Acquisition and integration costs related to mergers and acquisitions (19 ) - - Total federal income tax expense (benefit) $ 244 $ (949 ) $ 266 |
Reconciliation Of Assets From Segments To Consolidated | As of December 31, 2018 2017 Assets Annuities $ 145,458 $ 144,721 Retirement Plan Services 35,736 37,072 Life Insurance 81,533 81,381 Group Protection 8,495 4,033 Other Operations 26,925 14,556 Total assets $ 298,147 $ 281,763 |
Schedule Of Disaggregation of Revenue | For the Year Ended December 31, 2018 Retirement Plan Life Group Other Annuities Services Insurance Protection Operations Total Revenue from Contracts with Customers Fee income $ 534 $ 167 $ 22 $ - $ - $ 723 Other revenues 479 17 10 114 - 620 Total revenue from contracts with customers $ 1,013 $ 184 $ 32 $ 114 $ - $ 1,343 Timing of Revenue Recognition Satisfaction of performance obligation: Transferred at a point in time $ 90 $ 5 $ 7 $ - $ - $ 102 Transferred over time 923 179 25 114 - 1,241 Total revenue from contracts with customers $ 1,013 $ 184 $ 32 $ 114 $ - $ 1,343 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Summary of supplemental cash flow data | For the Years Ended December 31, 2018 2017 2016 Interest paid $ 281 $ 248 $ 274 Income taxes paid (received) 90 170 197 Significant non-cash investing and financing transactions: Investments received in financing transactions 263 - - |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Results Of Operations | For the Three Months Ended March 31, June 30, September 30, December 31, (1) 2018 Total revenues $ 3,609 $ 4,020 $ 4,264 $ 4,531 Total expenses 3,174 3,569 3,732 4,064 Net income (loss) 367 385 490 399 Earnings (loss) per common share – basic: Net income (loss) 1.68 1.76 2.27 1.89 Earnings (loss) per common share – diluted: Net income (loss) 1.64 1.70 2.24 1.80 2017 Total revenues $ 3,500 $ 3,577 $ 3,511 $ 3,669 Total expenses 3,025 3,044 3,001 4,057 Net income (loss) 435 411 418 816 Earnings (loss) per common share – basic: Net income (loss) 1.93 1.84 1.89 3.73 Earnings (loss) per common share – diluted: Net income (loss) 1.89 1.81 1.87 3.67 Fourth quarter 2017 results include a goodwill impairment charge and the impacts of remeasuring our existing deferred tax balances for the impact of the Tax Act as disclosed elsewhere herein |
Nature Of Operations, Basis O_3
Nature Of Operations, Basis Of Presentation And Summary Of Significant Accounting Policies (Details) item in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Product Information [Line Items] | |||
Loans Reported As Delinquent In Days | 60 days | ||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Loan-to-value ratio indicating principal is greater than collateral | 100.00% | ||
Estimated Contract Life UL Policies (In Years) | 40 years | ||
Estimated Contract Life VUL Policies (In Years) | 40 years | ||
Front End Load Annuity Products Assumed Life (In Years) | 25 years | ||
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | ||
Total Scenarios To Value GLB liability | item | 49 | ||
Dividend Expenses | $ | $ 56 | $ 57 | $ 59 |
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 20 years | ||
Sales Force Intangibles [Member] | |||
Product Information [Line Items] | |||
Useful Life of Intangible Assets (In Years) | 25 years | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Debt-service coverage ratio indicating property income not covering debt payments | 1.00% | ||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 30 years | ||
Traditional Contract Acquisition Cost Amortization Period (In Years) | 30 years | ||
Participating Policies as a Percentage of the Face Amount of the Insurance In Force | 1.00% | 1.00% | |
Interest Crediting Rate | 10 | 10 | 10 |
Minimum [Member] | |||
Product Information [Line Items] | |||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 15 years | ||
Interest Crediting Rate | 1 | 1 | 1 |
Life Insurance Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 7.75% | ||
Life Insurance Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 2.25% | ||
Annuities Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 12.75% | ||
Annuities Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 1.25% |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
AFS Equity securities | $ 246 | |
Equity Securities, FV-NI | $ 99 | |
Federal rate | 21.00% | 35.00% |
Accounting Standards Update 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
AFS Equity securities | $ 246 | |
Equity Securities, FV-NI | 110 | |
Cumulative effect of adoption | 1 | |
Accounting Standards Update 2016-01 [Member] | Scenario, Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
AFS Equity securities | 136 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of adoption | $ 240 | |
Accounting Standards Update 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification from AOCI to retained earnings | $ 641 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||||||
Revenues | $ 4,531 | $ 4,264 | $ 4,020 | $ 3,609 | $ 3,669 | $ 3,511 | $ 3,577 | $ 3,500 | $ 16,424 | $ 14,257 | $ 13,330 | |
Net income (loss) | 399 | $ 490 | $ 385 | $ 367 | 816 | $ 418 | $ 411 | $ 435 | 1,641 | 2,079 | $ 1,192 | |
Reinsurance recoverables | $ 17,748 | $ 4,907 | $ 17,748 | $ 17,748 | $ 4,907 | |||||||
Liberty Transaction [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition agreement date | May 1, 2018 | |||||||||||
Capital stock acquired, percent | 100.00% | 100.00% | 100.00% | |||||||||
Excess capital in LLAC (extraordinary dividend) | $ 1,800 | |||||||||||
Cash | 1,500 | |||||||||||
Acquisition related costs | 85 | |||||||||||
Provisional assets | $ (5) | |||||||||||
Provisional liabilities | 27 | |||||||||||
Provisional goodwill | 32 | |||||||||||
Revenues | 1,500 | |||||||||||
Net income (loss) | $ 36 | |||||||||||
Cash received from sale | $ 423 |
Acquisition (Schedule Of Fair V
Acquisition (Schedule Of Fair Value Of Net Assets Acquired) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,782 | $ 1,368 |
Liberty Transaction [Member] | ||
Business Acquisition [Line Items] | ||
Investments | 2,493 | |
Mortgage loans on real estate | 658 | |
Cash and invested cash | 107 | |
Reinsurance recoverables | 76 | |
Premiums and fees receivable | 83 | |
Accrued investment income | 24 | |
Other intangible assets acquired | 640 | |
Other assets acquired | 142 | |
Separate account assets | 99 | |
Total assets acquired | 4,322 | |
Future contract benefits | 2,930 | |
Other contract holder funds | 46 | |
Other liabilities acquired | 144 | |
Separate account liabilities | 99 | |
Total liabilities assumed | 3,219 | |
Net identifiable assets acquired | 1,103 | |
Goodwill | 414 | |
Net assets acquired | $ 1,517 |
Acquisition (Schedule Of Fair_2
Acquisition (Schedule Of Fair Value Of Identifiable Intangible Assets Acquired) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Schedule Of Intangibles Acquired [Line Items] | |
Total identifiable intangible assets | $ 640 |
Insurance Licenses [Member] | |
Schedule Of Intangibles Acquired [Line Items] | |
Indefinite intangibles acquired | 3 |
VOCRA [Member] | |
Schedule Of Intangibles Acquired [Line Items] | |
Finite intangibles acquired | $ 576 |
Weighted Average Amortization Period | 20 years |
VODA [Member] | |
Schedule Of Intangibles Acquired [Line Items] | |
Finite intangibles acquired | $ 31 |
Weighted Average Amortization Period | 13 years |
Business Acquired [Member] | |
Schedule Of Intangibles Acquired [Line Items] | |
Finite intangibles acquired | $ 30 |
Weighted Average Amortization Period | 3 years |
Acquisition (Schedule Of Pro Fo
Acquisition (Schedule Of Pro Forma Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Acquisition [Abstract] | ||
Revenue | $ 17,163 | $ 16,189 |
Net Income | $ 1,707 | $ 2,066 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Gains (losses) for consolidated variable interest entities | $ 0 | $ 0 |
Outstanding Principal Balance of Surplus Note Issued By LRCVV And Held By LFLLCI | 600 | |
Long-Term Senior Note Issued In Exchange For Corporate Bond Afs Security | 275 | |
Outstanding Principal Balance of Long-Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 885 | |
Maxiumum Principal Balance of Long Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 1,100 | |
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 2,255 | 2,296 |
Limited Partnerships and Limited Liability Companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amounts of our Investments in LPs and LLCs, As Recognized In Other Investments on our Consolidated Balance Sheets | 1,700 | 1,500 |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | 20 | 31 |
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | $ 3 |
Non-Affiliated VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Surplus notes | 0 | |
Maximum exposure to loss related to unconsolidated VIE's | $ 0 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Variable Interest Entity Asset and Liability Information) (Details) $ in Millions | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item |
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments | item | 1 | 1 |
Notional Amounts | $ | $ 600 | $ 573 |
Total Return Swap [Member] | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments | item | 1 | 1 |
Notional Amounts | $ | $ 600 | $ 573 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)securityitem | Dec. 31, 2017USD ($)securityitem | Dec. 31, 2016USD ($) | |
Investment [Line Items] | |||
Increase (decrease) in gross AFS securities unrealized losses | $ 2 | ||
Unrealized gain (loss), trading securities | $ (58) | $ 7 | $ (3) |
Number of partnerships in alternative investment portfolio | item | 237 | 224 | |
Alternative investments as a percentage of overall invested assets | 1.00% | 1.00% | |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 537 | ||
Securities that have been re-pledged | 378 | ||
Investment commitments | 2,100 | ||
Investment commitments for limited partnerships | 843 | ||
Investment commitments for mortgage loans on real estate | 804 | ||
Investment commitments for private placements | $ 476 | ||
OTTI in OCI | 55 | ||
Change in DAC, VOBA, DSI and DFEL | $ 12 | ||
Commercial [Member] | |||
Investment [Line Items] | |||
Number of impaired loans | security | 0 | 3 | |
Impaired financing receivable, principal balance | $ 11 | ||
Impaired financing receivable, allowance | 3 | ||
Impaired financing receivable, carrying amount | 8 | ||
Residential [Member] | |||
Investment [Line Items] | |||
Number of impaired loans | security | 0 | ||
Maximum [Member] | |||
Investment [Line Items] | |||
OTTI in OCI | $ 1 | 1 | |
Maximum [Member] | Residential [Member] | |||
Investment [Line Items] | |||
Impaired financing receivable, allowance | 1 | ||
Federal Home Loan Mortgage Corporation [Member] | Invested Assets [Member] | |||
Investment [Line Items] | |||
Fair value | $ 1,400 | $ 1,300 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Federal National Mortgage Association [Member] | Invested Assets [Member] | |||
Investment [Line Items] | |||
Fair value | $ 1,300 | $ 1,000 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Consumer Non-Cyclical Industry [Member] | Invested Assets [Member] | |||
Investment [Line Items] | |||
Fair value | $ 14,500 | $ 15,000 | |
Concentration risk, percentage | 13.00% | 13.00% | |
Financial Service [Member] | Invested Assets [Member] | |||
Investment [Line Items] | |||
Fair value | $ 14,200 | ||
Concentration risk, percentage | 12.00% | ||
Utilities Industry [Member] | Invested Assets [Member] | |||
Investment [Line Items] | |||
Fair value | $ 14,300 | ||
Concentration risk, percentage | 13.00% | ||
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | Commercial [Member] | |||
Investment [Line Items] | |||
Concentration risk, percentage | 23.00% | 21.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | Residential [Member] | |||
Investment [Line Items] | |||
Concentration risk, percentage | 34.00% | ||
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Texas [Member] | Commercial [Member] | |||
Investment [Line Items] | |||
Concentration risk, percentage | 12.00% | 12.00% | |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | FLORIDA | Residential [Member] | |||
Investment [Line Items] | |||
Concentration risk, percentage | 19.00% | ||
Corporate Bonds [Member] | |||
Investment [Line Items] | |||
Percentage of fair value rated as investment grade | 96.00% | ||
Amortized cost of portfolio rated below investment grade | $ 3,200 | $ 3,500 | |
Fair value of portfolio rated below investment grade | $ 3,000 | $ 3,500 | |
MBS [Member] | |||
Investment [Line Items] | |||
Severity of second lien loans | 100.00% | ||
Severity of first lien loans | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 92,429 | $ 87,240 | |
Gross unrealized gains | 3,981 | 8,233 | |
Gross unrealized losses | 2,430 | 450 | |
OTTI | [1] | (44) | (63) |
Fair value | 94,024 | 95,086 | |
Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 92,429 | 86,993 | |
Gross unrealized gains | 8,217 | ||
Gross unrealized losses | 433 | ||
OTTI | [1] | (63) | |
Fair value | 94,024 | 94,840 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 79,623 | 75,701 | |
Gross unrealized gains | 2,980 | 6,862 | |
Gross unrealized losses | 2,263 | 354 | |
OTTI | [1] | (8) | (7) |
Fair value | 80,348 | 82,216 | |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 916 | 903 | |
Gross unrealized gains | 42 | 51 | |
Gross unrealized losses | 6 | 7 | |
OTTI | [1] | (14) | (27) |
Fair value | 966 | 974 | |
Fixed Maturity AFS Securities [Member] | U.S. Government Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 390 | 527 | |
Gross unrealized gains | 29 | 41 | |
Gross unrealized losses | 2 | 1 | |
Fair value | 417 | 567 | |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 406 | 395 | |
Gross unrealized gains | 42 | 56 | |
Fair value | 448 | 451 | |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,308 | 3,327 | |
Gross unrealized gains | 118 | 155 | |
Gross unrealized losses | 67 | 39 | |
OTTI | [1] | (14) | (22) |
Fair value | 3,373 | 3,465 | |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 811 | 590 | |
Gross unrealized gains | 6 | 10 | |
Gross unrealized losses | 16 | 2 | |
OTTI | [1] | (3) | (2) |
Fair value | 804 | 600 | |
Fixed Maturity AFS Securities [Member] | CLOs [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 1,746 | 803 | |
Gross unrealized gains | 3 | 2 | |
Gross unrealized losses | 24 | 2 | |
OTTI | [1] | (5) | (5) |
Fair value | 1,730 | 808 | |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 4,647 | 4,172 | |
Gross unrealized gains | 716 | 953 | |
Gross unrealized losses | 18 | 6 | |
Fair value | 5,345 | 5,119 | |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 582 | 575 | |
Gross unrealized gains | 45 | 87 | |
Gross unrealized losses | 34 | 22 | |
Fair value | $ 593 | 640 | |
Equity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 247 | ||
Gross unrealized gains | 16 | ||
Gross unrealized losses | 17 | ||
Fair value | $ 246 | ||
[1] | Includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 92,429 | $ 87,240 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 94,024 | 95,086 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 92,429 | 86,993 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 94,024 | $ 94,840 |
Fixed Maturity AFS Securities [Member] | Fixed maturity AFS securities other than structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 3,699 | |
Due after one year through five years | 17,061 | |
Due after five years through ten years | 18,228 | |
Due after ten years | 46,660 | |
Amortized cost | 85,648 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,729 | |
Due after one year through five years | 17,084 | |
Due after five years through ten years | 18,135 | |
Due after ten years | 48,203 | |
Fair Value | 87,151 | |
Fixed Maturity AFS Securities [Member] | Structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 6,781 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 6,873 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 35,246 | $ 5,844 |
Greater Than Twelve Months | 8,671 | 6,063 |
Fair Value - Total | 43,917 | 11,907 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,589 | 89 |
Greater Than Twelve Months | 856 | 374 |
Losses - Total | $ 2,445 | $ 463 |
Total number of AFS securities in an unrealized loss position | security | 3,414 | 1,128 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 5,822 | |
Greater Than Twelve Months | 6,055 | |
Fair Value - Total | 11,877 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 75 | |
Greater Than Twelve Months | 371 | |
Losses - Total | 446 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 32,493 | 4,854 |
Greater Than Twelve Months | 7,228 | 4,893 |
Fair Value - Total | 39,721 | 9,747 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1,530 | 68 |
Greater Than Twelve Months | 735 | 288 |
Losses - Total | 2,265 | 356 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 117 | 62 |
Greater Than Twelve Months | 143 | 151 |
Fair Value - Total | 260 | 213 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 1 |
Greater Than Twelve Months | 14 | 15 |
Losses - Total | 16 | 16 |
Fixed Maturity AFS Securities [Member] | U.S. Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 70 | 156 |
Greater Than Twelve Months | 23 | 19 |
Fair Value - Total | 93 | 175 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Greater Than Twelve Months | 1 | 1 |
Losses - Total | 2 | 1 |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 472 | 302 |
Greater Than Twelve Months | 863 | 641 |
Fair Value - Total | 1,335 | 943 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 10 | 4 |
Greater Than Twelve Months | 60 | 36 |
Losses - Total | 70 | 40 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 470 | 113 |
Greater Than Twelve Months | 82 | 60 |
Fair Value - Total | 552 | 173 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 11 | |
Greater Than Twelve Months | 5 | 3 |
Losses - Total | 16 | 3 |
Fixed Maturity AFS Securities [Member] | CLOs [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,124 | 281 |
Greater Than Twelve Months | 103 | 72 |
Fair Value - Total | 1,227 | 353 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 21 | 2 |
Greater Than Twelve Months | 3 | |
Losses - Total | 24 | 2 |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 404 | 34 |
Greater Than Twelve Months | 96 | 93 |
Fair Value - Total | 500 | 127 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 8 | |
Greater Than Twelve Months | 10 | 6 |
Losses - Total | 18 | 6 |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 96 | 20 |
Greater Than Twelve Months | 133 | 126 |
Fair Value - Total | 229 | 146 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 6 | |
Greater Than Twelve Months | 28 | 22 |
Losses - Total | $ 34 | 22 |
Equity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 22 | |
Greater Than Twelve Months | 8 | |
Fair Value - Total | 30 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 14 | |
Greater Than Twelve Months | 3 | |
Losses - Total | $ 17 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Nine months or greater, but less than twelve months | $ 35,246 | $ 5,844 | |
Fair Value - Twelve months or greater | 8,671 | 6,063 | |
Fair Value - Total | 43,917 | 11,907 | |
Losses - Nine months or greater, but less than twelve months | 1,589 | 89 | |
Losses - Twelve months or greater | 856 | 374 | |
Losses - Total | $ 2,445 | $ 463 | |
Number of Securities - Total | security | 3,414 | 1,128 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Less than six months | $ 395 | $ 156 | |
Fair Value - Six months or greater, but less than nine months | 96 | 2 | |
Fair Value - Nine months or greater, but less than twelve months | 11 | 15 | |
Fair Value - Twelve months or greater | 143 | 215 | |
Fair Value - Total | 645 | 388 | |
Losses - Less than six months | 124 | 57 | |
Losses - Six months or greater, but less than nine months | 49 | 1 | |
Losses - Nine months or greater, but less than twelve months | 8 | 8 | |
Losses - Twelve months or greater | 74 | 78 | |
Losses - Total | 255 | 144 | |
OTTI - Less than six months | 1 | 1 | |
OTTI - Twelve months or greater | 8 | 10 | |
OTTI - Total | $ 9 | $ 11 | |
Number of Securities - Less than six months | security | [1] | 45 | 26 |
Number of Securities - Six months or greater, but less than nine months | security | [1] | 11 | 4 |
Number of Securities - Nine months or greater, but less than twelve months | security | [1] | 2 | 7 |
Number of Securities - Twelve months or greater | security | [1] | 32 | 49 |
Number of Securities - Total | security | [1] | 90 | 86 |
[1] | We may reflect a security in more than one aging category based on various purchase dates. |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||
Balance as of beginning-of-year | $ 378 | $ 430 | $ 382 |
Increases attributable to: | |||
Credit losses on securities for which an OTTI was not previously recognized | 5 | 13 | 84 |
Credit losses on securities for which an OTTI was previously recognized | 2 | 7 | 17 |
Decreases attributable to: | |||
Securities sold, paid down or matured | (30) | (72) | (53) |
Balance as of end-of-year | $ 355 | $ 378 | $ 430 |
Investments (Fair Value of Trad
Investments (Fair Value of Trading Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 1,950 | $ 1,620 |
Corporate Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 1,639 | 1,335 |
ABS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 17 | 15 |
U.S. Government Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 43 | 115 |
Foreign Government Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 23 | 23 |
RMBS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 79 | 86 |
CMBS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 7 | 2 |
CLOs [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 104 | 3 |
State And Municipal Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 16 | 17 |
Hybrid And Redeemable Preferred Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 22 | $ 24 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 13,268 | $ 10,762 | ||
60 to 90 days past due | 1 | |||
Greater than 90 days past due | 3 | |||
Valuation allowance | (3) | $ (2) | $ (2) | |
Unamortized premium (discount) | (9) | |||
Total carrying value | 13,260 | 10,762 | ||
Commercial [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 13,029 | 10,762 | ||
Greater than 90 days past due | 3 | |||
Valuation allowance | (3) | |||
Unamortized premium (discount) | (17) | |||
Total carrying value | 13,012 | $ 10,762 | ||
Residential [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 239 | |||
60 to 90 days past due | 1 | |||
Unamortized premium (discount) | 8 | |||
Total carrying value | $ 248 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Losses | |||
Balance as of beginning-of-year | $ 3 | $ 2 | $ 2 |
Additions | 1 | 1 | |
Charge-offs, net of recoveries | $ (3) | (1) | |
Balance as of end-of-year | $ 3 | $ 2 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Information about impaired mortgage loans on real estate | |||
Average carrying value for impaired mortgage loans on real estate | $ 5 | $ 6 | $ 7 |
Interest income recognized on impaired mortgage loans on real estate | 1 | ||
Interest income collected on impaired mortgage loans on real estate | $ 1 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - Commercial [Member] $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 13,012 | $ 10,762 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 11,716 | $ 9,642 |
Percentage of total mortgage loans on real estate | 90.10% | 89.60% |
Debt-service coverage ratio | 2.30 | 2.26 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 1,238 | $ 1,000 |
Percentage of total mortgage loans on real estate | 9.50% | 9.30% |
Debt-service coverage ratio | 1.76 | 1.94 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 58 | $ 112 |
Percentage of total mortgage loans on real estate | 0.40% | 1.00% |
Debt-service coverage ratio | 0.95 | 0.97 |
Loan-To-Value Ratio, Greater Than 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 8 | |
Percentage of total mortgage loans on real estate | 0.00% | 0.10% |
Debt-service coverage ratio | 0 | 0.82 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - Residential [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 248 | |
Percentage of total mortgage loans on real estate | 100.00% | 0.00% |
Performing [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 247 | |
Percentage of total mortgage loans on real estate | 99.60% | 0.00% |
Nonperforming [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 1 | |
Percentage of total mortgage loans on real estate | 0.40% | 0.00% |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 5,271 | $ 5,169 | $ 5,032 |
Investment expense | (186) | (179) | (158) |
Net investment income | 5,085 | 4,990 | 4,874 |
Fixed Maturity AFS Securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4,209 | 4,163 | 4,138 |
Equity AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 12 | 11 | |
Trading Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 84 | 94 | 100 |
Equity Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4 | ||
Mortgage Loans On Real Estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 496 | 440 | 422 |
Real estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1 | 2 | 2 |
Policy loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 123 | 135 | 140 |
Invested Cash [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 26 | 11 | 14 |
Commercial mortgage loan prepayment and bond makewhole premiums [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 79 | 139 | 120 |
Alternative investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 222 | 165 | 75 |
Consent fees [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4 | 6 | 5 |
Other investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 23 | $ 2 | $ 5 |
Investments (Realized Gain (Los
Investments (Realized Gain (Loss) Related To Certain Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Realized gain (loss) related to certain investments | ||||
Gross OTTI | $ 7 | $ 20 | $ 102 | |
Gain (loss) on other investments | [1] | (13) | (12) | (68) |
Total realized gain (loss) related to certain investments | (84) | (72) | (250) | |
Realized gain (loss) on the mark-to-market on certain instruments | [2] | 4 | (11) | 20 |
Indexed annuity and IUL contracts net derivatives results: | ||||
Gross gain (loss) | [3] | (51) | (22) | (1) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [3] | 12 | (2) | (4) |
Variable annuity net derivatives results: | ||||
Gross gain (loss) | [4] | 295 | (71) | (138) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [4] | (35) | 8 | 34 |
Total realized gain (loss) | 141 | (170) | (339) | |
Certain Investments [Member] | ||||
Realized gain (loss) related to certain investments | ||||
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (22) | (21) | (24) | |
Fixed Maturity AFS Securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
AFS securities. Gross gains | [5] | 38 | 19 | 70 |
AFS securities. Gross losses | [5] | (80) | (44) | (133) |
Gross OTTI | [5] | (7) | (20) | (101) |
Equity AFS Securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
AFS securities. Gross gains | $ 6 | 7 | ||
Gross OTTI | $ 1 | |||
Equity Securities [Member] | ||||
Realized gain (loss) related to certain investments | ||||
Gain (loss) on other investments | $ (17) | |||
[1] | Includes market adjustments on equity securities still held of $(17) million for the year ended December 31, 2018. | |||
[2] | Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives and trading securities. | |||
[3] | Represents the net difference between the change in fair value of the S&P 500 Index® (“S&P 500”) call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | |||
[4] | Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. | |||
[5] | These amounts are represented net of related fair value hedging activity. See Note 6 for more information. |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (7) | $ (20) | $ (102) |
Associated amortization of DAC, VOBA, DSI and DFEL | 2 | ||
Net OTTI recognized in net income (loss), pre-tax | (7) | (18) | (102) |
Fixed Maturity AFS Securities [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (7) | (20) | (101) |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (5) | (13) | (80) |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (1) | (2) | (5) |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (1) | (2) | (11) |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | (2) | (2) | |
Fixed Maturity AFS Securities [Member] | State And Municipal Bonds [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (1) | (3) | |
Equity AFS Securities [Member] | |||
OTTI Recognized in Net Income (Loss) | |||
Gross OTTI recognized in net income (loss) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable for derivative investments | [1] | $ 637 | $ 765 |
Securities pledged under securities lending agreements | [2] | 88 | 222 |
Securities pledged under repurchase agreements | [3] | 150 | 530 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 3,930 | 2,900 |
Total payables for collateral on investments | 4,805 | 4,417 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable for derivative investments | [1] | 637 | 765 |
Securities pledged under securities lending agreements | [2] | 85 | 213 |
Securities pledged under repurchase agreements | [3] | 185 | 588 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 5,923 | 4,235 |
Total payables for collateral on investments | $ 6,830 | $ 5,801 | |
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102.00% | ||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105.00% | ||
Maximum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 115.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 175.00% | ||
Minimum [Member] | |||
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | 105.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | 155.00% | ||
[1] | We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties' credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 6 for additional information. | ||
[2] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. | ||
[3] | Our pledged securities under repurchase agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. | ||
[4] | Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (decrease) in payables for collateral on investments | |||
Collateral payable for derivative investments | $ (128) | $ (129) | $ (493) |
Securities pledged under securities lending agreements | (134) | 6 | (26) |
Securities pledged under repurchase agreements | (380) | (5) | (138) |
Investments pledged for FHLBI | 1,030 | (450) | 995 |
Total increase (decrease) in payables for collateral on investments | $ 388 | $ (578) | $ 338 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | [1] | $ 88 | $ 222 |
Total gross secured borrowings | 238 | 752 | |
Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 150 | 530 | |
Securities Lending | 88 | 222 | |
Overnight and Continuous [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 88 | 222 | |
Overnight and Continuous [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 88 | 222 | |
Up to 30 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 100 | ||
Up to 30 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 100 | ||
30 to 90 Days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 280 | ||
30 to 90 Days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 280 | ||
Greater than 90 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 150 | 150 | |
Greater than 90 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 150 | $ 150 | |
[1] | Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 37 | |
Cash flow hedge, reclassified to earnings, net | $ 0 | $ 0 |
Credit default swaps, number of instruments | security | 0 | |
Exposure Associated With Collateralization Events | $ 0 | $ 0 |
Maximum [Member] | ||
Non-performance Risk Adjustment | $ 1 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 137,497 | $ 110,350 | |
Asset Fair Value | 2,529 | 2,563 | |
Liability Fair Value | 1,793 | 2,563 | |
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 104,637 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 2,373 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 30,487 | ||
GLB Ceded Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[4] | 72 | 51 |
Liability Fair Value | [3],[4] | 67 | |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 5,067 | 4,811 | |
Asset Fair Value | 237 | 125 | |
Liability Fair Value | 48 | 163 | |
Derivative investments [Member] | Interest rate contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 100,628 | 72,937 |
Asset Fair Value | [5] | 464 | 657 |
Liability Fair Value | [5] | 138 | 127 |
Derivative investments [Member] | Foreign currency contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 47 | 22 |
Derivative investments [Member] | Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 30,487 | 31,090 |
Asset Fair Value | [5] | 676 | 562 |
Liability Fair Value | [5] | 162 | 557 |
Derivative investments [Member] | Credit contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 52 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 2,741 | 3,007 |
Asset Fair Value | [5] | 70 | 46 |
Liability Fair Value | [5] | 9 | 84 |
Derivative investments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 2,326 | 1,804 |
Asset Fair Value | [5] | 167 | 79 |
Liability Fair Value | [5] | 39 | 79 |
Derivative investments [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [5] | 1,268 | 1,438 |
Asset Fair Value | [5] | 55 | 254 |
Liability Fair Value | [5] | 137 | 174 |
Other Assets [Member] | GLB Direct Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3] | 123 | 903 |
Reinsurance Related Embedded Derivatives [Member] | Embedded derivatives-Reinsurance related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Liability Fair Value | [6] | 3 | 57 |
Future Contract Benefits [Member] | Indexed Annuity And Embedded Derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [3],[7] | 902 | 11 |
Liability Fair Value | [3],[7] | $ 1,305 | $ 1,418 |
[1] | As of December 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | ||
[2] | As of December 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. | ||
[3] | Reported in other assets on our Consolidated Balance Sheets. | ||
[4] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[5] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | ||
[6] | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | ||
[7] | Reported in future contract benefits on our Consolidated Balance Sheets. |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 33,946 | ||
Remaining Life - 1 - 5 Years | 22,321 | ||
Remaining Life - 6 - 10 Years | 51,677 | ||
Remaining Life - 11 - 30 Years | 24,895 | ||
Remaining Life Over - 30 Years | 4,658 | ||
Remaining Life - Total Years | 137,497 | $ 110,350 | |
Interest rate contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [1] | 12,968 | |
Remaining Life - 1 - 5 Years | [1] | 16,828 | |
Remaining Life - 6 - 10 Years | [1] | 49,713 | |
Remaining Life - 11 - 30 Years | [1] | 23,715 | |
Remaining Life Over - 30 Years | [1] | 1,413 | |
Remaining Life - Total Years | [1] | $ 104,637 | |
Derivative maturity date | Apr. 20, 2067 | ||
Foreign currency contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | [2] | $ 102 | |
Remaining Life - 1 - 5 Years | [2] | 268 | |
Remaining Life - 6 - 10 Years | [2] | 728 | |
Remaining Life - 11 - 30 Years | [2] | 1,166 | |
Remaining Life Over - 30 Years | [2] | 109 | |
Remaining Life - Total Years | [2] | $ 2,373 | |
Derivative maturity date | Sep. 18, 2049 | ||
Equity market contracts [Member] | |||
Maturity of the notional amounts of derivative financial instruments | |||
Remaining Life Less Than 1 Year | $ 20,876 | ||
Remaining Life - 1 - 5 Years | 5,225 | ||
Remaining Life - 6 - 10 Years | 1,236 | ||
Remaining Life - 11 - 30 Years | 14 | ||
Remaining Life Over - 30 Years | 3,136 | ||
Remaining Life - Total Years | $ 30,487 | ||
[1] | As of December 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | ||
[2] | As of December 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049. |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 3,230 | |||
Cumulative effect from adoption of new accounting standards | (6) | |||
Income tax expense (benefit) | 244 | $ (949) | $ 266 | |
Balance as of end-of-year | 407 | 3,230 | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | (29) | 49 | 132 | |
Cumulative effect from adoption of new accounting standards | (6) | |||
Change in foreign currency exchange rate adjustment | 111 | (137) | 96 | |
Change in DAC, VOBA, DSI and DFEL | (13) | 2 | 3 | |
Income tax benefit (expense) | (51) | 38 | 41 | |
Reclassification adjustment for gains (losses) included in net income (loss) | 24 | 13 | 14 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (1) | (1) | |
Income tax expense (benefit) | (5) | (4) | (5) | |
Balance as of end-of-year | 139 | (29) | 49 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | 100 | 7 | (205) | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | 4 | 4 | 5 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Interest and Debt Expense [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [2] | (7) | (18) | (10) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | Realized Gain (Loss) [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | 1 | |||
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Unrealized holding gains (losses) arising during the period | 44 | 20 | (10) | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Net Investment Income [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [1] | $ 27 | 18 | 11 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | Realized Gain (Loss) [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Reclassification adjustment for gains (losses) included in net income (loss) | [3] | $ 9 | $ 7 | |
[1] | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||
[3] | The OCI offset is reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Gains (losses) | ||||
Gains (losses) | $ (216) | $ (605) | $ (549) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||||
Gains (losses) | ||||
Gains (losses) | 24 | 13 | 14 | |
Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | ||||
Gains (losses) | ||||
Gains (losses) | 36 | 11 | 20 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | 4 | 4 | 5 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | 18 | 11 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [1] | (14) | (23) | (28) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [2] | (7) | (18) | (10) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [2] | 13 | 27 | 32 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 1 | ||
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 27 | 9 | 7 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 37 | 7 | 16 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (150) | 103 | 181 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 5 | (14) | |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 444 | (1,427) | (1,253) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Credit contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 1 | (5) | |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | GLB Embedded Derivatives [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | (692) | 1,055 | 582 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Embedded derivatives-Reinsurance related [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 54 | 10 | 34 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Indexed Annuity And Embedded Derivatives [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [3] | 81 | (400) | (120) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Commissions and other expenses [Member] | Equity market contracts [Member] | ||||
Gains (losses) | ||||
Gains (losses) | [4] | $ (18) | $ 29 | $ 12 |
[1] | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||
[3] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||
[4] | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative Instruments (Gains_2
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | $ 5,085 | $ 4,990 | $ 4,874 |
Offset to realized gain (loss) | 141 | (170) | (339) |
Offset to interest and debt expense | (297) | (253) | (331) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Comprehensive Income (Loss) [Member] | |||
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | 4 | 22 | 16 |
Offset to realized gain (loss) | 27 | 9 | 8 |
Offset to interest and debt expense | $ (7) | $ (18) | $ (10) |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2018security | ||
Summary Of Credit Derivatives | |||
Number of instruments | security | 0 | ||
Open Credit Default Swap Liabilities [Member] | |||
Summary Of Credit Derivatives | |||
Maximum potential payout | $ 52 | ||
BBB+ [Member] | Maturity 12/20/2022 [Member] | Open Credit Default Swap Liabilities [Member] | |||
Summary Of Credit Derivatives | |||
Credit rating of underlying obligation | BBB+ | ||
Number of instruments | item | 1 | ||
Fair value | [1] | $ 1 | |
Maximum potential payout | $ 52 | ||
[1] | Broker quotes are used to determine the market value of our credit default swaps. |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Open Credit Default Swap Liabilities [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 52 | |
Less: Counterparty thresholds | ||
Maximum collateral potentially required to post | $ 52 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 636 | $ 765 |
Collateral Posted by LNC (Held by Counter-Party) | (155) | (581) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 33 | 116 |
Collateral Posted by LNC (Held by Counter-Party) | (3) | (1) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 296 | 242 |
Collateral Posted by LNC (Held by Counter-Party) | (96) | (453) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 106 | 170 |
Collateral Posted by LNC (Held by Counter-Party) | (56) | (120) |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 4 | 237 |
Collateral Posted by LNC (Held by Counter-Party) | (3) | |
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 197 | |
Collateral Posted by LNC (Held by Counter-Party) | $ (4) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 1,330 | $ 1,301 |
Derivative Instruments, Gross amounts offset | (223) | (386) |
Derivative Instruments, Net amount of assets | 1,107 | 915 |
Derivative Instruments, Cash collateral | (636) | (765) |
Derivative Instruments, Non-cash collateral | (58) | |
Derivative Instruments, Net amount | 413 | 150 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,097 | 965 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,097 | 965 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,097 | 965 |
Total, Gross amount of recognized assets | 2,427 | 2,266 |
Total, Gross amounts offset | (223) | (386) |
Total, Net amount of assets | 2,204 | 1,880 |
Total, Cash collateral | (636) | (765) |
Total, Non-cash collateral | (58) | |
Total, Net amount | 1,510 | 1,115 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 784 | 955 |
Derivative Instruments, Gross amounts offset | (103) | (296) |
Derivative Instruments, Net amount of liabilities | 681 | 659 |
Derivative Instruments, Cash collateral | (155) | (581) |
Derivative Instruments, Non-cash collateral | (190) | |
Derivative Instruments, Net amount | 336 | 78 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 1,308 | 1,542 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 1,308 | 1,542 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,308 | 1,542 |
Total, Gross amount of recognized liabilities | 2,092 | 2,497 |
Total, Gross amounts offset | (103) | (296) |
Total, Net amount of liabilities | 1,989 | 2,201 |
Total, Cash collateral | (155) | |
Total, Non-cash collateral | (190) | (581) |
Total, Net amount | $ 1,644 | $ 1,620 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Taxes [Abstract] | |||
Federal rate | 21.00% | 35.00% | |
Deferred tax impact from the Tax Cut and Jobs Act | $ (19) | $ (1,322) | |
Dividends-received deduction | 84 | 264 | $ 182 |
Deferred tax asssets tax credits | 0 | 76 | |
Net operating loss carryforwards | 1,300 | ||
Valuation allowance | 0 | ||
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | 16 | 11 | |
Recognized interest and penalty expense related to uncertain tax positions | 0 | 0 | $ (3) |
Accrued interest and penalty expense related to unrecognized tax benefits | $ 0 | $ 0 |
Federal Income Taxes (Federal I
Federal Income Taxes (Federal Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax expense (benefit), continuing operations [Abstract] | |||
Current | $ 91 | $ 210 | $ 88 |
Deferred | 153 | (1,159) | 178 |
Federal income tax expense (benefit) | $ 244 | $ (949) | $ 266 |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of effective tax rate differences [Abstract] | |||
Tax rate times pre-tax income (loss) | $ 396 | $ 396 | $ 510 |
Effect of: | |||
Tax-preferred investment income | (87) | (280) | (196) |
Tax credits | (39) | (29) | (28) |
Change in uncertain tax positions | 1 | (17) | (14) |
Excess tax benefits from share-based compensation | (5) | (12) | (8) |
Goodwill impairment | 316 | ||
Deferred tax impact from the Tax Cut and Jobs Act | (19) | (1,322) | |
Other items | (3) | (1) | 2 |
Federal income tax expense (benefit) | $ 244 | $ (949) | $ 266 |
Effective tax rate | 13.00% | (84.00%) | 18.00% |
Federal Income Taxes (Federal_2
Federal Income Taxes (Federal Income Tax Asset Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Federal income tax asset (liability) [Abstract] | ||
Current | $ (24) | $ (35) |
Deferred | (1,158) | (2,095) |
Total federal income tax asset (liability) | $ (1,182) | $ (2,130) |
Federal Income Taxes (Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Future contract benefits and other contract holder funds | $ 649 | $ 795 |
Reinsurance related embedded derivative asset | 1 | 12 |
Compensation and benefit plans | 179 | 182 |
Intangibles | 40 | |
Tax credits | 0 | 76 |
Net operating losses | 264 | |
Other | 56 | 7 |
Total deferred tax assets | 1,189 | 1,072 |
Deferred Tax Liabilities | ||
DAC | 1,339 | 1,080 |
VOBA | 305 | 108 |
Net unrealized gain on AFS securities | 338 | 1,643 |
Net unrealized gain on trading securities | 27 | 41 |
Intangibles | 9 | |
Investment activity | 332 | 96 |
Other | 6 | 190 |
Total deferred tax liabilities | 2,347 | 3,167 |
Net deferred tax asset (liability) | $ (1,158) | $ (2,095) |
Federal Income Taxes (Reconci_2
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance as of beginning-of-year | $ 11 | $ 1 |
Increases for prior year tax positions | 9 | |
Increases for current year tax positions | 5 | 1 |
Balance as of end-of-year | $ 16 | $ 11 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 7,887 | $ 8,243 | $ 8,617 |
Business acquired (sold) through reinsurance | (246) | ||
Deferrals | 1,600 | 1,348 | 1,344 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (951) | (965) | (981) |
Unlocking | (115) | 61 | (276) |
Adjustment related to realized gains (losses) | (47) | (12) | 22 |
Adjustment related to unrealized gains (losses) | 1,320 | (788) | (483) |
Balance as of end-of-year | $ 9,448 | $ 7,887 | $ 8,243 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Changes in VOBA [Roll Forward] | ||||
Balance as of beginning-of-year | $ 516 | $ 891 | $ 893 | |
Business acquired (sold) through reinsurance | (11) | |||
Business acquired | 30 | |||
Deferrals | 7 | 7 | 3 | |
Amortization: | ||||
Amortization, excluding unlocking | (127) | (105) | (108) | |
Unlocking | (60) | (48) | 36 | |
Accretion of interest | [1] | 48 | 52 | 52 |
Adjustment related to realized (gains) losses | (2) | (1) | (2) | |
Adjustment related to unrealized (gains) losses | 415 | (280) | 17 | |
Balance as of end-of-year | $ 816 | $ 516 | $ 891 | |
Interest accrual rate, low end | 4.20% | |||
Interest accrual rate, high end | 6.90% | |||
[1] | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2% to 6.9%. |
DAC, VOBA, DSI, and DFEL (Estim
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Estimated future amortization of VOBA, net of interest [Abstract] | |
2,019 | $ 81 |
2,020 | 77 |
2,021 | 73 |
2,022 | 67 |
2,023 | $ 64 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in DSI [Roll Forward] | |||
Balance as of beginning-of-year | $ 238 | $ 243 | $ 256 |
Business acquired (sold) through reinsurance | (21) | ||
Deferrals | 47 | 29 | 24 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (28) | (30) | (32) |
Unlocking | (4) | (2) | |
Adjustment related to realized (gains) losses | (1) | (1) | (1) |
Adjustment related to unrealized (gains) losses | 13 | 1 | (2) |
Balance as of end-of-year | $ 248 | $ 238 | $ 243 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 1,445 | $ 1,874 | $ 1,952 |
Deferrals | 875 | 755 | 631 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (482) | (396) | (365) |
Unlocking | (53) | 1 | (63) |
Adjustment related to realized (gains) losses | (20) | (14) | (3) |
Adjustment related to unrealized (gains) losses | 1,004 | (775) | (278) |
Balance as of end-of-year | $ 2,769 | $ 1,445 | $ 1,874 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | ||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | |
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 25.00% | |
Percent of total individual life in-force amount reinsured | 46.00% | 38.00% |
Reserves associated with modified coinsurance reinsurance arrangements | $ 433 | $ 530 |
Liabilities for funds withheld | 1,740 | 1,761 |
Reinsurance recoverables | 17,748 | 4,907 |
Swiss Re [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance receivable | 1,500 | $ 1,800 |
Trust funded by Swiss Re to support reinsurance receivable | 2,400 | |
Liabilities for funds withheld | 177 | |
Liabilities for reinsurance related embedded derivatives | 24 | |
Athene Holding Ltd. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deferred gain on business sold through reinsurance | 8 | |
Deposit assets | 7,500 | |
Athene Holding Ltd. [Member] | AFS Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 6,500 | |
Athene Holding Ltd. [Member] | Trading Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 559 | |
Athene Holding Ltd. [Member] | Commercial Mortgage Loans [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 72 | |
Athene Holding Ltd. [Member] | Derivative Instruments [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 60 | |
Athene Holding Ltd. [Member] | Cash [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 265 | |
Protective [Member] | ||
Ceded Credit Risk [Line Items] | ||
Trust funded by Swiss Re to support reinsurance receivable | 13,700 | |
Reinsurance recoverables | $ 12,100 |
Reinsurance (Reinsurance Amount
Reinsurance (Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Abstract] | |||
Direct insurance premiums and fee income | $ 12,041 | $ 10,269 | $ 9,551 |
Reinsurance assumed | 89 | 91 | 93 |
Reinsurance ceded | (1,543) | (1,485) | (1,413) |
Total insurance premiums and fee income | 10,587 | 8,875 | 8,231 |
Direct insurance benefits | 8,592 | 6,770 | 6,195 |
Reinsurance recoveries netted against benefits | (1,806) | (1,610) | (1,503) |
Benefits | $ 6,786 | $ 5,160 | $ 4,692 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Impairment of intangibles | $ 905 |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets (Changes In Carrying Amount Of Goodwill, By Reportable Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 3,522 | $ 3,522 | |
Accumulated impairment as of beginning-of-year | (2,154) | (1,249) | |
Acquisition accounting adjustments | $ 414 | ||
Impairment | (905) | ||
Net goodwill as of end-of-year | 1,782 | 1,368 | |
Annuities Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 1,040 | 1,040 | |
Accumulated impairment as of beginning-of-year | (600) | (600) | |
Impairment | |||
Net goodwill as of end-of-year | 440 | 440 | |
Retirement Plan Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 20 | 20 | |
Impairment | |||
Net goodwill as of end-of-year | 20 | 20 | |
Life Insurance Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 2,188 | 2,188 | |
Accumulated impairment as of beginning-of-year | (1,554) | (649) | |
Impairment | (905) | ||
Net goodwill as of end-of-year | 634 | 634 | |
Group Protection Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 274 | $ 274 | |
Acquisition accounting adjustments | 414 | ||
Impairment | |||
Net goodwill as of end-of-year | $ 688 | $ 274 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets (Schedule Of Intangible Assets By Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | $ 715 | $ 105 | |
Accumulated amortization | 56 | 47 | |
Retirement Plan Services Segment [Member] | Mutual Fund Contract Rights [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | [1] | 5 | 5 |
Life Insurance Segment [Member] | Sales Force [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 100 | 100 | |
Accumulated amortization | 51 | $ 47 | |
Group Protection Segment [Member] | Insurance Licenses [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | [1] | 3 | |
Group Protection Segment [Member] | VOCRA [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | 576 | ||
Accumulated amortization | 5 | ||
Group Protection Segment [Member] | VODA [Member] | |||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | |||
Gross carrying amount | $ 31 | ||
[1] | No amortization recorded as the intangible asset has indefinite life. |
Goodwill and Specifically Ide_6
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
2,019 | $ 26 |
2,020 | 37 |
2,021 | 37 |
2,022 | 37 |
2,023 | 37 |
Thereafter | $ 477 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 35.00% | 35.00% | |
Percent of permanent life insurance sales | 36.00% | 27.00% | 33.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 89,783 | $ 96,941 |
Net Amount At Risk | [1],[2] | $ 1,002 | $ 81 |
Average attained age of contract holders | [1] | 65 years | 64 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 88 | $ 108 |
Net Amount At Risk | [1],[2] | $ 18 | $ 18 |
Average attained age of contract holders | [1] | 77 years | 76 years |
Guaranteed minimum return | [1] | 5.00% | 5.00% |
Anniversary Contract Value [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 23,365 | $ 26,596 |
Net Amount At Risk | [1],[2] | $ 2,007 | $ 417 |
Average attained age of contract holders | [1] | 71 years | 70 years |
[1] | Our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive. | ||
[2] | Represents the amount of death benefit in excess of the account balance that is subject to market fluctuations. |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranteed Benefit Features [Abstract] | |||
Balance as of beginning-of-year | $ 100 | $ 110 | $ 115 |
Changes in reserves | 77 | 8 | 34 |
Benefits paid | (16) | (18) | (39) |
Balance as of end-of-year | $ 161 | $ 100 | $ 110 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - Variable Annuity [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 110,361 | $ 121,110 |
Percent of total variable annuity separate account values | 99.00% | 99.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 54,060 | $ 59,647 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 18,359 | 20,837 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 37,942 | $ 40,626 |
Liability For Unpaid Claims (Na
Liability For Unpaid Claims (Narrative) (Details) | Dec. 31, 2018 |
Minimum [Member] | |
Discount rate | 3.25% |
Maximum [Member] | |
Discount rate | 5.00% |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Liability For Unpaid Claims [Abstract] | ||||
Balance as of beginning-of-year | $ 2,222 | $ 2,242 | $ 2,307 | |
Reinsurance recoverable | 57 | 69 | 71 | |
Net balance as of beginning-of-year | 2,165 | 2,173 | 2,236 | |
Business acquired | [1] | 2,842 | ||
Incurred related to: | ||||
Current year | 2,531 | 1,346 | 1,395 | |
Interest | 120 | 69 | 71 | |
All other incurred | [2] | (208) | (76) | (156) |
Total incurred | 2,443 | 1,339 | 1,310 | |
Paid related to: | ||||
Current year | (1,197) | (798) | (806) | |
Prior years | (1,061) | (549) | (567) | |
Total paid | (2,258) | (1,347) | (1,373) | |
Net balance as of end-of-year | 5,192 | 2,165 | 2,173 | |
Reinsurance recoverable | 143 | 57 | 69 | |
Balance as of end-of-year | $ 5,335 | $ 2,222 | $ 2,242 | |
[1] | Represents Liberty group life and disability reserves, net, as of May 1, 2018, subject to finalization of acquisition date fair values. See Note 3 for additional information. | |||
[2] | All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably |
Liability For Unpaid Claims (Sc
Liability For Unpaid Claims (Schedule Of Reconciliation) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Future contract benefits | $ 34,648 | $ 22,887 | $ 21,576 | |
Liability for unpaid claims | 5,335 | 2,222 | 2,242 | $ 2,307 |
Life Insurance And Annuity Reserves And Claims Due [Member] | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Less adjustments | 27,732 | 19,066 | 17,634 | |
Accident And Health Life Insurance Reserves [Member] | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Less adjustments | $ 1,581 | $ 1,599 | $ 1,700 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument, Consecutive years of non-payment of interest resulting in default | 10 years |
Capital Securities [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 1,200,000,000 |
Risk based capital ratio threshold | 175.00% |
Capital securities covenant percentage | 10.00% |
Five-year revolving credit facility [Member] | |
Debt Instrument [Line Items] | |
Maximum Issuance Of Line of Credit | $ 2,500,000,000 |
Current borrowing capacity | 2,500,000,000 |
Borrowing capacity available to reimburse the banks for drawn LOCs | 1,750,000,000 |
Minimum consolidated net worth | $ 10,500,000,000 |
Percentage of aggregate net proceeds of equity issuances | 50.00% |
Debt to capital ratio (low end of range) | 0.35% |
Debt to capital ratio (high end of range) | 1.00% |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Schedule Of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Current maturities of long-term debt | $ 450 | ||
Total short-term debt | 450 | ||
Total long-term debt | $ 5,839 | 4,894 | |
Fixed rate, swap | 5.00% | ||
Debt repurchase option, Repayment as percent of principal | 100.00% | ||
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | $ 4,473 | 3,460 | |
Capital Securities | 1,213 | 1,213 | |
Unamortized premiums (discounts) | (3) | (8) | |
Unamortized debt issuance costs | (33) | (25) | |
Unamortized adjustments from discontinued hedges | 123 | ||
Fair value hedge - interest rate swap agreements | 66 | 254 | |
Total unamortized premiums (discounts), unamortized debt issuance costs and fair value hedges on interest rate swap agreements | 153 | 221 | |
Total long-term debt | $ 5,839 | 4,894 | |
8.75% notes, due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 8.75% | ||
8.75% notes, due 2019 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | 287 | |
Interest rate | [1] | 8.75% | |
6.25% notes, due 2020 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 300 | 300 |
Interest rate | [1] | 6.25% | |
4.85% notes, due 2021 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 300 | 300 |
Interest rate | [1] | 4.85% | |
4.20% notes, due 2022 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 300 | 300 |
Interest rate | [1] | 4.20% | |
LIBOR +100 bps loan, due 2023 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | $ 200 | ||
Variable rate | 1.00% | ||
4.00% notes, due 2023 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 500 | 350 |
Interest rate | [1] | 4.00% | |
3.35% notes, due 2025 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 300 | 300 |
Interest rate | [1] | 3.35% | |
3.63% notes, due 2026 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 400 | 400 |
Interest rate | [1] | 3.63% | |
3.80% notes, due 2028 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | $ 500 | ||
Interest rate | 3.80% | ||
6.15% notes, due 2036 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1] | $ 348 | 348 |
Interest rate | [1] | 6.15% | |
6.30% notes, due 2037 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1],[2] | $ 375 | 375 |
Interest rate | [1],[2] | 6.30% | |
7.00% notes, due 2040 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | [1],[2] | $ 500 | 500 |
Interest rate | [1],[2] | 7.00% | |
4.35% notes, due 2048 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Senior Long Term Notes | $ 450 | ||
Interest rate | 4.35% | ||
LIBOR +236 bps, due 2066 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Capital Securities | [3] | $ 722 | 722 |
Variable rate | [3] | 2.36% | |
LIBOR +204 bps, due 2067 [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Capital Securities | [3] | $ 491 | $ 491 |
Variable rate | [3] | 2.04% | |
[1] | We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption.Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies.To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities. | ||
[2] | Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. | ||
[3] | To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5% over the remaining terms of the capital securities. |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Schedule of Extinguishment of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Principal balance outstanding prior to payoff | [1] | $ 287 | $ 350 | |
Unamortized debt issuance costs and discounts prior to payoff | (1) | $ 5 | (3) | |
Amount paid to retire debt | (309) | (410) | ||
Gain (loss) on extinguishment of debt, pre-tax | (23) | $ 5 | (63) | |
8.75% notes, due 2019 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Debt Instrument Repurchase Amount | $ 287 | |||
Interest rate | 8.75% | |||
Senior Notes Due 2019 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Debt Instrument Repurchase Amount | $ 200 | |||
Interest rate | 8.75% | |||
Senior Notes Due 2036 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Debt Instrument Repurchase Amount | $ 150 | |||
Interest rate | 6.15% | |||
[1] | During the first quarter of 2018, we repurchased $287 million of our 8.75% senior notes due 2019. During the fourth quarter of 2016, we repurchased $200 million of our 8.75% senior notes due 2019 and $150 million of our 6.15% senior notes due 2036. |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt (Future Principal Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future principal payments due on long-term debt [Abstract] | |
2,020 | $ 300 |
2,021 | 300 |
2,022 | 300 |
2,023 | 700 |
Thereafter | 4,086 |
Total | $ 5,686 |
Short-Term and Long-Term Debt_6
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | Total | |
Maximum Available | $ 4,846 | |
LOCs issued | $ 3,310 | |
Five-year revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | Five-year revolving credit facility | |
Expiration Date | Jun. 30, 2021 | |
Maximum Available | $ 2,500 | |
LOCs issued | $ 1,001 | |
LOC facility due December 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | LOC facility | [1] |
Expiration Date | Dec. 6, 2019 | [1] |
Maximum Available | $ 350 | [1] |
LOCs issued | $ 350 | [1] |
LOC facility due August 2031 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | LOC facility | [1] |
Expiration Date | Aug. 26, 2031 | [1] |
Maximum Available | $ 990 | [1] |
LOCs issued | $ 953 | [1] |
LOC facility due October 2031 [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Facilities | LOC facility | [1] |
Expiration Date | Oct. 1, 2031 | [1] |
Maximum Available | $ 1,006 | [1] |
LOCs issued | $ 1,006 | [1] |
[1] | Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. |
Contingencies And Commitments_2
Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Total rental expense on operating leases | $ 50 | $ 43 | $ 44 |
Proceeds from sales leaseback transaction | 88 | 62 | $ 85 |
Total accumulated amortization related to sales leaseback transaction | 282 | 101 | |
Loss contingency accrual, insurance-related assessment, premium tax offset | (17) | $ (16) | |
Football Stadium Naming Rights Commitment [Member] | |||
Loss Contingencies [Line Items] | |||
Amount of commitment, total | $ 140 | ||
Time period of commitment | 20 years | ||
Approximate Amount Of Commitment Per Year | $ 7 | ||
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration risk, percentage | 11.00% | 14.00% | 21.00% |
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration risk, percentage | 38.00% | 40.00% | 41.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration risk, percentage | 16.00% | 20.00% | 23.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration risk, percentage | 45.00% | 47.00% | 47.00% |
Maximum [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate | $ 50 |
Contingencies And Commitments_3
Contingencies And Commitments (Future Rental Commitments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future minimum rental commitments [Abstract] | |
2,019 | $ 44 |
2,020 | 41 |
2,021 | 40 |
2,022 | 36 |
2,023 | 33 |
Thereafter | 88 |
Total | $ 282 |
Contingencies And Commitments_4
Contingencies And Commitments (Future Capital Lease Commitments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future minimum capital lease commitments [Abstract] | |
2,019 | $ 97 |
2,020 | 58 |
2,021 | 68 |
2,022 | 67 |
2,023 | 91 |
Thereafter | 28 |
Total minimum lease payments | 409 |
Less: Amount representing interest | 45 |
Present value of minimum lease payments | $ 364 |
Shares and Stockholders' Equi_3
Shares and Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred compensation plan mark to market adjustment | $ 18 | $ (7) |
Common stock warrant [Member] | ||
Outstanding warrant to purchase common stock (in shares) | 275,068 | |
Exercise price of warrant (in dollars per share) | $ 9.73 |
Shares and Stockholders' Equi_4
Shares and Stockholders' Equity (Changes In Common stock (Number Of Shares)) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes In Preferred And Common Stock Number Of Shares [Line Items] | |||
Balance as of beginning-of-year | 218,090,114 | ||
Balance as of end-of-year | 205,862,760 | 218,090,114 | |
Common Stock [Member] | |||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | |||
Balance as of beginning-of-year | 218,090,114 | 226,335,105 | 243,835,893 |
Stock issued for exercise of warrants | 212,670 | 344,901 | 79,397 |
Stock compensation/issued for benefit plans | 800,325 | 1,793,234 | 1,732,812 |
Retirement/cancellation of shares | (13,240,349) | (10,383,126) | (19,312,997) |
Balance as of end-of-year | 205,862,760 | 218,090,114 | 226,335,105 |
Common stock as of End-of-year | |||
Basic basis | 205,862,760 | 218,090,114 | 226,335,105 |
Diluted basis | 209,034,686 | 221,309,830 | 230,126,820 |
Shares And Stockholders' Equi_5
Shares And Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share | |||
Weighted-average shares, as used in basic calculation | 215,936,448 | 222,128,687 | 234,181,717 |
Shares to cover exercise of outstanding warrants | 568,602 | 761,353 | 1,089,221 |
Shares to cover non-vested stock | 1,534,142 | 1,626,908 | 1,109,490 |
Average stock options outstanding during the year | 1,739,029 | 2,360,372 | 2,256,720 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (81,260) | (109,034) | (248,402) |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) | (1,074,406) | (1,414,857) | (1,508,620) |
Shares repurchasable from measured but unrecognized stock option expense | (14,600) | (53,241) | (49,839) |
Average deferred compensation shares | 944,151 | 920,792 | |
Weighted-average shares, as used in diluted calculation | 219,552,106 | 226,220,980 | 236,830,287 |
Shares and Stockholders' Equi_6
Shares and Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 3,230 | ||
Cumulative effect from adoption of new accounting standards | (6) | ||
Less: | |||
Balance as of end-of-year | 407 | $ 3,230 | |
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 3,486 | 1,784 | $ 991 |
Cumulative effect from adoption of new accounting standards | 674 | ||
Unrealized holding gains (losses) arising during the year | (6,274) | 3,032 | 1,600 |
Change in foreign currency exchange rate adjustment | (107) | 134 | (99) |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,748 | (705) | (456) |
Income tax benefit (expense) | 981 | (797) | (370) |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (42) | (39) | (158) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (20) | (20) | (23) |
Income tax benefit (expense) | 13 | 21 | 63 |
Less: | |||
Balance as of end-of-year | 557 | 3,486 | 1,784 |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 44 | 25 | 26 |
Cumulative effect from adoption of new accounting standards | 9 | ||
(Increases) attributable to: | |||
Gross OTTI recognized in OCI during the year | (55) | ||
Change in DAC, VOBA, DSI and DFEL | 12 | ||
Income tax benefit (expense) | 15 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | (19) | 34 | 54 |
Change in DAC, VOBA, DSI, and DFEL | (6) | (5) | (12) |
Income tax benefit (expense) | 5 | (10) | (15) |
Less: | |||
Balance as of end-of-year | 33 | 44 | 25 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (29) | 49 | 132 |
Cumulative effect from adoption of new accounting standards | (6) | ||
Unrealized holding gains (losses) arising during the year | 144 | 27 | (215) |
Change in foreign currency exchange rate adjustment | 111 | (137) | 96 |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | (13) | 2 | 3 |
Income tax benefit (expense) | (51) | 38 | 41 |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 24 | 13 | 14 |
Associated amortization of DAC, VOBA, DSI and DFEL | (2) | (1) | (1) |
Income tax benefit (expense) | (5) | (4) | (5) |
Balance as of end-of-year | 139 | (29) | 49 |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (14) | (27) | (5) |
Change in foreign currency exchange rate adjustment | (9) | 13 | (22) |
Less: | |||
Balance as of end-of-year | (23) | (14) | (27) |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (257) | (265) | (299) |
Cumulative effect from adoption of new accounting standards | (35) | ||
Less: | |||
Adjustment arising during the period | (12) | 18 | 43 |
Income tax benefit (expense) | 5 | (10) | (9) |
Balance as of end-of-year | $ (299) | $ (257) | $ (265) |
Shares And Stockholders' Equi_7
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | $ 141 | $ (170) | $ (339) |
Net investment income | 5,085 | 4,990 | 4,874 |
Interest and debt expense | (297) | (253) | (331) |
Commissions and other expenses | (4,763) | (4,176) | (4,277) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (42) | (39) | (158) |
Reclassifications before income tax benefit (expense) | (62) | (59) | (181) |
Income tax benefit (expense) | 13 | 21 | 63 |
Reclassifications, net of income tax | (49) | (38) | (118) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (20) | (20) | (23) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 8 | 5 | 3 |
Reclassifications before income tax benefit (expense) | 8 | 4 | 3 |
Income tax benefit (expense) | (2) | (1) | |
Reclassifications, net of income tax | 6 | 3 | 3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | Change In DAC, VOBA, DSI, And DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (1) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Nonoperating income expense | 24 | 13 | 14 |
Reclassifications before income tax benefit (expense) | 22 | 12 | 13 |
Income tax benefit (expense) | (5) | (4) | (5) |
Reclassifications, net of income tax | 17 | 8 | 8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest rate contracts [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 1 | ||
Net investment income | 4 | 4 | 5 |
Interest and debt expense | (7) | (18) | (10) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign currency contracts [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 9 | 7 | |
Net investment income | 27 | 18 | 11 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Commissions and other expenses | $ (2) | $ (1) | $ (1) |
Commissions and Other Expense_2
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Details underlying commissions and other expenses [Abstract] | |||
Commissions | $ 2,256 | $ 1,986 | $ 1,910 |
General and administrative expenses | 1,953 | 1,766 | 1,687 |
Expenses associated with reserve financing and unrelated LOCs | 84 | 87 | 80 |
DAC and VOBA deferrals and interest, net of amortization | (402) | (350) | (70) |
Broker-dealer expenses | 465 | 438 | 418 |
Specifically identifiable intangible asset amortization | 9 | 4 | 4 |
Taxes, licenses and fees | 313 | 245 | 248 |
Acquisition and integration costs related to mergers and acquisitions | 85 | ||
Total | $ 4,763 | $ 4,176 | $ 4,277 |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement [Abstract] | |||
Net periodic benefit expense (recovery) | $ (2) | $ (3) | $ 5 |
Expected benefit payments in the next fiscal year | 110 | ||
Defined contribution plans expense | 93 | 88 | 86 |
Deferred compensation plans expense | 4 | 35 | $ 33 |
Elective Contribution [Member] | |||
Statement [Abstract] | |||
Pension contributions | $ 8 | $ 10 |
Retirement and Deferred Compe_4
Retirement and Deferred Compensation Plans (Benefit Plans' Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,356 | $ 1,566 |
Projected benefit obligation | 1,477 | 1,674 |
Funded status | (121) | (108) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 52 | 45 |
Other liabilities | (173) | (153) |
Net amount recognized | $ (121) | $ (108) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 4.14% | 3.62% |
Weighted-Average Assumptions, Net periodic benefit cost: | ||
Weighted-average discount rate | 3.75% | 4.01% |
Expected return on plan assets | 6.46% | 6.71% |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 64 | $ 60 |
Projected benefit obligation | 74 | 87 |
Funded status | (10) | (27) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other liabilities | (10) | (27) |
Net amount recognized | $ (10) | $ (27) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 4.50% | 4.00% |
Weighted-Average Assumptions, Net periodic benefit cost: | ||
Weighted-average discount rate | 4.00% | 4.50% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Compe_5
Retirement and Deferred Compensation Plans (Fair Value of Benefit Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value of Benefit Plans' Assets [Abstract] | ||
Corporate bonds | $ 249 | $ 292 |
U.S. government bonds | 252 | 291 |
Foreign government bonds | 216 | 231 |
State and municipal bonds | 28 | 32 |
Common and preferred stock | 485 | 615 |
Cash and invested cash | 125 | 103 |
Other investments | 65 | 62 |
Total | $ 1,420 | $ 1,626 |
Retirement and Deferred Compe_6
Retirement and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Total liabilities | [1] | $ 547 | $ 588 |
Investments dedicated to fund liabilities | [2] | $ 170 | $ 182 |
[1] | Reported in other liabilities on our Consolidated Balance Sheets. | ||
[2] | Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Shares [Member] | Maximum [Member] | |||
Narrative [Abstract] | |||
Share based compensation, Performance issuance as percent or original grant | 200.00% | ||
Performance Shares [Member] | Minimum [Member] | |||
Narrative [Abstract] | |||
Share based compensation, Performance issuance as percent or original grant | 0.00% | ||
Stock options with performance conditions [Member] | |||
Narrative [Abstract] | |||
Contractual term | 5 years | ||
Vesting period (in years) | 2 years | ||
Total fair value of options vested | $ 1 | $ 2 | $ 1 |
Total intrinsic value of options exercised | $ 2 | 12 | 3 |
Stock options with service conditions [Member] | |||
Narrative [Abstract] | |||
Contractual term | 10 years | ||
Vesting period (in years) | 3 years | ||
Total fair value of options vested | $ 6 | 6 | 6 |
Total intrinsic value of options exercised | $ 11 | 23 | 22 |
Non-employee Stock Appreciation Rights [Member] | |||
Narrative [Abstract] | |||
Contractual term | 5 years | ||
Vesting period (in years) | 4 years | ||
Percentage of SARs vesting each year over four-year period | 25.00% | ||
SARs liability | $ 1 | 3 | |
Payment for SARs exercised | $ 1 | $ 3 | $ 2 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans (Compensation Expense By Award Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 51 | $ 50 | $ 46 |
Recognized tax benefit | 11 | 18 | 16 |
Stock Options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 5 | 10 | 9 |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | 15 | 13 | 11 |
Non-employee Stock Appreciation Rights [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | (1) | 2 | 3 |
Restricted Stock Units And Non-Vested Stock [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Compensation expense | $ 32 | $ 25 | $ 23 |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans (Total unrecognized compensation expense for all stock-based incentive compensation plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 73 | $ 55 | $ 47 |
Stock Options [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 9 | $ 9 | $ 8 |
Weighted average period (in years) | 1 year 1 month 6 days | 1 year 4 months 24 days | 1 year 4 months 24 days |
Performance Shares [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 14 | $ 12 | $ 12 |
Weighted average period (in years) | 10 months 24 days | 1 year 2 months 12 days | 1 year 4 months 24 days |
Non-employee Stock Appreciation Rights [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 2 | $ 2 | |
Weighted average period (in years) | 2 years 8 months 12 days | 3 years 2 months 12 days | 3 years 7 months 6 days |
Restricted Stock Units And Non-Vested Stock [Member] | |||
Employee service share-based compensation, aggregate disclosures [Abstract] | |||
Unrecognized stock-based incentive compensation expense | $ 50 | $ 32 | $ 25 |
Weighted average period (in years) | 1 year 2 months 12 days | 1 year 1 month 6 days | 1 year 2 months 12 days |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock option incentive plans) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions used for stock-based incentive compensation plans [Abstract] | |||
Weighted-average fair value per option granted (in dollars per share) | $ 18.74 | $ 18.27 | $ 9.32 |
Dividend yield | 2.10% | 2.00% | 2.80% |
Expected volatility | 27.20% | 31.50% | 35.90% |
Risk-free interest rate, minimum | 2.50% | 1.70% | 1.00% |
Risk-free interest rate, maximum | 2.90% | 2.10% | 1.60% |
Expected life (in years) | 5 years 9 months 18 days | 5 years 6 months | 5 years 8 months 12 days |
Stock Based Incentive Compensat
Stock Based Incentive Compensation Plans (Summary of activity for stock options with performance conditions) (Details) - Stock options with performance conditions [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | ||
Summary of activity for stock options [Roll Forward] | ||
Outstanding as of beginning of year (in shares) | shares | 271,724 | |
Granted - original (in shares) | shares | 32,400 | |
Exercised (includes shares tendered) (in shares) | shares | (55,594) | |
Forfeited or expired (in shares) | shares | (19,694) | |
Outstanding as of end of year (in shares) | shares | 228,836 | |
Vested or expected to vest as of end of year (in shares) | shares | 214,570 | [1] |
Exercisable as of end of year (in shares) | shares | 200,304 | |
Summary of activity for stock options, additional disclosures [Abstract] | ||
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 54.37 | |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 78.41 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 47.13 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 55.45 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 59.43 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 58.54 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 57.51 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | 2 years 3 months 7 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 2 years 2 months 5 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | 2 years 29 days | |
Aggregate intrinsic value outstanding as of end of year | $ | $ 1 | |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 1 | [1] |
Aggregate intrinsic value exercisable as of end of year | $ | $ 1 | |
[1] | Includes estimated forfeitures. |
Stock Based Incentive Compens_2
Stock Based Incentive Compensation Plans (Summary of activity for stock options with service conditions) (Details) - Stock options with service conditions [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | ||
Summary of activity for stock options [Roll Forward] | ||
Outstanding as of beginning of year (in shares) | shares | 2,192,139 | |
Granted - original (in shares) | shares | 481,404 | |
Exercised (includes shares tendered) (in shares) | shares | (239,633) | |
Forfeited or expired (in shares) | shares | (79,894) | |
Outstanding as of end of year (in shares) | shares | 2,354,016 | |
Vested or expected to vest as of end of year (in shares) | shares | 2,134,763 | [1] |
Exercisable as of end of year (in shares) | shares | 1,448,275 | |
Summary of activity for stock options, additional disclosures [Abstract] | ||
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 46.02 | |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 77.81 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 33.13 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 67.55 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 53.11 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 52.14 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 44.94 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | 6 years 9 months 29 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 6 years 8 months 12 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | 5 years 9 months 29 days | |
Aggregate intrinsic value outstanding as of end of year | $ | $ 17 | |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 16 | [1] |
Aggregate intrinsic value exercisable as of end of year | $ | $ 14 | |
[1] | Includes estimated forfeitures. |
Stock-Based Incentive Compens_7
Stock-Based Incentive Compensation Plans (Summary of activity for performance shares) (Details) - Performance Shares [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Summary of activity for performance shares [Roll Forward] | |
Outstanding as of beginning of year (in shares) | shares | 556,949 |
Granted (in shares) | shares | 156,676 |
Vested (in shares) | shares | (137,308) |
Forfeited (in shares) | shares | (30,092) |
Outstanding as of end of year (in shares) | shares | 546,225 |
Performance shares, additional disclosures [Abstract] | |
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ / shares | $ 53.65 |
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | 89.89 |
Weighted-average grant date fair value, vested (in dollars per share) | $ / shares | 68.35 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $ / shares | 69.62 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ / shares | $ 59.46 |
Stock-Based Incentive Compens_8
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock appreciation rights plan) (Details) - Non-employee Stock Appreciation Rights [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions used for stock-based incentive compensation plans [Abstract] | |||
Weighted-average fair value per option granted (in dollars per share) | $ 19.09 | $ 20.06 | $ 10.25 |
Dividend yield | 1.60% | 1.50% | 2.90% |
Expected volatility | 27.00% | 34.40% | 35.80% |
Risk-free interest rate | 2.80% | 2.20% | 1.40% |
Expected life (in years) | 5 years | 5 years | 5 years |
Stock-Based Incentive Compens_9
Stock-Based Incentive Compensation Plans (Summary of activity for stock appreciation rights plan) (Details) - Non-employee Stock Appreciation Rights [Member] | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | ||
Summary of activity for stock options [Roll Forward] | ||
Outstanding as of beginning of year (in shares) | shares | 162,188 | |
Granted - original (in shares) | shares | 14,692 | |
Exercised (includes shares tendered) (in shares) | shares | (39,661) | |
Forfeited or expired (in shares) | shares | (7,212) | |
Outstanding as of end of year (in shares) | shares | 130,007 | |
Vested or expected to vest as of end of year (in shares) | shares | 124,916 | [1] |
Exercisable as of end of year (in shares) | shares | 84,783 | |
Summary of activity for stock options, additional disclosures [Abstract] | ||
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 50.22 | |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 78.41 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 44.55 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 54.82 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 54.88 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 54.75 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 52.55 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | 2 years 1 month 6 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 2 years 22 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | 1 year 7 months 6 days | |
[1] | Includes estimated forfeitures. |
Stock-Based Incentive Compen_10
Stock-Based Incentive Compensation Plans (Summary of activity for restricted stock units) (Details) - Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Summary of activity for restricted stock units [Roll Forward] | |
Outstanding as of beginning of year (in shares) | shares | 1,494,732 |
Granted (in shares) | shares | 741,967 |
Vested (in shares) | shares | (429,039) |
Forfeited (in shares) | shares | (114,784) |
Outstanding as of end of year (in shares) | shares | 1,692,876 |
Restricted stock units, additional disclosures [Abstract] | |
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ / shares | $ 51.83 |
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | 76.11 |
Weighted-average grant date fair value, vested (in dollars per share) | $ / shares | 58.22 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $ / shares | 64.16 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ / shares | $ 60.02 |
Statutory Information and Res_3
Statutory Information and Restrictions (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statutory Information and Restrictions [Abstract] | |
Current Period Increase In Reserves | $ 450 |
RBC Ratio Company Action Level Low End | 75.00% |
RBC Ratio Company Action Level High End | 100.00% |
Indiana Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
New York Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
Amount of dividends that could be paid in the next year without prior approval | $ 825 |
Statutory Information and Res_4
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statutory Information and Restrictions [Abstract] | ||
U.S. capital and surplus | $ 8,510 | $ 8,263 |
Statutory Information and Res_5
Statutory Information and Restrictions (Net Gain Loss From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Information and Restrictions [Abstract] | |||
U.S. net gain (loss) from operations, after-tax | $ 692 | $ 1,329 | $ 1,111 |
U.S. net income (loss) | 1,019 | 1,468 | 1,002 |
U.S. dividends to LNC holding company | $ 925 | $ 974 | $ 970 |
Statutory Information and Res_6
Statutory Information and Restrictions (Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Calculation of reserves using the Indiana universal life method [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 36 | $ 54 | |
Conservative valuation rate on certain variable annuities [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (55) | (50) | |
Lesser of LOC and XXX additional reserve as surplus [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | 1,959 | 1,965 |
LLC Notes And Variable Value Surplus Notes [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | 1,634 | 1,585 |
Excess Of Loss Reinsurance Treaties [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | [1] | $ 330 | $ 185 |
[1] | These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 233,897 | $ 245,265 | |
Liabilities measured at fair value | 1,793 | 3,689 | |
Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 1 | 1 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 1 | 1 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 1 | 1 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | $ 1 | $ 1 | $ 1 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
AFS securities: | |||
AFS Fixed Maturity Securities | $ 94,024 | $ 94,840 | |
Equity securities | 246 | ||
Trading securities | 1,950 | 1,620 | |
Equity securities | 99 | ||
Mortgage loans on real estate | 13,260 | 10,762 | |
Derivative investments | 1,107 | 915 | |
Other investments | 2,255 | 2,296 | |
Other contract holder funds: | |||
Benefit Plans' Assets | 1,420 | 1,626 | |
Carrying Value [Member] | |||
AFS securities: | |||
Trading securities | 1,950 | 1,620 | |
Equity securities | 99 | ||
Mortgage loans on real estate | 13,260 | 10,762 | |
Derivative investments | [1] | 1,107 | 915 |
Other investments | 2,255 | 2,296 | |
Cash and invested cash | 2,345 | 1,628 | |
Other assets - GLB direct embedded derivatives | 123 | 903 | |
Other assets - GLB ceded embedded derivatives | 72 | 51 | |
Indexed annuity ceded embedded derivatives | 902 | 11 | |
Separate account assets | 132,833 | 144,219 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (542) | (592) | |
Account values of certain investment contracts | (34,535) | (32,370) | |
Short-term debt | (450) | ||
Long-term debt | (5,839) | (4,894) | |
Reinsurance related embedded derivatives | (3) | (57) | |
Benefit Plans' Assets | [2] | 1,420 | 1,626 |
Fair Value [Member] | |||
AFS securities: | |||
Trading securities | 1,950 | 1,620 | |
Equity securities | 99 | ||
Mortgage loans on real estate | 13,092 | 10,877 | |
Derivative investments | [1] | 1,107 | 915 |
Other investments | 2,255 | 2,296 | |
Cash and invested cash | 2,345 | 1,628 | |
Other assets - GLB direct embedded derivatives | 123 | 903 | |
Other assets - GLB ceded embedded derivatives | 72 | 51 | |
Indexed annuity ceded embedded derivatives | 902 | 11 | |
Separate account assets | 132,833 | 144,219 | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (542) | (592) | |
Account values of certain investment contracts | (36,358) | (36,200) | |
Short-term debt | (452) | ||
Long-term debt | (5,604) | (5,042) | |
Reinsurance related embedded derivatives | (3) | (57) | |
Benefit Plans' Assets | [2] | 1,420 | 1,626 |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 94,024 | 94,840 | |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
AFS Fixed Maturity Securities | 94,024 | 94,840 | |
Equity Securities [Member] | Carrying Value [Member] | |||
AFS securities: | |||
Equity securities | 246 | ||
Equity Securities [Member] | Fair Value [Member] | |||
AFS securities: | |||
Equity securities | 246 | ||
Future Contract Benefits [Member] | Carrying Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,305) | (1,418) | |
Future Contract Benefits [Member] | Fair Value [Member] | |||
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,305) | (1,418) | |
Other Liabilities [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | (160) | (338) |
Other Liabilities [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | $ (160) | (338) |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | (67) | ||
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | $ (67) | ||
[1] | We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. | ||
[2] | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 233,897 | $ 245,265 | |
Liabilities measured at fair value | (1,793) | (3,689) | |
Benefit Plans' Assets | 1,420 | 1,626 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,340 | 1,692 | |
Benefit Plans' Assets | 158 | 210 | |
Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 227,067 | 238,376 | |
Liabilities measured at fair value | (317) | (1,631) | |
Benefit Plans' Assets | 1,262 | 1,416 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,490 | 5,197 | |
Liabilities measured at fair value | (1,476) | (2,058) | |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 80,348 | 82,216 | |
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 77,079 | 79,125 | |
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,269 | 3,091 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 966 | 974 | |
ABS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 937 | 947 | |
ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 29 | 27 | |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 417 | 567 | |
U.S. Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 399 | 556 | |
U.S. Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 18 | 6 | |
U.S. Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5 | ||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 448 | 451 | |
Foreign Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 339 | 341 | |
Foreign Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 109 | 110 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,373 | 3,465 | |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,366 | 3,453 | |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 7 | 12 | |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 804 | 600 | |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 802 | 594 | |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2 | 6 | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,730 | 808 | |
CLOs [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,625 | 717 | |
CLOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 105 | 91 | |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,345 | 5,119 | |
State And Municipal Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 5,345 | 5,119 | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 593 | 640 | |
Hybrid And Redeemable Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 67 | 71 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 451 | 493 | |
Hybrid And Redeemable Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 75 | 76 | |
Equity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 246 | ||
Equity AFS Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 28 | ||
Equity AFS Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 56 | ||
Equity AFS Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 162 | ||
Trading Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,950 | 1,620 | |
Trading Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 43 | 73 | |
Trading Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,840 | 1,498 | |
Trading Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 67 | 49 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 99 | ||
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 16 | ||
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 58 | ||
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 25 | ||
Derivative Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,432 | 1,597 |
Derivative Investments [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 727 | 994 |
Derivative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 705 | 603 |
Other investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 150 | 150 | |
Other investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 150 | 150 | |
Invested Cash [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2,345 | 1,628 | |
Invested Cash [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2,345 | 1,628 | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 123 | 903 | |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (67) | ||
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 123 | 903 | |
GLB Direct Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (67) | ||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 72 | 51 | |
GLB Ceded Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 72 | 51 | |
Indexed Annuity And Embedded Derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 902 | ||
Indexed Annuity And Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11 | ||
Indexed Annuity And Embedded Derivatives [Member] | Future Contract Benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,305) | (1,418) | |
Indexed Annuity And Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 902 | ||
Indexed Annuity And Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 11 | ||
Indexed Annuity And Embedded Derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future Contract Benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,305) | (1,418) | |
Separate Account Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 132,800 | 144,219 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 665 | 814 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 132,135 | 143,405 | |
Long-term Debt [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,127) | ||
Long-term Debt [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,127) | ||
Reinsurance Related Embedded Derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (3) | (57) | |
Reinsurance Related Embedded Derivatives [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (3) | (57) | |
Derivative Financial Instruments, Liabilities [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (485) | (1,020) |
Derivative Financial Instruments, Liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | (314) | (447) |
Derivative Financial Instruments, Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | [1] | $ (171) | $ (573) |
[1] | Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | $ 3,139 | $ 1,545 | $ 1,799 | ||||
Items Included in Net Income | (437) | 650 | (73) | ||||
Gains (Losses) in OCI and Other | [1] | (271) | 347 | (42) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 2,045 | [2] | 410 | 245 | |||
Transfers Into or Out of Level 3, Net | [3] | (462) | [4] | 187 | (384) | ||
Ending Fair Value | 4,014 | 3,139 | 1,545 | ||||
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 3,091 | 2,405 | 1,993 | |||
Items Included in Net Income | [5] | 10 | 19 | 4 | |||
Gains (Losses) in OCI and Other | [1],[5] | (199) | 198 | (31) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 429 | [2] | 99 | 58 | ||
Transfers Into or Out of Level 3, Net | [3],[5] | (62) | [4] | 370 | 381 | ||
Ending Fair Value | [5] | 3,269 | 3,091 | 2,405 | |||
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | Liberty Transaction [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | 67 | ||||||
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 27 | 33 | 45 | |||
Gains (Losses) in OCI and Other | [1],[5] | (1) | (1) | (2) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 5 | [2] | 14 | |||
Transfers Into or Out of Level 3, Net | [3],[5] | (2) | [4] | (5) | (24) | ||
Ending Fair Value | [5] | 29 | 27 | 33 | |||
ABS [Member] | Fixed Maturity AFS Securities [Member] | Liberty Transaction [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | 17 | ||||||
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 5 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (5) | [2] | 8 | |||
Transfers Into or Out of Level 3, Net | [3],[5] | 5 | (8) | ||||
Ending Fair Value | [5] | 5 | |||||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 110 | 111 | 111 | |||
Items Included in Net Income | [5] | ||||||
Gains (Losses) in OCI and Other | [1],[5] | (1) | (1) | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [2],[5] | ||||||
Transfers Into or Out of Level 3, Net | [3],[4],[5] | ||||||
Ending Fair Value | [5] | 109 | 110 | 111 | |||
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 12 | 3 | 1 | |||
Items Included in Net Income | [5] | ||||||
Gains (Losses) in OCI and Other | [1],[5] | ||||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 7 | [2] | 20 | 66 | ||
Transfers Into or Out of Level 3, Net | [3],[5] | (12) | [4] | (11) | (64) | ||
Ending Fair Value | [5] | 7 | 12 | 3 | |||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 6 | 7 | 10 | |||
Items Included in Net Income | [5] | 2 | |||||
Gains (Losses) in OCI and Other | [1],[5] | 1 | (1) | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 35 | [2] | 54 | 27 | ||
Transfers Into or Out of Level 3, Net | [3],[5] | (39) | [4] | (56) | (31) | ||
Ending Fair Value | [5] | 2 | 6 | 7 | |||
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 91 | 68 | 551 | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 218 | [2] | 124 | 138 | ||
Transfers Into or Out of Level 3, Net | [3],[5] | (204) | [4] | (101) | (621) | ||
Ending Fair Value | [5] | 105 | 91 | 68 | |||
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Items Included in Net Income | [5] | (1) | |||||
Transfers Into or Out of Level 3, Net | [3],[5] | 1 | |||||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 76 | 76 | 94 | |||
Gains (Losses) in OCI and Other | [1],[5] | (1) | 15 | (3) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (1) | (15) | ||||
Transfers Into or Out of Level 3, Net | [3],[5] | (14) | |||||
Ending Fair Value | [5] | 75 | 76 | 76 | |||
Equity AFS Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 162 | 177 | ||||
Items Included in Net Income | [5] | 1 | |||||
Gains (Losses) in OCI and Other | [1],[5] | (2) | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (13) | |||||
Transfers Into or Out of Level 3, Net | [3],[5] | (162) | [4] | (1) | |||
Ending Fair Value | [5] | 162 | 177 | ||||
Trading Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 49 | 65 | 73 | |||
Items Included in Net Income | [5] | (5) | 3 | 4 | |||
Gains (Losses) in OCI and Other | [1],[5] | 8 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 30 | [2] | (26) | 5 | ||
Transfers Into or Out of Level 3, Net | [3],[5] | (7) | [4] | (1) | (17) | ||
Ending Fair Value | [5] | 67 | 49 | 65 | |||
Equity Securities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 177 | 164 | ||||
Items Included in Net Income | [5] | (1) | 5 | ||||
Gains (Losses) in OCI and Other | [1],[5] | (4) | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 12 | |||||
Transfers Into or Out of Level 3, Net | [3],[4],[5] | 26 | |||||
Ending Fair Value | [5] | 25 | 177 | ||||
Derivative Investments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [5] | 30 | (93) | 555 | |||
Items Included in Net Income | [5] | 170 | (27) | (483) | |||
Gains (Losses) in OCI and Other | [1],[5] | (69) | 129 | (1) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | 403 | [2] | 21 | (164) | ||
Ending Fair Value | [5] | 534 | 30 | (93) | |||
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 903 | |||||
Items Included in Net Income | [6] | (780) | 903 | ||||
Ending Fair Value | [6] | 123 | 903 | ||||
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (67) | (371) | (953) | |||
Items Included in Net Income | [6] | (67) | 582 | ||||
Ending Fair Value | [6] | (67) | (371) | ||||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 51 | 203 | 268 | |||
Items Included in Net Income | [6] | 21 | (152) | (65) | |||
Ending Fair Value | [6] | 72 | 51 | 203 | |||
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (67) | |||||
Items Included in Net Income | [6] | 67 | |||||
Ending Fair Value | [6] | (67) | |||||
Indexed Annuity And Embedded Derivatives [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 11 | |||||
Items Included in Net Income | [6] | (117) | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [2],[6] | 1,008 | |||||
Ending Fair Value | [6] | 902 | 11 | ||||
Indexed Annuity And Embedded Derivatives [Member] | Other Assets [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | 11 | |||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [6] | 11 | |||||
Ending Fair Value | [6] | 11 | |||||
Indexed Annuity And Embedded Derivatives [Member] | Future Contract Benefits [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [6] | (1,418) | (1,139) | (1,100) | |||
Items Included in Net Income | [6] | 198 | (400) | (120) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [6] | (85) | [2] | 121 | 81 | ||
Ending Fair Value | [6] | $ (1,305) | (1,418) | (1,139) | |||
VIEs' liabilities - derivative instruments [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | [7] | (4) | |||||
Items Included in Net Income | [7] | 4 | |||||
Credit Default Swaps [Member] | Other Liabilities [Member] | |||||||
Level 3 Unobservable Input Reconciliation | |||||||
Beginning Fair Value | (371) | [6] | (9) | [7] | |||
Items Included in Net Income | $ 371 | [6] | (6) | [7] | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [7] | 15 | |||||
Ending Fair Value | [6] | $ (371) | |||||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | ||||||
[2] | Issuances, sales, maturities, settlements, calls, net, include financial instruments acquired from Liberty Life as follows: corporate bonds of $67 million and ABS of $17 million. | ||||||
[3] | Transfers into or out of Level 3 for AFS and trading securities are reported at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. | ||||||
[4] | Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are displayed at cost on our Consolidated Balance Sheets. | ||||||
[5] | Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||||
[6] | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||||
[7] | The changes in fair value of the credit default swaps and contingency forwards are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 2,399 | $ 1,103 | $ 843 |
Sales | 256 | (24) | (238) |
Maturities | (429) | (508) | (194) |
Settlements | (104) | (17) | (26) |
Calls | (77) | (144) | (140) |
Total | 2,045 | 410 | 245 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 947 | 747 | 460 |
Sales | (161) | (200) | (62) |
Maturities | (3) | (98) | (23) |
Settlements | (277) | (206) | (177) |
Calls | (77) | (144) | (140) |
Total | 429 | 99 | 58 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 22 | 15 | |
Sales | (17) | ||
Settlements | (1) | ||
Total | 5 | 14 | |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (5) | ||
Settlements | 8 | ||
Total | (5) | 8 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 7 | 20 | 67 |
Settlements | (1) | ||
Total | 7 | 20 | 66 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 39 | 55 | 31 |
Sales | (1) | ||
Settlements | (4) | (1) | (3) |
Total | 35 | 54 | 27 |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 218 | 124 | 140 |
Settlements | (2) | ||
Total | 218 | 124 | 138 |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (15) | ||
Settlements | (1) | ||
Total | (1) | (15) | |
Trading Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 54 | 2 | 6 |
Sales | (24) | (27) | |
Settlements | (1) | (1) | |
Total | 30 | (26) | 5 |
Equity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 1 | 18 | 18 |
Sales | (1) | (31) | (6) |
Total | (13) | 12 | |
Derivative Investments [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 365 | 197 | 176 |
Sales | 464 | 234 | (169) |
Maturities | (426) | (410) | (171) |
Total | 403 | 21 | (164) |
Indexed Annuity And Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 1,030 | 11 | |
Settlements | (22) | ||
Total | 1,008 | 11 | |
Indexed Annuity And Embedded Derivatives [Member] | Future Contract Benefits [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | (284) | (71) | (70) |
Settlements | 199 | 192 | 151 |
Total | $ (85) | $ 121 | 81 |
Credit Default Swaps [Member] | Other Liabilities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | 15 | ||
Total | $ 15 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | [1] | $ (23) | $ 1,624 | $ 679 |
Derivative Investments [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | 90 | (266) | (431) | |
Indexed Annuity And Embedded Derivatives [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | (38) | (14) | (16) | |
GLB Embedded Derivatives [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | $ (75) | $ 1,904 | 1,122 | |
VIEs' liabilities - derivative instruments [Member] | Realized Gain (Loss) [Member] | ||||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ||||
Change in unrealized gains (losses) included in net income | $ 4 | |||
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | $ 105 | $ 518 | $ 613 |
Transfers Out of Level 3 | (567) | (331) | (997) |
Transfers Into or Out of Level 3, Net | (462) | 187 | (384) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 78 | 458 | 605 |
Transfers Out of Level 3 | (140) | (88) | (224) |
Transfers Into or Out of Level 3, Net | (62) | 370 | 381 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 16 | 4 | |
Transfers Out of Level 3 | (2) | (21) | (28) |
Transfers Into or Out of Level 3, Net | (2) | (5) | (24) |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | ||
Transfers Out of Level 3 | (8) | ||
Transfers Into or Out of Level 3, Net | 5 | (8) | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 3 | ||
Transfers Out of Level 3 | (12) | (11) | (67) |
Transfers Into or Out of Level 3, Net | (12) | (11) | (64) |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 1 | 3 | |
Transfers Out of Level 3 | (40) | (59) | (31) |
Transfers Into or Out of Level 3, Net | (39) | (56) | (31) |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 30 | ||
Transfers Out of Level 3 | (204) | (131) | (621) |
Transfers Into or Out of Level 3, Net | (204) | (101) | (621) |
State And Municipal Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 2 | ||
Transfers Out of Level 3 | (1) | ||
Transfers Into or Out of Level 3, Net | 1 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (14) | ||
Transfers Into or Out of Level 3, Net | (14) | ||
Equity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (162) | (1) | |
Transfers Into or Out of Level 3, Net | (162) | (1) | |
Trading Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 4 | 1 | |
Transfers Out of Level 3 | (7) | (5) | (18) |
Transfers Into or Out of Level 3, Net | (7) | $ (1) | $ (17) |
Equity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 26 | ||
Transfers Into or Out of Level 3, Net | $ 26 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 233,897,000,000 | $ 245,265,000,000 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (1,793,000,000) | (3,689,000,000) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 5,490,000,000 | 5,197,000,000 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (1,476,000,000) | $ (2,058,000,000) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 2,456,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 23,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 77,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 4,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 2.90 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Minimum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 28.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 2.90 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 3.30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Maximum [Member] | Hybrid And Redeemable Preferred Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 1.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 20,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 4.50 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 5.40 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 195,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.03 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Minimum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 30 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 100 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 115 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.41 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB direct and ceded embedded derivatives [Member] | Maximum [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 29 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And Embedded Derivatives [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 902,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And Embedded Derivatives [Member] | Minimum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And Embedded Derivatives [Member] | Maximum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 9 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | Future Contract Benefits [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (1,305,000,000) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | Minimum [Member] | Future Contract Benefits [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Future contract benefits - indexed annuity and IUL contracts embedded derivatives [Member] | Maximum [Member] | Future Contract Benefits [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 9 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information [Abstract] | ||
Federal rate | 21.00% | 35.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 4,531 | $ 4,264 | $ 4,020 | $ 3,609 | $ 3,669 | $ 3,511 | $ 3,577 | $ 3,500 | $ 16,424 | $ 14,257 | $ 13,330 |
Annuities Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,383 | 4,378 | 4,033 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,178 | 1,165 | 1,103 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 6,922 | 6,558 | 6,246 | ||||||||
Group Protection Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 3,757 | 2,201 | 2,130 | ||||||||
Other Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 235 | 287 | 332 | ||||||||
Excluded realized gain (loss), pre-tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (46) | (336) | (518) | ||||||||
Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1 | 3 | |||||||||
Amortization Of DFEL Associated With Benefit Ratio Unlocking, Pre-Tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ (5) | $ 3 | $ 1 |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Gain (loss) on early extinguishment of debt, after-tax | $ (23) | $ 5 | $ (63) | ||||||||
Impairment of intangibles, after-tax | (905) | ||||||||||
Net income (loss) | $ 399 | $ 490 | $ 385 | $ 367 | $ 816 | $ 418 | $ 411 | $ 435 | 1,641 | 2,079 | 1,192 |
Segment Reconciling Items [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Excluded realized gain (loss), after-tax | (37) | (218) | (337) | ||||||||
Gain (loss) on early extinguishment of debt, after-tax | (18) | (3) | (41) | ||||||||
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after tax | 2 | ||||||||||
Benefit ratio unlocking, after-tax | (136) | 129 | 28 | ||||||||
Net impact from the Tax Cuts and Jobs Act | 19 | 1,322 | |||||||||
Impairment of intangibles, after-tax | (905) | ||||||||||
Acquisition and integration costs related to mergers and acquisitions, after tax | (67) | ||||||||||
Annuities Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment of intangibles, after-tax | |||||||||||
Net income (loss) | 1,102 | 1,074 | 935 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment of intangibles, after-tax | |||||||||||
Net income (loss) | 171 | 149 | 127 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment of intangibles, after-tax | (905) | ||||||||||
Net income (loss) | 645 | 536 | 515 | ||||||||
Group Protection Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Impairment of intangibles, after-tax | |||||||||||
Net income (loss) | 187 | 103 | 65 | ||||||||
Other Operations [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | $ (225) | $ (108) | $ (102) |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Net Investment Income From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Abstract] | |||
Total net investment income | $ 5,085 | $ 4,990 | $ 4,874 |
Annuities Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 1,005 | 1,038 | 1,033 |
Retirement Plan Services Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 899 | 899 | 859 |
Life Insurance Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 2,697 | 2,643 | 2,562 |
Group Protection Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 260 | 168 | 176 |
Other Operations [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | $ 224 | $ 242 | $ 244 |
Segment Information (Reconcil_4
Segment Information (Reconciliation of DAC VOBA Amortization From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 1,241 | $ 976 | $ 1,271 |
Annuities Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 410 | 401 | 383 |
Retirement Plan Services Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 28 | 27 | 28 |
Life Insurance Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 711 | 469 | 734 |
Group Protection Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 92 | $ 79 | $ 126 |
Segment Information (Reconcil_5
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ 244 | $ (949) | $ 266 |
Annuities Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 183 | 199 | 242 |
Retirement Plan Services Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 29 | 55 | 47 |
Life Insurance Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 147 | 244 | 238 |
Group Protection Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 50 | 55 | 35 |
Other Operations [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (77) | (130) | (109) |
Excluded realized gain (loss), pre-tax [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (9) | (118) | (181) |
Gain (loss) on early extinguishment of debt [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (5) | (2) | (22) |
Reserve changes (net of related amortization) on business sold through reinsurance [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 1 | ||
Benefit ratio unlocking [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (36) | 70 | $ 15 |
Net Impact From the Tax Cuts And Jobs Act [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (19) | $ (1,322) | |
Acquisition and integration costs related to mergers and acquisitions [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ (19) |
Segment Information (Reconcil_6
Segment Information (Reconciliation Of Assets From Segments To Consolidated) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 298,147 | $ 281,763 |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 145,458 | 144,721 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 35,736 | 37,072 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 81,533 | 81,381 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,495 | 4,033 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 26,925 | $ 14,556 |
Segment Information (Schedule O
Segment Information (Schedule Of Disaggregation Of Revenue) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | $ 1,343 |
Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 102 |
Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 1,241 |
Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 723 |
Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 620 |
Annuities Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 1,013 |
Annuities Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 90 |
Annuities Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 923 |
Annuities Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 534 |
Annuities Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 479 |
Retirement Plan Services Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 184 |
Retirement Plan Services Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 5 |
Retirement Plan Services Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 179 |
Retirement Plan Services Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 167 |
Retirement Plan Services Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 17 |
Life Insurance Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 32 |
Life Insurance Segment [Member] | Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 7 |
Life Insurance Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 25 |
Life Insurance Segment [Member] | Fee Income [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 22 |
Life Insurance Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 10 |
Group Protection Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 114 |
Group Protection Segment [Member] | Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | 114 |
Group Protection Segment [Member] | Other Revenues [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenue from contracts with customers | $ 114 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |||
Interest paid | $ 281 | $ 248 | $ 274 |
Income taxes paid (received) | 90 | $ 170 | $ 197 |
Significant non-cash investing and financing transactions: | |||
Investments received in financing transactions | $ 263 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||
Total revenues | $ 4,531 | $ 4,264 | $ 4,020 | $ 3,609 | $ 3,669 | $ 3,511 | $ 3,577 | $ 3,500 | $ 16,424 | $ 14,257 | $ 13,330 |
Total expenses | 4,064 | 3,732 | 3,569 | 3,174 | 4,057 | 3,001 | 3,044 | 3,025 | 14,539 | 13,127 | 11,872 |
Net income (loss) | $ 399 | $ 490 | $ 385 | $ 367 | $ 816 | $ 418 | $ 411 | $ 435 | $ 1,641 | $ 2,079 | $ 1,192 |
Earnings (loss) per common share - basic: | |||||||||||
Net income (loss) (in dollars per share) | $ 1.89 | $ 2.27 | $ 1.76 | $ 1.68 | $ 3.73 | $ 1.89 | $ 1.84 | $ 1.93 | $ 7.60 | $ 9.36 | $ 5.09 |
Earnings (loss) per common share - diluted: | |||||||||||
Net income (loss) (in dollars per share) | $ 1.80 | $ 2.24 | $ 1.70 | $ 1.64 | $ 3.67 | $ 1.87 | $ 1.81 | $ 1.89 | $ 7.40 | $ 9.22 | $ 5.03 |
SCHEDULE I - CONSOLIDATED SUM_2
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2018USD ($) | |
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | $ 112,870 | |
Carrying Value | 115,216 | |
Trading Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 1,823 | |
Fair Value | 1,950 | |
Carrying Value | 1,950 | |
Mortgage Loans On Real Estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 13,260 | |
Fair Value | 13,092 | |
Carrying Value | 13,260 | |
Real estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 12 | |
Carrying Value | 12 | |
Policy loans [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,509 | |
Carrying Value | 2,509 | |
Derivative Instruments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 466 | [1] |
Fair Value | 1,107 | [1] |
Carrying Value | 1,107 | [1] |
Other investments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,255 | |
Fair Value | 2,255 | |
Carrying Value | 2,255 | |
Fixed Maturity AFS Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 92,429 | [2] |
Fair Value | 94,024 | [2] |
Carrying Value | 94,024 | [2] |
Fixed Maturity AFS Securities [Member] | Mortgage-Backed And Asset-Backed Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 6,781 | [2] |
Fair Value | 6,873 | [2] |
Carrying Value | 6,873 | [2] |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 582 | [2] |
Fair Value | 593 | [2] |
Carrying Value | 593 | [2] |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | U.S. government and government agencies and authorities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 390 | [2] |
Fair Value | 417 | [2] |
Carrying Value | 417 | [2] |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | Foreign governments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 406 | [2] |
Fair Value | 448 | [2] |
Carrying Value | 448 | [2] |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | State And Municipal Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 4,647 | [2] |
Fair Value | 5,345 | [2] |
Carrying Value | 5,345 | [2] |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | Public utilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 13,330 | [2] |
Fair Value | 13,773 | [2] |
Carrying Value | 13,773 | [2] |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | All other corporate bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 66,293 | [2] |
Fair Value | 66,575 | [2] |
Carrying Value | 66,575 | [2] |
Equity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 116 | |
Fair Value | 99 | |
Carrying Value | 99 | |
Equity Securities [Member] | Nonredeemable preferred securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 21 | |
Fair Value | 20 | |
Carrying Value | 20 | |
Equity Securities [Member] | Common Stock [Member] | Banks, trusts, and insurance companies [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 59 | |
Fair Value | 54 | |
Carrying Value | 54 | |
Equity Securities [Member] | Common Stock [Member] | Industrial, miscellaneous and all other [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 36 | |
Fair Value | 25 | |
Carrying Value | 25 | |
Parent Company [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Derivative Liabilities | $ 160 | |
[1] | Derivative investment assets were offset by $160 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. | |
[2] | Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. |
SCHEDULE II - CONDENSED FINAN_2
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | |||||
Derivative investments | $ 1,107 | $ 915 | |||
Other investments | 2,255 | 2,296 | |||
Cash and invested cash | 2,345 | 1,628 | $ 2,722 | $ 3,146 | |
Other assets | 15,713 | 6,082 | |||
Total assets | 298,147 | 281,763 | |||
Liabilities | |||||
Short-term debt | 450 | ||||
Long-term debt | 5,839 | 4,894 | |||
Payables for collateral on investments | 4,805 | 4,417 | |||
Other liabilities | 12,696 | 5,547 | |||
Total liabilities | 283,797 | 264,441 | |||
Contingencies and Commitments (See Note 14) | |||||
Stockholders' Equity | |||||
Preferred stock - 10,000,000 shares authorized | |||||
Common stock - 800,000,000 shares authorized | 5,392 | 5,693 | |||
Retained earnings | 8,551 | 8,399 | |||
Accumulated other comprehensive income (loss) | 407 | 3,230 | |||
Total stockholders' equity | 14,350 | 17,322 | 14,478 | ||
Total Liabilities and Stockholders' Equity | 298,147 | 281,763 | |||
Parent Company [Member] | |||||
Assets | |||||
Investments in subsidiaries | [1] | 18,251 | 20,488 | ||
Derivative investments | 92 | 187 | |||
Other investments | 90 | 77 | |||
Cash and invested cash | 420 | 620 | $ 611 | $ 681 | |
Loans and accrued interest to subsidiaries | [1] | 2,376 | 2,328 | ||
Other assets | 59 | 16 | |||
Total assets | 21,288 | 23,716 | |||
Liabilities | |||||
Common dividends payable | 76 | 72 | |||
Short-term debt | 450 | ||||
Long-term debt | 5,839 | 4,894 | |||
Loans from subsidiaries | [1] | 553 | 476 | ||
Payables for collateral on investments | 21 | 65 | |||
Other liabilities | 449 | 437 | |||
Total liabilities | 6,938 | 6,394 | |||
Contingencies and Commitments (See Note 14) | |||||
Stockholders' Equity | |||||
Preferred stock - 10,000,000 shares authorized | |||||
Common stock - 800,000,000 shares authorized | 5,392 | 5,693 | |||
Retained earnings | 8,551 | 8,399 | |||
Accumulated other comprehensive income (loss) | 407 | 3,230 | |||
Total stockholders' equity | 14,350 | 17,322 | |||
Total Liabilities and Stockholders' Equity | $ 21,288 | $ 23,716 | |||
[1] | Eliminated in consolidation. |
SCHEDULE II - CONDENSED FINAN_3
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' Equity Parenthetical Information | ||
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
SCHEDULE II - CONDENSED FINAN_4
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues | ||||||||||||
Net investment income | $ 5,085 | $ 4,990 | $ 4,874 | |||||||||
Other revenues | 602 | 539 | 491 | |||||||||
Total revenues | $ 4,531 | $ 4,264 | $ 4,020 | $ 3,609 | $ 3,669 | $ 3,511 | $ 3,577 | $ 3,500 | 16,424 | 14,257 | 13,330 | |
Expenses | ||||||||||||
Operating and administrative expenses | 1,953 | 1,766 | 1,687 | |||||||||
Total expenses | 4,064 | 3,732 | 3,569 | 3,174 | 4,057 | 3,001 | 3,044 | 3,025 | 14,539 | 13,127 | 11,872 | |
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries, less dividends | 1,885 | 1,130 | 1,458 | |||||||||
Federal income tax expense (benefit) | 244 | (949) | 266 | |||||||||
Net income (loss) | $ 399 | $ 490 | $ 385 | $ 367 | $ 816 | $ 418 | $ 411 | $ 435 | 1,641 | 2,079 | 1,192 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||||||||
Unrealized other-than-temporary impairment on available-for-sale securities | 55 | |||||||||||
Unrealized investment gains (losses) | (3,449) | 1,643 | 709 | |||||||||
Foreign currency translation adjustment | (9) | 13 | (22) | |||||||||
Funded status of employee benefit plans | (7) | 8 | 34 | |||||||||
Total other comprehensive income (loss), net of tax | (3,465) | 1,664 | 721 | |||||||||
Comprehensive income (loss) | (1,824) | 3,743 | 1,913 | |||||||||
Parent Company [Member] | ||||||||||||
Revenues | ||||||||||||
Dividends from subsidiaries | [1] | 1,025 | 1,069 | 1,035 | ||||||||
Interest from subsidiaries | [1] | 148 | 133 | 123 | ||||||||
Net investment income | 7 | 2 | 3 | |||||||||
Realized gain (loss) | 3 | (3) | ||||||||||
Total revenues | 1,183 | 1,201 | 1,161 | |||||||||
Expenses | ||||||||||||
Operating and administrative expenses | 18 | 40 | 46 | |||||||||
Interest - subsidiaries | [1] | 34 | 21 | 16 | ||||||||
Interest - other | 288 | 247 | 327 | |||||||||
Total expenses | 340 | 308 | 389 | |||||||||
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries, less dividends | 843 | 893 | 772 | |||||||||
Federal income tax expense (benefit) | (42) | (20) | (95) | |||||||||
Income (loss) before equity in income (loss) of subsidiaries, less dividends | 885 | 913 | 867 | |||||||||
Equity in income (loss) of subsidiaries, less dividends | [1] | 756 | 1,166 | 325 | ||||||||
Net income (loss) | 1,641 | 2,079 | 1,192 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||||||||
Unrealized investment gains (losses) | (3,449) | 1,643 | 709 | |||||||||
Foreign currency translation adjustment | (9) | 13 | (22) | |||||||||
Funded status of employee benefit plans | (7) | 8 | 34 | |||||||||
Total other comprehensive income (loss), net of tax | (3,465) | 1,664 | 721 | |||||||||
Comprehensive income (loss) | $ (1,824) | $ 3,743 | $ 1,913 | |||||||||
[1] | Eliminated in consolidation. |
SCHEDULE II - CONDENSED FINAN_5
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) | $ 399 | $ 490 | $ 385 | $ 367 | $ 816 | $ 418 | $ 411 | $ 435 | $ 1,641 | $ 2,079 | $ 1,192 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Other | 89 | 100 | 305 | |||||||||
Net cash provided by (used in) operating activities | 1,943 | 788 | 1,272 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Net change in collateral on investments, derivatives and related settlements | 735 | (429) | 415 | |||||||||
Sales of available-for-sale securities and equity securities | 3,668 | 1,612 | 2,959 | |||||||||
Sale of business, net | (12) | |||||||||||
Net cash provided by (used in) investing activities | (5,815) | (4,188) | (3,666) | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Payment of long-term debt, including current maturities | (537) | (600) | ||||||||||
Issuance of long-term debt, net of issuance costs | 1,094 | 395 | ||||||||||
Payment related to early extinguishment of debt | (23) | (59) | ||||||||||
Repurchase of common stock | (900) | (725) | (879) | |||||||||
Dividends paid to common stockholders | (289) | (262) | (238) | |||||||||
Net cash provided by (used in) financing activities | 4,589 | 2,306 | 1,970 | |||||||||
Net increase (decrease) in cash, invested cash and restricted cash | 717 | (1,094) | (424) | |||||||||
Cash, invested cash and restricted cash as of beginning-of-year | 1,628 | 2,722 | 1,628 | 2,722 | 3,146 | |||||||
Cash, invested cash and restricted cash as of end-of-year | 2,345 | 1,628 | 2,345 | 1,628 | 2,722 | |||||||
Parent Company [Member] | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) | 1,641 | 2,079 | 1,192 | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Equity in (income) loss of subsidiaries greater than distributions | [1] | (756) | (1,166) | (325) | ||||||||
Realized (gain) loss | (3) | 3 | ||||||||||
Change in federal income tax accruals | 15 | 107 | 120 | |||||||||
Other | (27) | 20 | 54 | |||||||||
Net cash provided by (used in) operating activities | 870 | 1,043 | 1,041 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Capital contribution to subsidiaries | [1] | (502) | (60) | |||||||||
Net change in collateral on investments, derivatives and related settlements | 89 | (42) | (23) | |||||||||
Net cash provided by (used in) investing activities | (413) | (102) | (23) | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Payment of long-term debt, including current maturities | (537) | (350) | ||||||||||
Issuance of long-term debt, net of issuance costs | 1,094 | 395 | ||||||||||
Payment related to early extinguishment of debt | (23) | (59) | ||||||||||
Increase (decrease) in loans from subsidiaries, net | [1] | 52 | (230) | 37 | ||||||||
Increase (decrease) in loans to subsidiaries, net | [1] | (48) | 239 | (20) | ||||||||
Common stock issued for benefit plans | (6) | 46 | 26 | |||||||||
Repurchase of common stock | (900) | (725) | (879) | |||||||||
Dividends paid to common stockholders | (289) | (262) | (238) | |||||||||
Net cash provided by (used in) financing activities | (657) | (932) | (1,088) | |||||||||
Net increase (decrease) in cash, invested cash and restricted cash | (200) | 9 | (70) | |||||||||
Cash, invested cash and restricted cash as of beginning-of-year | $ 620 | $ 611 | 620 | 611 | 681 | |||||||
Cash, invested cash and restricted cash as of end-of-year | $ 420 | $ 620 | $ 420 | $ 620 | $ 611 | |||||||
[1] | Eliminated in consolidation. |
SCHEDULE III - CONDENSED SUPPLE
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | $ 10,264 | $ 8,403 | $ 9,134 | |
Future Contract Benefits | 34,648 | 22,887 | 21,576 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 91,233 | 80,209 | 78,903 | |
Insurance Premiums | 4,601 | 3,256 | 2,987 | |
Net Investment Income | 5,085 | 4,990 | 4,874 | |
Benefits and Interest Credited | 9,403 | 7,750 | 7,256 | |
Amortization of DAC and VOBA | 1,204 | 1,004 | 1,276 | |
Other Operating Expenses | 3,955 | 3,468 | 3,403 | |
Premiums Written | ||||
Annuities Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 3,660 | 3,583 | 3,597 | |
Future Contract Benefits | 3,509 | 1,943 | 2,485 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 23,493 | 21,713 | 21,202 | |
Insurance Premiums | 390 | 475 | 331 | |
Net Investment Income | 1,005 | 1,038 | 1,033 | |
Benefits and Interest Credited | 1,465 | 1,084 | 1,130 | |
Amortization of DAC and VOBA | 373 | 430 | 388 | |
Other Operating Expenses | 1,428 | 1,397 | 1,296 | |
Premiums Written | ||||
Retirement Plan Services Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 243 | 194 | 201 | |
Future Contract Benefits | 8 | 4 | 4 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 19,761 | 18,719 | 17,878 | |
Net Investment Income | 899 | 899 | 859 | |
Benefits and Interest Credited | 557 | 538 | 515 | |
Amortization of DAC and VOBA | 28 | 27 | 28 | |
Other Operating Expenses | 393 | 396 | 386 | |
Premiums Written | ||||
Life Insurance Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 6,151 | 4,446 | 5,145 | |
Future Contract Benefits | 13,139 | 12,658 | 11,400 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 40,997 | 39,459 | 39,332 | |
Insurance Premiums | 817 | 773 | 703 | |
Net Investment Income | 2,697 | 2,643 | 2,562 | |
Benefits and Interest Credited | 4,759 | 4,593 | 4,071 | |
Amortization of DAC and VOBA | 711 | 468 | 734 | |
Other Operating Expenses | 660 | 721 | 688 | |
Premiums Written | ||||
Group Protection Segment [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
DAC and VOBA | 210 | 180 | 191 | |
Future Contract Benefits | 5,396 | 2,262 | 2,280 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 197 | 161 | 168 | |
Insurance Premiums | 3,383 | 1,998 | 1,939 | |
Net Investment Income | 260 | 168 | 176 | |
Benefits and Interest Credited | 2,460 | 1,353 | 1,324 | |
Amortization of DAC and VOBA | 92 | 79 | 126 | |
Other Operating Expenses | 967 | 611 | 580 | |
Premiums Written | ||||
Other Operations [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Future Contract Benefits | 12,596 | 6,020 | 5,407 | |
Unearned Premiums | [1] | |||
Other Contract Holder Funds | 6,785 | 157 | 323 | |
Insurance Premiums | 11 | 10 | 14 | |
Net Investment Income | 224 | 242 | 244 | |
Benefits and Interest Credited | 162 | 182 | 216 | |
Other Operating Expenses | 507 | 343 | 453 | |
Premiums Written | ||||
[1] | Unearned premiums are included in Column C, future contract benefits. |
SCHEDULE IV - CONSOLIDATED RE_2
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Consolidated reinsurance, net [Abstract] | ||||
Premiums Earned, Net, Total | $ 4,601 | $ 3,256 | $ 2,987 | |
Embedded derivatives-Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | 12,041 | 10,269 | 9,551 | |
Ceded to Other Companies | 1,543 | 1,485 | 1,413 | |
Assumed from Other Companies | 89 | 91 | 93 | |
Premiums Earned, Net, Total | 10,587 | 8,875 | 8,231 | |
Gross Amount, Life Insurance in Force | [1] | 1,420,500 | 1,075,600 | 1,035,600 |
Ceded to Other Companies, Life Insurance in Force | [1] | 667,900 | 286,600 | 288,000 |
Assumed from Other Companies, Life Insurance in Force | [1] | 8,700 | 9,500 | 10,200 |
Premiums, Net, Life Insurance in Force, Total | [1] | $ 761,300 | $ 798,500 | $ 757,800 |
Percentage of Amount Assumed to Net, Life Insurance in Force | [1] | 1.10% | 1.20% | 1.30% |
Life Insurance And Annuity Reserves And Claims Due [Member] | Embedded derivatives-Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | [2] | $ 9,742 | $ 8,949 | $ 8,277 |
Ceded to Other Companies | [2] | 1,509 | 1,465 | 1,392 |
Assumed from Other Companies | [2] | 81 | 80 | 80 |
Premiums Earned, Net, Total | [2] | $ 8,314 | $ 7,564 | $ 6,965 |
Percentage of Amount Assumed to Net | [2] | 1.00% | 1.10% | 1.10% |
Accident And Health Life Insurance Reserves [Member] | Embedded derivatives-Reinsurance related [Member] | ||||
Consolidated reinsurance, net [Abstract] | ||||
Gross Amount | $ 2,299 | $ 1,320 | $ 1,274 | |
Ceded to Other Companies | 34 | 20 | 21 | |
Assumed from Other Companies | 8 | 11 | 13 | |
Premiums Earned, Net, Total | $ 2,273 | $ 1,311 | $ 1,266 | |
Percentage of Amount Assumed to Net | 0.40% | 0.80% | 1.00% | |
[1] | Includes Group Protection segment and Other Operations in-force amounts. | |||
[2] | Includes insurance fees on universal life and other interest-sensitive products. |