Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | LINCOLN NATIONAL CORP | |
Entity Central Index Key | 0000059558 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 202,343,277 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2019 – $92,894; 2018 – $92,429) | $ 98,050 | $ 94,024 |
Trading securities | 3,314 | 1,950 |
Equity securities | 153 | 99 |
Mortgage loans on real estate | 13,997 | 13,260 |
Policy loans | 2,498 | 2,509 |
Derivative investments | 981 | 1,107 |
Other investments | 2,752 | 2,267 |
Total investments | 121,745 | 115,216 |
Cash and invested cash | 1,593 | 2,345 |
Deferred acquisition costs and value of business acquired | 9,441 | 10,264 |
Premiums and fees receivable | 607 | 570 |
Accrued investment income | 1,184 | 1,119 |
Reinsurance recoverables | 17,660 | 17,748 |
Funds withheld reinsurance assets | 549 | 557 |
Goodwill | 1,778 | 1,782 |
Other assets | 16,373 | 15,713 |
Separate account assets | 143,369 | 132,833 |
Total assets | 314,299 | 298,147 |
Liabilities | ||
Future contract benefits | 34,009 | 34,648 |
Other contract holder funds | 93,959 | 91,233 |
Short-term debt | 300 | |
Long-term debt | 5,572 | 5,839 |
Reinsurance related embedded derivatives | 177 | 3 |
Funds withheld reinsurance liabilities | 1,762 | 1,740 |
Payables for collateral on investments | 5,362 | 4,805 |
Other liabilities | 13,372 | 12,696 |
Separate account liabilities | 143,369 | 132,833 |
Total liabilities | 297,882 | 283,797 |
Contingencies and Commitments (See Note 11) | ||
Stockholders' Equity | ||
Preferred stock - 10,000,000 shares authorized | ||
Common stock – 800,000,000 shares authorized; 202,987,229 and 205,862,760 shares issued and outstanding as of March 31, 2019, and December 31, 2018, respectively | 5,285 | 5,392 |
Retained earnings | 8,679 | 8,551 |
Accumulated other comprehensive income (loss) | 2,453 | 407 |
Total stockholders' equity | 16,417 | 14,350 |
Total liabilities and stockholders' equity | $ 314,299 | $ 298,147 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 92,894 | $ 92,429 |
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) | 202,987,229 | 205,862,760 |
Common stock - shares outstanding (in shares) | 202,987,229 | 205,862,760 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Insurance premiums | $ 1,446 | $ 777 |
Fee income | 1,475 | 1,456 |
Net investment income | 1,251 | 1,233 |
Realized gain (loss): | ||
Total other-than-temporary impairment losses on securities | (23) | (2) |
Portion of loss recognized in other comprehensive income | 15 | |
Net other-than-temporary impairment losses on securities recognized in earnings | (8) | (2) |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | (354) | 14 |
Total realized gain (loss) | (362) | 12 |
Amortization of deferred gain on business sold through reinsurance | 8 | |
Other revenues | 147 | 131 |
Total revenues | 3,965 | 3,609 |
Expenses | ||
Interest credited | 678 | 653 |
Benefits | 1,757 | 1,358 |
Commissions and other expenses | 1,176 | 1,057 |
Interest and debt expense | 71 | 91 |
Strategic digitization expense | 15 | 15 |
Total expenses | 3,697 | 3,174 |
Income (loss) before taxes | 268 | 435 |
Federal income tax expense (benefit) | 16 | 68 |
Net income (loss) | 252 | 367 |
Other comprehensive income (loss), net of tax | 2,046 | (1,639) |
Comprehensive income (loss) | $ 2,298 | $ (1,272) |
Net Income (Loss) Per Common Share | ||
Basic (in dollars per share) | $ 1.23 | $ 1.68 |
Diluted (in dollars per share) | 1.22 | 1.64 |
Cash Dividends Declared Per Common Share | $ 0.37 | $ 0.33 |
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, 2017 | $ 5,693 | $ 8,399 | $ 3,230 | |
Cumulative effect from adoption of new accounting standards at Dec. 31, 2017 | (642) | 642 | ||
Stock compensation/issued for benefit plans | 7 | |||
Net income (loss) | 367 | $ 367 | ||
Common stock dividends declared | (72) | |||
Other comprehensive income (loss), net of tax | (1,639) | (1,639) | ||
Balance as of end-of-period at Mar. 31, 2018 | 5,700 | 8,052 | 2,233 | 15,985 |
Balance as of beginning-of-year at Dec. 31, 2018 | 5,392 | 8,551 | 407 | 14,350 |
Stock compensation/issued for benefit plans | (5) | |||
Net income (loss) | 252 | 252 | ||
Retirement of common stock/cancellation of shares | (102) | (48) | ||
Common stock dividends declared | (76) | |||
Other comprehensive income (loss), net of tax | 2,046 | 2,046 | ||
Balance as of end-of-period at Mar. 31, 2019 | $ 5,285 | $ 8,679 | $ 2,453 | $ 16,417 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 252 | $ 367 |
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 | (70) | 6 |
Trading securities purchases, sales and maturities, net | (1,209) | 39 |
Change in premiums and fees receivable | (37) | (84) |
Change in accrued investment income | (65) | (59) |
Change in future contract benefits and other contract holder funds | (348) | (104) |
Change in reinsurance related assets and liabilities | (299) | (113) |
Change in accrued expenses | (56) | (41) |
Change in federal income tax accruals | 16 | 68 |
Realized (gain) loss | 362 | (12) |
Amortization of deferred gain on business sold through reinsurance | (8) | |
Other | 131 | 73 |
Net cash provided by (used in) operating activities | (1,331) | 140 |
Cash Flows from Investing Activities | ||
Purchases of available-for-sale securities and equity securities | (4,404) | (2,020) |
Sales of available-for-sale securities and equity securities | 2,381 | 427 |
Maturities of available-for-sale securities | 1,456 | 1,368 |
Purchases of alternative investments | (174) | (63) |
Sales and repayments of alternative investments | 32 | 31 |
Issuance of mortgage loans on real estate | (1,103) | (546) |
Repayment and maturities of mortgage loans on real estate | 242 | 261 |
Issuance and repayment of policy loans, net | 11 | 11 |
Net change in collateral on investments, derivatives and related settlements | 488 | (32) |
Other | (62) | (32) |
Net cash provided by (used in) investing activities | (1,133) | (595) |
Cash Flows from Financing Activities | ||
Payment of long-term debt, including current maturities | (487) | |
Issuance of long-term debt, net of issuance costs | 1,094 | |
Payment related to early extinguishment of debt | (23) | |
Deposits of fixed account values, including the fixed portion of variable | 4,042 | 2,765 |
Withdrawals of fixed account values, including the fixed portion of variable | (1,570) | (1,498) |
Transfers to and from separate accounts, net | (507) | (686) |
Common stock issued for benefit plans | (26) | (9) |
Repurchase of common stock | (150) | |
Dividends paid to common stockholders | (77) | (72) |
Net cash provided by (used in) financing activities | 1,712 | 1,084 |
Net increase (decrease) in cash, invested cash and restricted cash | (752) | 629 |
Cash, invested cash and restricted cash as of beginning-of-year | 2,345 | 1,628 |
Cash, invested cash and restricted cash as of end-of-period | $ 1,593 | $ 2,257 |
Nature Of Operations And Basis
Nature Of Operations And Basis Of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Nature Of Operations And Basis Of Presentation | |
Nature Of Operations And Basis Of Presentation | LINCOLN NATIONAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Nature of Operations and Basis of Presentation 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 14 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 primarily 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 unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. 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”). The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2018 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2019 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 . All material inter-company accounts and transactions have been eliminated in consolidation. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
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 Financial Accounting Standards Board 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 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 (“ROU”) 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 ROU 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 We adopted this standard and all related amendments, which resulted in the recognition of $207 million in ROU assets and $214 million in operating lease liabilities reported in other assets and other liabilities, respectively, on our Consolidated Balance Sheets as of January 1, 2019. Comparative periods continue to be measured and presented under historical guidance, and only the period of adoption is subject to this ASU. Also, on transition, we have elected not to reassess: 1) whether expired or existing contracts contain a lease under the new definition of a lease; 2) lease classification for expired or existing leases; and 3) whether previously capitalized initial direct costs would qualify for capitalization under 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. For more information, see Note 11. 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 adopted the provisions of this ASU, which did not result in a change to our existing practices; therefore, no cumulative effect adjustment was recorded. As such, there was no 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 adopted the provisions of this ASU, which did not have an impact on our consolidated financial condition and results of operations. This ASU does result in our modification of certain hedge documentation and effectiveness methods, which we have reflected in applicable disclosures in Note 6. 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 2016-13, 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 available-for-sale (“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 deferred acquisition costs (“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 | 3 Months Ended |
Mar. 31, 2019 | |
Acquisition [Abstract] | |
Acquisition | 3. Acquisition 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 expanded the scale and capabilities of the Group Protection business while further diversifying the Company’s sources of earnings . 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. 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 $23 million for an increase in provisional goodwill of $28 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 March 31, 2019 : 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 140 Separate account liabilities 99 Total liabilities assumed $ 3,215 Net identifiable assets acquired $ 1,107 Goodwill 410 Net assets acquired $ 1,517 Financial Information 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 Three Months Ended March 31, 2018 Revenue $ 4,165 Net income 378 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. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Consolidated VIEs Asset information (dollars in millions) for the consolidated variable interest entities (“VIEs”) included on our Consolidated Balance Sheets was as follows: As of March 31, 2019 As of December 31, 2018 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Total return swap 1 $ 587 $ - 1 $ 600 $ - Total assets 1 $ 587 $ - 1 $ 600 $ - As of March 31, 2019, and December 31, 2018, there were no gains or losses for consolidated VIEs recognized on our Consolidated Statements of Comprehensive Income (Loss). Unconsolidated VIEs 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 a sset-backed securities ( “ ABS ” ) , residential mortgage-backed securities (“ RMBS ”) , commercial mortgage-backed securities (“ CMBS ”) and collateralized loan obligations (“ CLOs ”). 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 limited partnerships (“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 $1.8 billion and $1.7 billion as of March 31, 2019, and December 31, 2018, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $18 million and $20 million as of March 31, 2019, and December 31, 2018, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We received returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits of less than $1 million for the three months ended March 31, 2019 and 2018, which were recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss). 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 March 31, 2019. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments [Abstract] | |
Investments | 5 . Investments Fixed Maturity AFS Securities The amortized cost, gross unrealized gains, losses and other-than-temporary impairment (“OTTI”) and fair value of fixed maturity AFS securities (in millions) were as follows: As of March 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,243 $ 4,813 $ 838 $ 10 $ 83,208 ABS 990 46 6 (17 ) 1,047 U.S. government bonds 387 37 1 - 423 Foreign government bonds 403 50 - - 453 RMBS 3,296 142 42 (18 ) 3,414 CMBS 868 16 3 (4 ) 885 CLOs 2,439 4 11 (5 ) 2,437 State and municipal bonds 4,687 890 8 - 5,569 Hybrid and redeemable preferred securities 581 57 24 - 614 Total fixed maturity AFS securities $ 92,894 $ 6,055 $ 933 $ (34 ) $ 98,050 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 fixed maturity AFS securities $ 92,429 $ 3,981 $ 2,430 $ (44 ) $ 94,024 (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 March 31, 2019 , were as follows: Amortized Fair Cost Value Due in one year or less $ 3,610 $ 3,614 Due after one year through five years 16,276 16,590 Due after five years through ten years 17,902 18,499 Due after ten years 47,513 51,564 Subtotal 85,301 90,267 Structured securities (ABS, MBS, CLOs) 7,593 7,783 Total fixed maturity AFS securities $ 92,894 $ 98,050 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 other comprehensive income (loss) (“OCI”), of fixed maturity 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 March 31, 2019 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 $ 4,831 $ 164 $ 14,492 $ 692 $ 19,323 $ 856 ABS 74 1 176 13 250 14 U.S. government bonds 6 - 28 1 34 1 RMBS 55 1 942 42 997 43 CMBS 10 - 297 3 307 3 CLOs 771 5 281 6 1,052 11 State and municipal bonds 156 1 135 7 291 8 Hybrid and redeemable preferred securities 12 2 151 22 163 24 Total fixed maturity AFS securities $ 5,915 $ 174 $ 16,502 $ 786 $ 22,417 $ 960 Total number of fixed maturity AFS securities in an unrealized loss position 1,881 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 fixed maturity AFS securities $ 35,246 $ 1,589 $ 8,671 $ 856 $ 43,917 $ 2,445 Total number of fixed maturity AFS securities in an unrealized loss position 3,414 The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of March 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 23 $ 8 $ 1 7 Six months or greater, but less than nine months 20 6 - 4 Nine months or greater, but less than twelve months 98 42 - 10 Twelve months or greater 152 52 22 32 Total $ 293 $ 108 $ 23 53 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 (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 de creased by $1.5 billion for the three months ended March 31, 2019 . As discussed further below, we believe the unrealized loss position as of March 31, 2019 , 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 March 31, 2019 , 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 March 31, 2019 , 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 of each temporarily-impaired security. As of March 31, 2019 , the unrealized losses associated with our mortgage-backed securities (“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 March 31, 2019 , 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 Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 355 $ 378 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 6 2 Credit losses on securities for which an OTTI was previously recognized 2 - Decreases attributable to: Securities sold, paid down or matured (4 ) (2 ) Balance as of end-of-period $ 359 $ 378 During the three months ended March 31, 2019 and 2018 , 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 March 31, 2019 , and December 31, 2018 , 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, 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 March 31, 2019 , and December 31, 2018 , 96% of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2019 , and December 31, 2018 , the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.3 billion and $3.2 billion, respectively, and a fair value of $ 3.2 billion and $3.0 billion, respectively. Based upon the analysis discussed above, we believe as of March 31, 2019, and December 31, 2018 , that we would recover the amortized cost of each corporate bond. Determination of Credit Losses on MBS and ABS As of March 31, 2019, and December 31, 2018 , 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. 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 March 31, 2019 As of December 31, 2018 Commercial Residential Total Commercial Residential Total Current $ 13,598 $ 401 $ 13,999 $ 13,029 $ 239 $ 13,268 60 to 90 days past due - 1 1 - 1 1 Greater than 90 days past due - 1 1 - - - Valuation allowance - (1 ) (1 ) - - - Unamortized premium (discount) (16 ) 13 (3 ) (17 ) 8 (9 ) Total carrying value $ 13,582 $ 415 $ 13,997 $ 13,012 $ 248 $ 13,260 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 March 31, 2019, or December 31, 2018. For our residential mortgage loans, no specifically identified loans were impaired as of March 31, 2019, or December 31, 2018. The general allowance established on residential mortgage loans as of March 31, 2019 was $1 million. As of December 31, 2018, the general allowance established on residential mortgage loans 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 Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ - $ 3 Additions - - Charge-offs, net of recoveries - - Balance as of end-of-period $ - $ 3 Additional information related to impaired commercial mortgage loans on real estate (in millions) was as follows: For the Three Months Ended March 31, 2019 2018 Average carrying value for impaired commercial mortgage loans on real estate $ - $ 8 Interest income recognized on impaired commercial mortgage loans on real estate - - Interest income collected on impaired commercial mortgage loans on real estate - - 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 March 31, 2019 As of December 31, 2018 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 12,368 91.1% 2.27 $ 11,716 90.1% 2.30 65% to 74% 1,175 8.6% 1.74 1,238 9.5% 1.76 75% to 100% 39 0.3% 1.20 58 0.4% 0.95 Total $ 13,582 100.0% $ 13,012 100.0% 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 March 31, 2019 As of December 31, 2018 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 414 99.5% $ 247 99.6% Nonperforming 2 0.5% 1 0.4% Total $ 416 100.0% $ 248 100.0% Our commercial mortgage loan portfolio is geographically diversified throughout the U.S. with the largest concentrations in California , which accounted for 23% of commercial mortgage loans on real estate as of March 31, 2019, and December 31, 2018, and Texas , which accounted for 12% of commercial mortgage loans on real estate as of March 31, 2019, and December 31, 2018. Our residential mortgage loan portfolio is geographically diversified throughout the U.S. with the largest concentrations in California, which accounted for 30% and 34% of residential mortgage loans on real estate as of March 31, 2019, and December 31, 2018, respectively, and Florida, which accounted for 19% of residential mortgage loans on real estate as of March 31, 2019, and December 31, 2018. Alternative Investments As of March 31, 2019 , and December 31, 2018 , alternative investments included investments in 246 and 237 different partnerships, respectively, and the portfolio represented approximately 2% and 1% of our overall invested assets, respectively . Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Three Months Ended March 31, 2019 2018 Fixed maturity AFS securities: Gross gains $ 12 $ 14 Gross losses (27 ) (30 ) Gross OTTI (8 ) (2 ) Gain (loss) on other investments (1) 5 2 Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (2 ) (5 ) Total realized gain (loss) related to certain investments (20 ) (21 ) Realized gain (loss) on the mark-to-market on certain instruments (2) (121 ) 1 Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (35 ) (1 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 - Variable annuity net derivatives results: (4) Gross gain (loss) (215 ) 33 Associated amortization of DAC, VOBA, DSI and DFEL 28 - Total realized gain (loss) $ (362 ) $ 12 (1) Includes market adjustments on equity securities still held of $6 million and less than $1 million for the three months ended March 31, 2019 and 2018, respectively. (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. See Note 8 for information regarding modified coinsurance. (3) Represents the net difference between the change in the 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 guaranteed living benefit (“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 that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities above and the portion of OTTI recognized in OCI (in millions) were as follows: For the Three Months Ended March 31, 2019 2018 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (6 ) $ (2 ) ABS (1 ) - RMBS (1 ) - Gross OTTI recognized in net income (loss) (8 ) (2 ) Associated amortization of DAC, VOBA, DSI and DFEL - - Net OTTI recognized in net income (loss) $ (8 ) $ (2 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ 16 $ - Change in DAC, VOBA, DSI and DFEL (1 ) - Net portion of OTTI recognized in OCI $ 15 $ - 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 March 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 695 $ 695 $ 637 $ 637 Securities pledged under securities lending agreements (2) 136 131 88 85 Securities pledged under repurchase agreements (3) 151 187 150 185 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 4,380 6,570 3,930 5,923 Total payables for collateral on investments $ 5,362 $ 7,583 $ 4,805 $ 6,830 (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 Three Months Ended March 31, 2019 2018 Collateral payable for derivative investments $ 58 $ (83 ) Securities pledged under securities lending agreements 48 (68 ) Securities pledged under repurchase agreements 1 (1 ) Investments pledged for FHLBI 450 - Total increase (decrease) in payables for collateral on investments $ 557 $ (152 ) 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 March 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ - $ 151 $ 151 Securities Lending Corporate bonds 136 - - - 136 Total gross secured borrowings $ 136 $ - $ - $ 151 $ 287 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 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 March 31, 2019, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 548 million. As of March 31, 2019, we have re-pledged $536 million of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments. Investment Commitments As of March 31, 2019 , our investment commitments were $2.0 billion, which included $823 million of LPs, $669 million of mortgage loans on real estate and $ 528 million of private placement securities. Concentrations of Financial Instruments As of March 31, 201 9 , and December 31, 2018 , 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 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 or 1% of our invested assets portfolio. These concentrations include fixed maturity AFS, trading and equity securities. As of March 31, 2019 , our most significant investments in one industry were our investments in securities in the financial services industry and the consumer non-cyclical industry with a fair value of $15.3 billion and $15.1 billion, respectively, or 13% and 12% , respectively, of our invested assets portfolio. 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% of our invested assets portfolio. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 13 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. We adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, in 2019 . See Note 2 for additional information. 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 Corridors 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 We use call options to hedge the liability exposure on certain options in variable annuity products. 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 modified coinsurance 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 March 31, 2019 As of December 31, 2018 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,567 $ 64 $ 51 $ 2,741 $ 70 $ 9 Foreign currency contracts (1) 2,442 153 36 2,326 167 39 Total cash flow hedges 5,009 217 87 5,067 237 48 Fair value hedges: Interest rate contracts (1) 1,261 80 163 1,268 55 137 Non-Qualifying Hedges Interest rate contracts (1) 95,308 588 105 100,628 464 138 Foreign currency contracts (1) 11 - - 47 - - Equity market contracts (1) 32,795 613 404 30,487 676 162 Credit contracts (1) 60 - - - - - Embedded derivatives: GLB direct (2) - 439 - - 123 - GLB ceded (2) (3) - 50 8 - 72 - Reinsurance related (4) - - 177 - - 3 Indexed annuity and IUL contracts (2) (5) - 872 1,730 - 902 1,305 Total derivative instruments $ 134,444 $ 2,859 $ 2,674 $ 137,497 $ 2,529 $ 1,793 (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. The maturity of the notional amounts of derivative instruments (in millions) was as follows: Remaining Life as of March 31, 2019 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 11,465 $ 9,727 $ 51,648 $ 24,583 $ 1,713 $ 99,136 Foreign currency contracts (2) 66 264 764 1,278 81 2,453 Equity market contracts 22,440 5,198 1,996 13 3,148 32,795 Credit contracts - - 60 - - 60 Total derivative instruments with notional amounts $ 33,971 $ 15,189 $ 54,468 $ 25,874 $ 4,942 $ 134,444 (1) As of March 31, 2019 , 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 March 31, 2019 , 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 following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: As of March 31, 2019 Cumulative Fair Value Hedging Adjustment Included Amortized Cost in the Amortized of the Hedged Cost of the Hedged Assets (Liabilities) Assets (Liabilities) Line Items in which the Hedged Items are Recorded Fixed maturity AFS securities, at fair value $ 457 $ 161 Long-term debt (1) (976 ) (101 ) (1) The balance includes $(122) million of unamortized adjustments from discontinued hedges as of March 31, 2019. The change in our unrealized gain (loss) on derivative instruments with in accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows: For the Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ (29 ) 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 (47 ) 53 Foreign currency contracts 11 (37 ) Change in foreign currency exchange rate adjustment (14 ) (50 ) Change in DAC, VOBA, DSI and DFEL 6 4 Income tax benefit (expense) 10 7 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 1 Interest rate contracts (2) (1 ) (3 ) Foreign currency contracts (1) 7 5 Foreign currency contracts (3) 1 - Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Income tax benefit (expense) (1 ) - Balance as of end-of-period $ 99 $ (60 ) (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 effects of qualifying and non-qualifying hedges on the Consolidated Statements of Comprehensive Income (Loss) were as follows: Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2019 Realized Net Commissions Interest Gain Investment and Other and Debt (Loss) Income Expenses Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ (362 ) $ 1,251 $ 1,176 $ 71 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 24 - (34 ) Derivatives designated as hedging instruments - (24 ) - 34 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 - (1 ) Foreign currency contracts Amount of gain or (loss) reclassified from AOCI into income 1 7 - - Non-Qualifying Hedges Interest rate contracts 357 - - - Equity market contracts (458 ) - - - Embedded derivatives: GLB 286 - - - Reinsurance related (174 ) - - - Indexed annuity and IUL contracts (239 ) - - - 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 Three Months Ended March 31, 2018 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 Interest rate contracts (2) (3 ) Foreign currency contracts (1) 5 Total cash flow hedges 3 Fair value hedges: Interest rate contracts (1) (4 ) Interest rate contracts (2) 6 Interest rate contracts (3) 33 Total fair value hedges 35 Non-Qualifying Hedges Interest rate contracts (3) (314 ) Foreign currency contracts (3) 2 Equity market contracts (3) 7 Equity market contracts (4) (2 ) Embedded derivatives: GLB (3) 157 Reinsurance related (3) 23 Indexed annuity and IUL contracts (3) 52 Total derivative instruments $ (37 ) (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 Three Months Ended March 31, 2018 Offset to net investment income $ 6 Offset to interest and debt expense (3 ) As of March 31, 2019 , $ 35 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the nex t 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the three months ended March 31, 2019 and 2018 , 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 March 31, 2019, and December 31, 2018, we did not have any exposure related to credit default swaps for which we are the seller. 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 non-performance risk (“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 March 31, 2019 , the NPR adjustment was zero . 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. As of March 31, 2019 , and December 31, 201 8 , our exposure was zero . 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 March 31, 2019 As of December 31, 2018 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- $ 56 $ (3 ) $ 33 $ (3 ) A+ 389 (281 ) 296 (96 ) A 5 - 106 (56 ) A- 244 (1 ) 4 - BBB+ - - 197 - $ 694 $ (285 ) $ 636 $ (155 ) Balance Sheet Offsetting Information related to the effects of offsetting (in millions) was as follows: As of March 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,350 $ 1,361 $ 2,711 Gross amounts offset (369 ) - (369 ) Net amount of assets 981 1,361 2,342 Gross amounts not offset: Cash collateral (694 ) - (694 ) Non-cash collateral (116 ) - (116 ) Net amount $ 171 $ 1,361 $ 1,532 Financial Liabilities Gross amount of recognized liabilities $ 910 $ 1,915 $ 2,825 Gross amounts offset (148 ) - (148 ) Net amount of liabilities 762 1,915 2,677 Gross amounts not offset: Cash collateral (285 ) - (285 ) Non-cash collateral (346 ) - (346 ) Net amount $ 131 $ 1,915 $ 2,046 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 |
Federal Income Taxes
Federal Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7 . Federal Income Taxes The effective tax rate is the ratio of tax expense over pre-tax income (loss). The effective tax rate was 6% and 16% for the three months ended March 31, 2019 and 2018, respectively. The effective tax rate on pre-tax income was lower than the prevailing corporate federal income tax rate of 21% . Differences between the effective rates and the corporate federal income tax rate were primarily the result of the separate account dividends-received deduction, certain tax preferred investment income, foreign tax credits and other tax preference items. The current quarter’s effective tax rate is lower than the comparable quarter in the prior year primarily as a result of an increased level of realized losses and the associated tax benefit resulting from the application of the corporate federal income tax rate of 21%. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2019 | |
Reinsurance [Abstract] | |
Reinsurance | 8. Reinsurance Modified Coinsurance Reinsurance Transaction Some portions of our annuity business have been reinsured on a modified coinsurance (“Modco”) basis with other companies. In a Modco program, we as the ceding company retain the reserves, as well as the assets backing those reserves, and the reinsurer shares proportionally in all financial terms of the reinsured policies based on their respective percentage of the risk. Effective October 1, 2018, we entered into one such Modco agreement with Athene Holding Ltd. (“Athene”) to reinsure fixed and fixed indexed annuity products. We hold assets in support of reserves associated with the transaction in a Modco investment portfolio that included fixed maturity AFS securities, trading securities, equity securities, commercial mortgage loans, derivative investments, other investments and cash that had carrying values of $5.1 billion, $1.9 billion, $49 million, $186 million, $120 million, $85 million and $78 million, respectively, as of March 31, 2019. In addition, the portfolio was supported by $237 million of over-collateralization and a $219 million letter of credit as of March 31, 2019. In repositioning the Modco investment portfolio, purchases of securities classified as trading during the first quarter of 2019 primarily resulted in negative cash flows from operating activities that were largely offset by sales of securities classified as AFS within investing activities in our Consolidated Statements of Cash Flows. See “Realized Gain (Loss)” in Note 5 for information on reinsurance related embedded derivatives. |
Guaranteed Benefit Features
Guaranteed Benefit Features | 3 Months Ended |
Mar. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 9. Guaranteed Benefit Features Information on the guaranteed death benefit (“GDB”) features outstanding (dollars in millions) was as follows: As of As of March 31, December 31, 2019 (1) 2018 (1) Return of Net Deposits Total account value $ 95,670 $ 89,783 Net amount at risk (2) 209 1,002 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 95 $ 88 Net amount at risk (2) 16 18 Average attained age of contract holders 77 years 77 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 25,031 $ 23,365 Net amount at risk (2) 596 2,007 Average attained age of contract holders 71 years 71 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 Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 161 $ 100 Changes in reserves (36 ) 11 Benefits paid (6 ) (3 ) Balance as of end-of-period $ 119 $ 108 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 As of March 31, December 31, 2019 2018 Asset Type Domestic equity $ 59,205 $ 54,060 International equity 19,865 18,359 Fixed income 39,351 37,942 Total $ 118,421 $ 110,361 Percent of total variable annuity separate account values 98% 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 37% and 35% of total life insurance in-force reserves as of March 31, 2019, and December 31, 2018, respectively . UL and VUL products with secondary guarantees represented 29% and 35% of total life insurance sales for the three months ended March 31, 2019 and 2018 , respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 3 Months Ended |
Mar. 31, 2019 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 10. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and are reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 5,335 $ 2,222 Reinsurance recoverable 143 57 Net balance as of beginning-of-year 5,192 2,165 Incurred related to: Current year 803 364 Prior years: Interest 41 19 All other incurred (1) (85 ) (58 ) Total incurred 759 325 Paid related to: Current year (215 ) (126 ) Prior years (482 ) (213 ) Total paid (697 ) (339 ) Net balance as of end-of-period 5,254 2,151 Reinsurance recoverable 143 56 Balance as of end-of-period $ 5,397 $ 2,207 (1) 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 interest rate assumption used for discounting long-term claim reserves 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 years’ 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. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Contingencies and Commitments [Abstract] | |
Contingencies and Commitments | 1 1 . 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 March 31, 2019. 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 March 31, 2019 , 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 . 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 P laintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed. 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 Leases Effective January 1, 201 9 , we adopted ASU 2016-02, which resulted in a new measurement and recognition of our long-term operating leases on our Consolidated Balance Sheets. See Note 2 for additional information. We lease office space and certain equipment under various long-term lease agreements , and we also enter into sale-leaseback transactions. We determine if an arrangement is a lease at inception. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Our leases do not provide an implicit rate; therefore, we use our incremental borrowing rate at the commencement date in determining the present value of future payments. The ROU asset is calculated using the initial lease liability amount, plus any lease payments made at or before the commencement date, minus any lease incentives received, plus any initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Our lease agreements may contain both lease and non-lease components, which are accounted for separately. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We recognized operating lease ROU asse ts of $197 million and associated lease liabiliti es of $204 million as of March 31, 2019. We classified the operating lease ROU assets within other assets and the lease liabilities within other liabilities on our Consolidated Balance Sheets. T he weighted-average discount rate and remaining lease term on our operating leases was 3.4% and 7 years , respectively, as of March 31, 2019. Operating lease expense for the three months ended March 31, 2019, was $13 million and reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss) . As of March 31, 2019, the net book value of assets recorded as finance leases under sale-leaseback transactions was $177 million , and the associated accumulated amortization was $300 million . 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. T he weighted-average discount rate and remaining lease term on our sale-leaseback transactions was 2.5% and 3 years , respectively, as of March 31, 2019. Finance lease expense (in millions) was as follows: For the Three Months Ended March 31, 2019 Amortization of ROU assets (1) $ 18 Interest on lease liabilities (2) 3 Total $ 21 (1) Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss) . (2) Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss) . The table below presents cash flow information (in millions) related to leases: For the Three Months Ended March 31, 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14 Financing cash flows from finance leases 3 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 10 Our f uture minimum lease payments (in millions) under non-cancellable leases as of March 31, 201 9, were as follows: Operating Finance Leases Leases 2019 $ 32 $ 93 2020 37 57 2021 36 67 2022 32 67 2023 29 91 Thereafter 67 28 Total future minimum lease payments 233 403 Less: Amount representing interest 29 39 Present value of minimum lease payments $ 204 $ 364 As of March 31, 2019, we ha d additional office space leases that h ad not yet commenced totali ng $37 million . These leases will commence between the second and fourth quarters of 2019 and hav e lease terms of 4 to 11 years. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 12 . Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows: For the Three Months Ended March 31, 2019 2018 Common Stock Balance as of beginning-of-year 205,862,760 218,090,114 Stock issued for exercise of warrants 203,530 20,040 Stock compensation/issued for benefit plans 809,670 585,322 Retirement/cancellation of shares (3,888,731 ) - Balance as of end-of-period 202,987,229 218,695,476 Common Stock as of End-of-Period Basic basis 202,987,229 218,695,476 Diluted basis 204,200,031 222,379,443 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 Three Months Ended March 31, 2019 2018 Weighted-average shares, as used in basic calculation 204,290,759 218,368,994 Shares to cover exercise of outstanding warrants 173,837 642,787 Shares to cover non-vested stock 1,049,556 1,592,959 Average stock options outstanding during the period 1,519,184 1,969,591 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (29,176 ) (81,088 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) (1,041,630 ) (1,103,154 ) Shares repurchasable from measured but unrecognized stock option expense (867 ) (24,578 ) Average deferred compensation shares - 922,061 Weighted-average shares, as used in diluted calculation 205,961,663 222,287,572 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 earnings per share (“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 three months ended March 31, 2 018, 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 this period, 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 $2 million for the three months ended March 31, 2018. AOCI The following summarizes the components and changes in AOCI (in millions): For the Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 557 $ 3,486 Cumulative effect from adoption of new accounting standards - 674 Unrealized holding gains (losses) arising during the period 3,556 (3,063 ) Change in foreign currency exchange rate adjustment 14 52 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds (928 ) 958 Income tax benefit (expense) (563 ) 432 Less: Reclassification adjustment for gains (losses) included in net income (loss) (15 ) (18 ) Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (4 ) Income tax benefit (expense) 3 5 Balance as of end-of-period $ 2,649 $ 2,556 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 33 $ 44 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - 9 Gross OTTI recognized in OCI during the period (16 ) - Change in DAC, VOBA, DSI and DFEL 1 - Income tax benefit (expense) 4 - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 6 (9 ) Change in DAC, VOBA, DSI and DFEL (2 ) (10 ) Income tax benefit (expense) (1 ) 4 Balance as of end-of-period $ 25 $ 38 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ (29 ) Cumulative effect from adoption of new accounting standard - (6 ) Unrealized holding gains (losses) arising during the period (36 ) 16 Change in foreign currency exchange rate adjustment (14 ) (50 ) Change in DAC, VOBA, DSI and DFEL 6 4 Income tax benefit (expense) 10 7 Less: Reclassification adjustment for gains (losses) included in net income (loss) 8 3 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Income tax benefit (expense) (1 ) - Balance as of end-of-period $ 99 $ (60 ) Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (23 ) $ (14 ) Foreign currency translation adjustment arising during the period 3 5 Balance as of end-of-period $ (20 ) $ (9 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (299 ) $ (257 ) Cumulative effect from adoption of new accounting standard - (35 ) Adjustment arising during the period (1 ) - Balance as of end-of-period $ (300 ) $ (292 ) 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 Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (15 ) $ (18 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (4 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (16 ) (22 ) operations before taxes Income tax benefit (expense) 3 5 Federal income tax expense (benefit) Reclassification, net of income tax $ (13 ) $ (17 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ 1 Net investment income Interest rate contracts (1 ) (3 ) Interest and debt expense Foreign currency contracts 7 5 Net investment income Foreign currency contracts 1 - Total realized gain (loss) Total gross reclassifications 8 3 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 7 2 operations before taxes Income tax benefit (expense) (1 ) - Federal income tax expense (benefit) Reclassifications, net of income tax $ 6 $ 2 Net income (loss) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 13 . Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of March 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 98,050 $ 98,050 $ 94,024 $ 94,024 Trading securities 3,314 3,314 1,950 1,950 Equity securities 153 153 99 99 Mortgage loans on real estate 13,997 13,964 13,260 13,092 Derivative investments (1) 981 981 1,107 1,107 Other investments 2,740 2,740 2,255 2,255 Cash and invested cash 1,593 1,593 2,345 2,345 Other assets: GLB direct embedded derivatives 439 439 123 123 GLB ceded embedded derivatives 50 50 72 72 Indexed annuity ceded embedded derivatives 872 872 902 902 Separate account assets 143,369 143,369 132,833 132,833 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,730 ) (1,730 ) (1,305 ) (1,305 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (1,948 ) (1,948 ) (542 ) (542 ) Account values of certain investment contracts (35,772 ) (38,790 ) (34,535 ) (36,358 ) Short-term debt (300 ) (309 ) - - Long-term debt (5,572 ) (5,534 ) (5,839 ) (5,604 ) Reinsurance related embedded derivatives (177 ) (177 ) (3 ) (3 ) Other liabilities: Derivative liabilities (1) (242 ) (242 ) (160 ) (160 ) GLB ceded embedded derivatives (8 ) (8 ) - - (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. 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 Federal Home Loan Bank (“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 March 31, 2019 , and December 31, 2018 , 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 March 31, 2019 , or December 31, 2018 , 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: As of March 31, 2019 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 $ - $ 79,687 $ 3,521 $ 83,208 ABS - 966 81 1,047 U.S. government bonds 405 18 - 423 Foreign government bonds - 343 110 453 RMBS - 3,414 - 3,414 CMBS - 883 2 885 CLOs - 2,340 97 2,437 State and municipal bonds - 5,569 - 5,569 Hybrid and redeemable preferred securities 71 465 78 614 Trading securities 45 3,033 236 3,314 Equity securities 67 61 25 153 Derivative investments (1) - 826 672 1,498 Other investments 151 - - 151 Cash and invested cash - 1,593 - 1,593 Other assets: GLB direct embedded derivatives - - 439 439 GLB ceded embedded derivatives - - 50 50 Indexed annuity ceded embedded derivatives - - 872 872 Separate account assets 696 142,657 - 143,353 Total assets $ 1,435 $ 241,855 $ 6,183 $ 249,473 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,730 ) $ (1,730 ) Reinsurance related embedded derivatives - (177 ) - (177 ) Other liabilities: Derivative liabilities (1) - (354 ) (405 ) (759 ) GLB ceded embedded derivatives - - (8 ) (8 ) Total liabilities $ - $ (531 ) $ (2,143 ) $ (2,674 ) 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 ) (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 , value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“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 Three Months Ended March 31, 2019 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 (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 3,269 $ (1 ) $ 70 $ 200 $ (17 ) $ 3,521 ABS 29 - - 52 - 81 Foreign government bonds 109 - 1 - - 110 RMBS 7 - - - (7 ) - CMBS 2 - - - - 2 CLOs 105 - - 97 (105 ) 97 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 - - 206 (37 ) 236 Equity securities 25 - - - - 25 Derivative investments 534 (383 ) 46 70 - 267 Other assets: (5) GLB direct embedded derivatives 123 316 - - - 439 GLB ceded embedded derivatives 72 (22 ) - - - 50 Indexed annuity ceded embedded derivatives 902 77 - (107 ) - 872 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,305 ) (316 ) - (109 ) - (1,730 ) Other liabilities – GLB ceded embedded derivatives (5) - (8 ) - - - (8 ) Total, net $ 4,014 $ (337 ) $ 120 $ 409 $ (166 ) $ 4,040 For the Three Months Ended March 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 Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 3 $ 17 $ 74 $ 7 $ 3,192 ABS 27 - (1 ) - - 26 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (2 ) - - 108 RMBS 12 - - - (12 ) - CMBS 6 1 - 20 - 27 CLOs 91 - - 2 (91 ) 2 Hybrid and redeemable preferred securities 76 - 1 - - 77 Equity AFS securities 162 - - - (162 ) - Trading securities 49 (2 ) - - - 47 Equity securities - - - 1 26 27 Derivative investments 30 329 (19 ) (61 ) - 279 Other assets: (5) GLB direct embedded derivatives 903 207 - - - 1,110 GLB ceded embedded derivatives 51 (6 ) - - - 45 Indexed annuity ceded embedded derivatives 11 - - 6 - 17 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,418 ) 52 - 20 - (1,346 ) Other liabilities – GLB ceded embedded derivatives (5) (67 ) (44 ) - - - (111 ) Total, net $ 3,139 $ 540 $ (4 ) $ 62 $ (232 ) $ 3,505 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) 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 period. (3) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (4) 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). (5) Gains (losses) from sales, maturities, settlements and calls 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 Three Months Ended March 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 267 $ (2 ) $ (7 ) $ (51 ) $ (7 ) $ 200 ABS 52 - - - - 52 CLOs 97 - - - - 97 Trading securities 207 - - (1 ) - 206 Derivative investments 131 (15 ) (46 ) - - 70 Other assets – indexed annuity ceded embedded derivatives 19 - - (126 ) - (107 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (148 ) - - 39 - (109 ) Total, net $ 625 $ (17 ) $ (53 ) $ (139 ) $ (7 ) $ 409 For the Three Months Ended March 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 223 $ (53 ) $ (2 ) $ (94 ) $ - $ 74 CMBS 21 - - (1 ) - 20 CLOs 2 - - - - 2 Equity securities 1 - - - - 1 Derivative investments 68 (6 ) (123 ) - - (61 ) Other assets – indexed annuity ceded embedded derivatives 6 - - - - 6 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (27 ) - - 47 - 20 Total, net $ 294 $ (59 ) $ (125 ) $ (48 ) $ - $ 62 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 Three Months Ended March 31, 2019 2018 Derivative investments $ (287 ) $ 281 Embedded derivatives: Indexed annuity and IUL contracts (32 ) (4 ) GLB 481 376 Total, net (1) $ 162 $ 653 (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 Three For the Three Months Ended Months Ended March 31, 2019 March 31, 2018 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 83 $ (100 ) $ (17 ) $ 40 $ (33 ) $ 7 RMBS - (7 ) (7 ) - (12 ) (12 ) CLOs - (105 ) (105 ) - (91 ) (91 ) Equity AFS securities - - - - (162 ) (162 ) Trading securities - (37 ) (37 ) - - - Equity securities - - - 26 - 26 Total, net $ 83 $ (249 ) $ (166 ) $ 66 $ (298 ) $ (232 ) 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 three months ended March 31, 2019 and 2018 , 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 included 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 three months ended March 31, 2019 and 2018 , the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fa ir value. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2019 : Fair Valuation Significant Assumption or Value Technique Unobservable Inputs Input Ranges Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 2,604 Discounted cash flow Liquidity/duration adjustment (1) 0.6 % - 30.0 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.4 % - 3.1 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 1.6 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.2 % Other assets: GLB direct and ceded embedded derivatives 489 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) 0.02 % - 0.32 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 872 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,730 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives (8 ) 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) 0.02 % - 0.32 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | 14. 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. A discussion of these segments and Other Operations is found in Note 21 of our 2018 Form 10-K. 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 (“gain (loss) on the mark-to-market on certain instruments”) ; § Changes in the fair value of the derivatives we own to hedge our GDB riders reflected 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 (“indexed annuity forward-starting option”) ; and § Changes in the fair value of equity securities; · Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”) ; · 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. The tables below reconcile our segment measures of performance to the GAAP measures presented in our Consolidated Statements of Comprehensive Income (Loss) (in millions) : For the Three Months Ended March 31, 2019 2018 Revenues Operating revenues: Annuities $ 1,174 $ 1,073 Retirement Plan Services 293 292 Life Insurance 1,700 1,660 Group Protection 1,138 553 Other Operations 57 67 Excluded realized gain (loss), pre-tax (400 ) (35 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax 3 (1 ) Total revenues $ 3,965 $ 3,609 For the Three Months Ended March 31, 2019 2018 Net Income (Loss) Income (loss) from operations: Annuities $ 250 $ 267 Retirement Plan Services 39 43 Life Insurance 157 144 Group Protection 55 29 Other Operations (60 ) (42 ) Excluded realized gain (loss), after-tax (316 ) (28 ) Gain (loss) on early extinguishment of debt, after-tax - (19 ) Benefit ratio unlocking, after-tax 142 (10 ) Net impact from the Tax Cuts and Jobs Act - (13 ) Acquisition and integration costs related to mergers and acquisitions, after-tax (15 ) (4 ) Net income (loss) $ 252 $ 367 |
Nature Of Operations And Basi_2
Nature Of Operations And Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
Nature Of Operations And Basis Of Presentation | |
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 14 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 primarily 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 unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. 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”). The information contained in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“ 2018 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2018 Form 10-K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the three months ended March 31, 2019 , are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 . All material inter-company accounts and transactions have been eliminated in consolidation. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 140 Separate account liabilities 99 Total liabilities assumed $ 3,215 Net identifiable assets acquired $ 1,107 Goodwill 410 Net assets acquired $ 1,517 |
Schedule Of Pro Forma Information | For the Three Months Ended March 31, 2018 Revenue $ 4,165 Net income 378 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity Asset and Liability information | As of March 31, 2019 As of December 31, 2018 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Fixed maturity securities: Total return swap 1 $ 587 $ - 1 $ 600 $ - Total assets 1 $ 587 $ - 1 $ 600 $ - |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of March 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,243 $ 4,813 $ 838 $ 10 $ 83,208 ABS 990 46 6 (17 ) 1,047 U.S. government bonds 387 37 1 - 423 Foreign government bonds 403 50 - - 453 RMBS 3,296 142 42 (18 ) 3,414 CMBS 868 16 3 (4 ) 885 CLOs 2,439 4 11 (5 ) 2,437 State and municipal bonds 4,687 890 8 - 5,569 Hybrid and redeemable preferred securities 581 57 24 - 614 Total fixed maturity AFS securities $ 92,894 $ 6,055 $ 933 $ (34 ) $ 98,050 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 fixed maturity AFS securities $ 92,429 $ 3,981 $ 2,430 $ (44 ) $ 94,024 (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 $ 3,610 $ 3,614 Due after one year through five years 16,276 16,590 Due after five years through ten years 17,902 18,499 Due after ten years 47,513 51,564 Subtotal 85,301 90,267 Structured securities (ABS, MBS, CLOs) 7,593 7,783 Total fixed maturity AFS securities $ 92,894 $ 98,050 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of March 31, 2019 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 $ 4,831 $ 164 $ 14,492 $ 692 $ 19,323 $ 856 ABS 74 1 176 13 250 14 U.S. government bonds 6 - 28 1 34 1 RMBS 55 1 942 42 997 43 CMBS 10 - 297 3 307 3 CLOs 771 5 281 6 1,052 11 State and municipal bonds 156 1 135 7 291 8 Hybrid and redeemable preferred securities 12 2 151 22 163 24 Total fixed maturity AFS securities $ 5,915 $ 174 $ 16,502 $ 786 $ 22,417 $ 960 Total number of fixed maturity AFS securities in an unrealized loss position 1,881 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 fixed maturity AFS securities $ 35,246 $ 1,589 $ 8,671 $ 856 $ 43,917 $ 2,445 Total number of fixed maturity AFS securities in an unrealized loss position 3,414 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of March 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 23 $ 8 $ 1 7 Six months or greater, but less than nine months 20 6 - 4 Nine months or greater, but less than twelve months 98 42 - 10 Twelve months or greater 152 52 22 32 Total $ 293 $ 108 $ 23 53 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 (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 Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 355 $ 378 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 6 2 Credit losses on securities for which an OTTI was previously recognized 2 - Decreases attributable to: Securities sold, paid down or matured (4 ) (2 ) Balance as of end-of-period $ 359 $ 378 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of March 31, 2019 As of December 31, 2018 Commercial Residential Total Commercial Residential Total Current $ 13,598 $ 401 $ 13,999 $ 13,029 $ 239 $ 13,268 60 to 90 days past due - 1 1 - 1 1 Greater than 90 days past due - 1 1 - - - Valuation allowance - (1 ) (1 ) - - - Unamortized premium (discount) (16 ) 13 (3 ) (17 ) 8 (9 ) Total carrying value $ 13,582 $ 415 $ 13,997 $ 13,012 $ 248 $ 13,260 |
Schedule Of Realized Gain (Loss) | For the Three Months Ended March 31, 2019 2018 Fixed maturity AFS securities: Gross gains $ 12 $ 14 Gross losses (27 ) (30 ) Gross OTTI (8 ) (2 ) Gain (loss) on other investments (1) 5 2 Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds (2 ) (5 ) Total realized gain (loss) related to certain investments (20 ) (21 ) Realized gain (loss) on the mark-to-market on certain instruments (2) (121 ) 1 Indexed annuity and IUL contracts net derivatives results: (3) Gross gain (loss) (35 ) (1 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 - Variable annuity net derivatives results: (4) Gross gain (loss) (215 ) 33 Associated amortization of DAC, VOBA, DSI and DFEL 28 - Total realized gain (loss) $ (362 ) $ 12 (1) Includes market adjustments on equity securities still held of $6 million and less than $1 million for the three months ended March 31, 2019 and 2018, respectively. (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. See Note 8 for information regarding modified coinsurance. (3) Represents the net difference between the change in the 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 guaranteed living benefit (“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 Three Months Ended March 31, 2019 2018 OTTI Recognized in Net Income (Loss) Fixed maturity AFS securities: Corporate bonds $ (6 ) $ (2 ) ABS (1 ) - RMBS (1 ) - Gross OTTI recognized in net income (loss) (8 ) (2 ) Associated amortization of DAC, VOBA, DSI and DFEL - - Net OTTI recognized in net income (loss) $ (8 ) $ (2 ) Portion of OTTI Recognized in OCI Gross OTTI recognized in OCI $ 16 $ - Change in DAC, VOBA, DSI and DFEL (1 ) - Net portion of OTTI recognized in OCI $ 15 $ - |
Payables For Collateral On Investments | As of March 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 695 $ 695 $ 637 $ 637 Securities pledged under securities lending agreements (2) 136 131 88 85 Securities pledged under repurchase agreements (3) 151 187 150 185 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (4) 4,380 6,570 3,930 5,923 Total payables for collateral on investments $ 5,362 $ 7,583 $ 4,805 $ 6,830 (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 Three Months Ended March 31, 2019 2018 Collateral payable for derivative investments $ 58 $ (83 ) Securities pledged under securities lending agreements 48 (68 ) Securities pledged under repurchase agreements 1 (1 ) Investments pledged for FHLBI 450 - Total increase (decrease) in payables for collateral on investments $ 557 $ (152 ) |
Schedule Of Securities Pledged By Contractual Maturity | As of March 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Repurchase Agreements Corporate bonds $ - $ - $ - $ 151 $ 151 Securities Lending Corporate bonds 136 - - - 136 Total gross secured borrowings $ 136 $ - $ - $ 151 $ 287 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 |
Commercial [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ - $ 3 Additions - - Charge-offs, net of recoveries - - Balance as of end-of-period $ - $ 3 |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Three Months Ended March 31, 2019 2018 Average carrying value for impaired commercial mortgage loans on real estate $ - $ 8 Interest income recognized on impaired commercial mortgage loans on real estate - - Interest income collected on impaired commercial mortgage loans on real estate - - |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2019 As of December 31, 2018 Debt- Debt- Service Service Carrying % of Coverage Carrying % of Coverage Loan-to-Value Ratio Value Total Ratio Value Total Ratio Less than 65% $ 12,368 91.1% 2.27 $ 11,716 90.1% 2.30 65% to 74% 1,175 8.6% 1.74 1,238 9.5% 1.76 75% to 100% 39 0.3% 1.20 58 0.4% 0.95 Total $ 13,582 100.0% $ 13,012 100.0% |
Residential [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of March 31, 2019 As of December 31, 2018 Carrying % of Carrying % of Performance Indicator Value Total Value Total Performing $ 414 99.5% $ 247 99.6% Nonperforming 2 0.5% 1 0.4% Total $ 416 100.0% $ 248 100.0% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of March 31, 2019 As of December 31, 2018 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,567 $ 64 $ 51 $ 2,741 $ 70 $ 9 Foreign currency contracts (1) 2,442 153 36 2,326 167 39 Total cash flow hedges 5,009 217 87 5,067 237 48 Fair value hedges: Interest rate contracts (1) 1,261 80 163 1,268 55 137 Non-Qualifying Hedges Interest rate contracts (1) 95,308 588 105 100,628 464 138 Foreign currency contracts (1) 11 - - 47 - - Equity market contracts (1) 32,795 613 404 30,487 676 162 Credit contracts (1) 60 - - - - - Embedded derivatives: GLB direct (2) - 439 - - 123 - GLB ceded (2) (3) - 50 8 - 72 - Reinsurance related (4) - - 177 - - 3 Indexed annuity and IUL contracts (2) (5) - 872 1,730 - 902 1,305 Total derivative instruments $ 134,444 $ 2,859 $ 2,674 $ 137,497 $ 2,529 $ 1,793 (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 March 31, 2019 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 11,465 $ 9,727 $ 51,648 $ 24,583 $ 1,713 $ 99,136 Foreign currency contracts (2) 66 264 764 1,278 81 2,453 Equity market contracts 22,440 5,198 1,996 13 3,148 32,795 Credit contracts - - 60 - - 60 Total derivative instruments with notional amounts $ 33,971 $ 15,189 $ 54,468 $ 25,874 $ 4,942 $ 134,444 (1) As of March 31, 2019 , 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 March 31, 2019 , the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049 . |
Cumulative Basis Adjustments For Fair Value Hedges | As of March 31, 2019 Cumulative Fair Value Hedging Adjustment Included Amortized Cost in the Amortized of the Hedged Cost of the Hedged Assets (Liabilities) Assets (Liabilities) Line Items in which the Hedged Items are Recorded Fixed maturity AFS securities, at fair value $ 457 $ 161 Long-term debt (1) (976 ) (101 ) (1) The balance includes $(122) million of unamortized adjustments from discontinued hedges as of March 31, 2019. |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ (29 ) 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 (47 ) 53 Foreign currency contracts 11 (37 ) Change in foreign currency exchange rate adjustment (14 ) (50 ) Change in DAC, VOBA, DSI and DFEL 6 4 Income tax benefit (expense) 10 7 Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 1 1 Interest rate contracts (2) (1 ) (3 ) Foreign currency contracts (1) 7 5 Foreign currency contracts (3) 1 - Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Income tax benefit (expense) (1 ) - Balance as of end-of-period $ 99 $ (60 ) (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). |
Effects Of Qualifying And Non-Qualifying Hedges | Gain (Loss) Recognized in Income For the Three Months Ended March 31, 2019 Realized Net Commissions Interest Gain Investment and Other and Debt (Loss) Income Expenses Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ (362 ) $ 1,251 $ 1,176 $ 71 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 24 - (34 ) Derivatives designated as hedging instruments - (24 ) - 34 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 1 - (1 ) Foreign currency contracts Amount of gain or (loss) reclassified from AOCI into income 1 7 - - Non-Qualifying Hedges Interest rate contracts 357 - - - Equity market contracts (458 ) - - - Embedded derivatives: GLB 286 - - - Reinsurance related (174 ) - - - Indexed annuity and IUL contracts (239 ) - - - |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Three Months Ended March 31, 2018 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 1 Interest rate contracts (2) (3 ) Foreign currency contracts (1) 5 Total cash flow hedges 3 Fair value hedges: Interest rate contracts (1) (4 ) Interest rate contracts (2) 6 Interest rate contracts (3) 33 Total fair value hedges 35 Non-Qualifying Hedges Interest rate contracts (3) (314 ) Foreign currency contracts (3) 2 Equity market contracts (3) 7 Equity market contracts (4) (2 ) Embedded derivatives: GLB (3) 157 Reinsurance related (3) 23 Indexed annuity and IUL contracts (3) 52 Total derivative instruments $ (37 ) (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 Three Months Ended March 31, 2018 Offset to net investment income $ 6 Offset to interest and debt expense (3 ) |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of March 31, 2019 As of December 31, 2018 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- $ 56 $ (3 ) $ 33 $ (3 ) A+ 389 (281 ) 296 (96 ) A 5 - 106 (56 ) A- 244 (1 ) 4 - BBB+ - - 197 - $ 694 $ (285 ) $ 636 $ (155 ) |
Schedule Of Offsetting Assets And Liabilities | As of March 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 1,350 $ 1,361 $ 2,711 Gross amounts offset (369 ) - (369 ) Net amount of assets 981 1,361 2,342 Gross amounts not offset: Cash collateral (694 ) - (694 ) Non-cash collateral (116 ) - (116 ) Net amount $ 171 $ 1,361 $ 1,532 Financial Liabilities Gross amount of recognized liabilities $ 910 $ 1,915 $ 2,825 Gross amounts offset (148 ) - (148 ) Net amount of liabilities 762 1,915 2,677 Gross amounts not offset: Cash collateral (285 ) - (285 ) Non-cash collateral (346 ) - (346 ) Net amount $ 131 $ 1,915 $ 2,046 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 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of As of March 31, December 31, 2019 (1) 2018 (1) Return of Net Deposits Total account value $ 95,670 $ 89,783 Net amount at risk (2) 209 1,002 Average attained age of contract holders 65 years 65 years Minimum Return Total account value $ 95 $ 88 Net amount at risk (2) 16 18 Average attained age of contract holders 77 years 77 years Guaranteed minimum return 5% 5% Anniversary Contract Value Total account value $ 25,031 $ 23,365 Net amount at risk (2) 596 2,007 Average attained age of contract holders 71 years 71 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 Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 161 $ 100 Changes in reserves (36 ) 11 Benefits paid (6 ) (3 ) Balance as of end-of-period $ 119 $ 108 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of As of March 31, December 31, 2019 2018 Asset Type Domestic equity $ 59,205 $ 54,060 International equity 19,865 18,359 Fixed income 39,351 37,942 Total $ 118,421 $ 110,361 Percent of total variable annuity separate account values 98% 99% |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Three Months Ended March 31, 2019 2018 Balance as of beginning-of-year $ 5,335 $ 2,222 Reinsurance recoverable 143 57 Net balance as of beginning-of-year 5,192 2,165 Incurred related to: Current year 803 364 Prior years: Interest 41 19 All other incurred (1) (85 ) (58 ) Total incurred 759 325 Paid related to: Current year (215 ) (126 ) Prior years (482 ) (213 ) Total paid (697 ) (339 ) Net balance as of end-of-period 5,254 2,151 Reinsurance recoverable 143 56 Balance as of end-of-period $ 5,397 $ 2,207 (1) 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. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Contingencies and Commitments [Abstract] | |
Finance Lease Expense | For the Three Months Ended March 31, 2019 Amortization of ROU assets (1) $ 18 Interest on lease liabilities (2) 3 Total $ 21 (1) Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss) . (2) Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss) . |
Cash Flow Information Related To Leases | For the Three Months Ended March 31, 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14 Financing cash flows from finance leases 3 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 10 |
Future Minimum Lease Payments | Operating Finance Leases Leases 2019 $ 32 $ 93 2020 37 57 2021 36 67 2022 32 67 2023 29 91 Thereafter 67 28 Total future minimum lease payments 233 403 Less: Amount representing interest 29 39 Present value of minimum lease payments $ 204 $ 364 |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Three Months Ended March 31, 2019 2018 Common Stock Balance as of beginning-of-year 205,862,760 218,090,114 Stock issued for exercise of warrants 203,530 20,040 Stock compensation/issued for benefit plans 809,670 585,322 Retirement/cancellation of shares (3,888,731 ) - Balance as of end-of-period 202,987,229 218,695,476 Common Stock as of End-of-Period Basic basis 202,987,229 218,695,476 Diluted basis 204,200,031 222,379,443 |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Three Months Ended March 31, 2019 2018 Weighted-average shares, as used in basic calculation 204,290,759 218,368,994 Shares to cover exercise of outstanding warrants 173,837 642,787 Shares to cover non-vested stock 1,049,556 1,592,959 Average stock options outstanding during the period 1,519,184 1,969,591 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants (29,176 ) (81,088 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) (1,041,630 ) (1,103,154 ) Shares repurchasable from measured but unrecognized stock option expense (867 ) (24,578 ) Average deferred compensation shares - 922,061 Weighted-average shares, as used in diluted calculation 205,961,663 222,287,572 |
Components And Changes In Accumulated OCI | For the Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 557 $ 3,486 Cumulative effect from adoption of new accounting standards - 674 Unrealized holding gains (losses) arising during the period 3,556 (3,063 ) Change in foreign currency exchange rate adjustment 14 52 Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds (928 ) 958 Income tax benefit (expense) (563 ) 432 Less: Reclassification adjustment for gains (losses) included in net income (loss) (15 ) (18 ) Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (4 ) Income tax benefit (expense) 3 5 Balance as of end-of-period $ 2,649 $ 2,556 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 33 $ 44 (Increases) attributable to: Cumulative effect from adoption of new accounting standards - 9 Gross OTTI recognized in OCI during the period (16 ) - Change in DAC, VOBA, DSI and DFEL 1 - Income tax benefit (expense) 4 - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities 6 (9 ) Change in DAC, VOBA, DSI and DFEL (2 ) (10 ) Income tax benefit (expense) (1 ) 4 Balance as of end-of-period $ 25 $ 38 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ 139 $ (29 ) Cumulative effect from adoption of new accounting standard - (6 ) Unrealized holding gains (losses) arising during the period (36 ) 16 Change in foreign currency exchange rate adjustment (14 ) (50 ) Change in DAC, VOBA, DSI and DFEL 6 4 Income tax benefit (expense) 10 7 Less: Reclassification adjustment for gains (losses) included in net income (loss) 8 3 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Income tax benefit (expense) (1 ) - Balance as of end-of-period $ 99 $ (60 ) Foreign Currency Translation Adjustment Balance as of beginning-of-year $ (23 ) $ (14 ) Foreign currency translation adjustment arising during the period 3 5 Balance as of end-of-period $ (20 ) $ (9 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ (299 ) $ (257 ) Cumulative effect from adoption of new accounting standard - (35 ) Adjustment arising during the period (1 ) - Balance as of end-of-period $ (300 ) $ (292 ) |
Schedule of Reclassifications Out Of AOCI | For the Three Months Ended March 31, 2019 2018 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ (15 ) $ (18 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (4 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) (16 ) (22 ) operations before taxes Income tax benefit (expense) 3 5 Federal income tax expense (benefit) Reclassification, net of income tax $ (13 ) $ (17 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ - Total realized gain (loss) Change in DAC, VOBA, DSI and DFEL - - Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) - - operations before taxes Income tax benefit (expense) - - Federal income tax expense (benefit) Reclassification, net of income tax $ - $ - Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 1 $ 1 Net investment income Interest rate contracts (1 ) (3 ) Interest and debt expense Foreign currency contracts 7 5 Net investment income Foreign currency contracts 1 - Total realized gain (loss) Total gross reclassifications 8 3 Associated amortization of DAC, VOBA, DSI and DFEL (1 ) (1 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 7 2 operations before taxes Income tax benefit (expense) (1 ) - Federal income tax expense (benefit) Reclassifications, net of income tax $ 6 $ 2 Net income (loss) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of March 31, 2019 As of December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 98,050 $ 98,050 $ 94,024 $ 94,024 Trading securities 3,314 3,314 1,950 1,950 Equity securities 153 153 99 99 Mortgage loans on real estate 13,997 13,964 13,260 13,092 Derivative investments (1) 981 981 1,107 1,107 Other investments 2,740 2,740 2,255 2,255 Cash and invested cash 1,593 1,593 2,345 2,345 Other assets: GLB direct embedded derivatives 439 439 123 123 GLB ceded embedded derivatives 50 50 72 72 Indexed annuity ceded embedded derivatives 872 872 902 902 Separate account assets 143,369 143,369 132,833 132,833 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives (1,730 ) (1,730 ) (1,305 ) (1,305 ) Other contract holder funds: Remaining guaranteed interest and similar contracts (1,948 ) (1,948 ) (542 ) (542 ) Account values of certain investment contracts (35,772 ) (38,790 ) (34,535 ) (36,358 ) Short-term debt (300 ) (309 ) - - Long-term debt (5,572 ) (5,534 ) (5,839 ) (5,604 ) Reinsurance related embedded derivatives (177 ) (177 ) (3 ) (3 ) Other liabilities: Derivative liabilities (1) (242 ) (242 ) (160 ) (160 ) GLB ceded embedded derivatives (8 ) (8 ) - - (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. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of March 31, 2019 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 $ - $ 79,687 $ 3,521 $ 83,208 ABS - 966 81 1,047 U.S. government bonds 405 18 - 423 Foreign government bonds - 343 110 453 RMBS - 3,414 - 3,414 CMBS - 883 2 885 CLOs - 2,340 97 2,437 State and municipal bonds - 5,569 - 5,569 Hybrid and redeemable preferred securities 71 465 78 614 Trading securities 45 3,033 236 3,314 Equity securities 67 61 25 153 Derivative investments (1) - 826 672 1,498 Other investments 151 - - 151 Cash and invested cash - 1,593 - 1,593 Other assets: GLB direct embedded derivatives - - 439 439 GLB ceded embedded derivatives - - 50 50 Indexed annuity ceded embedded derivatives - - 872 872 Separate account assets 696 142,657 - 143,353 Total assets $ 1,435 $ 241,855 $ 6,183 $ 249,473 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ (1,730 ) $ (1,730 ) Reinsurance related embedded derivatives - (177 ) - (177 ) Other liabilities: Derivative liabilities (1) - (354 ) (405 ) (759 ) GLB ceded embedded derivatives - - (8 ) (8 ) Total liabilities $ - $ (531 ) $ (2,143 ) $ (2,674 ) 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 ) (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 Three Months Ended March 31, 2019 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 (2) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 3,269 $ (1 ) $ 70 $ 200 $ (17 ) $ 3,521 ABS 29 - - 52 - 81 Foreign government bonds 109 - 1 - - 110 RMBS 7 - - - (7 ) - CMBS 2 - - - - 2 CLOs 105 - - 97 (105 ) 97 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 - - 206 (37 ) 236 Equity securities 25 - - - - 25 Derivative investments 534 (383 ) 46 70 - 267 Other assets: (5) GLB direct embedded derivatives 123 316 - - - 439 GLB ceded embedded derivatives 72 (22 ) - - - 50 Indexed annuity ceded embedded derivatives 902 77 - (107 ) - 872 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,305 ) (316 ) - (109 ) - (1,730 ) Other liabilities – GLB ceded embedded derivatives (5) - (8 ) - - - (8 ) Total, net $ 4,014 $ (337 ) $ 120 $ 409 $ (166 ) $ 4,040 For the Three Months Ended March 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 Net (2)(3) Value Investments: (4) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 3 $ 17 $ 74 $ 7 $ 3,192 ABS 27 - (1 ) - - 26 U.S. government bonds 5 - - - - 5 Foreign government bonds 110 - (2 ) - - 108 RMBS 12 - - - (12 ) - CMBS 6 1 - 20 - 27 CLOs 91 - - 2 (91 ) 2 Hybrid and redeemable preferred securities 76 - 1 - - 77 Equity AFS securities 162 - - - (162 ) - Trading securities 49 (2 ) - - - 47 Equity securities - - - 1 26 27 Derivative investments 30 329 (19 ) (61 ) - 279 Other assets: (5) GLB direct embedded derivatives 903 207 - - - 1,110 GLB ceded embedded derivatives 51 (6 ) - - - 45 Indexed annuity ceded embedded derivatives 11 - - 6 - 17 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (5) (1,418 ) 52 - 20 - (1,346 ) Other liabilities – GLB ceded embedded derivatives (5) (67 ) (44 ) - - - (111 ) Total, net $ 3,139 $ 540 $ (4 ) $ 62 $ (232 ) $ 3,505 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) 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 period. (3) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (4) 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). (5) Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Three Months Ended March 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 267 $ (2 ) $ (7 ) $ (51 ) $ (7 ) $ 200 ABS 52 - - - - 52 CLOs 97 - - - - 97 Trading securities 207 - - (1 ) - 206 Derivative investments 131 (15 ) (46 ) - - 70 Other assets – indexed annuity ceded embedded derivatives 19 - - (126 ) - (107 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives (148 ) - - 39 - (109 ) Total, net $ 625 $ (17 ) $ (53 ) $ (139 ) $ (7 ) $ 409 For the Three Months Ended March 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 223 $ (53 ) $ (2 ) $ (94 ) $ - $ 74 CMBS 21 - - (1 ) - 20 CLOs 2 - - - - 2 Equity securities 1 - - - - 1 Derivative investments 68 (6 ) (123 ) - - (61 ) Other assets – indexed annuity ceded embedded derivatives 6 - - - - 6 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (27 ) - - 47 - 20 Total, net $ 294 $ (59 ) $ (125 ) $ (48 ) $ - $ 62 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Three Months Ended March 31, 2019 2018 Derivative investments $ (287 ) $ 281 Embedded derivatives: Indexed annuity and IUL contracts (32 ) (4 ) GLB 481 376 Total, net (1) $ 162 $ 653 (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Components Of The Transfers In And Out Of Level 3 | For the Three For the Three Months Ended Months Ended March 31, 2019 March 31, 2018 Transfers Transfers Transfers Transfers Into Out of Into Out of Level 3 Level 3 Total Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 83 $ (100 ) $ (17 ) $ 40 $ (33 ) $ 7 RMBS - (7 ) (7 ) - (12 ) (12 ) CLOs - (105 ) (105 ) - (91 ) (91 ) Equity AFS securities - - - - (162 ) (162 ) Trading securities - (37 ) (37 ) - - - Equity securities - - - 26 - 26 Total, net $ 83 $ (249 ) $ (166 ) $ 66 $ (298 ) $ (232 ) |
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 $ 2,604 Discounted cash flow Liquidity/duration adjustment (1) 0.6 % - 30.0 % ABS 23 Discounted cash flow Liquidity/duration adjustment (1) 3.0 % - 3.0 % Foreign government bonds 77 Discounted cash flow Liquidity/duration adjustment (1) 1.4 % - 3.1 % Hybrid and redeemable preferred securities 4 Discounted cash flow Liquidity/duration adjustment (1) 1.6 % - 1.6 % Equity securities 21 Discounted cash flow Liquidity/duration adjustment (1) 4.5 % - 5.2 % Other assets: GLB direct and ceded embedded derivatives 489 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) 0.02 % - 0.32 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % Indexed annuity ceded embedded derivatives 872 Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ (1,730 ) Discounted cash flow Lapse rate (2) 1 % - 9 % Mortality rate (6) (8) Other liabilities – GLB ceded embedded derivatives (8 ) 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) 0.02 % - 0.32 % Mortality rate (6) (8) Volatility (7) 1 % - 29 % (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) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Three Months Ended March 31, 2019 2018 Revenues Operating revenues: Annuities $ 1,174 $ 1,073 Retirement Plan Services 293 292 Life Insurance 1,700 1,660 Group Protection 1,138 553 Other Operations 57 67 Excluded realized gain (loss), pre-tax (400 ) (35 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax 3 (1 ) Total revenues $ 3,965 $ 3,609 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Three Months Ended March 31, 2019 2018 Net Income (Loss) Income (loss) from operations: Annuities $ 250 $ 267 Retirement Plan Services 39 43 Life Insurance 157 144 Group Protection 55 29 Other Operations (60 ) (42 ) Excluded realized gain (loss), after-tax (316 ) (28 ) Gain (loss) on early extinguishment of debt, after-tax - (19 ) Benefit ratio unlocking, after-tax 142 (10 ) Net impact from the Tax Cuts and Jobs Act - (13 ) Acquisition and integration costs related to mergers and acquisitions, after-tax (15 ) (4 ) Net income (loss) $ 252 $ 367 |
Nature Of Operations And Basi_3
Nature Of Operations And Basis Of Presentation (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Nature Of Operations And Basis Of Presentation | |
Number of segments | 4 |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease ROU asset | $ 197 |
Operating lease liability | 204 |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease ROU asset | 207 |
Operating lease liability | $ 214 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - Liberty Transaction [Member] $ in Millions | 3 Months Ended | 11 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | ||
Acquisition agreement date | May 1, 2018 | |
Capital stock acquired, percent | 100.00% | 100.00% |
Provisional assets | $ (5) | |
Provisional liabilities | 23 | |
Provisional goodwill | $ 28 |
Acquisition (Schedule Of Fair V
Acquisition (Schedule Of Fair Value Of Net Assets Acquired) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,778 | $ 1,782 |
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 | 140 | |
Separate account liabilities | 99 | |
Total liabilities assumed | 3,215 | |
Net identifiable assets acquired | 1,107 | |
Goodwill | 410 | |
Net assets acquired | $ 1,517 |
Acquisition (Schedule Of Pro Fo
Acquisition (Schedule Of Pro Forma Information) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Acquisition [Abstract] | |
Revenue | $ 4,165 |
Net Income | $ 378 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Gains (losses) for consolidated variable interest entities | $ 0 | $ 0 | |
Carrying amount of other investments | 2,752,000,000 | 2,267,000,000 | |
Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1,000,000 | $ 1,000,000 | |
Limited Partnerships and Limited Liability Companies [Member] | |||
Variable Interest Entity [Line Items] | |||
Carrying amount of other investments | 1,800,000,000 | 1,700,000,000 | |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | $ 18,000,000 | $ 20,000,000 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Variable Interest Entity Asset and Liability Information) (Details) - Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments, Assets | security | 1 | 1 |
Notional Amounts, Assets | $ | $ 587 | $ 600 |
Total Return Swap [Member] | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments, Assets | security | 1 | 1 |
Notional Amounts, Assets | $ | $ 587 | $ 600 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)securityitem | Dec. 31, 2018USD ($)securityitem | |
Investment [Line Items] | ||
Increase (decrease) in gross AFS securities unrealized losses | $ (1,500) | |
Number of partnerships in alternative investment portfolio | item | 246 | 237 |
Alternative investments as a percentage of overall invested assets | 2.00% | 1.00% |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 548 | |
Securities that have been re-pledged | 536 | |
Investment commitments | 2,000 | |
Investment commitments for limited partnerships | 823 | |
Investment commitments for mortgage loans on real estate | 669 | |
Investment commitments for private placements | $ 528 | |
Commercial [Member] | ||
Investment [Line Items] | ||
Number of impaired loans | security | 0 | 0 |
Residential [Member] | ||
Investment [Line Items] | ||
Number of impaired loans | security | 0 | 0 |
Impaired financing receivable, allowance | $ 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 | $ 1,400 |
Concentration risk, percentage | 1.00% | 1.00% |
Federal National Mortgage Association [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 1,300 | $ 1,300 |
Concentration risk, percentage | 1.00% | 1.00% |
Consumer Non-Cyclical Industry [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 15.1 | $ 14.5 |
Concentration risk, percentage | 12.00% | 13.00% |
Financial Service [Member] | Invested Assets [Member] | ||
Investment [Line Items] | ||
Fair value | $ 15.3 | $ 14.2 |
Concentration risk, percentage | 13.00% | 12.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | Commercial [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 23.00% | 23.00% |
Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | Residential [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 30.00% | 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 [Member] | Residential [Member] | ||
Investment [Line Items] | ||
Concentration risk, percentage | 19.00% | 19.00% |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Percentage of fair value rated as investment grade | 96.00% | 96.00% |
Amortized cost of portfolio rated below investment grade | $ 3,300 | $ 3,200 |
Fair value of portfolio rated below investment grade | $ 3,200 | $ 3,000 |
MBS [Member] | ||
Investment [Line Items] | ||
Severity of second lien loans | 100.00% | 100.00% |
Severity of first lien loans | 30.00% | 30.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | $ 92,894 | $ 92,429 | |
Gross unrealized gains | 6,055 | 3,981 | |
Gross unrealized losses | 933 | 2,430 | |
OTTI | [1] | (34) | (44) |
Fair value | 98,050 | 94,024 | |
Fixed Maturity AFS Securities [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 92,894 | ||
Fair value | 98,050 | ||
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 79,243 | 79,623 | |
Gross unrealized gains | 4,813 | 2,980 | |
Gross unrealized losses | 838 | 2,263 | |
OTTI | [1] | 10 | (8) |
Fair value | 83,208 | 80,348 | |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 990 | 916 | |
Gross unrealized gains | 46 | 42 | |
Gross unrealized losses | 6 | 6 | |
OTTI | [1] | (17) | (14) |
Fair value | 1,047 | 966 | |
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 | 387 | 390 | |
Gross unrealized gains | 37 | 29 | |
Gross unrealized losses | 1 | 2 | |
Fair value | 423 | 417 | |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 403 | 406 | |
Gross unrealized gains | 50 | 42 | |
Fair value | 453 | 448 | |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 3,296 | 3,308 | |
Gross unrealized gains | 142 | 118 | |
Gross unrealized losses | 42 | 67 | |
OTTI | [1] | (18) | (14) |
Fair value | 3,414 | 3,373 | |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 868 | 811 | |
Gross unrealized gains | 16 | 6 | |
Gross unrealized losses | 3 | 16 | |
OTTI | [1] | (4) | (3) |
Fair value | 885 | 804 | |
Fixed Maturity AFS Securities [Member] | CLOs [Member] | |||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | |||
Amortized cost | 2,439 | 1,746 | |
Gross unrealized gains | 4 | 3 | |
Gross unrealized losses | 11 | 24 | |
OTTI | [1] | (5) | (5) |
Fair value | 2,437 | 1,730 | |
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 | 4,687 | 4,647 | |
Gross unrealized gains | 890 | 716 | |
Gross unrealized losses | 8 | 18 | |
Fair value | 5,569 | 5,345 | |
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 | 581 | 582 | |
Gross unrealized gains | 57 | 45 | |
Gross unrealized losses | 24 | 34 | |
Fair value | $ 614 | $ 593 | |
[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 | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | $ 92,894 | $ 92,429 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 98,050 | $ 94,024 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 92,894 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 98,050 | |
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 | 3,610 | |
Due after one year through five years | 16,276 | |
Due after five years through ten years | 17,902 | |
Due after ten years | 47,513 | |
Amortized cost | 85,301 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,614 | |
Due after one year through five years | 16,590 | |
Due after five years through ten years | 18,499 | |
Due after ten years | 51,564 | |
Fair Value | 90,267 | |
Fixed Maturity AFS Securities [Member] | Structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized cost | 7,593 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 7,783 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 5,915 | $ 35,246 |
Greater Than Twelve Months | 16,502 | 8,671 |
Fair Value - Total | 22,417 | 43,917 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 174 | 1,589 |
Greater Than Twelve Months | 786 | 856 |
Gross Unrealized Losses - Total | $ 960 | $ 2,445 |
Total number of AFS securities in an unrealized loss position | security | 1,881 | 3,414 |
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 | $ 4,831 | $ 32,493 |
Greater Than Twelve Months | 14,492 | 7,228 |
Fair Value - Total | 19,323 | 39,721 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 164 | 1,530 |
Greater Than Twelve Months | 692 | 735 |
Gross Unrealized Losses - Total | 856 | 2,265 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 74 | 117 |
Greater Than Twelve Months | 176 | 143 |
Fair Value - Total | 250 | 260 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 2 |
Greater Than Twelve Months | 13 | 14 |
Gross Unrealized Losses - Total | 14 | 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 | 6 | 70 |
Greater Than Twelve Months | 28 | 23 |
Fair Value - Total | 34 | 93 |
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 |
Gross Unrealized Losses - Total | 1 | 2 |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 55 | 472 |
Greater Than Twelve Months | 942 | 863 |
Fair Value - Total | 997 | 1,335 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 10 |
Greater Than Twelve Months | 42 | 60 |
Gross Unrealized Losses - Total | 43 | 70 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 10 | 470 |
Greater Than Twelve Months | 297 | 82 |
Fair Value - Total | 307 | 552 |
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 | 3 | 5 |
Gross Unrealized Losses - Total | 3 | 16 |
Fixed Maturity AFS Securities [Member] | CLOs [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 771 | 1,124 |
Greater Than Twelve Months | 281 | 103 |
Fair Value - Total | 1,052 | 1,227 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 5 | 21 |
Greater Than Twelve Months | 6 | 3 |
Gross Unrealized Losses - Total | 11 | 24 |
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 | 156 | 404 |
Greater Than Twelve Months | 135 | 96 |
Fair Value - Total | 291 | 500 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 8 |
Greater Than Twelve Months | 7 | 10 |
Gross Unrealized Losses - Total | 8 | 18 |
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 | 12 | 96 |
Greater Than Twelve Months | 151 | 133 |
Fair Value - Total | 163 | 229 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 2 | 6 |
Greater Than Twelve Months | 22 | 28 |
Gross Unrealized Losses - Total | $ 24 | $ 34 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Nine months or greater, but less than twelve months | $ 5,915 | $ 35,246 | |
Fair Value - Twelve months or greater | 16,502 | 8,671 | |
Fair Value - Total | 22,417 | 43,917 | |
Losses - Nine months or greater, but less than twelve months | 174 | 1,589 | |
Losses - Twelve months or greater | 786 | 856 | |
Gross Unrealized Losses - Total | $ 960 | $ 2,445 | |
Number of Securities - Total | security | 1,881 | 3,414 | |
Fair Value Decline, Greater Than 20% [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value - Less than six months | $ 23 | $ 395 | |
Fair Value - Six months or greater, but less than nine months | 20 | 96 | |
Fair Value - Nine months or greater, but less than twelve months | 98 | 11 | |
Fair Value - Twelve months or greater | 152 | 143 | |
Fair Value - Total | 293 | 645 | |
Losses - Less than six months | 8 | 124 | |
Losses - Six months or greater, but less than nine months | 6 | 49 | |
Losses - Nine months or greater, but less than twelve months | 42 | 8 | |
Losses - Twelve months or greater | 52 | 74 | |
Gross Unrealized Losses - Total | 108 | 255 | |
OTTI - Less than six months | 1 | 1 | |
OTTI - Twelve months or greater | 22 | 8 | |
OTTI - Total | $ 23 | $ 9 | |
Number of Securities - Less than six months | security | [1] | 7 | 45 |
Number of Securities - Six months or greater, but less than nine months | security | [1] | 4 | 11 |
Number of Securities - Nine months or greater, but less than twelve months | security | [1] | 10 | 2 |
Number of Securities - Twelve months or greater | security | [1] | 32 | 32 |
Number of Securities - Total | security | [1] | 53 | 90 |
[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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments [Abstract] | ||
Balance as of beginning-of-year | $ 355 | $ 378 |
Increases attributable to: | ||
Credit losses on securities for which an OTTI was not previously recognized | 6 | 2 |
Credit losses on securities for which an OTTI was previously recognized | 2 | |
Decreases attributable to: | ||
Securities sold, paid down or matured | (4) | (2) |
Balance as of end-of-period | $ 359 | $ 378 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | $ 13,999 | $ 13,268 | ||
60 to 90 days past due | 1 | 1 | ||
Greater than 90 days past due | 1 | |||
Valuation allowance | (1) | |||
Unamortized premium (discount) | (3) | (9) | ||
Total carrying value | 13,997 | 13,260 | ||
Commercial [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 13,598 | 13,029 | ||
60 to 90 days past due | ||||
Valuation allowance | $ (3) | $ (3) | ||
Unamortized premium (discount) | (16) | (17) | ||
Total carrying value | 13,582 | 13,012 | ||
Residential [Member] | ||||
Mortgage Loans On Real Estate Aging [Abstract] | ||||
Current | 401 | 239 | ||
60 to 90 days past due | 1 | 1 | ||
Greater than 90 days past due | 1 | |||
Valuation allowance | (1) | |||
Unamortized premium (discount) | 13 | 8 | ||
Total carrying value | $ 415 | $ 248 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Losses | ||
Balance as of end-of-period | $ 1 | |
Commercial [Member] | ||
Allowance for Losses | ||
Balance as of beginning-of-year | $ 3 | |
Additions | ||
Charge-offs, net of recoveries | ||
Balance as of end-of-period | $ 3 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - Commercial [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Information about impaired mortgage loans on real estate | ||
Average carrying value for impaired commercial mortgage loans on real estate | $ 8 | |
Interest income recognized on impaired commercial mortgage loans on real estate | ||
Interest income collected on impaired commercial mortgage loans on real estate |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - Commercial [Member] $ in Millions | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 13,582 | $ 13,012 |
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 | $ 12,368 | $ 11,716 |
Percentage of total mortgage loans on real estate | 91.10% | 90.10% |
Debt-service coverage ratio | 2.27 | 2.30 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 1,175 | $ 1,238 |
Percentage of total mortgage loans on real estate | 8.60% | 9.50% |
Debt-service coverage ratio | 1.74 | 1.76 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 39 | $ 58 |
Percentage of total mortgage loans on real estate | 0.30% | 0.40% |
Debt-service coverage ratio | 1.20 | 0.95 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - Residential [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 416 | $ 248 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Performing [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 414 | $ 247 |
Percentage of total mortgage loans on real estate | 99.50% | 99.60% |
Nonperforming [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Carrying value of mortgage loans on real estate | $ 2 | $ 1 |
Percentage of total mortgage loans on real estate | 0.50% | 0.40% |
Investments (Schedule Of Realiz
Investments (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross OTTI | $ 8 | $ 2 | |
Gain (loss) on other investments | [1] | 5 | 2 |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | (2) | (5) | |
Total realized gain (loss) related to certain investments | (20) | (21) | |
Realized gain (loss) on the mark-to-market on certain instruments | [2] | (121) | 1 |
Indexed annuity and IUL contracts net derivatives results: | |||
Gross gain (loss) | [3] | (35) | (1) |
Associated amortization of DAC, VOBA, DSI, and DFEL | [3] | 1 | |
Variable annuity net derivatives results: | |||
Gross gain (loss) | [4] | (215) | 33 |
Associated amortization of DAC, VOBA, DSI, and DFEL | [4] | 28 | |
Total realized gain (loss) | (362) | 12 | |
Fixed Maturity AFS Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | 12 | 14 | |
AFS securities. Gross losses | (27) | (30) | |
AFS securities. Gross OTTI | (8) | (2) | |
Equity Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
Gain (loss) on other investments | $ 6 | $ 1 | |
[1] | Includes market adjustments on equity securities still held of $6 million and less than $1 million for the three months ended March 31, 2019 and 2018, respectively. | ||
[2] | Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives and trading securities. See Note 8 for information regarding modified coinsurance. | ||
[3] | Represents the net difference between the change in the fair value of the S&P 500 Index® (“S&P 500”) call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | ||
[4] | Includes the net difference in the change in embedded derivative reserves of our guaranteed living benefit ("GLB") riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Investments (OTTI Recognized In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | $ (8) | $ (2) |
Net OTTI recognized in net income (loss) | (8) | (2) |
Portion of OTTI Recognized in OCI | ||
Gross OTTI recognized in OCI | 16 | |
Change in DAC, VOBA, DSI and DFEL | (1) | |
Net portion of OTTI recognized in OCI | 15 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | (6) | $ (2) |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
OTTI Recognized in Net Income (Loss) | ||
Gross OTTI recognized in net income (loss) | (1) | |
Fixed Maturity AFS Securities [Member] | RMBS [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 | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Carrying Value Of Payables For Collateral On Investments [Abstract] | |||
Collateral payable for derivative investments | [1] | $ 695 | $ 637 |
Securities pledged under securities lending agreements | [2] | 136 | 88 |
Securities pledged under repurchase agreements | [3] | 151 | 150 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | [4] | 4,380 | 3,930 |
Total payables for collateral on investments | 5,362 | 4,805 | |
Fair Value Of Related Investments Or Collateral [Abstract] | |||
Collateral payable for derivative investments | [1] | 695 | 637 |
Securities pledged under securities lending agreements | [2] | 131 | 85 |
Securities pledged under repurchase agreements | [3] | 187 | 185 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | [4] | 6,570 | 5,923 |
Total payables for collateral on investments | $ 7,583 | $ 6,830 | |
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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (decrease) in payables for collateral on investments | ||
Collateral payable for derivative investments | $ 58 | $ (83) |
Securities pledged under securities lending agreements | 48 | (68) |
Securities pledged under repurchase agreements | 1 | (1) |
Investments pledged for FHLBI | 450 | |
Total increase (decrease) in payables for collateral on investments | $ 557 | $ (152) |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | [1] | $ 136 | $ 88 |
Total gross secured borrowings | 287 | 238 | |
Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | 151 | 150 | |
Securities Lending | 136 | 88 | |
Overnight and Continuous [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 136 | 88 | |
Overnight and Continuous [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities Lending | 136 | 88 | |
Greater than 90 days [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Total gross secured borrowings | 151 | 150 | |
Greater than 90 days [Member] | Corporate Bonds [Member] | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Repurchase Agreements | $ 151 | $ 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) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments [Abstract] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 35,000,000 | ||
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 | |
Non-performance Risk Adjustment | 0 | ||
Exposure Associated With Collateralization Events | $ 0 | $ 0 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | $ 134,444 | ||
Interest rate contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [1] | 99,136 | |
Foreign currency contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | [2] | 2,453 | |
Equity market contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 32,795 | ||
Credit contracts [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 60 | ||
Total Derivative Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 134,444 | $ 137,497 | |
Asset Fair Value | 2,859 | 2,529 | |
Liability Fair Value | 2,674 | 1,793 | |
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 | [3] | 95,308 | 100,628 |
Asset Fair Value | [3] | 588 | 464 |
Liability Fair Value | [3] | 105 | 138 |
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 | [3] | 11 | 47 |
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 | [3] | 32,795 | 30,487 |
Asset Fair Value | [3] | 613 | 676 |
Liability Fair Value | [3] | 404 | 162 |
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 | [3] | 60 | |
Derivative investments [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Notional Amounts | 5,009 | 5,067 | |
Asset Fair Value | 217 | 237 | |
Liability Fair Value | 87 | 48 | |
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 | [3] | 2,567 | 2,741 |
Asset Fair Value | [3] | 64 | 70 |
Liability Fair Value | [3] | 51 | 9 |
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 | [3] | 2,442 | 2,326 |
Asset Fair Value | [3] | 153 | 167 |
Liability Fair Value | [3] | 36 | 39 |
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 | [3] | 1,261 | 1,268 |
Asset Fair Value | [3] | 80 | 55 |
Liability Fair Value | [3] | 163 | 137 |
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 | [4] | 439 | 123 |
Other Liabilities [Member] | 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 | [4],[5] | 50 | 72 |
Liability Fair Value | [4],[5] | 8 | |
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] | 177 | 3 |
Future Contract Benefits [Member] | Indexed Annuity And IUL Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | |||
Outstanding derivative instruments with off-balance-sheet risks | |||
Asset Fair Value | [4],[7] | 872 | 902 |
Liability Fair Value | [4],[7] | $ 1,730 | $ 1,305 |
[1] | As of March 31, 2019, 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 March 31, 2019, 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 derivative investments and other liabilities on our Consolidated Balance Sheets. | ||
[4] | Reported in other assets on our Consolidated Balance Sheets. | ||
[5] | Reported in 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) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 33,971 | |
Remaining Life - 1 - 5 Years | 15,189 | |
Remaining Life - 6 - 10 Years | 54,468 | |
Remaining Life - 11 - 30 Years | 25,874 | |
Remaining Life Over - 30 Years | 4,942 | |
Remaining Life - Total Years | 134,444 | |
Interest rate contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 11,465 | [1] |
Remaining Life - 1 - 5 Years | 9,727 | [1] |
Remaining Life - 6 - 10 Years | 51,648 | [1] |
Remaining Life - 11 - 30 Years | 24,583 | [1] |
Remaining Life Over - 30 Years | 1,713 | [1] |
Remaining Life - Total Years | $ 99,136 | [1] |
Derivative maturity date | Apr. 1, 2067 | |
Foreign currency contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 66 | [2] |
Remaining Life - 1 - 5 Years | 264 | [2] |
Remaining Life - 6 - 10 Years | 764 | [2] |
Remaining Life - 11 - 30 Years | 1,278 | [2] |
Remaining Life Over - 30 Years | 81 | [2] |
Remaining Life - Total Years | $ 2,453 | [2] |
Derivative maturity date | Sep. 1, 2049 | |
Equity market contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 22,440 | |
Remaining Life - 1 - 5 Years | 5,198 | |
Remaining Life - 6 - 10 Years | 1,996 | |
Remaining Life - 11 - 30 Years | 13 | |
Remaining Life Over - 30 Years | 3,148 | |
Remaining Life - Total Years | 32,795 | |
Credit contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life - 6 - 10 Years | 60 | |
Remaining Life - Total Years | $ 60 | |
[1] | As of March 31, 2019, 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 March 31, 2019, 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 (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) $ in Millions | Mar. 31, 2019USD ($) | |
Fixed Maturity AFS Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of hedged assets | $ 457 | |
Cumulative amount of fair value hedging adjustment included in the amortized cost of the hedged assets | 161 | |
Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of hedged liabilities | (976) | |
Cumulative amount of fair value hedging adjustment included in the amortized cost of the hedged liabilities | (101) | [1] |
Discontinued Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cumulative amount of fair value hedging adjustment included in the amortized cost of the hedged assets | $ (122) | |
[1] | The balance includes $(122) million of unamortized adjustments from discontinued hedges as of March 31, 2019. |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | $ 407 | |||
Income tax expense (benefit) | 16 | $ 68 | ||
Balance as of end-of-period | 2,453 | |||
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||||
Change in our unrealized gain on derivative instruments in accumulated OCI | ||||
Balance as of beginning-of-year | 139 | (29) | ||
Cumulative effect from adoption of new accounting standard | $ (6) | |||
Change in foreign currency exchange rate adjustment | (14) | (50) | ||
Change in DAC, VOBA, DSI and DFEL | 6 | 4 | ||
Income tax benefit (expense) | 10 | 7 | ||
Reclassification adjustment for gains (losses) included in net income (loss) | 8 | 3 | ||
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (1) | ||
Income tax expense (benefit) | (1) | |||
Balance as of end-of-period | 99 | (60) | ||
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 | (47) | 53 | ||
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] | 1 | 1 | |
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] | (1) | (3) | |
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 | 11 | (37) | ||
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] | 7 | $ 5 | |
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] | $ 1 | ||
[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 (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total amount of income and (expense) line items presented in the statemenr of financial performance in which the effects of fair value and cash hedges are recorded | $ (362) |
Net Investment Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total amount of income and (expense) line items presented in the statemenr of financial performance in which the effects of fair value and cash hedges are recorded | 1,251 |
Commissions and other expenses [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total amount of income and (expense) line items presented in the statemenr of financial performance in which the effects of fair value and cash hedges are recorded | 1,176 |
Interest and Debt Expense [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Total amount of income and (expense) line items presented in the statemenr of financial performance in which the effects of fair value and cash hedges are recorded | 71 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedged items | 24 |
Derivatives designated as hedging instruments | (24) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Hedged items | (34) |
Derivatives designated as hedging instruments | 34 |
Interest rate contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-Qualifying Hedges Gain (Loss) | 357 |
Interest rate contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 1 |
Interest rate contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | (1) |
Foreign currency contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 1 |
Foreign currency contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain or (loss) reclassified from AOCI into income | 7 |
Equity market contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-Qualifying Hedges Gain (Loss) | (458) |
Indexed Annuity And IUL Contracts [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-Qualifying Hedges Gain (Loss) | (239) |
Embedded derivatives - GLB [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-Qualifying Hedges Gain (Loss) | 286 |
Embedded derivatives - Reinsurance related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Non-Qualifying Hedges Gain (Loss) | $ (174) |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Gains (losses) | ||
Gains (losses) | $ (37) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Gains (losses) | ||
Gains (losses) | 3 | |
Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | ||
Gains (losses) | ||
Gains (losses) | 35 | |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 1 | [1] |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 5 | [1] |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | (4) | [1] |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Cash Flow Hedges [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | (3) | [2] |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 6 | [2] |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair Value Hedges [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 33 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Interest rate contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | (314) | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 2 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 7 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | GLB Embedded Derivatives [Member] | ||
Gains (losses) | ||
Gains (losses) | 157 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Embedded derivatives - Reinsurance related [Member] | ||
Gains (losses) | ||
Gains (losses) | 23 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Indexed Annuity And IUL Contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | 52 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Commissions and other expenses [Member] | Equity market contracts [Member] | ||
Gains (losses) | ||
Gains (losses) | $ (2) | [4] |
[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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ||
Offset to net investment income | $ 1,251 | $ 1,233 |
Offset to interest and debt expense | $ (71) | (91) |
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 | 6 | |
Offset to interest and debt expense | $ (3) |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 694 | $ 636 |
Collateral Posted by LNC (Held by Counter-Party) | (285) | (155) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 56 | 33 |
Collateral Posted by LNC (Held by Counter-Party) | (3) | (3) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 389 | 296 |
Collateral Posted by LNC (Held by Counter-Party) | (281) | (96) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 5 | 106 |
Collateral Posted by LNC (Held by Counter-Party) | (56) | |
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 244 | 4 |
Collateral Posted by LNC (Held by Counter-Party) | (1) | |
BBB+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 197 | |
Collateral Posted by LNC (Held by Counter-Party) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 1,350 | $ 1,330 |
Derivative Instruments, Gross amounts offset | (369) | (223) |
Derivative Instruments, Net amount of assets | 981 | 1,107 |
Derivative Instruments, Cash collateral | (694) | (636) |
Derivative Instruments, Non-cash collateral | (116) | (58) |
Derivative Instruments, Net amount | 171 | 413 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,361 | 1,097 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,361 | 1,097 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,361 | 1,097 |
Total, Gross amount of recognized assets | 2,711 | 2,427 |
Total, Gross amounts offset | (369) | (223) |
Total, Net amount of assets | 2,342 | 2,204 |
Total, Cash collateral | (694) | (636) |
Total, Non-cash collateral | (116) | (58) |
Total, Net amount | 1,532 | 1,510 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 910 | 784 |
Derivative Instruments, Gross amounts offset | (148) | (103) |
Derivative Instruments, Net amount of liabilities | 762 | 681 |
Derivative Instruments, Cash collateral | (285) | (155) |
Derivative Instruments, Non-cash collateral | (346) | (190) |
Derivative Instruments, Net amount | 131 | 336 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 1,915 | 1,308 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 1,915 | 1,308 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,915 | 1,308 |
Total, Gross amount of recognized liabilities | 2,825 | 2,092 |
Total, Gross amounts offset | (148) | (103) |
Total, Net amount of liabilities | 2,677 | 1,989 |
Total, Cash collateral | (285) | (155) |
Total, Non-cash collateral | (346) | (190) |
Total, Net amount | $ 2,046 | $ 1,644 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Federal Income Taxes [Abstract] | ||
Effective tax rate | 6.00% | 16.00% |
Federal rate | 21.00% | 21.00% |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | $ 17,660 | $ 17,748 |
Athene Holding Ltd. [Member] | Athene Holding Ltd. [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reserves associated with modified coinsurance reinsurance arrangements | 237 | |
Letter of credit | 219 | |
Athene Holding Ltd. [Member] | AFS Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 5,100 | |
Athene Holding Ltd. [Member] | Trading Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 1,900 | |
Athene Holding Ltd. [Member] | Equity Securities [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 49 | |
Athene Holding Ltd. [Member] | Commercial Mortgage Loans [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 186 | |
Athene Holding Ltd. [Member] | Derivative Instruments [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 120 | |
Athene Holding Ltd. [Member] | Other Investments [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | 85 | |
Athene Holding Ltd. [Member] | Cash [Member] | ||
Ceded Credit Risk [Line Items] | ||
Deposit assets | $ 78 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 37.00% | 35.00% | |
Percent of permanent life insurance sales | 29.00% | 35.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Return of Net Deposits [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 95,670 | $ 89,783 |
Net Amount At Risk | [1],[2] | $ 209 | $ 1,002 |
Average attained age of contract holders | [1] | 65 years | 65 years |
Minimum Return [Member] | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Total Account Value | [1] | $ 95 | $ 88 |
Net Amount At Risk | [1],[2] | $ 16 | $ 18 |
Average attained age of contract holders | [1] | 77 years | 77 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] | $ 25,031 | $ 23,365 |
Net Amount At Risk | [1],[2] | $ 596 | $ 2,007 |
Average attained age of contract holders | [1] | 71 years | 71 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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | ||
Balance as of beginning-of-year | $ 161 | $ 100 |
Changes in reserves | (36) | 11 |
Benefits paid | (6) | (3) |
Balance as of end-of-period | $ 119 | $ 108 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 118,421 | $ 110,361 |
Percent of total variable annuity separate account values | 98.00% | 99.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 59,205 | $ 54,060 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 19,865 | 18,359 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 39,351 | $ 37,942 |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Liability For Unpaid Claims [Abstract] | |||
Balance as of beginning-of-year | $ 5,335 | $ 2,222 | |
Reinsurance recoverable | 143 | 57 | |
Net balance as of beginning-of-year | 5,192 | 2,165 | |
Incurred related to: | |||
Current year | 803 | 364 | |
Interest | 41 | 19 | |
All other incurred | [1] | (85) | (58) |
Total incurred | 759 | 325 | |
Paid related to: | |||
Current year | (215) | (126) | |
Prior years | (482) | (213) | |
Total paid | (697) | (339) | |
Net balance as of end-of-period | 5,254 | 2,151 | |
Reinsurance recoverable | 143 | 56 | |
Balance as of end-of-period | $ 5,397 | $ 2,207 | |
[1] | 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. |
Contingencies And Commitments_2
Contingencies And Commitments (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Operating lease ROU asset | $ 197 |
Operating lease liability | $ 204 |
Weighted average discount rate, operating lease | 3.40% |
Weighted average remaining operating lease term | 7 years |
Operating lease expense | $ 13 |
Sale-leaseback, net book value | 177 |
Sale-leaseback, accumulated amortization | $ 300 |
Weighted average discount rate, finance lease | 2.50% |
Weighted average remaining finance lease term | 3 years |
Additional office lease | $ 37 |
Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate | $ 50 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Lease term | 11 years |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Lease term | 4 years |
Contingencies And Commitments_3
Contingencies And Commitments (Finance Lease Expense) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | ||
Contingencies and Commitments [Abstract] | ||
Amortization of ROU assets | $ 18 | [1] |
Interest on lease liabilities | 3 | [2] |
Total | $ 21 | |
[1] | Amortization of ROU assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |
[2] | Interest on lease liabilities is reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Contingencies And Commitments_4
Contingencies And Commitments (Cash Flow Information Related To Leases) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contingencies and Commitments [Abstract] | |
Operating cash flows from operating leases | $ 14 |
Financing cash flows from finance leases | 3 |
Operating leases | $ 10 |
Contingencies And Commitments_5
Contingencies And Commitments (Future Minimum Lease Payments) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 32 |
2020 | 37 |
2021 | 36 |
2022 | 32 |
2023 | 29 |
Thereafter | 67 |
Total future minimum lease payments | 233 |
Less: Amount representing interest | 29 |
Present value of minimum lease payments | 204 |
Finance Leases | |
2019 | 93 |
2020 | 57 |
2021 | 67 |
2022 | 67 |
2023 | 91 |
Thereafter | 28 |
Total future minimum lease payments | 403 |
Less: Amount representing interest | 39 |
Present value of minimum lease payments | $ 364 |
Shares and Stockholders' Equi_3
Shares and Stockholders' Equity (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Shares and Stockholders' Equity [Abstract] | |
Deferred compensation plan mark to market adjustment | $ 2 |
Shares and Stockholders' Equi_4
Shares and Stockholders' Equity (Changes In Common stock (Number Of Shares)) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes In Common Stock (Number Of Shares) [Line Items] | ||
Balance as of beginning-of-year | 205,862,760 | |
Balance as of end-of-period | 202,987,229 | |
Common stock as of End-of-Period | ||
Basic basis | 202,987,229 | 218,695,476 |
Diluted basis | 204,200,031 | 222,379,443 |
Common Stock [Member] | ||
Changes In Common Stock (Number Of Shares) [Line Items] | ||
Balance as of beginning-of-year | 205,862,760 | 218,090,114 |
Stock issued for exercise of warrants | 203,530 | 20,040 |
Stock compensation/issued for benefit plans | 809,670 | 585,322 |
Retirement/cancellation of shares | (3,888,731) | |
Balance as of end-of-period | 202,987,229 | 218,695,476 |
Shares And Stockholders' Equi_5
Shares And Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 204,290,759 | 218,368,994 |
Shares to cover exercise of outstanding warrants | 173,837 | 642,787 |
Shares to cover non-vested stock | 1,049,556 | 1,592,959 |
Average stock options outstanding during the period | 1,519,184 | 1,969,591 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (29,176) | (81,088) |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | (1,041,630) | (1,103,154) |
Shares repurchasable from measured but unrecognized stock option expense | (867) | (24,578) |
Average deferred compensation shares | 922,061 | |
Weighted-average shares, as used in diluted calculation | 205,961,663 | 222,287,572 |
Shares And Stockholders' Equi_6
Shares And Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 407 | ||
(Increases) attributable to: | |||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Less: | |||
Balance as of end-of-period | 2,453 | ||
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 557 | $ 3,486 | |
Cumulative effect from adoption of new accounting standard | $ 674 | ||
Unrealized holding gains (losses) arising during the period | 3,556 | (3,063) | |
Change in foreign currency exchange rate adjustment | 14 | 52 | |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | (928) | 958 | |
Income tax benefit (expense) | (563) | 432 | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (15) | (18) | |
Associated amortization of DAC, VOBA, DSI, and DFEL | (1) | (4) | |
Income tax benefit (expense) | 3 | 5 | |
Less: | |||
Balance as of end-of-period | 2,649 | 2,556 | |
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 33 | 44 | |
Cumulative effect from adoption of new accounting standard | 9 | ||
(Increases) attributable to: | |||
Gross OTTI recognized in OCI during the period | (16) | ||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Income tax benefit (expense) | 4 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 6 | (9) | |
Change in DAC, VOBA, DSI, and DFEL | (2) | (10) | |
Income tax benefit (expense) | (1) | 4 | |
Less: | |||
Balance as of end-of-period | 25 | 38 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 139 | (29) | |
Cumulative effect from adoption of new accounting standard | (6) | ||
Unrealized holding gains (losses) arising during the period | (36) | 16 | |
Change in foreign currency exchange rate adjustment | (14) | (50) | |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | 6 | 4 | |
Income tax benefit (expense) | 10 | 7 | |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 8 | 3 | |
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (1) | |
Income tax benefit (expense) | (1) | ||
Balance as of end-of-period | 99 | (60) | |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (23) | (14) | |
Change in foreign currency exchange rate adjustment | 3 | 5 | |
Less: | |||
Balance as of end-of-period | (20) | (9) | |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (299) | (257) | |
Cumulative effect from adoption of new accounting standard | $ (35) | ||
Less: | |||
Adjustment arising during the period | (1) | ||
Balance as of end-of-period | $ (300) | $ (292) |
Shares And Stockholders' Equi_7
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | $ (362) | $ 12 |
Net investment income | 1,251 | 1,233 |
Interest and debt expense | (71) | (91) |
Commissions and other expenses | (1,176) | (1,057) |
Unrealized Gain (Loss) on AFS Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total realized gain (loss) | (15) | (18) |
Reclassifications before income tax benefit (expense) | (16) | (22) |
Income tax benefit (expense) | 3 | 5 |
Reclassifications, net of income tax | (13) | (17) |
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) | (1) | (4) |
Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Nonoperating income expense | 8 | 3 |
Reclassifications before income tax benefit (expense) | 7 | 2 |
Income tax benefit (expense) | (1) | |
Reclassifications, net of income tax | 6 | 2 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest rate contracts [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net investment income | 1 | 1 |
Interest and debt expense | (1) | (3) |
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) | 1 | |
Net investment income | 7 | 5 |
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 | $ (1) | $ (1) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 249,473 | $ 233,897 | |
Liabilities measured at fair value | 2,674 | 1,793 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Liabilities measured at fair value | 0 | $ 0 | |
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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Fixed maturity AFS securities | $ 98,050 | $ 94,024 | |
Trading securities | 3,314 | 1,950 | |
Equity securities | 153 | 99 | |
Mortgage loans on real estate | 13,997 | 13,260 | |
Derivative investments | 981 | 1,107 | |
Other investments | 2,752 | 2,267 | |
Carrying Value [Member] | |||
Assets | |||
Trading securities | 3,314 | 1,950 | |
Equity securities | 153 | 99 | |
Mortgage loans on real estate | 13,997 | 13,260 | |
Derivative investments | [1] | 981 | 1,107 |
Other investments | 2,740 | 2,255 | |
Cash and invested cash | 1,593 | 2,345 | |
Separate account assets | 143,369 | 132,833 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,730) | (1,305) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (1,948) | (542) | |
Account values of certain investment contracts | (35,772) | (34,535) | |
Short-term debt | (300) | ||
Long-term debt | (5,572) | (5,839) | |
Reinsurance related embedded derivatives | (177) | (3) | |
Fair Value [Member] | |||
Assets | |||
Trading securities | 3,314 | 1,950 | |
Equity securities | 153 | 99 | |
Mortgage loans on real estate | 13,964 | 13,092 | |
Derivative investments | [1] | 981 | 1,107 |
Other investments | 2,740 | 2,255 | |
Cash and invested cash | 1,593 | 2,345 | |
Separate account assets | 143,369 | 132,833 | |
Future contract benefits: | |||
Indexed annuity and IUL contracts embedded derivatives | (1,730) | (1,305) | |
Other contract holder funds: | |||
Remaining guaranteed interest and similar contracts | (1,948) | (542) | |
Account values of certain investment contracts | (38,790) | (36,358) | |
Short-term debt | (309) | ||
Long-term debt | (5,534) | (5,604) | |
Reinsurance related embedded derivatives | (177) | (3) | |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | |||
Assets | |||
Fixed maturity AFS securities | 98,050 | 94,024 | |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | |||
Assets | |||
Fixed maturity AFS securities | 98,050 | 94,024 | |
Other Assets [Member] | Carrying Value [Member] | |||
Assets | |||
Other assets - GLB direct embedded derivatives | 439 | 123 | |
Other assets - GLB ceded embedded derivatives | 50 | 72 | |
Indexed annuity ceded embedded derivatives | 872 | 902 | |
Other Assets [Member] | Fair Value [Member] | |||
Assets | |||
Other assets - GLB direct embedded derivatives | 439 | 123 | |
Other assets - GLB ceded embedded derivatives | 50 | 72 | |
Indexed annuity ceded embedded derivatives | 872 | 902 | |
Other Liabilities [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | (242) | (160) |
Other Liabilities [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - derivative liabilities | [1] | (242) | $ (160) |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | (8) | ||
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | |||
Other contract holder funds: | |||
Other liabilities - GLB embedded derivatives | $ (8) | ||
[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. |
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 | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | $ 249,473 | $ 233,897 | |
Liabilities measured at fair value | (2,674) | (1,793) | |
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 | 1,435 | 1,340 | |
Significant Observable Inputs (Level 2) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 241,855 | 227,067 | |
Liabilities measured at fair value | (531) | (317) | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 6,183 | 5,490 | |
Liabilities measured at fair value | (2,143) | (1,476) | |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 83,208 | 80,348 | |
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 | 79,687 | 77,079 | |
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 | 3,521 | 3,269 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,047 | 966 | |
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 | 966 | 937 | |
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 | 81 | 29 | |
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 | 423 | 417 | |
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 | 405 | 399 | |
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 | 18 | |
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 | 453 | 448 | |
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 | 343 | 339 | |
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 | 110 | 109 | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,414 | 3,373 | |
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 | 3,414 | 3,366 | |
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 | ||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 885 | 804 | |
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 | 883 | 802 | |
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 | 2 | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 2,437 | 1,730 | |
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 | 2,340 | 1,625 | |
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 | 97 | 105 | |
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 | 5,569 | 5,345 | |
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 | 5,569 | 5,345 | |
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 | 614 | 593 | |
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 | 71 | 67 | |
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 | 465 | 451 | |
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 | 78 | 75 | |
Trading Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 3,314 | 1,950 | |
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 | 45 | 43 | |
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 | 3,033 | 1,840 | |
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 | 236 | 67 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 153 | 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 | 67 | 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 | 61 | 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 | 25 | |
Derivative Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | [1] | 1,498 | 1,432 |
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] | 826 | 727 |
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] | 672 | 705 |
Other Investments [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 151 | 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 | 151 | 150 | |
Cash And Invested Cash [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 1,593 | 2,345 | |
Cash And 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 | 1,593 | 2,345 | |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 439 | 123 | |
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 | 439 | 123 | |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 50 | 72 | |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (8) | ||
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 | 50 | 72 | |
GLB Ceded 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 | (8) | ||
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 872 | 902 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (1,730) | (1,305) | |
Indexed Annuity And IUL Contracts [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 | 872 | 902 | |
Indexed Annuity And IUL Contracts [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 | (1,730) | (1,305) | |
Separate Account Assets [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 143,353 | 132,800 | |
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 | 696 | 665 | |
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 | 142,657 | 132,135 | |
Reinsurance Related Embedded Derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Liabilities measured at fair value | (177) | (3) | |
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 | (177) | (3) | |
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] | (759) | (485) |
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] | (354) | (314) |
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] | $ (405) | $ (171) |
[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 | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | $ 4,014 | $ 3,139 | |||
Items Included in Net Income | (337) | 540 | |||
Gains (Losses) in OCI and Other | [1] | 120 | (4) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 409 | 62 | |||
Transfers Into or Out of Level 3, Net | [2] | (166) | (232) | [3] | |
Ending Fair Value | 4,040 | 3,505 | |||
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 3,269 | 3,091 | ||
Items Included in Net Income | [4] | (1) | 3 | ||
Gains (Losses) in OCI and Other | [1],[4] | 70 | 17 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 200 | 74 | ||
Transfers Into or Out of Level 3, Net | [2],[4] | (17) | 7 | [3] | |
Ending Fair Value | [4] | 3,521 | 3,192 | ||
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 29 | 27 | ||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | (1) | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 52 | |||
Transfers Into or Out of Level 3, Net | [2],[4] | [3] | |||
Ending Fair Value | [4] | 81 | 26 | ||
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 5 | |||
Ending Fair Value | [4] | 5 | |||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 109 | 110 | ||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | 1 | (2) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | ||||
Transfers Into or Out of Level 3, Net | [2],[4] | ||||
Ending Fair Value | [4] | 110 | 108 | ||
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 7 | 12 | ||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | ||||
Transfers Into or Out of Level 3, Net | [2],[4] | (7) | (12) | [3] | |
Ending Fair Value | [4] | ||||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 2 | 6 | ||
Items Included in Net Income | [4] | 1 | |||
Gains (Losses) in OCI and Other | [1],[4] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 20 | |||
Transfers Into or Out of Level 3, Net | [2],[4] | ||||
Ending Fair Value | [4] | 2 | 27 | ||
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 105 | 91 | ||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 97 | 2 | ||
Transfers Into or Out of Level 3, Net | [2],[4] | (105) | (91) | [3] | |
Ending Fair Value | [4] | 97 | 2 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 75 | 76 | ||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | 3 | 1 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | ||||
Transfers Into or Out of Level 3, Net | [2],[4] | ||||
Ending Fair Value | [4] | 78 | 77 | ||
Equity AFS Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 162 | |||
Transfers Into or Out of Level 3, Net | [2],[3],[4] | (162) | |||
Trading Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 67 | 49 | ||
Items Included in Net Income | [4] | (2) | |||
Gains (Losses) in OCI and Other | [1],[4] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 206 | |||
Transfers Into or Out of Level 3, Net | [2],[4] | (37) | |||
Ending Fair Value | [4] | 236 | 47 | ||
Equity Securities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 25 | |||
Items Included in Net Income | [4] | ||||
Gains (Losses) in OCI and Other | [1],[4] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 1 | |||
Transfers Into or Out of Level 3, Net | [2] | [4] | 26 | [3] | |
Ending Fair Value | 25 | [4] | 27 | ||
Derivative Investments [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [4] | 534 | 30 | ||
Items Included in Net Income | [4] | (383) | 329 | ||
Gains (Losses) in OCI and Other | [1],[4] | 46 | (19) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | [4] | 70 | (61) | ||
Transfers Into or Out of Level 3, Net | [2],[4] | ||||
Ending Fair Value | [4] | 267 | 279 | ||
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [5] | 123 | 903 | ||
Items Included in Net Income | [5] | 316 | 207 | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | ||||
Transfers Into or Out of Level 3, Net | [2],[5] | ||||
Ending Fair Value | [5] | 439 | 1,110 | ||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [5] | 72 | 51 | ||
Items Included in Net Income | [5] | (22) | (6) | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | ||||
Transfers Into or Out of Level 3, Net | [2],[5] | ||||
Ending Fair Value | [5] | 50 | 45 | ||
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [5] | (67) | |||
Items Included in Net Income | [5] | (8) | (44) | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | ||||
Transfers Into or Out of Level 3, Net | [2],[5] | ||||
Ending Fair Value | [5] | (8) | (111) | ||
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [5] | 902 | 11 | ||
Items Included in Net Income | [5] | 77 | |||
Gains (Losses) in OCI and Other | [1],[5] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (107) | 6 | ||
Transfers Into or Out of Level 3, Net | [2],[5] | ||||
Ending Fair Value | [5] | 872 | 17 | ||
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||||
Level 3 Unobservable Input Reconciliation | |||||
Beginning Fair Value | [5] | (1,305) | (1,418) | ||
Items Included in Net Income | [5] | (316) | 52 | ||
Gains (Losses) in OCI and Other | [1],[5] | ||||
Issuances, Sales, Maturities, Settlements, Calls, Net | [5] | (109) | 20 | ||
Transfers Into or Out of Level 3, Net | [2],[5] | ||||
Ending Fair Value | [5] | $ (1,730) | $ (1,346) | ||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | ||||
[2] | 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 period. | ||||
[3] | Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. | ||||
[4] | 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). | ||||
[5] | Gains (losses) from sales, maturities, settlements and calls 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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | $ 625 | $ 294 |
Sales | (17) | (59) |
Maturities | (53) | (125) |
Settlements | (139) | (48) |
Calls | (7) | |
Total | 409 | 62 |
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 | 267 | 223 |
Sales | (2) | (53) |
Maturities | (7) | (2) |
Settlements | (51) | (94) |
Calls | (7) | |
Total | 200 | 74 |
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 | 52 | |
Total | 52 | |
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 | 21 | |
Settlements | (1) | |
Total | 20 | |
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 | 97 | 2 |
Total | 97 | 2 |
Trading Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 207 | |
Settlements | (1) | |
Total | 206 | |
Equity Securities [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 1 | |
Total | 1 | |
Derivative Investments [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 131 | 68 |
Sales | (15) | (6) |
Maturities | (46) | (123) |
Total | 70 | (61) |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | 19 | 6 |
Settlements | (126) | |
Total | (107) | 6 |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | ||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ||
Issuances | (148) | (27) |
Settlements | 39 | 47 |
Total | $ (109) | $ 20 |
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 | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
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] | $ 162 | $ 653 |
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 | (287) | 281 | |
Indexed Annuity And IUL Contracts [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 | (32) | (4) | |
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 | $ 481 | $ 376 | |
[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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Into Level 3 | $ 83 | $ 66 |
Transfers Out of Level 3 | (249) | (298) |
Transfers Into or Out of Level 3, Net | (166) | (232) |
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 | 83 | 40 |
Transfers Out of Level 3 | (100) | (33) |
Transfers Into or Out of Level 3, Net | (17) | 7 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (7) | (12) |
Transfers Into or Out of Level 3, Net | (7) | (12) |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (105) | (91) |
Transfers Into or Out of Level 3, Net | (105) | (91) |
Equity AFS Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (162) | |
Transfers Into or Out of Level 3, Net | (162) | |
Trading Securities [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Transfers Out of Level 3 | (37) | |
Transfers Into or Out of Level 3, Net | $ (37) | |
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) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 249,473,000,000 | $ 233,897,000,000 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (2,674,000,000) | (1,793,000,000) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | 6,183,000,000 | 5,490,000,000 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | (2,143,000,000) | $ (1,476,000,000) |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 21,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.045 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.052 | |
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 | $ 2,604,000,000 | |
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 | 0.006 | |
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 | 0.030 | |
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 | 0.014 | |
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 | 0.016 | |
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 | 0.300 | |
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 | 0.030 | |
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 | 0.031 | |
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 | 0.016 | |
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 | $ 489,000,000 | |
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 | 0.01 | |
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 | 0.85 | |
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 | 0.60 | |
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 | 0.80 | |
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 | 0.0002 | |
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 | 0.01 | |
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 | 0.30 | |
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 | 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] | Claims Utilization Factor [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] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 1.15 | |
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 | 0.0032 | |
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 | 0.29 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ 872,000,000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Maximum [Member] | Other Assets [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.09 | |
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 | $ (1,730,000,000) | |
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 | 0.01 | |
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 | 0.09 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ (8,000,000) | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.85 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.60 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.80 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.0002 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Minimum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.01 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.3000 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Claims Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Premiums Utilization Factor [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 1.15 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.0032 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Ceded Embedded Derivatives [Member] | Maximum [Member] | Other Liabilities [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative liability, measurement input | 0.29 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 3,965 | $ 3,609 |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,174 | 1,073 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 293 | 292 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,700 | 1,660 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,138 | 553 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 57 | 67 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Excluded realized gain (loss), pre-tax | (400) | (35) |
Amortization of DFEL associated with benefit ratio unlocking, pre-tax | $ 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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ 252 | $ 367 |
Segment Reconciling Items [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Excluded realized gain (loss), after-tax | (316) | (28) |
Gain (loss) on early extinguishment of debt, after-tax | (19) | |
Benefit ratio unlocking, after-tax | 142 | (10) |
Net impact from the Tax Cuts and Jobs Act | (13) | |
Acquisition and integration costs related to mergers and acquisitions, after tax | (15) | (4) |
Annuities Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 250 | 267 |
Retirement Plan Services Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 39 | 43 |
Life Insurance Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 157 | 144 |
Group Protection Segment [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | 55 | 29 |
Other Operations [Member] | ||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ||
Net income (loss) | $ (60) | $ (42) |