Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 12, 2021 | Jun. 30, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-6028 | ||
Entity Registrant Name | LINCOLN NATIONAL CORPORATION | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-1140070 | ||
Entity Address, Address Line One | 150 N. Radnor-Chester Road | ||
Entity Address, Address Line Two | Suite A305 | ||
Entity Address, City or Town | Radnor | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19087 | ||
City Area Code | 484 | ||
Local Phone Number | 583-1400 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | LNC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.2 | ||
Entity Common Stock, Shares Outstanding | 191,958,281 | ||
Documents Incorporated by Reference [Text Block] | Documents Incorporated by Reference: Selected portions of the Proxy Statement for the Annual Meeting of Shareholders, scheduled for June 3, 2021, have been incorporated by reference into Part III of this Form 10-K | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Central Index Key | 0000059558 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity available-for-sale securities, at fair value (amortized cost: 2020 – $104,174; 2019 – $94,295; allowance for credit losses: 2020 – $13; 2019 – $0) | $ 123,044 | $ 105,200 |
Trading securities | 4,501 | 4,673 |
Equity securities | 129 | 103 |
Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2020 – $832; 2019 – $0) | 16,763 | 16,339 |
Policy loans | 2,426 | 2,477 |
Derivative investments | 3,109 | 1,911 |
Other investments | 3,984 | 2,994 |
Total investments | 153,956 | 133,697 |
Cash and invested cash | 1,708 | 2,563 |
Deferred acquisition costs and value of business acquired | 5,812 | 7,694 |
Premiums and fees receivable | 486 | 465 |
Accrued investment income | 1,257 | 1,148 |
Reinsurance recoverables, net of allowance for credit losses | 16,496 | 17,144 |
Funds withheld reinsurance assets | 530 | 536 |
Goodwill | 1,778 | 1,778 |
Other assets | 15,960 | 16,170 |
Separate account assets | 167,965 | 153,566 |
Total assets | 365,948 | 334,761 |
Liabilities | ||
Future contract benefits | 40,814 | 36,420 |
Other contract holder funds | 105,405 | 98,018 |
Short-term debt | 300 | |
Long-term debt | 6,682 | 6,067 |
Reinsurance related embedded derivatives | 392 | 327 |
Funds withheld reinsurance liabilities | 1,946 | 1,810 |
Payables for collateral on investments | 6,222 | 5,082 |
Other liabilities | 13,823 | 13,482 |
Separate account liabilities | 167,965 | 153,566 |
Total liabilities | 343,249 | 315,072 |
Contingencies and Commitments (See Note 14) | ||
Stockholders' Equity | ||
Preferred stock - 10,000,000 shares authorized | ||
Common stock – 800,000,000 shares authorized; 192,329,691 and 196,668,532 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | 5,082 | 5,162 |
Retained earnings | 8,686 | 8,854 |
Accumulated other comprehensive income (loss) | 8,931 | 5,673 |
Total stockholders' equity | 22,699 | 19,689 |
Total liabilities and stockholders' equity | $ 365,948 | $ 334,761 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities, at fair value: | ||
Fixed maturity securities (amortized cost) | $ 104,174 | $ 94,295 |
Fixed maturity, ACL | 13 | 0 |
Mortgage loans on real estate, fair value | $ 832 | $ 0 |
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) | 192,329,691 | 196,668,532 |
Common stock - shares outstanding (in shares) | 192,329,691 | 196,668,532 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Insurance premiums | $ 5,372 | $ 5,513 | $ 4,601 |
Fee income | 6,371 | 6,497 | 5,986 |
Net investment income | 5,510 | 5,223 | 5,085 |
Realized gain (loss) | (513) | (610) | 141 |
Amortization of deferred gain on business sold through reinsurance | 41 | 31 | 9 |
Other revenues | 658 | 604 | 602 |
Total revenues | 17,439 | 17,258 | 16,424 |
Expenses | |||
Interest credited | 2,923 | 2,780 | 2,617 |
Benefits | 8,677 | 7,880 | 6,786 |
Commissions and other expenses | 5,064 | 5,287 | 4,763 |
Interest and debt expense | 284 | 326 | 297 |
Strategic digitization expense | 68 | 66 | 76 |
Total expenses | 17,016 | 16,339 | 14,539 |
Income (loss) before taxes | 423 | 919 | 1,885 |
Federal income tax expense (benefit) | (76) | 33 | 244 |
Net income (loss) | 499 | 886 | 1,641 |
Other comprehensive income (loss), net of tax | |||
Unrealized investment gains (losses) | 3,192 | 5,288 | (3,449) |
Foreign currency translation adjustment | 5 | 6 | (9) |
Funded status of employee benefit plans | 61 | (28) | (7) |
Total other comprehensive income (loss), net of tax | 3,258 | 5,266 | (3,465) |
Comprehensive income (loss) | $ 3,757 | $ 6,152 | $ (1,824) |
Net Income (Loss) Per Common Share | |||
Basic (in dollars per share) | $ 2.58 | $ 4.41 | $ 7.60 |
Diluted (in dollars per share) | 2.56 | 4.38 | 7.40 |
Cash Dividends Declared Per Common Share | $ 1.62 | $ 1.51 | $ 1.36 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance as of beginning-of-period at Dec. 31, 2017 | $ 5,693 | $ (642) | $ 8,399 | $ 642 | $ 3,230 | |
Stock compensation/issued for benefit plans | 45 | |||||
Net income (loss) | 1,641 | $ 1,641 | ||||
Retirement of common stock/cancellation of shares | (346) | (554) | ||||
Common stock dividends declared | (293) | |||||
Other comprehensive income (loss), net of tax | (3,465) | (3,465) | ||||
Balance as of end-of-period at Dec. 31, 2018 | 5,392 | 8,551 | 407 | 14,350 | ||
Stock compensation/issued for benefit plans | 42 | |||||
Net income (loss) | 886 | 886 | ||||
Retirement of common stock/cancellation of shares | (272) | (278) | ||||
Common stock dividends declared | (305) | |||||
Other comprehensive income (loss), net of tax | 5,266 | 5,266 | ||||
Balance as of end-of-period at Dec. 31, 2019 | 5,162 | $ (203) | 8,854 | 5,673 | 19,689 | |
Stock compensation/issued for benefit plans | 48 | |||||
Net income (loss) | 499 | 499 | ||||
Retirement of common stock/cancellation of shares | (128) | (147) | ||||
Common stock dividends declared | (317) | |||||
Other comprehensive income (loss), net of tax | 3,258 | 3,258 | ||||
Balance as of end-of-period at Dec. 31, 2020 | $ 5,082 | $ 8,686 | $ 8,931 | $ 22,699 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 499 | $ 886 | $ 1,641 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Realized (gain) loss | 513 | 610 | (141) |
Trading securities purchases, sales and maturities, net | 266 | (2,510) | (118) |
Amortization of deferred gain on business sold through reinsurance | (41) | (31) | (9) |
Change in: | |||
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | 48 | (409) | (81) |
Premiums and fees receivable | (21) | 105 | (87) |
Accrued investment income | (84) | (29) | (17) |
Insurance liabilities and reinsurance-related balances | (699) | (1,613) | 613 |
Accrued expenses | (18) | 107 | (101) |
Federal income tax accruals | (98) | (227) | 154 |
Other | 169 | 425 | 89 |
Net cash provided by (used in) operating activities | 534 | (2,686) | 1,943 |
Cash Flows from Investing Activities | |||
Purchases of available-for-sale securities and equity securities | (16,761) | (15,326) | (12,650) |
Sales of available-for-sale securities and equity securities | 1,426 | 6,807 | 3,668 |
Maturities of available-for-sale securities | 5,354 | 6,571 | 6,004 |
Purchase of common stock in acquisition, net of cash acquired | (1,410) | ||
Sale of business, net | (12) | ||
Purchases of alternative investments | (396) | (433) | (314) |
Sales and repayments of alternative investments | 171 | 131 | 178 |
Issuance of mortgage loans on real estate | (1,800) | (4,262) | (2,927) |
Repayment and maturities of mortgage loans on real estate | 1,154 | 1,163 | 1,085 |
Issuance (repayment) of policy loans, net | 50 | 32 | 21 |
Net change in collateral on investments, derivatives and related settlements | 1,474 | 79 | 735 |
Other | (153) | (261) | (193) |
Net cash provided by (used in) investing activities | (9,481) | (5,499) | (5,815) |
Cash Flows from Financing Activities | |||
Payment of long-term debt, including current maturities | (1,096) | (308) | (537) |
Issuance of long-term debt, net of issuance costs | 1,289 | 744 | 1,094 |
Payment related to early extinguishment of debt | (13) | (42) | (23) |
Proceeds from sale-leaseback transactions | 88 | ||
Payment related to sale-leaseback transactions | (47) | (83) | |
Proceeds from certain financing arrangements | 109 | 107 | |
Deposits of fixed account values, including the fixed portion of variable | 14,034 | 16,069 | 13,638 |
Withdrawals of fixed account values, including the fixed portion of variable | (6,113) | (5,849) | (6,007) |
Transfers to and from separate accounts, net | 528 | (1,362) | (2,469) |
Common stock issued for benefit plans | (7) | (20) | (6) |
Repurchase of common stock | (275) | (550) | (900) |
Dividends paid to common stockholders | (311) | (303) | (289) |
Other | (6) | ||
Net cash provided by (used in) financing activities | 8,092 | 8,403 | 4,589 |
Net increase (decrease) in cash, invested cash and restricted cash | (855) | 218 | 717 |
Cash, invested cash and restricted cash as of beginning-of-year | 2,563 | 2,345 | 1,628 |
Cash, invested cash and restricted cash as of end-of-year | $ 1,708 | $ 2,563 | $ 2,345 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | 1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations Lincoln National Corporation and its majority-owned subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments. See Note 22 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, retirement income and group protection 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 consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and The Lincoln National Life Insurance Company (“LNL”) completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life”). We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill and other intangibles, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and a credit loss allowance is recorded, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in other comprehensive income (“OCI”) to unrealized losses on fixed maturity AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through a credit loss allowance, we continue to reassess the expected cash flows of the debt security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on debt securities is written-off when deemed uncollectible. To determine the recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires a credit loss allowance. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. 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. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a credit loss allowance or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no credit loss allowance is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through a credit loss allowance is recognized. We further monitor the cash flows of all of our debt securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our debt securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through a credit loss allowance for the security. Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance agreements. Investment results for the portfolios that support Modco and CFW reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain commercial mortgage loans at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written-off when deemed uncollectible. In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions. Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific credit loss allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Allowance for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowance for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, reasonable and supportable forecasts about the future and other relevant factors. Mortgage loans on real estate are presented net of the allowance for credit losses on our Consolidated Balance Sheets. Changes in the allowance are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Mortgage loans on real estate deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and asses |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards Adoption of New Accounting Standards The following table provides a description of our adoption of new Accounting Standards Updates (“ASUs”) issued by the FASB and the impact of the adoption on our financial statements. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), Measurement of Credit Losses on Financial Instruments and related amendments These amendments adopt a new model in ASC Topic 326 to measure and recognize credit losses for most financial assets. The ASU requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected over the life of the asset using a credit loss allowance. Changes in the allowance are charged to earnings. The measurement of expected credit losses is based on relevant information about past events, including historical experience, as well as current economic conditions and reasonable and supportable forecasts that affect the collectability of the financial asset. The method used to measure estimated credit losses for fixed maturity AFS 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 securities. The amendments permit entities to recognize improvements in credit loss estimates on fixed maturity AFS securities by reducing the allowance account immediately through earnings. The amendments are 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 was permitted for annual periods beginning after December 15, 2018, and interim periods therein. January 1, 2020 The adoption of this standard and related amendments resulted in the recognition of a cumulative effect decrease of $ 218 million, net of DAC, VOBA, DSI, DFEL and changes in other contract holder funds, after-tax, to retained earnings. The overall adjustment recorded our allowance for credit losses as of the date of adoption, primarily related to commercial and residential mortgage loans, as well as reinsurance recoverables. Upon adoption of the standard, the concept of other-than-temporary impairment (“OTTI”) no longer exists; however, our prior period presentation herein is reflective of OTTI recorded in those periods. ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging and Topic 825, Financial Instruments These amendments clarify the measurement, recognition and presentation of the allowance for credit losses on accrued interest receivable balances; the inclusion of recoveries when estimating the allowance for credit losses; the inclusion of all ASC Topic 944 – Financial Services – Insurance reinsurance recoverables within the scope of ASC 326-20; and provide additional targeted clarifications on the calculation of the allowance for credit losses. These amendments also make targeted clarifications to ASC Topics 815 and 825. Early adoption was permitted. January 1, 2020 Our adoption of ASU 2016-13 and related amendments is discussed above. The adoption of the remainder of this guidance did not have a material impact on our consolidated financial condition and results of operations. Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief The amendments provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments – Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASC Topic 326. January 1, 2020 We recognized a cumulative effect increase to retained earnings of $ 15 million, after-tax, by electing the fair value option for certain mortgage loans in connection with our adoption of ASC Topic 326. ASU 2020-04, Reference Rate Reform (Topic 848) The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform. If certain criteria are met, an entity will not be required to remeasure or reassess contracts impacted by reference rate reform. Additionally, changes to the critical terms of a hedging relationship affected by reference rate reform will not require entities to de-designate the relationship if certain requirements are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, with certain exceptions. The amendments are effective for contract modifications made between March 12, 2020, and December 31, 2022. March 12, 2020 through December 31, 2022 This standard may be elected and applied prospectively as reference rate reform unfolds. We have begun our implementation and are currently evaluating the impact of this ASU on our consolidated financial condition and results of operations. ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments These amendments make changes to the accounting and reporting for long-duration contracts issued by an insurance entity that will significantly change how insurers account for long-duration contracts, including how they measure, recognize and make disclosures about insurance liabilities and DAC. Under this ASU, insurers will be required to review cash flow assumptions at least annually and update them if necessary. They also will have to make quarterly updates to the discount rate assumptions they use to measure the liability for future policyholder benefits. The ASU creates a new category of market risk benefits (i.e., features that protect the contract holder from capital market risk and expose the insurer to that risk) that insurers will have to measure at fair value. The ASU provides various transition methods by topic that entities may elect upon adoption. The ASU is currently effective January 1, 2023, and early adoption is permitted. January 1, 2023 We are currently evaluating the impact of adopting this ASU on our consolidated financial condition and results of operations. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Acquisition [Abstract] | |
Acquisition | 3 . Acquisition On May 1, 2018 , we completed the acquisition from Liberty Mutual Insurance Company of 100 % of the capital stock of Liberty Life, an operator of a group benefits business (the “Liberty Group Business”) and an individual life and individual and group annuity business (the “Liberty Life Business”). The acquisition expanded the scale and capabilities of the Group Protection business while further diversifying the Company’s sources of earnings. Effective September 1, 2019, Liberty Life’s name was changed to Lincoln Life Assurance Company of Boston (“LLACB”). In connection with the acquisition and pursuant to the Master Transaction Agreement (“MTA”), dated January 18, 2018, which is filed as Exhibit 2.1 to this Form 10-K, 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. We recognized $ 85 million of acquisition-related costs, pre-tax, for the year ended December 31, 2018. These costs were included in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). Since the acquisition date of May 1, 2018, the revenues and net income of the business acquired have been included in our Consolidated Statements of Comprehensive Income (Loss) in the Group Protection segment and were $ 1.5 billion and $ 36 million, respectively, for the period ended December 31, 2018. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | 4. Variable Interest Entities Consolidated VIEs Reinsurance Related Notes We are the sole equity owner of Lincoln Financial Limited Liability Company I (“LFLLCI”), which we formed in July 2013. The activities of LFLLCI relate solely to our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont V (“LRCVV”), and are primarily to acquire, hold and issue notes with LRCVV as well as pay and collect interest on the notes. LFLLCI holds a surplus note issued by LRCVV that had an outstanding principal balance of $ 611 million as of December 31, 2020. LFLLCI issued a long-term note to LRCVV that has a principal balance that moves concurrently with any variability in the face amount of the surplus note LFLLCI received from LRCVV. We concluded that LFLLCI is a VIE and that LNC is the primary beneficiary as we have the power to direct the most significant activities affecting the performance of LFLLCI. Asset information (dollars in millions) for the consolidated VIEs included on our Consolidated Balance Sheets was as follows: As of December 31, 2020 As of December 31, 2019 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Total return swap 1 $ 611 $ - 1 $ 613 $ - There were no gains or losses for consolidated VIEs recognized on our Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020 and 2019. Unconsolidated VIEs Reinsurance Related Notes Effective September 30, 2014, we entered into a transaction with a non-affiliated VIE whose primary activities are to acquire, hold and issue notes and loans, pay and collect interest on the notes and loans, and enter into derivative instruments. We issued a long-term senior note to the non-affiliated VIE in exchange for a corporate bond AFS security of like principal and duration that was assigned to one of our subsidiaries. The outstanding principal balance of this long-term senior note was $ 963 million as of December 31, 2020, and it is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS security up to a maximum amount of $ 1.1 billion. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the senior note provide us with a set-off right with the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. The VIE has entered into a total return swap with an unaffiliated third party that supports any necessary principal funding of the corporate bond AFS security required by our subsidiaries while the security is outstanding. Effective October 1, 2017, our captive reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont VI, restructured the $ 275 million, long-term surplus note which was originally issued to a non-affiliated VIE in October 2015 in exchange for two corporate bond AFS securities of like principal and duration. The activities of the VIE are primarily to acquire, hold and issue notes and loans and to pay and collect interest on the notes and loans. The outstanding principal balance of the long-term surplus note is variable in nature; moving concurrently with any variability in the face amount of the corporate bond AFS securities. We have concluded that we are not the primary beneficiary of the non-affiliated VIE because we do not have power over the activities that most significantly affect its economic performance. As of December 31, 2020, the principal balance of the long-term surplus note was zero and we do no t currently have any exposure to this VIE. Effective November 1, 2019, we entered into a transaction with a non-affiliated VIE whose primary activities are to acquire, hold and issue notes, as well as pay and collect interest on the notes. We issued a long-term senior note to the non-affiliated VIE in exchange for a corporate bond AFS security of like principal and duration that was assigned to one of our subsidiaries. The outstanding principal balance of this long-term senior note was $ 359 million as of December 31, 2020, and it is variable in nature, moving concurrently with any variability in the face amount of the corporate bond AFS security up to a maximum amount of $ 500 million. We have concluded that we are not the primary beneficiary of the non-affiliated VIE due to our lack of power over the activities that most significantly affect its economic performance as well as the extent of our obligation to absorb its losses. In addition, the terms of the senior note provide us with a set-off right with the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. 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 ABS, RMBS and CMBS. We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 5. Limited Partnerships and Limited Liability Companies We invest in certain LPs and limited liability companies (“LLCs”), including qualified affordable housing projects, that we have concluded are VIEs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on our Consolidated Balance Sheets and were $ 2.1 billion and $ 1.9 billion as of December 31, 2020 and 2019, respectively. Included in these carrying amounts are our investments in qualified affordable housing projects, which were $ 7 million and $ 13 million as of December 31, 2020 and 2019, respectively. We do not have any contingent commitments to provide additional capital funding to these qualified affordable housing projects. We receive returns from these qualified affordable housing projects in the form of income tax credits and other tax benefits, which are recognized in federal income tax expense (benefit) on our Consolidated Statements of Comprehensive Income (Loss) and were $ 1 million and $ 2 million for the years ended December 31, 2020 and 2019, respectively. Our exposure to loss is limited to the capital we invest in the LPs and LLCs, and there have been no indicators of impairment that would require us to recognize an impairment loss related to the LPs and LLCs as of December 31, 2020. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | 5. Investments Fixed Maturity AFS Securities In 2020, we adopted ASU 2016-13, which resulted in a new recognition and measurement of credit losses on most financial assets. See Note 2 for additional information. The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 86,289 $ 16,662 $ 150 $ 12 $ 102,789 U.S. government bonds 397 88 1 - 484 State and municipal bonds 5,360 1,561 - - 6,921 Foreign government bonds 384 87 1 - 470 RMBS 2,765 313 1 1 3,076 CMBS 1,390 115 - - 1,505 ABS 7,041 158 15 - 7,184 Hybrid and redeemable preferred securities 548 97 30 - 615 Total fixed maturity AFS securities $ 104,174 $ 19,081 $ 198 $ 13 $ 123,044 The amortized cost, gross unrealized gains, losses, OTTI and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,417 $ 9,479 $ 184 $ ( 4 ) $ 88,716 U.S. government bonds 384 51 - - 435 State and municipal bonds 4,778 1,113 7 - 5,884 Foreign government bonds 329 64 - - 393 RMBS 3,042 190 10 ( 19 ) 3,241 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,810 62 18 ( 35 ) 4,889 Hybrid and redeemable preferred securities 497 82 20 - 559 Total fixed maturity AFS securities $ 94,295 $ 11,086 $ 240 $ ( 59 ) $ 105,200 (1) Prior to the adoption of ASU 2016-13, we recognized the OTTI attributed to noncredit factors as a separate component in OCI referred to as unrealized OTTI on fixed maturity AFS securities. This includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date. The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2020, were as follows: Amortized Fair Cost Value Due in one year or less $ 3,319 $ 3,344 Due after one year through five years 15,016 16,052 Due after five years through ten years 19,105 21,660 Due after ten years 55,538 70,223 Subtotal 92,978 111,279 Structured securities (RMBS, CMBS, ABS) 11,196 11,765 Total fixed maturity AFS securities $ 104,174 $ 123,044 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 of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 3,039 $ 92 $ 607 $ 58 $ 3,646 $ 150 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 45 1 7 - 52 1 ABS 1,527 9 358 6 1,885 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities $ 4,808 $ 117 $ 1,068 $ 81 $ 5,876 $ 198 Total number of fixed maturity AFS securities in an unrealized loss position 802 (1) We recognized $ 1 million of gross unrealized losses in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value and gross unrealized losses, including the portion of OTTI recognized in 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 December 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 $ 2,935 $ 46 $ 1,406 $ 141 $ 4,341 $ 187 State and municipal bonds 333 7 18 - 351 7 RMBS 536 10 15 - 551 10 CMBS 48 1 4 - 52 1 ABS 1,792 8 303 10 2,095 18 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,673 $ 73 $ 1,848 $ 170 $ 7,521 $ 243 Total number of fixed maturity AFS securities in an unrealized loss position 895 The fair value, gross unrealized losses (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 December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 23 7 14 Twelve months or greater 30 11 20 Total $ 118 $ 42 52 (1) We may reflect a security in more than one aging category based on various purchase dates. 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 December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 132 76 - 31 Total $ 157 $ 84 $ - 42 (1) We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities decreased by $ 45 million for the year ended December 31, 2020. As discussed further below, we believe the unrealized loss position as of December 31, 2020, did not require an impairment recognized in earnings 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 difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of Dece mber 31, 2020, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of December 31, 2020, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government 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 impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by Standard & Poor’s Rating Services (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2020 and 2019, 96 % of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2020 and 2019, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $ 4.1 billion and $ 3.2 billion, respectively, and a fair value of $ 4.2 billion and $ 3.3 billion, respectively. Based upon the analysis discussed above, we believe that as of December 31, 2020 and 2019, we would have recovered the amortized cost of each corporate bond. As of December 31, 2020, the unrealized losses associated with our MBS and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of December 31, 2020, 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 impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our fixed maturity AFS securities. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows: For the Year Ended December 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 43 1 1 45 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized ( 1 ) - ( 1 ) ( 2 ) Reductions for securities disposed ( 17 ) - - ( 17 ) Reductions for securities charged-off ( 13 ) - - ( 13 ) Balance as of end-of-year (2) $ 12 $ 1 $ - $ 13 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of Dec ember 31, 2020, and was excluded from the estimate of credit losses. Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Years Ended December 31, 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 13 5 Credit losses on securities for which an OTTI was previously recognized 3 2 Decreases attributable to: Securities sold, paid down or matured ( 160 ) ( 30 ) Balance as of end-of-year $ 211 $ 355 Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2020 2019 Fixed maturity securities: Corporate bonds $ 3,107 $ 2,947 U.S. government bonds - 45 State and municipal bonds 28 17 Foreign government bonds 92 44 RMBS 132 170 CMBS 134 163 ABS 966 1,238 Hybrid and redeemable preferred securities 42 49 Total trading securities $ 4,501 $ 4,673 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2020, 2019 and 2018, was $ 118 million, $ 228 million and $( 58 ) million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2020 As of December 31, 2019 Commercial Residential Total Commercial Residential Total Current $ 16,245 $ 610 $ 16,855 $ 15,620 $ 659 $ 16,279 30 to 59 days past due 4 28 32 3 27 30 60 to 89 days past due - 8 8 - 10 10 90 or more days past due - 69 69 - 16 16 Allowance for credit losses ( 187 ) ( 17 ) ( 204 ) - ( 2 ) ( 2 ) Unamortized premium (discount) ( 14 ) 22 8 ( 17 ) 23 6 Mark-to-market gains (losses) (1) ( 5 ) - ( 5 ) - - - Total carrying value $ 16,043 $ 720 $ 16,763 $ 15,606 $ 733 $ 16,339 (1) Represents the mark-to-market on certain commercial mortgage loans on real estate for which we have elected the fair value option. See Note 21 for additional information. Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 24 % of commercial mortgage loans on real estate as of December 31, 2020 and 2019, and Texas, which accounted for 10 % and 11 % of commercial mortgage loans on real estate as of December 31, 2020 and 2019, respectively. Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 32 % and 34 % of residential mortgage loans on real estate as of December 31, 2020 and 2019, respectively, and Florida, which accounted for 18 % and 20 % of residential mortgage loans on real estate as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, we had 147 and 38 residential mortgage loans, respectively, that were either delinquent or in foreclosure. For our commercial mortgage loans, there were four specifically identified impaired loans with an aggregate carrying value of $ 1 million as of December 31, 2020. There was one specifically identified impaired loan with a carrying value of less than $ 1 million as of December 31, 2019. For our residential mortgage loans, there were 76 specifically identified impaired loans with an aggregate carrying value of $ 34 million as of December 31, 2020. There were four specifically identified impaired loans with an aggregate carrying value of $ 1 million as of December 31, 2019. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2020 2019 2018 Average carrying value for impaired mortgage loans on real estate $ 21 $ - $ 5 Interest income recognized on impaired mortgage loans on real estate - - 1 Interest income collected on impaired mortgage loans on real estate - - 1 The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of December 31, 2020 As of January 1, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 71 - 17 Total $ - $ 71 $ - $ 17 We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2020 As of December 31, 2019 Debt- Debt- Service Service Amortized % of Coverage Amortized % of Coverage Loan-to-Value Ratio Cost Total Ratio Cost Total Ratio Less than 65% $ 15,236 93.8 % 2.36 $ 14,206 91.0 % 2.35 65% to 74% 952 5.9 % 1.69 1,399 9.0 % 1.87 75% to 100% 47 0.3 % 1.21 1 0.0 % 1.09 Total $ 16,235 100.0 % $ 15,606 100.0 % The amortized cost of commercial mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage 75% Coverage than 65% Ratio to 74% Ratio to 100% Ratio Total Origination Year 2020 $ 1,504 2.86 $ 32 1.52 $ - - $ 1,536 2019 3,141 2.25 258 1.78 2 1.74 3,401 2018 2,382 2.16 186 1.49 15 0.71 2,583 2017 1,786 2.34 169 1.73 - - 1,955 2016 1,713 2.37 174 1.56 22 1.58 1,909 2015 and prior 4,710 2.38 133 1.95 8 1.02 4,851 Total $ 15,236 $ 952 $ 47 $ 16,235 We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate (dollars in millions) as follows: As of December 31, 2020 As of December 31, 2019 Amortized % of Amortized % of Performance Indicator Cost Total Cost (1) Total Performing $ 666 90.4 % $ 718 97.7 % Nonperforming 71 9.6 % 17 2.3 % Total $ 737 100.0 % $ 735 100.0 % (1) A valuation allowance of $ 2 million was established on residential mortgage loans on real estate as of December 31, 2019. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2020 Performing Nonperforming Total Origination Year 2020 $ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total $ 666 $ 71 $ 737 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our mortgage loans on real estate. Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows: For the Year Ended December 31, 2020 Commercial Residential Total Balance as of beginning-of-year $ - $ 2 $ 2 Impact of adopting ASU 2016-13 62 26 88 Additions from provision for credit loss expense (1) 178 10 188 Additions from purchases of PCD mortgage loans on real estate - - - Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized (1) ( 53 ) ( 21 ) ( 74 ) Balance as of end-of-year (2) $ 187 $ 17 $ 204 (1) Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $ 114 million for the year ended December 31, 2020. For the year ended Dec ember 31, 2020, we recognized $ 2 million of credit loss expense related to unfunded commitments for mortgage loans on real estate. (2) Accrued interest receivable on mortgage loans on real estate totaled $ 49 million as of December 31, 2020, and was excluded from the estimate of credit losses. Changes in the valuation allowance associated with impaired commercial mortgage loans on real estate (in millions) were as follows: For the Years Ended December 31, 2019 2018 Balance as of beginning-of-year $ - $ 3 Additions - - Charge-offs, net of recoveries - ( 3 ) Balance as of end-of-year $ - $ - Alternative Investments As of December 31, 2020 and 2019, alternative investments included investments in 271 and 258 different partnerships, respectively, and represented approximately 1 % of total investments. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2020 2019 2018 Fixed maturity AFS securities $ 4,334 $ 4,281 $ 4,209 Trading securities 202 191 84 Equity securities 3 4 4 Mortgage loans on real estate 677 629 496 Real estate 1 1 1 Policy loans 125 129 123 Invested cash 12 40 26 Commercial mortgage loan prepayment and bond make-whole premiums 82 119 79 Alternative investments 197 22 222 Consent fees 7 8 4 Other investments 45 30 23 Investment income 5,685 5,454 5,271 Investment expense ( 175 ) ( 231 ) ( 186 ) Net investment income $ 5,510 $ 5,223 $ 5,085 Impairments on Fixed Maturity AFS Securities Details underlying credit loss expense incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Credit Loss Expense Recognized in Net Income (Loss) (1) Fixed maturity AFS securities: Corporate bonds $ ( 25 ) $ ( 14 ) $ ( 5 ) RMBS ( 1 ) ( 1 ) ( 1 ) ABS - ( 1 ) ( 1 ) Gross credit loss expense recognized in net income (loss) ( 26 ) ( 16 ) ( 7 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 - Net credit loss expense recognized in net income (loss) $ ( 25 ) $ ( 15 ) $ ( 7 ) (1) For the year ended December 31, 2020, we recognized credit loss expense incurred and write-downs taken as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the years ended December 31, 2019 and 2018, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss). During the year ended December 31, 2019, we recorded $ 15 million of OTTI recognized in OCI. During the year ended December 31, 2018, we recorded no OTTI recognized in OCI. Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 2,976 $ 2,976 $ 1,388 $ 1,388 Securities pledged under securities lending agreements (2) 116 112 114 110 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 3,130 5,049 3,580 5,480 Total payables for collateral on investments $ 6,222 $ 8,137 $ 5,082 $ 6,978 (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 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. We have repurchase agreements through which we can obtain liquidity by pledging securities. 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. As of December 31, 2020 and 2019, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2020 2019 2018 Collateral payable for derivative investments $ 1,588 $ 751 $ ( 128 ) Securities pledged under securities lending agreements 2 26 ( 134 ) Securities pledged under repurchase agreements - ( 150 ) ( 380 ) Investments pledged for FHLBI ( 450 ) ( 350 ) 1,030 Total increase (decrease) in payables for collateral on investments $ 1,140 $ 277 $ 388 We have elected not to offset our securities lending transactions in our financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Foreign government bonds 2 - - - 2 Total gross secured borrowings $ 116 $ - $ - $ - $ 116 As of December 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Total gross secured borrowings $ 114 $ - $ - $ - $ 114 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 that we are permitted to sell or re-pledge. As of December 31, 2020, the fair value of all collateral received that we are permitted to sell or re-pledge was $ 25 million, and we did not re-pledge any of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments as of December 31, 2020. Investment Commitments As of December 31, 2020, our investment commitments were $ 2.9 billion, which included $ 1.4 billion of LPs, $ 989 million of mortgage loans on real estate and $ 508 million of private placement securities. Concentrations of Financial Instruments As of December 31, 2020 and 2019, 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 $ 1.2 billion and $ 1.3 billion, respectively, or 1 % of total investments, and our investments in securities issued by the Federal National Mortgage Association with a fair value of $ 1.0 billion, or 1 % of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2020 and 2019, our most significant investments in one industry were our investments in securities in the consumer non-cyclical industry with a fair value of $ 20.3 billion and $ 16.3 billion, respectively, or 13 % and 12 %, respectively, of total investments, and our investments in securities in the financial services industry with a fair value of $ 19.6 billion and $ 16.4 billion, respectively, or 13 % and 12 %, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | 6. Derivative Instruments We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 21 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. Interest Rate Contracts We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: Forward-Starting Interest Rate Swaps We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchases of certain assets and anticipated issuances of fixed-rate securities. We also use forward-starting interest rate swaps to hedge the interest rate exposure within our life products related to the forecasted purchases of certain assets. Interest Rate Cap Corridor s We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. Interest Rate Futures We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. Interest Rate Swap Agreements We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond. Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks. Treasury and Reverse Treasury Locks We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. Foreign Currency Contracts We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: Currency Futures We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. Foreign Currency Swaps We use foreign currency swaps 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. We also 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. Foreign Currency Forwards We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current 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 ® Index and Other Indices 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 Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use 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. 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 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. 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 guaranteed withdrawal benefit and guaranteed income benefit 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. 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® Index or other indices. Contract holders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years , we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. Reinsurance Related Embedded Derivatives We have certain Modco and coinsurance with funds withheld reinsurance agreements 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 agreements. We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: As of December 31, 2020 As of December 31, 2019 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,177 $ 87 $ 563 $ 2,387 $ 108 $ 245 Foreign currency contracts (1) 3,089 147 151 2,874 191 51 Total cash flow hedges 5,266 234 714 5,261 299 296 Fair value hedges: Interest rate contracts (1) 1,161 - 272 1,261 123 203 Non-Qualifying Hedges Interest rate contracts (1) 135,434 1,587 159 112,921 1,082 219 Foreign currency contracts (1) 304 1 8 262 1 3 Equity market contracts (1) 74,610 3,486 1,952 43,555 1,442 664 Credit contracts (1) 51 - - 55 - - Embedded derivatives: GLB direct (2) - 450 - - 450 - GLB ceded (2) - 82 - - 60 9 Reinsurance related (3) - - 392 - - 327 Indexed annuity and IUL contracts (2) (4) - 550 3,594 - 927 2,585 Total derivative instruments $ 216,826 $ 6,390 $ 7,091 $ 163,315 $ 4,384 $ 4,306 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets and other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) 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 December 31, 2020 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 14,052 $ 57,331 $ 29,217 $ 36,959 $ 1,213 $ 138,772 Foreign currency contracts (2) 227 411 1,062 1,693 - 3,393 Equity market contracts 40,716 19,755 5,831 12 8,296 74,610 Credit contracts - 51 - - - 51 Total derivative instruments with notional amounts $ 54,995 $ 77,548 $ 36,110 $ 38,664 $ 9,509 $ 216,826 (1) As of December 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067 . (2) As of December 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 17, 2050 . The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 824 $ 776 $ 271 $ 202 Long-term debt (1) ( 900 ) ( 1,035 ) ( 25 ) ( 160 ) (1) The balance includes $( 370 ) million and $( 118 ) million of unamortized adjustments from discontinued hedges as of December 31, 2020, and 2019, respectively. The change in our unrealized gain (loss) on derivative instruments within AOCI (in millions) was as follows: For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 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 ( 350 ) ( 201 ) 100 Foreign currency contracts 93 108 44 Change in foreign currency exchange rate adjustment ( 174 ) ( 52 ) 111 Change in DAC, VOBA, DSI and DFEL ( 17 ) ( 4 ) ( 13 ) Income tax benefit (expense) 94 31 ( 51 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 3 4 Interest rate contracts (2) ( 16 ) ( 5 ) ( 7 ) Foreign currency contracts (1) 56 35 27 Foreign currency contracts (3) 6 9 - Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Balance as of end-of-year $ ( 402 ) $ ( 11 ) $ 139 (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 (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows: Gain (Loss) Recognized in Income For the Years Ended December 31, 2020 2019 Realized Net Interest Realized Net Interest Gain Investment and Debt Gain Investment and Debt (Loss) Income Expense (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 513 ) $ 5,510 $ 284 $ ( 610 ) $ 5,223 $ 326 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 69 136 - 63 ( 93 ) Derivatives designated as hedging instruments - ( 69 ) ( 136 ) - ( 63 ) 93 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 ( 16 ) - 3 ( 5 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 6 56 - 9 35 - Non-Qualifying Hedges Interest rate contracts 1,287 - - 984 - - Foreign currency contracts ( 3 ) - - ( 1 ) - - Equity market contracts 971 - - ( 137 ) - - Credit contracts ( 6 ) - - - - - Embedded derivatives: GLB 32 - - 306 - - Reinsurance related ( 65 ) - - ( 324 ) - - Indexed annuity and IUL contracts ( 471 ) - - ( 742 ) - - 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 Year Ended December 31, 2018 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 Interest rate contracts (2) ( 7 ) Foreign currency contracts (3) 27 Total cash flow hedges 24 Fair value hedges: Interest rate contracts (1) ( 14 ) Interest rate contracts (2) 13 Interest rate contracts (3) 37 Total fair value hedges 36 Non-Qualifying Hedges Interest rate contracts (3) ( 150 ) Foreign currency contracts (3) 5 Equity market contracts (3) 444 Equity market contracts (4) ( 18 ) Embedded derivatives: GLB (3) ( 692 ) Reinsurance related (3) 54 Indexed annuity and IUL contracts (3) 81 Total derivative instruments $ ( 216 ) (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 Year Ended December 31, 2018 Offset to net investment income $ 4 Offset to realized gain (loss) 27 Offset to interest and debt expense ( 7 ) As of December 31, 2020, $ 13 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. For the years ended December 31, 2020 and 2019, 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. Information related to our credit default swaps for which we are the seller (dollars in millions) was as follows: As of December 31, 2020 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2025 (3) (4) BBB+ 1 $ 1 $ 51 As of December 31, 2019 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. Details underlying the associated collateral of our credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: As of As of December 31, December 31, 2020 2019 Maximum potential payout $ 51 $ 55 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 51 $ 55 Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, our counterparties would have been required to post $ 1 million of collateral as of December 31, 2020. Credit Risk We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of December 31, 2020, 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. We did no t have any exposure as of December 31, 2020 or 2019. The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: As of December 31, 2020 As of December 31, 2019 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- $ 1,233 $ ( 371 ) $ 441 $ ( 167 ) A+ 1,119 ( 445 ) 555 ( 339 ) A 53 - 36 - A- 571 ( 245 ) 355 ( 51 ) $ 2,976 $ ( 1,061 ) $ 1,387 $ ( 557 ) Balance Sheet Offsetting Information related to the effects of offsetting on our Consolidated Balance Sheets (in millions) was as follows: As of December 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 4,978 $ 1,082 $ 6,060 Gross amounts offset ( 1,869 ) - ( 1,869 ) Net amount of assets 3,109 1,082 4,191 Gross amounts not offset: Cash collateral ( 2,976 ) - ( 2,976 ) Non-cash collateral ( 56 ) - ( 56 ) Net amount $ 77 $ 1,082 $ 1,159 Financial Liabilities Gross amount of recognized liabilities $ 1,456 $ 3,986 $ 5,442 Gross amounts offset ( 330 ) - ( 330 ) Net amount of liabilities 1,126 3,986 5,112 Gross amounts not offset: Cash collateral ( 1,061 ) - ( 1,061 ) Non-cash collateral - - - Net amount $ 65 $ 3,986 $ 4,051 As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,387 ) - ( 1,387 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 282 $ 1,437 $ 1,719 Financial Liabilities Gross amount of recognized liabilities $ 1,005 $ 2,921 $ 3,926 Gross amounts offset ( 138 ) - ( 138 ) Net amount of liabilities 867 2,921 3,788 Gross amounts not offset: Cash collateral ( 557 ) - ( 557 ) Non-cash collateral - - - Net amount $ 310 $ 2,921 $ 3,231 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | 7. Federal Income Taxes The federal income tax expense (benefit) on continuing operations (in millions) was as follows: For the Years Ended December 31, 2020 2019 2018 Current $ ( 61 ) $ 181 $ 91 Deferred ( 15 ) ( 148 ) 153 Federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 A reconciliation of the effective tax rate differences (in millions) was as follows: For the Years Ended December 31, 2020 2019 2018 Income (loss) before taxes $ 423 $ 919 $ 1,885 Federal statutory rate 21 % 21 % 21 % Federal income tax expense (benefit) at federal statutory rate 89 193 396 Effect of: Tax-preferred investment income (1) ( 98 ) ( 99 ) ( 87 ) Tax credits ( 39 ) ( 40 ) ( 39 ) Excess tax benefits from stock-based compensation 3 ( 9 ) ( 5 ) Tax impact associated with the Tax Cuts and Jobs Act (2) ( 37 ) ( 17 ) ( 19 ) Other items 6 5 ( 2 ) Federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 Effective tax rate - 18 % 4 % 13 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. (2) In 2018, we recognized a $ 27 million tax benefit from the impact of the reduced federal statutory rate under the Tax Cuts and Jobs Act (the “Tax Act”) on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $ 17 million tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves. In 2020, we recognized a $ 37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period . The federal income tax asset (liability) (in millions) was as follows: As of December 31, 2020 2019 Current $ 147 $ 60 Deferred ( 3,256 ) ( 2,443 ) Total federal income tax asset (liability) $ ( 3,109 ) $ ( 2,383 ) Significant components of our deferred tax assets and liabilities (in millions) were as follows: As of December 31, 2020 2019 Deferred Tax Assets Future contract benefits and other contract holder funds $ 2,377 $ 643 Reinsurance related embedded derivative asset 82 69 Compensation and benefit plans 212 190 Intangibles 27 26 Tax credits 19 - Net operating losses 218 216 Other 36 14 Total deferred tax assets $ 2,971 $ 1,158 Deferred Tax Liabilities DAC $ 382 $ 813 VOBA 167 194 Net unrealized gain on fixed maturity AFS securities 4,001 2,308 Net unrealized gain on trading securities 90 72 Investment activity 1,249 109 Other 338 105 Total deferred tax liabilities $ 6,227 $ 3,601 Net deferred tax asset (liability) $ ( 3,256 ) $ ( 2,443 ) As of December 31, 2020, we have $ 1.0 billion of net operating losses to carry forward to future years. The net operating losses arose in tax year 2018, and under the Tax Act changes, have an unlimited carryforward period. As a result, management believes that it is more likely than not that the deferred tax asset associated with the loss carryforwards will be realized. Inclusive of the tax attribute for the net operating losses, although realization is not assured, management believes that it is more likely than not that we will realize the benefits of all of our deferred tax assets, and, accordingly, no valuation allowance has been recorded. We are subject to examination by U.S. federal, state, local and non-U.S. income authorities. With few exceptions for limited scope review, we are no longer subject to U.S. federal examinations for years before 2017. In the first quarter of 2021 the Internal Revenue Service commenced an examination of our refund claims for 2014 and 2015 that is anticipated to be completed by the end of 2021. We are currently under examination by several state and local taxing jurisdictions; however, we do not expect these examinations will materially impact us. A reconciliation of the unrecognized tax benefits (in millions) was as follows: For the Years Ended December 31, 2020 2019 Balance as of beginning-of-year $ 48 $ 16 Increases for prior year tax positions - 32 Increases for current year tax positions 3 - Balance as of end-of-year $ 51 $ 48 As of December 31, 2020 and 2019, $ 51 million and $ 48 million , respectively, of our unrecognized tax benefits presented above, if recognized, would have affected our federal income tax expense (benefit) and our effective tax rate. We anticipate that it is reasonably possible that unrecognized tax benefits will decrease by $ 10 million by the end of 2021. We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2020, 2019 and 2018, we recognized no interest and penalty expense (benefit), and there was no accrued interest and penalty expense related to the unrecognized tax benefits as of December 31, 2020 and 2019. |
DAC, VOBA, DSI and DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended |
Dec. 31, 2020 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC, VOBA, DSI and DFEL | 8. DAC, VOBA, DSI and DFEL Changes in DAC (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 7,352 $ 9,448 $ 7,887 Cumulative effect from adoption of new accounting standard 5 - - Business acquired (sold) through reinsurance ( 10 ) - ( 246 ) Deferrals 1,446 1,902 1,600 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 796 ) ( 950 ) ( 951 ) Unlocking ( 231 ) ( 489 ) ( 115 ) Adjustment related to realized (gains) losses ( 19 ) 54 ( 47 ) Adjustment related to unrealized (gains) losses ( 2,182 ) ( 2,613 ) 1,320 Balance as of end-of-year $ 5,565 $ 7,352 $ 9,448 Changes in VOBA (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 342 $ 816 $ 516 Business acquired (sold) through reinsurance - - ( 11 ) Business acquired - - 30 Deferrals 3 6 7 Amortization: Amortization, excluding unlocking ( 105 ) ( 114 ) ( 127 ) Unlocking ( 205 ) 140 ( 60 ) Accretion of interest (1) 44 45 48 Adjustment related to realized (gains) losses - ( 1 ) ( 2 ) Adjustment related to unrealized (gains) losses 168 ( 550 ) 415 Balance as of end-of-year $ 247 $ 342 $ 816 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2020, was as follows: 2021 $ 67 2022 65 2023 64 2024 59 2025 52 Changes in DSI (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 234 $ 248 $ 238 Business acquired (sold) through reinsurance - - ( 21 ) Deferrals 7 26 47 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 20 ) ( 29 ) ( 28 ) Unlocking ( 1 ) ( 3 ) - Adjustment related to realized (gains) losses ( 1 ) 2 ( 1 ) Adjustment related to unrealized (gains) losses ( 6 ) ( 10 ) 13 Balance as of end-of-year $ 213 $ 234 $ 248 Changes in DFEL (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 650 $ 2,769 $ 1,445 Cumulative effect from adoption of new accounting standard 4 - - Deferrals 1,003 1,095 875 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 538 ) ( 544 ) ( 482 ) Unlocking ( 275 ) ( 426 ) ( 53 ) Adjustment related to realized (gains) losses 25 - ( 20 ) Adjustment related to unrealized (gains) losses ( 468 ) ( 2,244 ) 1,004 Balance as of end-of-year $ 401 $ 650 $ 2,769 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | 9. Reinsurance The following summarizes reinsurance amounts (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance agreements with Protective and Swiss Re: For the Years Ended December 31, 2020 2019 2018 Direct insurance premiums and fee income $ 13,304 $ 13,498 $ 12,041 Reinsurance assumed 95 91 89 Reinsurance ceded ( 1,656 ) ( 1,579 ) ( 1,543 ) Total insurance premiums and fee income $ 11,743 $ 12,010 $ 10,587 Direct insurance benefits $ 10,630 $ 9,574 $ 8,592 Reinsurance recoveries netted against benefits ( 1,953 ) ( 1,694 ) ( 1,806 ) Total benefits $ 8,677 $ 7,880 $ 6,786 Our insurance companies cede insurance to other companies. The portion of our life insurance and annuity risks exceeding each of our insurance companies’ retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. Reinsurance does not discharge us from our primary obligation to contract holders for losses incurred under the policies we issue. We evaluate each reinsurance agreement to determine whether the agreement provides indemnification against loss or liability. As of December 31, 2020, the policy for our reinsurance program was to retain up to $ 20 million on a single insured life. As the amount we retain varies by policy, we reinsured 17 % of the mortality risk on newly issued life insurance contracts in 2020. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. The amounts recoverable from reinsurers were $ 16.5 billion and $ 17.1 billion as of December 31, 2020 and 2019, respectively. Protective represents our largest reinsurance exposure following the sale of the Liberty Life Business as discussed in Note 3, which resulted in amounts recoverable from Protective of $ 11.3 billion and $ 11.8 billion as of December 31, 2020 and 2019, respectively. Protective has funded trusts, of which the balance in the trusts changes as a result of ongoing reinsurance activity, to support the business ceded, which totaled $ 15.2 billion and $ 14.7 billion as of December 31, 2020 and 2019, respectively. Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain liabilities and obligations under the indemnity reinsurance agreements. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance receivable from Swiss Re, which totaled $ 1.2 billion and $ 1.3 billion as of December 31, 2020 and 2019, respectively. Swiss Re has funded a trust, with a balance of $ 1.2 billion as of December 31, 2020, to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. Our liabilities for funds withheld and embedded derivatives as of December 31, 2020, included $ 151 million and $ 35 million, respectively, related to the business sold to Swiss Re. Adoption of ASU 2016-13 In 2020, we adopted ASU 2016-13, which resulted in a new recognition and measurement of credit losses on most financial assets. We established a credit loss allowance of $ 192 million as of January 1, 2020, for reinsurance-related assets for the risk of credit losses inherent in reinsurance transactions. During 2020, there have not been any changes to the credit loss allowance that would be material to our financial statements. See Note 2 for additional information. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our reinsurance-related assets. Modco Agreements Some portions of our annuity business have been reinsured on a Modco basis with other companies. In a Modco agreement, 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 to reinsure fixed and fixed indexed annuity products, which resulted in a deposit asset of $ 5.8 billion and $ 6.6 billion as of December 31, 2020 and 2019, respectively, within other assets on our Consolidated Balance Sheets. We held assets in support of reserves associated with the transaction in a Modco investment portfolio, which consisted of the following (in millions): As of As of December 31, December 31, 2020 2019 Fixed maturity AFS securities $ 1,531 $ 2,308 Trading securities 3,357 3,534 Equity securities 17 14 Mortgage loans on real estate 832 698 Derivative investments 103 130 Other investments 167 94 Cash and invested cash 92 62 Accrued investment income 42 57 Other assets 3 - Total $ 6,144 $ 6,897 In addition, the portfolio was supported by $ 185 million of over-collateralization and a $ 170 million letter of credit as of December 31, 2020. As described in Note 1, we recorded a deferred gain on business sold through reinsurance related to the transaction with Athene and amortized $ 29 million, $ 30 million and $ 8 million of the gain during 2020, 2019 and 2018, respectively. See “Realized Gain (Loss)” in Note 16 for information on reinsurance related embedded derivatives. |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | 10. Goodwill and Specifically Identifiable Intangible Assets The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: For the Year Ended December 31, 2020 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 ( 1,554 ) - - 634 Group Protection 684 - - - 684 Total goodwill $ 3,932 $ ( 2,154 ) $ - $ - $ 1,778 For the Year Ended December 31, 2019 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 ( 1,554 ) - - 634 Group Protection 688 - ( 4 ) - 684 Total goodwill $ 3,936 $ ( 2,154 ) $ ( 4 ) $ - $ 1,778 The fair values of our reporting units (Level 3 fair value estimates) are comprised of the value of in-force (i.e., existing) business and the value of new business. Specifically, new business is representative of cash flows and profitability associated with policies or contracts we expect to issue in the future, reflecting our forecasts of future sales volume and product mix over a 10 -year period. To determine the values of in-force and new business, we use a discounted cash flows technique that applies a discount rate reflecting the market expected, weighted-average rate of return adjusted for the risk factors associated with operations to the projected future cash flows for each reporting unit. As of October 1, 2020 and 2019, we performed our annual quantitative goodwill impairment test for our reporting units, and, as of each such date, the fair value was in excess of each reporting unit’s carrying value for Annuities, Retirement Plan Services, Life Insurance and Group Protection. The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: As of December 31, 2020 As of December 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 59 100 55 Group Protection: VOCRA 576 55 576 25 VODA 31 5 31 2 Insurance licenses (1) 3 - 3 - Total $ 715 $ 119 $ 715 $ 82 (1) No amortization recorded as the intangible asset has indefinite life. Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2020, was as follows: 2021 $ 37 2022 37 2023 37 2024 37 2025 37 Thereafter 403 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |
Guaranteed Benefit Features | 11. Guaranteed Benefit Features Information on the GDB features outstanding (dollars in millions) was as follows: As of December 31, 2020 (1) 2019 (1) Return of Net Deposits Total account value $ 109,856 $ 101,601 Net amount at risk (2) 72 71 Average attained age of contract holders 66 years 65 years Minimum Return Total account value $ 100 $ 92 Net amount at risk (2) 12 13 Average attained age of contract holders 78 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 27,650 $ 25,763 Net amount at risk (2) 390 384 Average attained age of contract holders 72 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 Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 117 $ 161 $ 100 Changes in reserves 30 ( 24 ) 77 Benefits paid ( 26 ) ( 20 ) ( 16 ) Balance as of end-of-year $ 121 $ 117 $ 161 Variable Annuity Contracts Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows: As of December 31, 2020 2019 Asset Type Domestic equity $ 70,362 $ 64,093 International equity 20,855 19,852 Fixed income 43,521 41,405 Total $ 134,738 $ 125,350 Percent of total variable annuity separate account values 98 % 98 % 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 38 % and 37 % of total life insurance in-force reserves as of December 31, 2020 and 2019, respectively. UL and VUL products with secondary guarantees represented 31 % , 27 % and 36 % of total life insurance sales for the years ended December 31, 2020, 2019 and 2018, respectively. |
Liability For Unpaid Claims
Liability For Unpaid Claims | 12 Months Ended |
Dec. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | |
Liability For Unpaid Claims | 12. Liability for Unpaid Claims The liability for unpaid claims consists primarily of long-term disability claims and is reported in future contract benefits on our Consolidated Balance Sheets. Changes in the liability for unpaid claims (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 5,552 $ 5,335 $ 2,222 Reinsurance recoverable 152 143 57 Net balance as of beginning-of-year 5,400 5,192 2,165 Business acquired (1) - - 2,842 Incurred related to: Current year 3,517 3,193 2,531 Prior years: Interest 148 151 120 All other incurred (2) ( 209 ) ( 308 ) ( 208 ) Total incurred 3,456 3,036 2,443 Paid related to: Current year ( 1,707 ) ( 1,518 ) ( 1,197 ) Prior years ( 1,366 ) ( 1,310 ) ( 1,061 ) Total paid ( 3,073 ) ( 2,828 ) ( 2,258 ) Net balance as of end-of-year 5,783 5,400 5,192 Reinsurance recoverable 151 152 143 Balance as of end-of-year $ 5,934 $ 5,552 $ 5,335 (1) Represents acquired group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. The 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. Long-term disability reserves are discounted using rates ranging from 2.75 % to 5 %. The discount rates vary by year of claim incurral. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term and Long-Term Debt [Abstract] | |
Short-Term and Long-Term Debt | 13. Short-Term and Long-Term Debt Details underlying short-term and long-term debt (in millions) were as follows: As of December 31, 2020 2019 Short-Term Debt Current maturities of long-term debt $ - $ 300 Total short-term debt $ - $ 300 Long-Term Debt, Excluding Current Portion Senior notes: 4.85 % notes, due 2021 (1) $ - $ 296 4.20 % notes, due 2022 (1) 300 300 4.00 % notes, due 2023 (1) 500 500 3.35 % notes, due 2025 (1) 300 300 3.625 % notes, due 2026 (1) 400 400 3.80 % notes, due 2028 (1) 500 500 3.05 % notes, due 2030 (1) 500 500 3.40 % notes, due 2031 (1) 500 - 6.15 % notes, due 2036 (1) 243 243 6.30 % notes, due 2037 (1)(2) 375 375 7.00 % notes, due 2040 (1)(2) 500 500 4.35 % notes, due 2048 (1) 450 450 4.375 % notes, due 2050 (1) 300 - Total senior notes 4,868 4,364 Term loans: LIBOR + 87.5 bps loan, due 2024 250 250 Total term loans 250 250 Capital securities: LIBOR + 236 bps, due 2066 (3) 722 722 LIBOR + 204 bps, due 2067 (3) 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) ( 6 ) ( 4 ) Unamortized debt issuance costs ( 38 ) ( 34 ) Unamortized adjustments from discontinued hedges 370 118 Fair value hedge on interest rate swap agreements 25 160 Total long-term debt $ 6,682 $ 6,067 (1) We have the option to repurchase the outstanding notes by paying the greater of 100 % of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. (2) Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (3) To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5 % over the remaining terms of the capital securities . Details underlying the recognition of a gain (loss) on the early extinguishment of debt (in millions) reported within interest expense on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2020 2019 2018 Principal balance outstanding prior to payoff (1) $ 796 $ 109 $ 287 Unamortized debt issuance costs and discounts ( 2 ) ( 1 ) ( 1 ) Amount paid to retire debt ( 809 ) ( 150 ) ( 309 ) Gain (loss) on early extinguishment of debt, pre-tax $ ( 15 ) $ ( 42 ) $ ( 23 ) (1) During the second quarter of 2020, we redeemed our $ 296 million outstanding principal amount of 4.85 % senior notes due 2021 and repaid our $ 500 million LIBOR + 150 bps term loan due 2022 that was issued in the first quarter of 2020. During 2019, we repurchased $ 105 million of our 6.15 % senior notes due 2036 and $ 4 million of our 4.85 % senior notes due 2021. During 2018, we repurchased $ 287 million of our 8.75 % senior notes due 2019. Future principal payments due on long-term debt (in millions) as of December 31, 2020, were as follows: 2021 $ - 2022 300 2023 500 2024 250 2025 300 Thereafter 4,981 Total $ 6,331 For our long-term debt outstanding, unsecured senior debt, which consists of senior notes and term loans, ranks highest in priority, followed by capital securities. Facility Agreement for Senior Notes Issuance During August 2020, LNC entered into a 10 -year facility agreement (the “facility agreement”) with a Delaware trust in connection with the sale by the trust of $ 500 million of pre-capitalized trust securities in a private placement pursuant to Rule 144A of the Securities Act of 1933, as amended. The trust invested the proceeds from the sale of the trust securities in a portfolio of principal and interest strips of U.S. Treasury securities. The facility agreement provides LNC the right to issue and sell to the trust, on one or more occasions, up to an aggregate principal amount outstanding at any one time of $ 500 million of LNC’s 2.330 % senior notes due August 15, 2030 (“ 2.330 % senior notes”) in exchange for a corresponding amount of U.S. Treasury securities held by the trust. The 2.330 % senior notes will not be issued unless and until the issuance right is exercised. In return, LNC pays a semi-annual facility fee to the trust at a rate of 1.691 % per year (applied to the unexercised portion of the maximum amount of senior notes that LNC could issue and sell to the trust), and LNC reimburses the trust for its expenses. The issuance right will be exercised automatically in full upon our failure to make certain payments to the trust, such as paying the facility fee or reimbursing the trust for its expenses, if the failure to pay is not cured within 30 days, or upon certain bankruptcy events involving LNC. We are also required to exercise the issuance right in full if our consolidated stockholders’ equity (excluding AOCI) falls below $ 2.75 billion, subject to adjustment from time to time in certain cases, and upon certain other events described in the facility agreement. Prior to any involuntary exercise of the issuance right, LNC has the right to repurchase any or all of the 2.330 % senior notes then held by the trust in exchange for U.S. Treasury securities. LNC may redeem any outstanding 2.330 % senior notes, in whole or in part, prior to their maturity. Prior to May 15, 2030, the redemption price will equal the greater of par or a make-whole redemption price. After May 15, 2030, any outstanding 2.330 % senior notes may be redeemed at par. Credit Facilities Credit facilities, which allow for borrowing or issuances of letters of credit (“LOCs”), (in millions) were as follows: As of December 31, 2020 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility July 31, 2024 $ 2,250 $ 219 LOC facility (1) August 26, 2031 990 943 LOC facility (1) October 1, 2031 954 954 Total $ 4,194 $ 2,116 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. On July 31, 2019, we refinanced our existing credit facility with a syndicate of banks. This facility (the “credit facility”) allows for the issuance of LOCs and borrowing of up to $ 2.25 billion. The credit facility is unsecured and has a commitment termination date of July 31, 2024. The LOCs under the credit facility are used primarily to satisfy reserve credit requirements of (i) our domestic insurance companies for which reserve credit is provided by our affiliated reinsurance companies and (ii) certain ceding companies of our legacy reinsurance business. The credit agreement governing the credit facility contains or includes: Customary terms and conditions, including covenants restricting our ability to incur liens, merge or consolidate with another entity where we are not the surviving entity and dispose of all or substantially all of our assets; Financial covenants including maintenance of a minimum consolidated net worth (as defined in the credit agreement) equal to the sum of $ 10.6 billion plus 50 % of the aggregate net proceeds of equity issuances received by us as set forth in the credit agreement; and a debt-to-capital ratio as defined in accordance with the credit facility not to exceed 0.35 to 1.00 ; A cap on secured non-operating indebtedness and non-operating indebtedness of our subsidiaries equal to 7.5 % of total capitalization, as defined in accordance with the credit agreement; and Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. Upon an event of default, the credit agreement provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2020, we were in compliance with all such covenants. Our LOC facility agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2020, we were in compliance with all such covenants. Shelf Registration We currently have an effective shelf registration statement, which allows us to issue, in unlimited amounts, securities, including debt securities, preferred stock, common stock, warrants, stock purchase contracts, stock purchase units and depository shares. Certain Debt Covenants on Capital Securities Our $ 1.2 billion in principal amount of capital securities outstanding contain certain covenants that require us to make interest payments in accordance with an alternative coupon satisfaction mechanism (“ACSM”) if we determine that one of the following trigger events exists as of the 30th day prior to an interest payment date (“determination date”): LNL’s risk-based capital (“RBC”) ratio is less than 175 % (based on the most recent annual financial statement filed with the State of Indiana); or (i) The sum of our consolidated net income for the four trailing fiscal quarters ending on the quarter that is two quarters prior to the most recently completed quarter prior to the determination date is zero or negative; and (ii) our consolidated stockholders’ equity (excluding AOCI and any increase in stockholders’ equity resulting from the issuance of preferred stock during a quarter), or “adjusted stockholders’ equity,” as of (x) the most recently completed quarter and (y) the end of the quarter that is two quarters before the most recently completed quarter, has declined by 10 % or more as compared to the quarter that is 10 fiscal quarters prior to the last completed quarter, or the “benchmark quarter.” The ACSM would generally require us to use commercially reasonable efforts to satisfy our obligation to pay interest in full on the capital securities with the net proceeds from sales of our common stock and warrants to purchase our common stock with an exercise price greater than the market price. We would have to utilize the ACSM until the trigger events no longer existed. Our failure to pay interest pursuant to the ACSM will not result in an event of default with respect to the capital securities nor will a nonpayment of interest unless it lasts for 10 consecutive years, although such breaches may result in monetary damages to the holders of the capital securities. As of December 31, 2020, we were in compliance with all such covenants. |
Contingencies And Commitments
Contingencies And Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Contingencies And Commitments [Abstract] | |
Contingencies And Commitments | 14. Contingencies and Commitments Contingencies Regulatory and Litigation Matters Regulatory bodies, such as state insurance departments, the SEC, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisers and unclaimed property laws. LNC is involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2020. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LNC’s financial condition. For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of December 31, 2020, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $ 90 million. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters. 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 agreements. We are disputing the requested rate increases under these agreements. We will initiate arbitration proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have initiated, and may in the future initiate, arbitration proceedings against us. We believe it is unlikely the outcome of these disputes will have a material adverse effect on our financial condition. For more information about reinsurance, see Note 9. Cost of Insurance Litigation Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company , filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed Plaintiff’s complaint in its entirety. In response, Plaintiff filed a motion for leave to amend the complaint, which we have opposed. Hanks v. Lincoln Life & 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. On March 13, 2019, the court issued an order granting plaintiff’s motion for class certification for the breach of contract claim and denying such motion with respect to the unjust enrichment claim against LLANY, and, on September 12, 2019, the court issued an order approving the parties’ joint stipulation of dismissal with respect to the unjust enrichment claim and dismissed LLANY as a defendant in the case. In light of LLANY’s role as reinsurer and administrator under the 1998 coinsurance agreement with Aetna (now Voya), and of the parties’ rights and obligations thereunder, LLANY continues to be actively engaged in the defense of this case. On September 30, 2020, the court denied plaintiff’s motion for summary judgment and granted in part Voya’s motion for summary judgment. The court has not yet set a trial date, and we continue to vigorously defend this action. 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 non-guaranteed 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. We are vigorously defending this matter. Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York , pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that LLANY charged more for non-guaranteed cost of insurance than was permitted by the policies. Plaintiff seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and which contain non-guaranteed cost of insurance provisions that are similar to those of Plaintiff’s policies. Plaintiff also seeks to represent a sub-class of such policyholders who own or owned “life insurance policies issued in the State of New York.” Plaintiff seeks damages on behalf of the policyholder class and sub-class. We are vigorously defending this matter. Other Litigation Andrew Nitkewicz v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:20-cv-06805, is a putative class action that was filed on August 24, 2020. Plaintiff Andrew Nitkewicz, as trustee of the Joan C. Lupe Trust, seeks to represent all current and former owners of universal life (including variable universal life) policies who own or owned policies issued by LLANY and its predecessors in interest that were in force at any time on or after June 27, 2013, and for which planned annual, semi-annual, or quarterly premiums were paid for any period beyond the end of the policy month of the insured’s death. Plaintiff alleges LLANY failed to refund unearned premium in violation of New York Insurance Law Section 3203(a)(2) in connection with the payment of death benefit claims for certain insurance policies. Plaintiff seeks compensatory damages and pre-judgment interest on behalf of the various classes and sub-class. We are vigorously defending this matter. Commitments Leases As of December 31, 2020 and 2019, we recognized operating lease ROU assets of $ 182 million and $ 233 million, respectively, and associated lease liabilities of $ 194 million and $ 240 million, respectively. The weighted-average discount rate and remaining lease term were 3.2 % and six years , respectively, as of December 31, 2020 and 2019. Operating lease expense for the years ended December 31, 2020, 2019 and 2018, was $ 50 million, $ 54 million and $ 50 million, respectively, and reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss) . As of December 31, 2020 and 2019, the net book value of assets recorded as finance leases was $ 75 million and $ 128 million, respectively, and the associated accumulated amortization was $ 398 million and $ 345 million, respectively. These assets will continue to be amortized on a straight-line basis over the assets’ remaining lives. The weighted-average discount rate and remaining lease term were 2.2 % and two years , respectively, as of December 31, 2020 and 2019. Finance lease expense (in millions) was as follows: For the Years Ended December 31, 2020 2019 Amortization of ROU assets (1) $ 53 $ 67 Interest on lease liabilities (2) 6 13 Total $ 59 $ 80 (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 Years Ended December 31, 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 54 $ 56 Financing cash flows from finance leases 53 96 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 10 $ 80 Our future minimum lease payments (in millions) under non-cancellable leases as of December 31, 2020, were as follows: Operating Finance Leases Leases 2021 $ 51 $ 62 2022 46 72 2023 43 79 2024 29 17 2025 22 7 Thereafter 47 4 Total future minimum lease payments 238 241 Less: Amount representing interest 44 7 Present value of minimum lease payments $ 194 $ 234 As of December 31, 2020, we had no leases that had not yet commenced. Vulnerability from Concentrations As of December 31, 2020, we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. For information on our investment and reinsurance concentrations, see Notes 5 and 9, respectively. Other Contingency Matters State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $( 9 ) million and $( 12 ) million as of December 31, 2020 and 2019, respectively. |
Shares and Stockholders' Equity
Shares and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Shares and Stockholders' Equity [Abstract] | |
Shares and Stockholders' Equity | 15. Shares and Stockholders’ Equity Common Shares The changes in our common stock (number of shares) were as follows: For the Years Ended December 31, 2020 2019 2018 Common Stock Balance as of beginning-of-year 196,668,532 205,862,760 218,090,114 Stock issued for exercise of warrants - 258,633 212,670 Stock compensation/issued for benefit plans 547,209 942,318 800,325 Retirement/cancellation of shares ( 4,886,050 ) ( 10,395,179 ) ( 13,240,349 ) Balance as of end-of-year 192,329,691 196,668,532 205,862,760 Common Stock as of End-of-Year Basic basis 192,329,691 196,668,532 205,862,760 Diluted basis 193,672,296 199,196,043 209,034,686 Our common stock is without par value. Average Shares A reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share was as follows: For the Years Ended December 31, 2020 2019 2018 Weighted-average shares, as used in basic calculation 193,610,225 200,608,737 215,936,448 Shares to cover exercise of outstanding warrants - 58,765 568,602 Shares to cover non-vested stock 687,240 973,901 1,534,142 Average stock options outstanding during the year 746,742 1,507,049 1,739,029 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants - ( 9,594 ) ( 81,260 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) ( 576,582 ) ( 1,033,507 ) ( 1,074,406 ) Shares repurchasable from measured but unrecognized stock option expense ( 2,445 ) ( 217 ) ( 14,600 ) Average deferred compensation shares - - 944,151 Weighted-average shares, as used in diluted calculation 194,465,180 202,105,134 219,552,106 In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. For the year ended December 31, 2018, 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 $ 18 million for the year ended December 31, 2018. The outstanding warrants issued in 2009, each representing the right to purchase one share of our common stock, expired on July 10, 2019. AOCI The following summarizes the components and changes in AOCI (in millions): For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 5,983 $ 557 $ 3,486 Cumulative effect from adoption of new accounting standards 45 - 674 Unrealized holding gains (losses) arising during the year 7,925 9,267 ( 6,274 ) Change in foreign currency exchange rate adjustment 180 46 ( 107 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds ( 3,569 ) ( 2,462 ) 1,748 Income tax benefit (expense) ( 970 ) ( 1,457 ) 981 Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 53 ) ( 28 ) ( 42 ) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 12 ) ( 20 ) Income tax benefit (expense) 4 8 13 Balance as of end-of-year $ 9,611 $ 5,983 $ 557 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 45 $ 33 $ 44 (Increases) attributable to: Cumulative effect from adoption of new accounting standards ( 45 ) - 9 Gross OTTI recognized in OCI during the year - ( 16 ) - Change in DAC, VOBA, DSI and DFEL - 1 - Income tax benefit (expense) - 3 - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities - 31 ( 19 ) Change in DAC, VOBA, DSI and DFEL - ( 1 ) ( 6 ) Income tax benefit (expense) - ( 6 ) 5 Balance as of end-of-year $ - $ 45 $ 33 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 $ ( 29 ) Cumulative effect from adoption of new accounting standard - - ( 6 ) Unrealized holding gains (losses) arising during the year ( 257 ) ( 93 ) 144 Change in foreign currency exchange rate adjustment ( 174 ) ( 52 ) 111 Change in DAC, VOBA, DSI and DFEL ( 17 ) ( 4 ) ( 13 ) Income tax benefit (expense) 94 31 ( 51 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 48 42 24 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Balance as of end-of-year $ ( 402 ) $ ( 11 ) $ 139 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ ( 17 ) $ ( 23 ) $ ( 14 ) Foreign currency translation adjustment arising during the year 5 6 ( 9 ) Balance as of end-of-year $ ( 12 ) $ ( 17 ) $ ( 23 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 327 ) $ ( 299 ) $ ( 257 ) Cumulative effect from adoption of new accounting standard - - ( 35 ) Adjustment arising during the year 74 ( 20 ) ( 12 ) Income tax benefit (expense) ( 13 ) ( 8 ) 5 Balance as of end-of-year $ ( 266 ) $ ( 327 ) $ ( 299 ) The following summarizes the reclassifications out of AOCI (in millions) and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 53 ) $ ( 28 ) $ ( 42 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 12 ) ( 20 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 21 ) ( 40 ) ( 62 ) operations before taxes Income tax benefit (expense) 4 8 13 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 17 ) $ ( 32 ) $ ( 49 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ 4 $ 8 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) - 4 8 operations before taxes Income tax benefit (expense) - ( 1 ) ( 2 ) Federal income tax expense (benefit) Reclassification, net of income tax $ - $ 3 $ 6 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 3 $ 4 Net investment income Interest rate contracts ( 16 ) ( 5 ) ( 7 ) Interest and debt expense Foreign currency contracts 56 35 27 Net investment income Foreign currency contracts 6 9 - Total realized gain (loss) Total gross reclassifications 48 42 24 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 47 41 22 operations before taxes Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 37 $ 32 $ 17 Net income (loss) |
Realized Gain (Loss)
Realized Gain (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Realized Gain (Loss) [Abstract] | |
Realized Gain (Loss) | 6 16. Realized Gain (Loss) Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2020 2019 2018 Fixed maturity AFS securities: Gross gains $ 31 $ 45 $ 38 Gross losses ( 84 ) ( 73 ) ( 80 ) Credit loss benefit (expense) (1) ( 26 ) - - Gross OTTI - ( 16 ) ( 7 ) Realized gain (loss) on equity securities (2) 8 ( 6 ) ( 17 ) Credit loss benefit (expense) on mortgage loans on real estate ( 117 ) ( 1 ) 2 Other gain (loss) on investments ( 7 ) ( 9 ) 2 Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds 31 ( 13 ) ( 22 ) Total realized gain (loss) related to certain financial assets ( 164 ) ( 73 ) ( 84 ) Realized gain (loss) on the mark-to-market on certain instruments (3)(4) 26 ( 127 ) 4 Indexed annuity and IUL contracts net derivatives results: (5) Gross gain (loss) 37 ( 80 ) ( 51 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 25 ) 2 12 Variable annuity net derivatives results: (6) Gross gain (loss) ( 367 ) ( 389 ) 295 Associated amortization of DAC, VOBA, DSI and DFEL ( 20 ) 57 ( 35 ) Total realized gain (loss) $ ( 513 ) $ ( 610 ) $ 141 (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes market adjustments on equity securities still held of $ 8 million and $( 4 ) million for the years ended December 31, 2020 and 2019, respectively. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives mortgage loans on real estate accounted for under the fair value option and trading securities. See Notes 1 and 9 for information regarding Modco. (4) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $( 24 ) million for the year ended December 31, 2020. (5) Represents the net difference between the change in fair value of the index 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 options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (6) Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Commissions and Other Expenses
Commissions and Other Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Commissions And Other Expenses [Abstract] | |
Commissions and Other Expenses | 17. Commissions and Other Expenses Details underlying commissions and other expenses (in millions) were as follows: For the Years Ended December 31, 2020 2019 2018 Commissions $ 2,183 $ 2,549 $ 2,256 General and administrative expenses 2,072 2,210 1,953 Expenses associated with reserve financing and LOCs 94 88 84 DAC and VOBA deferrals and interest, net of amortization ( 156 ) ( 540 ) ( 402 ) Broker-dealer expenses 493 481 465 Specifically identifiable intangible asset amortization 37 26 9 Taxes, licenses and fees 321 343 313 Acquisition and integration costs related to mergers and acquisitions 20 130 85 Total $ 5,064 $ 5,287 $ 4,763 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Retirement and Deferred Compensation Plans | 18. Retirement and Deferred Compensation Plans Defined Benefit Pension and Other Postretirement Benefit Plans We maintain U.S. defined benefit pension plans in which certain U.S. employees and agents are participants, and a U.K. plan we retained after the sale of the Lincoln UK business. Our defined benefit pension plans are closed to new entrants and existing participants do not accrue any additional benefits. We comply with the minimum funding requirements in both the U.S. and the U.K. In accordance with such practice, we were not required to make contributions but elected to contribute $ 2 million for the year ended December 31, 2019. We do not expect to be required to make any contributions to these pension plans in 2021. We sponsor other postretirement benefit plans that provide health care and life insurance to certain retired employees and agents. Total net periodic cost (recovery) for these plans was $( 11 ) million, $ 8 million and $( 2 ) million during 2020, 2019 and 2018, respectively. In 2021, we expect the plans to make benefit payments of approximately $ 110 million. Information (in millions) with respect to these plans was as follows: As of or For the Years Ended December 31, 2020 2019 2020 2019 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,670 $ 1,520 $ 66 $ 69 Projected benefit obligation 1,698 1,646 79 78 Funded status $ ( 28 ) $ ( 126 ) $ ( 13 ) $ ( 9 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 88 $ 12 $ - $ - Other liabilities ( 116 ) ( 138 ) ( 13 ) ( 9 ) Net amount recognized $ ( 28 ) $ ( 126 ) $ ( 13 ) $ ( 9 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 2.58 % 3.14 % 2.96 % 3.50 % Net periodic benefit cost: Weighted-average discount rate 3.12 % 4.10 % 3.50 % 4.50 % Expected return on plan assets 6.10 % 6.48 % 6.50 % 6.50 % The increase in the fair value of plan assets during the reporting period was driven by market performance. The weighted average discount rate was determined based on a corporate yield curve as of December 31, 2020, and projected benefit obligation cash flows. The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate these assumptions each plan year. The following summarizes our fair value measurements of our benefit plans’ assets (in millions) on a recurring basis by asset category: As of December 31, 2020 2019 Fixed maturity securities: Corporate bonds $ 320 $ 274 U.S. government bonds 246 280 Foreign government bonds 138 67 State and municipal bonds 29 29 Limited partnerships and common and preferred stock 671 599 Bulk annuity insurance policy 178 165 Cash and invested cash 88 106 Other investments 66 69 Total $ 1,736 $ 1,589 See “Fair Value Measurement” in Note 1 for discussion on how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 21 for a summary of our fair value measurement of our pension plans’ assets by the three-level fair value hierarchy. Defined Contribution Plans We sponsor tax-qualified defined contribution plans for eligible employees and agents. We administer these plans in accordance with the plan documents and various limitations under section 401(a) of the Internal Revenue Code of 1986. For the years ended December 31, 2020, 2019 and 2018, expenses for these plans were $ 100 million, $ 104 million and $ 93 million, respectively. Deferred Compensation Plans We sponsor non-qualified, unfunded, deferred compensation plans for certain current and former employees, agents and non-employee directors. The results of certain notional investment options within some of the plans are hedged by total return swaps. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants of certain plans are able to select our stock as a notional investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For the years ended December 31, 2020, 2019 and 2018, expenses for these plans were $ 35 million, $ 28 million and $ 4 million, respectively. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. Information (in millions) with respect to these plans was as follows: As of December 31, 2020 2019 Total liabilities (1) $ 743 $ 645 Investments dedicated to fund liabilities (2) 229 202 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Stock-Based Incentive Compensation Plans | 19. Stock-Based Incentive Compensation Plans We sponsor stock-based incentive compensation plans for our employees and directors and for the employees and agents of our subsidiaries that provide for the issuance of stock options, performance shares, and restricted stock units (“RSUs”), among other types of awards. We issue new shares to satisfy option exercises and vested performance shares and RSUs. Total compensation expense (in millions) by award type for our stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2020 2019 2018 Stock options $ 10 $ 8 $ 5 Performance shares 5 17 15 RSUs 36 37 32 Total $ 51 $ 62 $ 52 Recognized tax benefit $ 11 $ 13 $ 11 Total unrecognized compensation expense (in millions) and expected weighted-average life (in years) by award type for our stock-based incentive compensation plans was as follows: For the Years Ended December 31, 2020 2019 2018 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 8 0.7 $ 9 0.9 $ 9 1.1 Performance shares 14 1.3 15 1.3 14 0.9 RSUs 37 1.2 42 1.4 50 1.2 Total unrecognized stock-based incentive compensation expense $ 59 $ 66 $ 73 Stock Options The option price assumptions used for our stock option awards were as follows: For the Years Ended December 31, 2020 2019 2018 Weighted-average fair value per option granted $ 12.25 $ 13.23 $ 18.74 Weighted-average assumptions: Dividend yield 3.0 % 2.8 % 2.1 % Expected volatility 30.1 % 26.9 % 27.2 % Risk-free interest rate (1) 0.3 - 1.4 % 2.1 - 2.5 % 2.5 - 2.9 % Expected life (in years) 5.8 5.8 5.8 (1) Risk-free interest rate expressed as a range and not a weighted average. The fair value of options is determined using a Black-Scholes options valuation model with the assumptions disclosed in the table above. The dividend yield is based on the expected dividend rate during the expected life of the option. Expected volatility is based on the implied volatility of exchange-traded securities and the historical volatility of the LNC stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the options granted represents the weighted-average period of time from the grant date to the date of exercise, expiration or cancellation based upon historical behavior. Generally, stock options have a maximum contractual term of ten years and vest ratably over a three year period based solely on a service condition. Information with respect to our incentive plans involving stock options with service conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2019 2,894,656 $ 55.67 Granted 837,329 60.86 Exercised ( 146,370 ) 32.70 Forfeited or expired ( 126,656 ) 62.72 Outstanding as of December 31, 2020 3,458,959 $ 57.64 6.46 $ 12 Vested or expected to vest as of December 31, 2020 (1) 3,181,759 $ 56.93 6.32 $ 12 Exercisable as of December 31, 2020 2,141,140 $ 54.26 5.12 $ 12 (1) Includes estimated forfeitures. The total fair value of stock options with service conditions that vested during the years ended December 31, 2020, 2019 and 2018 was $ 8 million, $ 7 million and $ 6 million, respectively. The total intrinsic value of such options exercised during the years ended December 31, 2020, 2019 and 2018, was $ 3 million, $ 3 million and $ 11 million, respectively. We award to certain agents stock options that have a maximum contractual term of five years and generally vest ratably over a two year period depending on the satisfaction of the performance conditions. Information with respect to our incentive plans involving stock options with performance conditions (aggregate intrinsic value shown in millions) was as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2019 209,104 $ 61.17 Granted 56,125 23.49 Exercised ( 17,687 ) 45.60 Forfeited or expired ( 38,892 ) 59.29 Outstanding as of December 31, 2020 208,650 $ 52.70 2.20 $ 2 Vested or expected to vest as of December 31, 2020 (1) 190,370 $ 54.74 2.03 $ 1 Exercisable as of December 31, 2020 172,006 $ 57.21 1.82 $ 1 (1) Includes estimated forfeitures. The total fair value of stock options with performance conditions that vested during the years ended December 31, 2020, 2019 and 2018, was less than $ 1 million, $ 1 million and $ 1 million, respectively. The total intrinsic value of such options exercised during the years ended December 31, 2020, 2019 and 2018, was less than $ 1 million, $ 1 million and $ 2 million, respectively. Performance Shares LNC performance shares vest, if at all, on the third anniversary of the grant date; depending on the achievement level of performance measures pre-determined by the Compensation Committee for the three year performance period, payout could range from zero to 200 % of the target award. Information with respect to our performance shares was as follows: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2019 (1) 471,071 $ 77.29 Granted 233,039 64.62 Vested ( 134,282 ) 79.61 Forfeited ( 27,120 ) 70.54 Outstanding as of December 31, 2020 (1) 542,708 $ 71.61 (1) Represents target award amounts. RSUs LNC RSUs generally cliff vest on the third anniversary of the grant date, based solely on a service condition. Information with respect to our RSUs was as follows: Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2019 1,551,129 $ 70.09 Granted 623,599 60.83 Vested ( 413,309 ) 70.96 Forfeited ( 103,517 ) 66.48 Outstanding as of December 31, 2020 1,657,902 $ 66.62 |
Statutory Information and Restr
Statutory Information and Restrictions | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Information and Restrictions | 20. Statutory Information and Restrictions The Company’s domestic life insurance subsidiaries prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile, which may vary materially from GAAP. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. Our insurance subsidiaries are subject to the applicable laws and regulations of their respective states of domicile. Changes in these laws and regulations could change capital levels or capital requirements for our insurance subsidiaries. Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, LLANY, LLACB, FPP, Lincoln Reinsurance Company of South Carolina, Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV, Lincoln Reinsurance Company of Vermont V, Lincoln Reinsurance Company of Vermont VI and Lincoln Reinsurance Company of Vermont VII. As of December 31, 2020 2019 U.S. capital and surplus $ 8,938 $ 8,564 For the Years Ended December 31, 2020 2019 2018 U.S. net gain (loss) from operations, after-tax $ ( 271 ) $ 409 $ 692 U.S. net income (loss) 29 388 1,019 U.S. dividends to LNC holding company 660 600 925 Comparison of 2020 to 2019 Statutory net income (loss) decreased due primarily to increases in benefits and unfavorable reserve strain on certain products, partially offset by favorable equity markets. Comparison of 2019 to 2018 Statutory net income (loss) decreased due primarily to lower dividends from affiliates, unfavorable reserve strain on certain products, and integration costs incurred as part of the acquisition of Liberty Life. See Note 3 for information regarding the acquisition. State Prescribed and Permitted Practices The states of domicile of the Company’s insurance subsidiaries have adopted certain prescribed or permitted accounting practices that differ from those found in NAIC SAP. These prescribed practices are the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York and use of the continuous Commissioners’ Annuity Reserve Valuation Method in the calculation of reserves as prescribed by the state of New York. The statutory permitted practice allows accounting for certain call option derivative assets at amortized cost and allows determining certain indexed annuity and indexed life statutory reserve calculations with the assumption that the market value of the related liability call option(s) associated with the current index term is zero. At the conclusion of the index term, credited interest is reflected in the reserve as realized, based on actual index performance. The Vermont reinsurance subsidiaries also have certain accounting practices permitted by the state of Vermont that differ from those found in NAIC SAP. One permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2020 and 2019. Another permitted practice involves the acquisition of an LLC note in exchange for a variable value surplus note that is recognized as an admitted asset and a form of surplus as of December 31, 2020 and 2019. Lastly, the state of Vermont has permitted a practice to account for certain excess of loss reinsurance agreements with unaffiliated reinsurers as an asset and form of surplus as of December 31, 2020 and 2019. These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of Actuarial Guideline 48 (“AG48”) or are compliant under AG48 requirements. The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: As of December 31, 2020 2019 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 14 $ 24 Conservative valuation rate on certain annuities ( 44 ) ( 49 ) Calculation of reserves using continuous CARVM ( 1 ) - State Permitted Practice Derivative instruments and equity indexed reserves ( 100 ) - Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,897 1,947 LLC notes and variable value surplus notes 1,640 1,648 Excess of loss reinsurance agreements 452 419 (1) These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48 or are compliant under AG48 requirements. The NAIC has adopted RBC requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75 % and 100 %, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2020, the consolidated RBC ratio for LNC’s statutory insurance companies was in excess of four times the aforementioned company action level RBC. Our insurance subsidiaries are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, our Indiana insurance subsidiaries, including our primary insurance subsidiary, LNL, may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10 % of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiaries, LLANY, a New York-domiciled insurance company, and LLACB, a New Hampshire-domiciled company, are bound by similar restrictions, under the laws of New York and New Hampshire, respectively. Under both New York and New Hampshire law, the applicable statutory limitation on dividends is equal to the lesser of 10 % of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect our direct domestic insurance subsidiaries could pay dividends to LNC of approximately $ 865 million in 2021 without prior approval from the respective Commissioner of Insurance. All payments of principal and interest on surplus notes between LNC and our insurance subsidiaries must be approved by the respective Commissioner of Insurance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 21. Fair Value of Financial Instruments The carrying values and estimated fair values of our financial instruments (in millions) were as follows: As of December 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 123,044 $ 123,044 $ 105,200 $ 105,200 Trading securities 4,501 4,501 4,673 4,673 Equity securities 129 129 103 103 Mortgage loans on real estate 16,763 18,219 16,339 16,872 Derivative investments (1) 3,109 3,109 1,911 1,911 Other investments 3,974 3,974 2,983 2,983 Cash and invested cash 1,708 1,708 2,563 2,563 Other assets: GLB direct embedded derivatives 450 450 450 450 GLB ceded embedded derivatives 82 82 60 60 Indexed annuity ceded embedded derivatives 550 550 927 927 Separate account assets 167,965 167,965 153,566 153,566 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 3,594 ) ( 3,594 ) ( 2,585 ) ( 2,585 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,854 ) ( 1,854 ) ( 1,900 ) ( 1,900 ) Account values of certain investment contracts ( 40,947 ) ( 49,745 ) ( 38,639 ) ( 46,822 ) Short-term debt - - ( 300 ) ( 304 ) Long-term debt ( 6,682 ) ( 7,067 ) ( 6,067 ) ( 6,217 ) Reinsurance related embedded derivatives ( 392 ) ( 392 ) ( 327 ) ( 327 ) Other liabilities: Derivative liabilities (1) ( 906 ) ( 906 ) ( 349 ) ( 349 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Benefit Plans’ Assets (2) 1,736 1,736 1,589 1,589 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 18 for information regarding our benefit plans. Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. Mortgage Loans on Real Estate The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, 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 December 31, 2020 and 2019, 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. Fair Value Option Mortgage loans on real estate, net of allowance for credit losses, as reported on our Consolidated Balance Sheets, includes commercial mortgage loans for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with Modco agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on our Consolidated Statement of Comprehensive Income (Loss) for commercial mortgage loans. Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Due to lack of observable inputs as a result of a change to a third-party pricing source, certain mortgage loans electing the fair value option were categorized as Level 3 as of December 31, 2020. The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected (in millions) was as follows: As of December 31, 2020 Commercial mortgage loans: (1) Fair value $ 832 Aggregate contractual principal 839 (1) As of December 31, 2020, no loans for which the fair value option has been elected were in non-accrual status and none were more than 90 days past due and still accruing interest. Financial Instruments Carried at Fair Value We did no t have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2020 or 2019. The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels: As of December 31, 2020 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 $ - $ 97,668 $ 5,121 $ 102,789 U.S. government bonds 473 6 5 484 State and municipal bonds - 6,921 - 6,921 Foreign government bonds - 396 74 470 RMBS - 3,074 2 3,076 CMBS - 1,505 - 1,505 ABS - 6,614 570 7,184 Hybrid and redeemable preferred securities 54 457 104 615 Mortgage loans on real estate - - 832 832 Trading securities 5 3,852 644 4,501 Equity securities 22 48 59 129 Derivative investments (1) - 1,733 3,575 5,308 Cash and invested cash - 1,708 - 1,708 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 82 82 Indexed annuity ceded embedded derivatives - - 550 550 Separate account assets 606 167,351 - 167,957 Total assets $ 1,160 $ 291,333 $ 12,068 $ 304,561 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 3,594 ) $ ( 3,594 ) Reinsurance related embedded derivatives - ( 392 ) - ( 392 ) Other liabilities: Derivative liabilities (1) - ( 1,072 ) ( 2,033 ) ( 3,105 ) Total liabilities $ - $ ( 1,464 ) $ ( 5,627 ) $ ( 7,091 ) Benefit Plans’ Assets $ 207 $ 1,529 $ - $ 1,736 As of December 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 $ - $ 84,435 $ 4,281 $ 88,716 U.S. government bonds 424 6 5 435 State and municipal bonds - 5,884 - 5,884 Foreign government bonds - 303 90 393 RMBS - 3,230 11 3,241 CMBS - 1,082 1 1,083 ABS - 4,621 268 4,889 Hybrid and redeemable preferred securities 77 404 78 559 Trading securities 50 3,957 666 4,673 Equity securities 25 48 30 103 Derivative investments (1) - 1,212 1,735 2,947 Cash and invested cash - 2,563 - 2,563 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 639 152,916 - 153,555 Total assets $ 1,215 $ 260,661 $ 8,602 $ 270,478 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 327 ) - ( 327 ) Other liabilities: Derivative liabilities (1) - ( 518 ) ( 867 ) ( 1,385 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Total liabilities $ - $ ( 845 ) $ ( 3,461 ) $ ( 4,306 ) Benefit Plans’ Assets $ 195 $ 1,394 $ - $ 1,589 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. For the Year Ended December 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 4,281 $ ( 8 ) $ 284 $ 464 $ 100 $ 5,121 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 1 3 ( 20 ) - 74 RMBS 11 - - - ( 9 ) 2 CMBS 1 ( 1 ) - - - - ABS 268 - 7 496 ( 201 ) 570 Hybrid and redeemable preferred securities 78 - ( 2 ) 10 18 104 Mortgage loans on real estate - ( 1 ) ( 10 ) 56 787 832 Trading securities 666 11 - ( 32 ) ( 1 ) 644 Equity securities 30 4 - 20 5 59 Derivative investments 868 986 267 ( 363 ) ( 216 ) 1,542 Other assets: (6) GLB direct embedded derivatives 450 - - - - 450 GLB ceded embedded derivatives 60 22 - - - 82 Indexed annuity ceded embedded derivatives 927 538 - ( 915 ) - 550 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 2,585 ) ( 1,009 ) - - - ( 3,594 ) Other liabilities – GLB ceded embedded derivatives (6) ( 9 ) 9 - - - - Total, net $ 5,141 $ 552 $ 549 $ ( 284 ) $ 483 $ 6,441 For the Year Ended December 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 (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,269 $ 3 $ 180 $ 878 $ ( 49 ) $ 4,281 U.S. government bonds - - - - 5 5 Foreign government bonds 109 - 6 ( 25 ) - 90 RMBS 7 - - 21 ( 17 ) 11 CMBS 2 1 - 5 ( 7 ) 1 ABS 134 - 1 619 ( 486 ) 268 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 17 - 850 ( 268 ) 666 Equity securities 25 ( 12 ) - 17 - 30 Derivative investments 534 10 163 161 - 868 Other assets: (6) GLB direct embedded derivatives 123 327 - - - 450 GLB ceded embedded derivatives 72 ( 12 ) - - - 60 Indexed annuity ceded embedded derivatives 902 158 - ( 133 ) - 927 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,305 ) ( 900 ) - ( 380 ) - ( 2,585 ) Other liabilities – GLB ceded embedded derivatives (6) - ( 9 ) - - - ( 9 ) Total, net $ 4,014 $ ( 417 ) $ 353 $ 2,013 $ ( 822 ) $ 5,141 For the Year Ended December 31, 2018 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 10 $ ( 199 ) $ 429 $ ( 62 ) $ 3,269 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 110 - ( 1 ) - - 109 RMBS 12 - - 7 ( 12 ) 7 CMBS 6 - - 35 ( 39 ) 2 ABS 118 - ( 1 ) 223 ( 206 ) 134 Hybrid and redeemable preferred securities 76 - ( 1 ) - - 75 Equity AFS securities 162 - - - ( 162 ) - Trading securities 49 ( 5 ) - 30 ( 7 ) 67 Equity securities - ( 1 ) - - 26 25 Derivative investments 30 170 ( 69 ) 403 - 534 Other assets: (6) GLB direct embedded derivatives 903 ( 780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 ( 117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,418 ) 198 - ( 85 ) - ( 1,305 ) Other liabilities – GLB ceded embedded - - - - - - derivatives (6) ( 67 ) 67 - - - - Total, net $ 3,139 $ ( 437 ) $ ( 271 ) $ 2,045 $ ( 462 ) $ 4,014 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $ 67 million and ABS of $ 17 million. (3) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (5) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: For the Year Ended December 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,126 $ ( 250 ) $ ( 43 ) $ ( 237 ) $ ( 132 ) $ 464 Foreign government bonds - - ( 20 ) - - ( 20 ) ABS 572 - - ( 76 ) - 496 Hybrid and redeemable preferred securities 14 ( 4 ) - - - 10 Mortgage loans on real estate 71 ( 15 ) - - - 56 Trading securities 300 ( 126 ) ( 40 ) ( 166 ) - ( 32 ) Equity securities 22 ( 2 ) - - - 20 Derivative investments 520 ( 412 ) ( 471 ) - - ( 363 ) Other assets – indexed annuity ceded embedded derivatives 25 - - ( 940 ) - ( 915 ) Future contract benefits – indexed annuity - and IUL contracts embedded derivatives ( 284 ) - - 284 - - Total, net $ 2,366 $ ( 809 ) $ ( 574 ) $ ( 1,135 ) $ ( 132 ) $ ( 284 ) For the Year Ended December 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,170 $ ( 28 ) $ ( 78 ) $ ( 156 ) $ ( 30 ) $ 878 Foreign government bonds - - ( 25 ) - - ( 25 ) RMBS 21 - - - - 21 CMBS 7 - - ( 2 ) - 5 ABS 646 ( 8 ) - ( 19 ) - 619 Trading securities 872 - - ( 22 ) - 850 Equity securities 50 ( 33 ) - - - 17 Derivative investments 555 ( 63 ) ( 331 ) - - 161 Other assets – indexed annuity ceded embedded derivatives 56 - - ( 189 ) - ( 133 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 591 ) - - 211 - ( 380 ) Total, net $ 2,786 $ ( 132 ) $ ( 434 ) $ ( 177 ) $ ( 30 ) $ 2,013 For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 947 $ ( 161 ) $ ( 3 ) $ ( 277 ) $ ( 77 ) $ 429 U.S. government bonds - ( 5 ) - - - ( 5 ) RMBS 7 - - - - 7 CMBS 39 - - ( 4 ) - 35 ABS 240 ( 17 ) - - - 223 Trading securities 54 ( 24 ) - - - 30 Equity securities 1 ( 1 ) - - - - Derivative investments 365 464 ( 426 ) - - 403 Other assets – indexed annuity ceded embedded derivatives 1,030 - - ( 22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 199 - ( 85 ) Total, net $ 2,399 $ 256 $ ( 429 ) $ ( 104 ) $ ( 77 ) $ 2,045 The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): For the Years Ended December 31, 2020 2019 2018 GLB $ 671 $ 1,015 $ ( 75 ) Derivative investments 536 168 90 Embedded derivatives – indexed annuity and IUL contracts 634 ( 97 ) ( 38 ) Total, net (1) $ 1,841 $ 1,086 $ ( 23 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, 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 Year Ended December 31, 2020 Fixed maturity AFS securities: Corporate bonds $ 58 Foreign government bonds 4 ABS 5 Hybrid and redeemable preferred securities ( 3 ) Total, net $ 64 The following provides the components of the transfers into and out of Level 3 (in millions) as reported above: For the Year Ended December 31, 2020 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 343 $ ( 243 ) $ 100 U.S. government bonds 5 ( 5 ) - RMBS 1 ( 10 ) ( 9 ) ABS 20 ( 221 ) ( 201 ) Hybrid and redeemable preferred securities 18 - 18 Mortgage loans on real estate 787 - 787 Trading securities 33 ( 34 ) ( 1 ) Equity securities 5 - 5 Derivative investments - ( 216 ) ( 216 ) Total, net $ 1,212 $ ( 729 ) $ 483 For the Year Ended December 31, 2019 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 173 $ ( 222 ) $ ( 49 ) U.S. government bonds 5 - 5 RMBS - ( 17 ) ( 17 ) CMBS - ( 7 ) ( 7 ) ABS 9 ( 495 ) ( 486 ) Trading securities 5 ( 273 ) ( 268 ) Total, net $ 192 $ ( 1,014 ) $ ( 822 ) For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ ( 140 ) $ ( 62 ) RMBS - ( 12 ) ( 12 ) CMBS 1 ( 40 ) ( 39 ) ABS - ( 206 ) ( 206 ) Equity AFS securities - ( 162 ) ( 162 ) Trading securities - ( 7 ) ( 7 ) Equity securities 26 - 26 Total, net $ 105 $ ( 567 ) $ ( 462 ) Transfers into and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2020, 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 2020, transfers into Level 3 included certain commercial mortgage loans electing the fair value option. The transfers were due to a lack of observable valuation inputs used by a third-party pricing source. 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. The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2020: Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 3,370 Discounted cash flow Liquidity/duration adjustment (2) 0.2 % - 19.9 % 1.8 % Foreign government bonds 29 Discounted cash flow Liquidity/duration adjustment (2) 6.0 % - 6.0 % 6.0 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 3.5 % - 3.5 % 3.5 % Equity securities 22 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 6.0 % 5.6 % Other assets – GLB direct and ceded embedded derivatives 532 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) % Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) % Premiums utilization factor (5) 80 % - 115 % (10) % NPR (6) 0.06 % - 1.35 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.53 % Indexed annuity ceded embedded derivatives 550 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 3,594 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) % Mortality rate (7) (9) (10) (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) 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. (3) 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. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) 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. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. (7) 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. (8) 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. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. 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 would have resulted 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 have resulted 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 have resulted 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 have resulted in a decrease in the fair value measurement; and an increase in the utilization of guaranteed withdrawal or volatility inputs would have resulted 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 would not have affected the other inputs. As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see Note 1. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | 22. Segment Information We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. As discussed in Note 3, we completed the acquisition of Liberty Life during the second quarter of 2018. Related results are included within the Group Protection segment. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations . The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), IUL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL and bank-owned UL and VUL products. The Group Protection segment offers group non-medical insurance products, including short and long-term disability, absence management services, term life, dental, vision and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. Other Operations includes investments related to the excess capital in our insurance subsidiaries; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off institutional pension business, the majority of which was sold on a group annuity basis; debt costs; strategic digitization expense; and other corporate investments. Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: Realized gains and losses associated with the following (“excluded realized gain (loss)”): Sales or disposals and impairments of financial assets; Changes in the fair value of equity 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 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; and Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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”); 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 Years Ended December 31, 2020 2019 2018 Revenues Operating revenues: Annuities $ 4,455 $ 4,600 $ 4,383 Retirement Plan Services 1,213 1,200 1,178 Life Insurance 7,516 7,438 6,922 Group Protection 4,793 4,588 3,757 Other Operations 185 220 235 Excluded realized gain (loss), pre-tax ( 721 ) ( 794 ) ( 46 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax ( 2 ) 6 ( 5 ) Total revenues $ 17,439 $ 17,258 $ 16,424 For the Years Ended December 31, 2020 2019 2018 Net Income (Loss) Income (loss) from operations: Annuities $ 983 $ 954 $ 1,102 Retirement Plan Services 168 172 171 Life Insurance ( 34 ) 259 645 Group Protection 43 238 187 Other Operations ( 295 ) ( 268 ) ( 225 ) Excluded realized gain (loss), after-tax ( 570 ) ( 627 ) ( 37 ) Benefit ratio unlocking, after-tax 194 277 ( 136 ) Net impact from the Tax Cuts and Jobs Act 37 17 19 Acquisition and integration costs related to mergers and acquisitions, after-tax ( 15 ) ( 103 ) ( 67 ) Gain (loss) on early extinguishment of debt, after-tax ( 12 ) ( 33 ) ( 18 ) Net income (loss) $ 499 $ 886 $ 1,641 Other segment information (in millions) was as follows: For the Years Ended December 31, 2020 2019 2018 Net Investment Income Annuities $ 1,272 $ 1,140 $ 1,005 Retirement Plan Services 933 924 899 Life Insurance 2,823 2,658 2,697 Group Protection 330 307 260 Other Operations 152 194 224 Total net investment income $ 5,510 $ 5,223 $ 5,085 For the Years Ended December 31, 2020 2019 2018 Amortization of DAC and VOBA, Net of Interest Annuities $ 387 $ 408 $ 410 Retirement Plan Services 29 26 28 Life Insurance 785 779 711 Group Protection 114 111 92 Total amortization of DAC and VOBA, net of interest $ 1,315 $ 1,324 $ 1,241 For the Years Ended December 31, 2020 2019 2018 Federal Income Tax Expense (Benefit) Annuities $ 149 $ 139 $ 183 Retirement Plan Services 24 23 29 Life Insurance ( 33 ) 47 147 Group Protection 11 63 50 Other Operations ( 82 ) ( 92 ) ( 77 ) Excluded realized gain (loss) ( 151 ) ( 167 ) ( 9 ) Gain (loss) on early extinguishment of debt ( 3 ) ( 9 ) ( 5 ) Benefit ratio unlocking 51 74 ( 36 ) Net impact from the Tax Cuts and Jobs Act ( 37 ) ( 17 ) ( 19 ) Acquisition and integration costs related to mergers and acquisitions ( 5 ) ( 28 ) ( 19 ) Total federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 As of December 31, 2020 2019 Assets Annuities $ 184,678 $ 167,443 Retirement Plan Services 45,372 40,184 Life Insurance 101,941 92,561 Group Protection 10,201 9,467 Other Operations 23,756 25,106 Total assets $ 365,948 $ 334,761 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Data | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flow Data | 23 . Supplemental Disclosures of Cash Flow Data The following summarizes our supplemental cash flow data (in millions): For the Years Ended December 31, 2020 2019 2018 Interest paid $ 283 $ 281 $ 281 Income taxes paid (received) 22 260 90 Significant non-cash investing and financing transactions: Equity securities received in exchange of fixed maturity AFS securities 19 - - Reduction of other investments in connection with the expiration of a repurchase agreement - ( 150 ) - Investments received in financing transactions - - 263 |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results of Operations | 24. Quarterly Results of Operations (Unaudited) The unaudited quarterly results of operations (in millions, except per share data) were as follows: For the Three Months Ended March 31, June 30, September 30, December 31, 2020 Total revenues $ 4,425 $ 3,517 $ 5,361 $ 4,135 Total expenses 4,391 3,678 4,901 4,046 Net income (loss) 52 ( 94 ) 398 143 Earnings (loss) per common share – basic: Net income (loss) 0.27 ( 0.49 ) 2.06 0.74 Earnings (loss) per common share – diluted: Net income (loss) 0.15 ( 0.49 ) 2.01 0.74 2019 Total revenues $ 3,965 $ 4,310 $ 4,638 $ 4,344 Total expenses 3,697 3,889 4,888 3,863 Net income (loss) 252 363 ( 161 ) 431 Earnings (loss) per common share – basic: Net income (loss) 1.23 1.80 ( 0.81 ) 2.18 Earnings (loss) per common share – diluted: Net income (loss) 1.22 1.79 ( 0.83 ) 2.15 |
SCHEDULE I - CONSOLIDATED SUMMA
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES (in millions) Column A Column B Column C Column D As of December 31, 2020 Fair Carrying Type of Investment Cost Value Value Fixed Maturity Available-For-Sale Securities (1) Bonds: U.S. government bonds $ 397 $ 484 $ 484 Foreign government bonds 384 470 470 State and municipal bonds 5,360 6,921 6,921 Public utilities 14,096 17,288 17,288 All other corporate bonds 72,193 85,501 85,501 Mortgage-backed and asset-backed securities 11,196 11,765 11,765 Hybrid and redeemable preferred securities 548 615 615 Total fixed maturity available-for-sale securities 104,174 123,044 123,044 Equity Securities Common stocks: Public utilities 5 7 7 Banks, trusts and insurance companies 33 38 38 Industrial, miscellaneous and all other 44 44 44 Non-redeemable preferred securities 50 40 40 Total equity securities 132 129 129 Trading securities 4,072 4,501 4,501 Mortgage loans on real estate (2) 16,972 18,219 16,763 Real estate 10 N/A 10 Policy loans 2,426 N/A 2,426 Derivative investments (3) 910 3,109 3,109 Other investments 3,974 3,974 3,974 Total investments $ 132,670 $ 153,956 (1) For investments deemed to have declines in value that are impairment-related, an allowance for credit losses is recorded to reduce the carrying value to their estimated realizable value. (2) Mortgage loans on real estate are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain commercial mortgage loans at fair value where the fair value option has been elected. (3) Derivative investment assets were offset by $ 906 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Registrant [Abstract] | |
Condensed financial information of registrant | LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS (Parent Company Only) (in millions, except share data) As of December 31, 2020 2019 ASSETS Investments in subsidiaries (1) $ 27,677 $ 24,029 Other investments 933 382 Cash and invested cash 114 577 Loans and accrued interest to subsidiaries (1) 2,960 2,446 Other assets 83 28 Total assets $ 31,767 $ 27,462 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities Common stock dividends payable $ 81 $ 79 Derivative investments liability 552 110 Short-term debt - 300 Long-term debt 6,682 6,067 Loans from subsidiaries (1) 1,424 844 Payables for collateral on investments 7 6 Other liabilities 322 367 Total liabilities 9,068 7,773 Contingencies and Commitments Stockholders’ Equity Preferred stock – 10,000,000 shares authorized - - Common stock – 800,000,000 shares authorized 5,082 5,162 Retained earnings 8,686 8,854 Accumulated other comprehensive income (loss) 8,931 5,673 Total stockholders’ equity 22,699 19,689 Total liabilities and stockholders’ equity $ 31,767 $ 27,462 (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parent Company Only) (in millions) For the Years Ended December 31, 2020 2019 2018 Revenues Dividends from subsidiaries (1) $ 840 $ 830 $ 1,025 Interest from subsidiaries (1) 127 158 148 Net investment income 4 11 7 Realized gain (loss) - 2 3 Total revenues 971 1,001 1,183 Expenses Operating and administrative expenses 50 51 18 Interest – subsidiaries (1) 20 48 34 Interest – other 275 311 288 Total expenses 345 410 340 Income (loss) before federal income taxes, equity in income (loss) of subsidiaries 626 591 843 Federal income tax expense (benefit) ( 45 ) ( 52 ) ( 42 ) Income (loss) before equity in income (loss) of subsidiaries 671 643 885 Equity in income (loss) of subsidiaries ( 172 ) 243 756 Net income (loss) 499 886 1,641 Other comprehensive income (loss), net of tax: Unrealized investment gains (losses) 3,192 5,288 ( 3,449 ) Foreign currency translation adjustment 5 6 ( 9 ) Funded status of employee benefit plans 61 ( 28 ) ( 7 ) Total other comprehensive income (loss), net of tax 3,258 5,266 ( 3,465 ) Comprehensive income (loss) $ 3,757 $ 6,152 $ ( 1,824 ) (1) Eliminated in consolidation. LINCOLN NATIONAL CORPORATION SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) STATEMENTS OF CASH FLOWS (Parent Company Only) (in millions) For the Years Ended December 31, 2020 2019 2018 Cash Flows from Operating Activities Net income (loss) $ 499 $ 886 $ 1,641 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in (income) loss of subsidiaries greater than distributions (1) 172 ( 243 ) ( 756 ) Realized (gain) loss - ( 2 ) ( 3 ) Change in federal income tax accruals 24 24 15 Other 31 106 ( 27 ) Net cash provided by (used in) operating activities 726 771 870 Cash Flows from Investing Activities Capital contribution to subsidiaries (1) ( 518 ) ( 50 ) ( 502 ) Net change in collateral on investments, derivatives and related settlements ( 303 ) ( 279 ) 89 Net cash provided by (used in) investing activities ( 821 ) ( 329 ) ( 413 ) Cash Flows from Financing Activities Payment of long-term debt, including current maturities ( 1,096 ) ( 308 ) ( 537 ) Issuance of long-term debt, net of issuance costs 1,289 744 1,094 Payment related to early extinguishment of debt ( 13 ) ( 42 ) ( 23 ) Increase (decrease) in loans from subsidiaries, net (1) 565 264 52 Increase (decrease) in loans to subsidiaries, net (1) ( 514 ) ( 70 ) ( 48 ) Common stock issued for benefit plans ( 7 ) ( 20 ) ( 6 ) Repurchase of common stock ( 275 ) ( 550 ) ( 900 ) Dividends paid to common stockholders ( 311 ) ( 303 ) ( 289 ) Other ( 6 ) - - Net cash provided by (used in) financing activities ( 368 ) ( 285 ) ( 657 ) Net increase (decrease) in cash, invested cash and restricted cash ( 463 ) 157 ( 200 ) Cash, invested cash and restricted cash as of beginning-of-year 577 420 620 Cash, invested cash and restricted cash as of end-of-year $ 114 $ 577 $ 420 (1) Eliminated in consolidation. |
SCHEDULE III - CONSOLIDATED SUP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (in millions) Column A Column B Column C Column D Column E Column F Other Future Contract DAC and Contract Unearned Holder Insurance Segment VOBA Benefits Premiums (1) Funds Premiums As of or For the Year Ended December 31, 2020 Annuities $ 3,782 $ 4,183 $ - $ 35,218 $ 121 Retirement Plan Services 120 11 - 22,912 - Life Insurance 1,723 20,127 - 39,797 950 Group Protection 187 5,986 - 213 4,280 Other Operations - 10,507 - 7,265 21 Total $ 5,812 $ 40,814 $ - $ 105,405 $ 5,372 As of or For the Year Ended December 31, 2019 Annuities $ 3,790 $ 3,862 $ - $ 29,493 $ 502 Retirement Plan Services 176 9 - 20,553 - Life Insurance 3,519 16,249 - 39,941 885 Group Protection 209 5,601 - 194 4,113 Other Operations - 10,699 - 7,837 13 Total $ 7,694 $ 36,420 $ - $ 98,018 $ 5,513 As of or For the Year Ended December 31, 2018 Annuities $ 3,660 $ 3,509 $ - $ 23,493 $ 390 Retirement Plan Services 243 8 - 19,761 - Life Insurance 6,151 13,139 - 40,997 817 Group Protection 210 5,396 - 197 3,383 Other Operations - 12,596 - 6,785 11 Total $ 10,264 $ 34,648 $ - $ 91,233 $ 4,601 (1) Unearned premiums are included in Column C, future contract benefits. LINCOLN NATIONAL CORPORATION SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) (in millions) Column A Column G Column H Column I Column J Column K Benefits Amortization Net and of DAC Other Investment Interest and Operating Premiums Segment Income Credited VOBA Expenses Written As of or For the Year Ended December 31, 2020 Annuities $ 1,272 $ 1,245 $ 365 $ 1,467 $ - Retirement Plan Services 933 617 29 375 - Life Insurance 2,823 6,077 786 720 - Group Protection 330 3,505 114 1,120 - Other Operations 152 156 - 456 - Total $ 5,510 $ 11,600 $ 1,294 $ 4,138 $ - As of or For the Year Ended December 31, 2019 Annuities $ 1,140 $ 1,248 $ 452 $ 1,463 $ - Retirement Plan Services 924 587 26 392 - Life Insurance 2,658 5,616 779 737 - Group Protection 307 3,041 111 1,134 - Other Operations 194 168 - 626 - Total $ 5,223 $ 10,660 $ 1,368 $ 4,352 $ - As of or For the Year Ended December 31, 2018 Annuities $ 1,005 $ 1,465 $ 373 $ 1,428 $ - Retirement Plan Services 899 557 28 393 - Life Insurance 2,697 4,759 711 660 - Group Protection 260 2,460 92 967 - Other Operations 224 162 - 507 - Total $ 5,085 $ 9,403 $ 1,204 $ 3,955 $ - |
SCHEDULE IV - CONSOLIDATED REIN
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance Supplemental Schedule | LINCOLN NATIONAL CORPORATION SCHEDULE IV – CONSOLIDATED REINSURANCE (in millions) Column A Column B Column C Column D Column E Column F Ceded Assumed Percentage to from of Amount Gross Other Other Net Assumed Description Amount Companies Companies Amount to Net As of or For the Year Ended December 31, 2020 Individual life insurance in-force (1) $ 1,653,625 $ 674,256 $ 7,875 $ 987,244 0.8 % Premiums: Life insurance and annuities (2) 10,474 1,621 88 8,941 1.0 % Accident and health insurance 2,830 35 7 2,802 0.2 % Total premiums $ 13,304 $ 1,656 $ 95 $ 11,743 As of or For the Year Ended December 31, 2019 Individual life insurance in-force (1) $ 1,524,977 $ 628,654 $ 7,611 $ 903,934 0.8 % Premiums: Life insurance and annuities (2) 10,725 1,545 82 9,262 0.9 % Accident and health insurance 2,773 34 9 2,748 0.3 % Total premiums $ 13,498 $ 1,579 $ 91 $ 12,010 As of or For the Year Ended December 31, 2018 Individual life insurance in-force (1) $ 1,420,500 $ 667,900 $ 8,700 $ 761,300 1.1 % Premiums: Life insurance and annuities (2) 9,742 1,509 81 8,314 1.0 % Accident and health insurance 2,299 34 8 2,273 0.4 % Total premiums $ 12,041 $ 1,543 $ 89 $ 10,587 (1) Includes Group Protection segment and Other Operations in-force amounts. (2) Includes insurance fees on universal life and other interest-sensitive products. |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
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 22 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, retirement income and group protection 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 consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. As discussed in Note 3, on May 1, 2018, LNC and The Lincoln National Life Insurance Company (“LNL”) completed the acquisition of Liberty Life Assurance Company of Boston (“Liberty Life”). We use the equity method of accounting to recognize all of our investments in limited liability partnerships. All material inter-company accounts and transactions have been eliminated in consolidation. Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain financial assets, derivatives, allowances for credit losses, deferred acquisition costs (“DAC”) , value of business acquired (“VOBA”) , deferred sales inducements (“DSI”), goodwill and other intangibles, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”) , income taxes including the recoverability of our deferred tax assets, and the potential effects of resolving litigated matters. |
Business Combinations | Business Combinations We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. |
Fair Value Measurement | Fair Value Measurement Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk (“NPR”), which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification TM (“ASC”), we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. |
Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs | Fixed Maturity Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs Securities classified as available-for-sale (“AFS”) consist of fixed maturity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI , future contract benefits, other contract holder funds and deferred income taxes. We measure the fair value of our securities classified as fixed maturity AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our fixed maturity AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all fixed maturity AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our fixed maturity AFS securities discussed above: Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance Engine TM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. Mortgage- and asset-backed securities (“ABS”) – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. Hybrid and redeemable preferred securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred securities. In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. |
Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost | Fixed Maturity AFS Securities – Evaluation for Recovery of Amortized Cost We regularly review our fixed maturity AFS securities (also referred to as “debt securities”) for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require a credit loss allowance. For our debt securities, we generally consider the following to determine whether our debt securities with unrealized losses are credit impaired: The estimated range and average period until recovery; The estimated range and average holding period to maturity; Remaining payment terms of the security; Current delinquencies and nonperforming assets of underlying collateral; Expected future default rates; Collateral value by vintage, geographic region, industry concentration or property type; Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and Contractual and regulatory cash obligations. For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an impairment has occurred, and a credit loss allowance is recorded, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The remainder of the decline to fair value related to factors other than credit loss is recorded in other comprehensive income (“OCI”) to unrealized losses on fixed maturity AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit impairment. When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. Management considers the following as part of the evaluation: The current economic environment and market conditions; Our business strategy and current business plans; The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; The capital risk limits approved by management; and Our current financial condition and liquidity demands. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, that we use to determine the amount of a credit loss. To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: Historical and implied volatility of the security; The extent to which the fair value has been less than amortized cost; Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; Failure, if any, of the issuer of the security to make scheduled payments; and Recoveries or additional declines in fair value subsequent to the balance sheet date. In periods subsequent to the recognition of a credit loss impairment through a credit loss allowance, we continue to reassess the expected cash flows of the debt security at each subsequent measurement date as necessary. If the measurement of credit loss changes, we recognize a provision for (or reversal of) credit loss expense through realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), limited by the amount that amortized cost exceeds fair value. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on debt securities is written-off when deemed uncollectible. To determine the recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; Fundamentals of the industry in which the issuer operates; Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); Expectations regarding defaults and recovery rates; Changes to the rating of the security by a rating agency; and Additional market information (e.g., if there has been a replacement of the corporate debt security). Each quarter, we review the cash flows for the MBS portfolio, including current credit enhancements and trends in the underlying collateral performance to determine whether or not they are sufficient to provide for the recovery of our amortized cost. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; Level of borrower creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; Susceptibility to fair value fluctuations for changes in the interest rate environment; Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and Susceptibility to variability of prepayments. When evaluating MBS and mortgage-related ABS, we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security requires a credit loss allowance. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include the credit characteristics of borrowers, geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. 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. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for a credit loss by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired through a credit loss allowance or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no credit loss allowance is required. Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then an impairment through a credit loss allowance is recognized. We further monitor the cash flows of all of our debt securities backed by mortgages on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our debt securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment through a credit loss allowance for the security. |
Trading Securities | Trading Securities Trading securities consist of fixed maturity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance agreements. Investment results for the portfolios that support Modco and CFW reinsurance agreements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance agreements. Trading securities are carried at fair value, and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance agreements are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. |
Equity Securities | Equity Securities Equity securities are carried at fair value, and changes in fair value are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. Equity securities consist primarily of common stock of publicly-traded companies, privately placed securities and mutual fund shares. We measure the fair value of our equity securities based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the equity security. Fair values of publicly-traded equity securities are determined using quoted prices in active markets for identical or comparable securities. When quoted prices are not available, we use valuation methodologies most appropriate for the specific asset. Fair values for private placement securities are determined using discounted cash flow, earnings multiple and other valuation models. The fair values of mutual fund shares that transact regularly are based on transaction prices of identical fund shares. |
Alternative Investments | Alternative Investments Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our private equity investments are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. |
Payables for Collateral on Investments | Payables for Collateral on Investments When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash or non-cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Mortgage loans on real estate consist of commercial and residential mortgage loans and are generally carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of allowance for credit losses. We carry certain commercial mortgage loans at fair value where the fair value option has been elected. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. Our policy for commercial mortgage loans is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. Our policy for residential mortgage loans is to report loans that are 90 or more days past due, which equates to three or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectability of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are likewise credited to the allowance for credit losses. Accrued interest on mortgage loans is written-off when deemed uncollectible. In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. Our model estimates expected credit losses over the contractual terms of the loans, which are the periods over which we are exposed to credit risk, adjusted for expected prepayments. Credit loss estimates are segmented by commercial mortgage loans, residential mortgage loans, and unfunded commitments related to commercial mortgage loans. The allowance for credit losses for pooled loans of similar risk (i.e., commercial and residential mortgage loans) is estimated using relevant historical credit loss information adjusted for current conditions and reasonable and supportable forecasts of future conditions. Historical credit loss experience provides the basis for the estimation of expected credit losses with adjustments for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term lengths as well as adjustments for changes in environmental conditions, such as unemployment rates, property values, or other factors that management deems relevant. We apply probability weights to the positive, base and adverse scenarios we use. For periods beyond our reasonable and supportable forecast, we use implicit mean reversion over the remaining life of the recoverable, meaning our model will inherently revert to the baseline scenario as the baseline is representative of the historical average over a longer period of time. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a specific credit loss allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Allowance for credit losses are maintained at a level we believe is adequate to absorb current expected lifetime credit losses. Our periodic evaluation of the adequacy of the allowance for credit losses is based on historical loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, reasonable and supportable forecasts about the future and other relevant factors. Mortgage loans on real estate are presented net of the allowance for credit losses on our Consolidated Balance Sheets. Changes in the allowance are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Mortgage loans on real estate deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. Our commercial loan portfolio is primarily comprised of long-term loans secured by existing commercial real estate. We believe all of the commercial loans in our portfolio share three primary risks: borrower credit worthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods of monitoring and assessing credit risk are consistent for our entire portfolio. For our commercial mortgage loan portfolio, trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase a credit loss allowance for a specific loan based upon this analysis. We measure and assess the credit quality of our commercial mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100 % indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. These credit quality metrics are monitored and reviewed at least annually. Most of our off-balance sheet commitments relate to commercial mortgage loans. As such, an allowance for credit losses is developed based on the commercial mortgage loan process outlined above, along with an internally developed conversion factor. Our residential loan portfolio is primarily comprised of first lien mortgages secured by existing residential real estate. In contrast to the commercial mortgage loan portfolio, residential mortgage loans are primarily smaller-balance homogenous loans that share similar risk characteristics. Therefore, these pools of loans are collectively evaluated for inherent credit losses. Such evaluations consider numerous factors, including, but not limited to borrower credit scores, collateral values, loss forecasts, geographic location, delinquency rates and economic trends. These evaluations and assessments are revised as conditions change and new information becomes available, including updated forecasts, which can cause the allowance for credit losses to increase or decrease over time as such evaluations are revised. Generally, residential mortgage loan pools exclude loans that are nonperforming, as those loans are evaluated individually using the evaluation framework for specific allowance for credit losses described above. For residential mortgage loans, our primary credit quality indicator is whether the loan is performing or nonperforming. We generally define nonperforming residential mortgage loans as those that are 90 or more days past due and/or in nonaccrual status. There is generally a higher risk of experiencing credit losses when a residential mortgage loan is nonperforming. We monitor and update aging schedules and nonaccrual status on a monthly basis. |
Policy Loans | Policy Loans Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. |
Real Estate | Real Estate Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. |
Derivative Instruments | Derivative Instruments We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. W e categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative is carried at fair value with changes in fair value recognized in net income during the period of change. We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. |
Cash And Invested Cash | Cash and Invested Cash Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less . |
DAC, VOBA, DSI and DFEL | DAC, VOBA, DSI and DFEL Acquisition costs directly related to successful contract acquisitions or renewals of UL, VUL, traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 15 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated lower lapse experience. Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that generally results in amortization less than 30 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no intangible balance or related amortization for fixed and variable payout annuities. We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as fixed maturity AFS and certain derivatives and embedded derivatives . Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products. These assumptions include, but are not limited to, capital markets, investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. |
Reinsurance | Reinsurance Our insurance subsidiaries enter into reinsurance agreements in the normal course of business to limit our exposure to the risk of loss and to enhance our capital management. In order for a reinsurance agreement to qualify for reinsurance accounting, the agreement must satisfy certain risk transfer conditions that include, among other items, a reasonable possibility of a significant loss for the assuming entity. When we apply reinsurance accounting, premiums, benefits and DAC amortization are reported net of insurance ceded on our Consolidated Statements of Comprehensive Income (Loss). Amounts currently recoverable, such as ceded reserves, are reported in reinsurance recoverables and amounts currently payable to the reinsurers, such as premiums, are included in other liabilities on our Consolidated Balance Sheets. Assets and liabilities and revenue and expenses from certain reinsurance contracts that grant statutory surplus relief to our insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, if there is a contractual right of offset. We use deposit accounting to recognize reinsurance agreements that do not transfer significant insurance risk. This accounting treatment results in amounts paid or received by our insurance subsidiaries to be considered on deposit with the reinsurer and such amounts are reported in other assets and other liabilities, respectively, on our Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, deposit assets or liabilities are adjusted. We estimated an allowance for credit losses for all reinsurance recoverables and related reinsurance deposit assets held by our subsidiaries. As such, we performed a quantitative analysis using a probability of loss approach to estimate expected credit losses for reinsurance recoverables, inclusive of similar assets recognized using the deposit method of accounting. The credit loss allowance is a general allowance for pools of receivables with similar risk characteristics segmented by credit risk ratings and receivables assessed on an individual basis that do not share similar risk characteristics where we anticipate a credit loss over the life of reinsurance-related assets. Our model uses relevant internal or external historical loss information adjusted for current conditions and reasonable and supportable forecasts of future events and conditions in developing our loss estimate. We utilized historical credit rating data to form an estimation of probability of default of counterparties by means of a transition matrix that provides the rates of credit migration for credit ratings transitioning to impairment. We updated reinsurer credit ratings during the quarter to incorporate the most up-to-date information on the current state of the financial stability of our reinsurers. To simulate changes in economic conditions, we used positive, base and adverse scenarios that include varying levels of loss given default assumptions to reflect the impact of changes in severity of losses. We applied probability weights to the positive, base and adverse scenarios. For periods beyond our reasonable and supportable forecasts, we used implicit mean reversion over the remaining life of the recoverable. Additionally, we considered factors that impact our exposure at default that are driven by actuarial expectations around term and mortality assumptions rather than being directly driven by market or economic environment. Our model estimates the expected credit losses over the life of the reinsurance asset. Credit loss estimates are segmented based on counterparty credit risk. Our modeling process utilizes counterparty credit ratings, collateral types and amounts, and term and run-off assumptions. For reinsurance recoverables that do not share similar risk characteristics, we assessed on an individual basis to determine a specific credit loss allowance. We estimated expected credit losses over the contractual term of the recoverable, which is the period during which we are exposed to the credit risk. Reinsurance recoverables may not have explicit contractual lives, but are tied to the underlying insurance products; as a result, we estimated the contractual life by utilizing actuarial estimates of the timing of payouts related to those underlying products. Reinsurance agreements often require the reinsurer to collateralize the recoverable with funds in a trust account for the benefit of the ceding insurance entity that can reduce the expected credit losses on a given agreement. As such, we review reinsurance collateral by individual agreement to sensitize risk of loss based on level of collateralization. This review is driven by the assumption that non-collateralized reinsurance recoverables would have materially higher losses in time of default. Therefore, reinsurance recoverables are pooled as either fully-collateralized or non-collateralized. Reinsurance recoverables are presented net of the allowance for credit losses on our Consolidated Balance Sheets. Changes in the allowance for credit losses are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Reinsurance recoverables deemed uncollectible are charged against the allowance for credit losses, and subsequent recoveries, if any, are credited to the allowance for credit losses, limited to the aggregate of amounts previously charged-off and expected to be charged-off. |
Goodwill | Goodwill We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed for impairment annually as of October 1 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform a quantitative goodwill impairment test where the fair value of the reporting unit is determined and compared to the carrying value of the reporting unit. If the carrying value of the reporting unit is greater than the reporting unit’s fair value, goodwill is impaired and written down to the reporting unit’s fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). The results of one goodwill impairment test on one reporting unit cannot subsidize the results of another reporting unit. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of certain reinsurance assets, net of allowance for credit losses, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, DSI, operating lease right-of-use (“ROU”) assets, finance lease assets, certain financing arrangements, debt issuance costs associated with line-of-credit arrangements and other receivables and prepaid expenses. Other liabilities consist primarily of certain reinsurance payables, current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, long-term operating lease liabilities, finance lease liabilities, certain financing arrangements, deferred gain on business sold through reinsurance and other accrued expenses. Other assets and other liabilities on our Consolidated Balance Sheets include guaranteed living benefit (“GLB”) features and remaining guaranteed interest and similar contracts that are carried at fair value, which may be reported in either other assets or other liabilities. The fair value of these items represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are related to credit loss or non-credit, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Specifically identifiable intangible assets also includes the value of customer relationships acquired (“VOCRA”) and value of distribution agreements (“VODA”). The carrying values of VOCRA and VODA are amortized using a straight-line basis over their weighted average life of 20 years and 13 years, respectively. See Note 10 for more information regarding specifically identifiable intangible assets. Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. Certain assets on our Consolidated Balance Sheets are related to finance leases and certain financing arrangements and are depreciated in a manner consistent with our current depreciation policy for owned assets. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. We lease office space and certain equipment under various long-term lease agreements. 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 lease liability carrying amount, plus or minus prepaid/accrued lease payments, minus the unamortized balance of lease incentives received, plus unamortized initial direct costs. Lease terms used to calculate our lease obligation include options when we are 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. Other liabilities includes a deferred gain on business sold through reinsurance attributable to a reinsurance agreement with Swiss Re Life & Health America, Inc (“Swiss Re”) effective January 1, 2020. We are recognizing the gain related to this transaction over the period over which the majority of account values are expected to run off, or 15 years. Other liabilities includes a deferred gain on business sold through reinsurance attributable to our annuity reinsurance agreement with Athene Holding Ltd. (“Athene”) effective October 1, 2018. We are recognizing the gain related to this transaction over the period over which the majority of account values are expected to run off, or 20 years. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that may include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80. The highest contract value is increased by purchase payments and is decreased by withdrawals subsequent to that anniversary date in the same proportion that withdrawals reduce the contract value. As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 47 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include, but are not limited to, assumptions for capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, rider utilization, etc.), mortality, risk margins, maintenance expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. |
Future Contract Benefits and Other Contract Holder Funds | Future Contract Benefits and Other Contract Holder Funds Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well as the carrying value of DFEL discussed above. The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that are equal to deposits net of withdrawals, excluding surrender charges and fees, plus interest credited, and if applicable an additional reserve for other insurance benefit guarantees. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25 % to 7.75 % depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.25 % to 12.75 %. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported in benefits on our Consolidated Statements of Comprehensive Income (Loss). The liability for future claim reserves for long-term disability contracts for incurred and reported claims are calculated based on assumptions as to interest, claim resolution rates and offsets for other insurance including social security. Claim resolution rate assumptions and social security offsets are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for assets supporting the liabilities. The incurred but not reported claim reserves are based on our experiences as to the reporting lags and ultimate loss experience. Claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. Claim reserves do not include a provision for adverse deviation. With respect to our future contract benefits and other contract holder funds , we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2020 and 2019, participating policies comprised less than 1 % of the face amount of business in force, and dividend expenses were $ 53 million, $ 51 million and $ 56 million for the years ended December 31, 2020, 2019 and 2018, respectively. Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. Certain of our variable annuity contracts reported within future contract benefits contain GLB reserves embedded derivatives, a portion of which may be reported in either other assets or other liabilities, and include guaranteed interest and similar contracts, that are carried at fair value on our Consolidated Balance Sheets, which represents approximate exit price including an estimate for our NPR. Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, for reserve calculation purposes we assign product cash flows to the embedded derivative or insurance portion of the reserves based on the life-contingent nature of the benefits. We classify these GLB reserves embedded derivatives items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” We report the insurance portion of the reserves in future contract benefits. The fair value of our indexed annuity contracts is based on their approximate surrender values. |
Short-Term and Long-Term Debt | Short-term and Long-term Debt Short-term debt has contractual or expected maturities of one year or less. Long-term debt has contractual or expected maturities greater than one year. |
Contingencies and Commitments | Contingencies and Commitments Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. |
Fee Income | Fee Income Fee income for investment and interest-sensitive life insurance contracts consists of asset-based fees, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees and contract administration charges are assessed on a daily or monthly basis and recognized as revenue as performance obligations are met, over the period underlying customer assets are owned or advisory services are provided. Wholesaling-related 12b-1 fees received from separate account fund sponsors as compensation for servicing the underlying mutual funds are recorded as revenues based on a contractual percentage of the market value of mutual fund assets over the period shares are owned by customers. Net investment advisory fees related to asset management of certain separate account funds are recorded as revenues based on a contractual percentage of the customer’s managed assets over the period advisory services are provided. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. |
Insurance Premiums | Insurance Premiums Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group insurance products consist primarily of term life, disability and dental. |
Net Investment Income | Net Investment Income We earn investment income on the underlying general account investments supporting our fixed products less related expenses. Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. For CLOs and MBS, included in the trading and fixed maturity AFS securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Realized Gain (Loss) | Realized Gain (Loss) Realized gain (loss) includes realized gains and losses from the sale of investments, write-downs for impairments of investments and changes in the allowance for credit losses for financial assets, changes in fair value for mortgage loans on real estate accounted for under the fair value option, changes in fair value of equity securities, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. |
Other Revenues | Other Revenues Other revenues consists primarily of fees attributable to broker-dealer services recorded as performance obligations are met, either at the time of sale or over time based on a contractual percentage of customer account values, changes in the market value of our seed capital investments, and proceeds from reinsurance recaptures. The broker-dealer services primarily relate to our retail sales network and consist of commission revenue for the sale of non-affiliated securities recorded on a trade date basis and advisory fee income. Advisory fee income is asset-based revenues recorded as earned based on a contractual percentage of customer account values. Other revenues earned by our Group Protection segment consist of fees from administrative services performed, which are recognized as performance obligations are met over the terms of the underlying agreements. |
Interest Credited | Interest Credited We credit interest to our contract holder account balances based on the contractual terms supporting our products. |
Benefits | Benefits Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. |
Strategic Digitization Expense | Strategic Digitization Expense Strategic digitization expense consists primarily of costs related to our enterprise-wide digitization initiative. |
Pensions and Other Post Retirement Benefit Plan | Pension and Other Postretirement Benefit Plans Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. The mortality assumption is based on actual and anticipated plan experience, determined using acceptable actuarial methods. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. |
Stock-Based Compensation | Stock-Based Compensation In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date our stock awards are approved, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholders’ equity. We apply an estimated forfeiture rate to our accrual of compensation cost. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Interest and Debt Expense | Interest and Debt Expense Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts and debt issuance costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. |
Income Taxes | Income Taxes We file a U.S. consolidated income tax return that includes all of our eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside of the U.S. are taxed, and income tax expense is recorded, based on applicable foreign statutes. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. |
Foreign Currency Translation | Foreign Currency Translation The balance sheet accounts and income statement items of foreign subsidiaries, reported in functional currencies other than the U.S. dollar are translated at the current and average exchange rates for the year, respectively. Resulting translation adjustments and other translation adjustments for foreign currency transactions that affect cash flows are reported in AOCI, a component of stockholders’ equity. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of dilutive convertible preferred securities, nonvested stock, stock options, performance share units and warrants outstanding during the year. Our deferred compensation plans allow participants the option to diversify from LNC stock to other investment alternatives. When calculating our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude these shares from our calculation, unless the effect of settlement in shares would be more dilutive to our diluted EPS calculation. For any period where a net loss is experienced, shares used in the diluted EPS calculation represent basic shares, as the use of diluted shares would result in a lower loss per share. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Consolidated Variable Interest Entity Asset and Liability information | As of December 31, 2020 As of December 31, 2019 Number Number of Notional Carrying of Notional Carrying Instruments Amounts Value Instruments Amounts Value Assets Total return swap 1 $ 611 $ - 1 $ 613 $ - |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds $ 86,289 $ 16,662 $ 150 $ 12 $ 102,789 U.S. government bonds 397 88 1 - 484 State and municipal bonds 5,360 1,561 - - 6,921 Foreign government bonds 384 87 1 - 470 RMBS 2,765 313 1 1 3,076 CMBS 1,390 115 - - 1,505 ABS 7,041 158 15 - 7,184 Hybrid and redeemable preferred securities 548 97 30 - 615 Total fixed maturity AFS securities $ 104,174 $ 19,081 $ 198 $ 13 $ 123,044 The amortized cost, gross unrealized gains, losses, OTTI and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2019 Amortized Gross Unrealized Fair Cost Gains Losses OTTI (1) Value Fixed maturity AFS securities: Corporate bonds $ 79,417 $ 9,479 $ 184 $ ( 4 ) $ 88,716 U.S. government bonds 384 51 - - 435 State and municipal bonds 4,778 1,113 7 - 5,884 Foreign government bonds 329 64 - - 393 RMBS 3,042 190 10 ( 19 ) 3,241 CMBS 1,038 45 1 ( 1 ) 1,083 ABS 4,810 62 18 ( 35 ) 4,889 Hybrid and redeemable preferred securities 497 82 20 - 559 Total fixed maturity AFS securities $ 94,295 $ 11,086 $ 240 $ ( 59 ) $ 105,200 (1) Prior to the adoption of ASU 2016-13, we recognized the OTTI attributed to noncredit factors as a separate component in OCI referred to as unrealized OTTI on fixed maturity AFS securities. This 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 $ 3,319 $ 3,344 Due after one year through five years 15,016 16,052 Due after five years through ten years 19,105 21,660 Due after ten years 55,538 70,223 Subtotal 92,978 111,279 Structured securities (RMBS, CMBS, ABS) 11,196 11,765 Total fixed maturity AFS securities $ 104,174 $ 123,044 |
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds $ 3,039 $ 92 $ 607 $ 58 $ 3,646 $ 150 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 45 1 7 - 52 1 ABS 1,527 9 358 6 1,885 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities $ 4,808 $ 117 $ 1,068 $ 81 $ 5,876 $ 198 Total number of fixed maturity AFS securities in an unrealized loss position 802 (1) We recognized $ 1 million of gross unrealized losses in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value and gross unrealized losses, including the portion of OTTI recognized in 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 December 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 $ 2,935 $ 46 $ 1,406 $ 141 $ 4,341 $ 187 State and municipal bonds 333 7 18 - 351 7 RMBS 536 10 15 - 551 10 CMBS 48 1 4 - 52 1 ABS 1,792 8 303 10 2,095 18 Hybrid and redeemable preferred securities 29 1 102 19 131 20 Total fixed maturity AFS securities $ 5,673 $ 73 $ 1,848 $ 170 $ 7,521 $ 243 Total number of fixed maturity AFS securities in an unrealized loss position 895 |
Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost | As of December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1) Less than six months $ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 23 7 14 Twelve months or greater 30 11 20 Total $ 118 $ 42 52 (1) We may reflect a security in more than one aging category based on various purchase dates. 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 December 31, 2019 Number Fair Gross Unrealized of Value Losses OTTI Securities (1) Less than six months $ 15 $ 5 $ - 7 Six months or greater, but less than nine months 10 3 - 4 Twelve months or greater 132 76 - 31 Total $ 157 $ 84 $ - 42 (1) We may reflect a security in more than one aging category based on various purchase dates. |
Changes In Allowance For Credit Losses On AFS | For the Year Ended December 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year $ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 43 1 1 45 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized ( 1 ) - ( 1 ) ( 2 ) Reductions for securities disposed ( 17 ) - - ( 17 ) Reductions for securities charged-off ( 13 ) - - ( 13 ) Balance as of end-of-year (2) $ 12 $ 1 $ - $ 13 (1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities. (2) Accrued interest receivable on fixed maturity AFS securities totaled $ 1.0 billion as of Dec ember 31, 2020, and was excluded from the estimate of credit losses. |
Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | For the Years Ended December 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 13 5 Credit losses on securities for which an OTTI was previously recognized 3 2 Decreases attributable to: Securities sold, paid down or matured ( 160 ) ( 30 ) Balance as of end-of-year $ 211 $ 355 |
Fair Value Of Trading Securities | As of December 31, 2020 2019 Fixed maturity securities: Corporate bonds $ 3,107 $ 2,947 U.S. government bonds - 45 State and municipal bonds 28 17 Foreign government bonds 92 44 RMBS 132 170 CMBS 134 163 ABS 966 1,238 Hybrid and redeemable preferred securities 42 49 Total trading securities $ 4,501 $ 4,673 |
Composition Of Current And Past Due Mortgage Loans On Real Estate | As of December 31, 2020 As of December 31, 2019 Commercial Residential Total Commercial Residential Total Current $ 16,245 $ 610 $ 16,855 $ 15,620 $ 659 $ 16,279 30 to 59 days past due 4 28 32 3 27 30 60 to 89 days past due - 8 8 - 10 10 90 or more days past due - 69 69 - 16 16 Allowance for credit losses ( 187 ) ( 17 ) ( 204 ) - ( 2 ) ( 2 ) Unamortized premium (discount) ( 14 ) 22 8 ( 17 ) 23 6 Mark-to-market gains (losses) (1) ( 5 ) - ( 5 ) - - - Total carrying value $ 16,043 $ 720 $ 16,763 $ 15,606 $ 733 $ 16,339 (1) Represents the mark-to-market on certain commercial mortgage loans on real estate for which we have elected the fair value option. See Note 21 for additional information. |
Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2020 2019 2018 Average carrying value for impaired mortgage loans on real estate $ 21 $ - $ 5 Interest income recognized on impaired mortgage loans on real estate - - 1 Interest income collected on impaired mortgage loans on real estate - - 1 |
Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status | As of December 31, 2020 As of January 1, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate $ - $ - $ - $ - Residential mortgage loans on real estate - 71 - 17 Total $ - $ 71 $ - $ 17 |
Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate | For the Year Ended December 31, 2020 Commercial Residential Total Balance as of beginning-of-year $ - $ 2 $ 2 Impact of adopting ASU 2016-13 62 26 88 Additions from provision for credit loss expense (1) 178 10 188 Additions from purchases of PCD mortgage loans on real estate - - - Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized (1) ( 53 ) ( 21 ) ( 74 ) Balance as of end-of-year (2) $ 187 $ 17 $ 204 (1) Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $ 114 million for the year ended December 31, 2020. For the year ended Dec ember 31, 2020, we recognized $ 2 million of credit loss expense related to unfunded commitments for mortgage loans on real estate. (2) Accrued interest receivable on mortgage loans on real estate totaled $ 49 million as of December 31, 2020, and was excluded from the estimate of credit losses. |
Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate | For the Years Ended December 31, 2019 2018 Balance as of beginning-of-year $ - $ 3 Additions - - Charge-offs, net of recoveries - ( 3 ) Balance as of end-of-year $ - $ - |
Net Investment Income | For the Years Ended December 31, 2020 2019 2018 Fixed maturity AFS securities $ 4,334 $ 4,281 $ 4,209 Trading securities 202 191 84 Equity securities 3 4 4 Mortgage loans on real estate 677 629 496 Real estate 1 1 1 Policy loans 125 129 123 Invested cash 12 40 26 Commercial mortgage loan prepayment and bond make-whole premiums 82 119 79 Alternative investments 197 22 222 Consent fees 7 8 4 Other investments 45 30 23 Investment income 5,685 5,454 5,271 Investment expense ( 175 ) ( 231 ) ( 186 ) Net investment income $ 5,510 $ 5,223 $ 5,085 |
Credit Loss Expense Incurred | For the Years Ended December 31, 2020 2019 2018 Credit Loss Expense Recognized in Net Income (Loss) (1) Fixed maturity AFS securities: Corporate bonds $ ( 25 ) $ ( 14 ) $ ( 5 ) RMBS ( 1 ) ( 1 ) ( 1 ) ABS - ( 1 ) ( 1 ) Gross credit loss expense recognized in net income (loss) ( 26 ) ( 16 ) ( 7 ) Associated amortization of DAC, VOBA, DSI and DFEL 1 1 - Net credit loss expense recognized in net income (loss) $ ( 25 ) $ ( 15 ) $ ( 7 ) (1) For the year ended December 31, 2020, we recognized credit loss expense incurred and write-downs taken as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the years ended December 31, 2019 and 2018, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss). |
Payables For Collateral On Investments | As of December 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1) $ 2,976 $ 2,976 $ 1,388 $ 1,388 Securities pledged under securities lending agreements (2) 116 112 114 110 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 3,130 5,049 3,580 5,480 Total payables for collateral on investments $ 6,222 $ 8,137 $ 5,082 $ 6,978 (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 investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105 % to 115 % of the fair value for fixed maturity AFS securities and 155 % to 175 % of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Schedule Of Increase (Decrease) In Payables For Collateral On Investments | For the Years Ended December 31, 2020 2019 2018 Collateral payable for derivative investments $ 1,588 $ 751 $ ( 128 ) Securities pledged under securities lending agreements 2 26 ( 134 ) Securities pledged under repurchase agreements - ( 150 ) ( 380 ) Investments pledged for FHLBI ( 450 ) ( 350 ) 1,030 Total increase (decrease) in payables for collateral on investments $ 1,140 $ 277 $ 388 |
Schedule Of Securities Pledged By Contractual Maturity | As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Foreign government bonds 2 - - - 2 Total gross secured borrowings $ 116 $ - $ - $ - $ 116 As of December 31, 2019 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds $ 114 $ - $ - $ - $ 114 Total gross secured borrowings $ 114 $ - $ - $ - $ 114 |
Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2020 As of December 31, 2019 Debt- Debt- Service Service Amortized % of Coverage Amortized % of Coverage Loan-to-Value Ratio Cost Total Ratio Cost Total Ratio Less than 65% $ 15,236 93.8 % 2.36 $ 14,206 91.0 % 2.35 65% to 74% 952 5.9 % 1.69 1,399 9.0 % 1.87 75% to 100% 47 0.3 % 1.21 1 0.0 % 1.09 Total $ 16,235 100.0 % $ 15,606 100.0 % The amortized cost of commercial mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage 75% Coverage than 65% Ratio to 74% Ratio to 100% Ratio Total Origination Year 2020 $ 1,504 2.86 $ 32 1.52 $ - - $ 1,536 2019 3,141 2.25 258 1.78 2 1.74 3,401 2018 2,382 2.16 186 1.49 15 0.71 2,583 2017 1,786 2.34 169 1.73 - - 1,955 2016 1,713 2.37 174 1.56 22 1.58 1,909 2015 and prior 4,710 2.38 133 1.95 8 1.02 4,851 Total $ 15,236 $ 952 $ 47 $ 16,235 |
Residential [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Credit Quality Indicators For Mortgage Loans | As of December 31, 2020 As of December 31, 2019 Amortized % of Amortized % of Performance Indicator Cost Total Cost (1) Total Performing $ 666 90.4 % $ 718 97.7 % Nonperforming 71 9.6 % 17 2.3 % Total $ 737 100.0 % $ 735 100.0 % (1) A valuation allowance of $ 2 million was established on residential mortgage loans on real estate as of December 31, 2019. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows: As of December 31, 2020 Performing Nonperforming Total Origination Year 2020 $ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total $ 666 $ 71 $ 737 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | As of December 31, 2020 As of December 31, 2019 Notional Fair Value Notional Fair Value Amounts Asset Liability Amounts Asset Liability Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 2,177 $ 87 $ 563 $ 2,387 $ 108 $ 245 Foreign currency contracts (1) 3,089 147 151 2,874 191 51 Total cash flow hedges 5,266 234 714 5,261 299 296 Fair value hedges: Interest rate contracts (1) 1,161 - 272 1,261 123 203 Non-Qualifying Hedges Interest rate contracts (1) 135,434 1,587 159 112,921 1,082 219 Foreign currency contracts (1) 304 1 8 262 1 3 Equity market contracts (1) 74,610 3,486 1,952 43,555 1,442 664 Credit contracts (1) 51 - - 55 - - Embedded derivatives: GLB direct (2) - 450 - - 450 - GLB ceded (2) - 82 - - 60 9 Reinsurance related (3) - - 392 - - 327 Indexed annuity and IUL contracts (2) (4) - 550 3,594 - 927 2,585 Total derivative instruments $ 216,826 $ 6,390 $ 7,091 $ 163,315 $ 4,384 $ 4,306 (1) Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets and other liabilities on our Consolidated Balance Sheets. (3) Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. (4) Reported in future contract benefits on our Consolidated Balance Sheets. |
Maturity Of The Notional Amounts Of Derivative Financial Instruments | Remaining Life as of December 31, 2020 Less Than 1 - 5 6 - 10 11 - 30 Over 30 1 Year Years Years Years Years Total Interest rate contracts (1) $ 14,052 $ 57,331 $ 29,217 $ 36,959 $ 1,213 $ 138,772 Foreign currency contracts (2) 227 411 1,062 1,693 - 3,393 Equity market contracts 40,716 19,755 5,831 12 8,296 74,610 Credit contracts - 51 - - - 51 Total derivative instruments with notional amounts $ 54,995 $ 77,548 $ 36,110 $ 38,664 $ 9,509 $ 216,826 (1) As of December 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 20, 2067 . (2) As of December 31, 2020, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 17, 2050 . |
Cumulative Basis Adjustments For Fair Value Hedges | Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Amortized Cost of the Hedged Hedged Assets / (Liabilities) Assets / (Liabilities) As of As of As of As of December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included Fixed maturity AFS securities, at fair value $ 824 $ 776 $ 271 $ 202 Long-term debt (1) ( 900 ) ( 1,035 ) ( 25 ) ( 160 ) (1) The balance includes $( 370 ) million and $( 118 ) million of unamortized adjustments from discontinued hedges as of December 31, 2020, and 2019, respectively. |
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 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 ( 350 ) ( 201 ) 100 Foreign currency contracts 93 108 44 Change in foreign currency exchange rate adjustment ( 174 ) ( 52 ) 111 Change in DAC, VOBA, DSI and DFEL ( 17 ) ( 4 ) ( 13 ) Income tax benefit (expense) 94 31 ( 51 ) Less: Reclassification adjustment for gains (losses) included in net income (loss): Cash flow hedges: Interest rate contracts (1) 2 3 4 Interest rate contracts (2) ( 16 ) ( 5 ) ( 7 ) Foreign currency contracts (1) 56 35 27 Foreign currency contracts (3) 6 9 - Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Balance as of end-of-year $ ( 402 ) $ ( 11 ) $ 139 (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 Years Ended December 31, 2020 2019 Realized Net Interest Realized Net Interest Gain Investment and Debt Gain Investment and Debt (Loss) Income Expense (Loss) Income Expense Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded $ ( 513 ) $ 5,510 $ 284 $ ( 610 ) $ 5,223 $ 326 Qualifying Hedges Gain or (loss) on fair value hedging relationships: Interest rate contracts: Hedged items - 69 136 - 63 ( 93 ) Derivatives designated as hedging instruments - ( 69 ) ( 136 ) - ( 63 ) 93 Gain or (loss) on cash flow hedging relationships: Interest rate contracts: Amount of gain or (loss) reclassified from AOCI into income - 2 ( 16 ) - 3 ( 5 ) Foreign currency contracts: Amount of gain or (loss) reclassified from AOCI into income 6 56 - 9 35 - Non-Qualifying Hedges Interest rate contracts 1,287 - - 984 - - Foreign currency contracts ( 3 ) - - ( 1 ) - - Equity market contracts 971 - - ( 137 ) - - Credit contracts ( 6 ) - - - - - Embedded derivatives: GLB 32 - - 306 - - Reinsurance related ( 65 ) - - ( 324 ) - - Indexed annuity and IUL contracts ( 471 ) - - ( 742 ) - - |
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | For the Year Ended December 31, 2018 Qualifying Hedges Cash flow hedges: Interest rate contracts (1) $ 4 Interest rate contracts (2) ( 7 ) Foreign currency contracts (3) 27 Total cash flow hedges 24 Fair value hedges: Interest rate contracts (1) ( 14 ) Interest rate contracts (2) 13 Interest rate contracts (3) 37 Total fair value hedges 36 Non-Qualifying Hedges Interest rate contracts (3) ( 150 ) Foreign currency contracts (3) 5 Equity market contracts (3) 444 Equity market contracts (4) ( 18 ) Embedded derivatives: GLB (3) ( 692 ) Reinsurance related (3) 54 Indexed annuity and IUL contracts (3) 81 Total derivative instruments $ ( 216 ) (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 Year Ended December 31, 2018 Offset to net investment income $ 4 Offset to realized gain (loss) 27 Offset to interest and debt expense ( 7 ) |
Open Credit Default Swap Liabilities | As of December 31, 2020 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2025 (3) (4) BBB+ 1 $ 1 $ 51 As of December 31, 2019 Credit Reason Nature Rating of Number Maximum for of Underlying of Fair Potential Credit Contract Type Maturity Entering Recourse Obligation (1) Instruments Value (2) Payout Basket credit default swaps 12/20/2024 (3) (4) BBB+ 1 $ 1 $ 55 (1) Represents average credit ratings based on the midpoint of the applicable ratings among Moody ’ s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. (2) Broker quotes are used to determine the market value of our credit default swaps. (3) Credit default swaps were entered into in order to hedge the liability exposure on certain variable annuity products. (4) Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. |
Collateral Support Agreements | As of As of December 31, December 31, 2020 2019 Maximum potential payout $ 51 $ 55 Less: Counterparty thresholds - - Maximum collateral potentially required to post $ 51 $ 55 |
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | As of December 31, 2020 As of December 31, 2019 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- $ 1,233 $ ( 371 ) $ 441 $ ( 167 ) A+ 1,119 ( 445 ) 555 ( 339 ) A 53 - 36 - A- 571 ( 245 ) 355 ( 51 ) $ 2,976 $ ( 1,061 ) $ 1,387 $ ( 557 ) |
Schedule Of Offsetting Assets And Liabilities | As of December 31, 2020 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 4,978 $ 1,082 $ 6,060 Gross amounts offset ( 1,869 ) - ( 1,869 ) Net amount of assets 3,109 1,082 4,191 Gross amounts not offset: Cash collateral ( 2,976 ) - ( 2,976 ) Non-cash collateral ( 56 ) - ( 56 ) Net amount $ 77 $ 1,082 $ 1,159 Financial Liabilities Gross amount of recognized liabilities $ 1,456 $ 3,986 $ 5,442 Gross amounts offset ( 330 ) - ( 330 ) Net amount of liabilities 1,126 3,986 5,112 Gross amounts not offset: Cash collateral ( 1,061 ) - ( 1,061 ) Non-cash collateral - - - Net amount $ 65 $ 3,986 $ 4,051 As of December 31, 2019 Embedded Derivative Derivative Instruments Instruments Total Financial Assets Gross amount of recognized assets $ 2,619 $ 1,437 $ 4,056 Gross amounts offset ( 708 ) - ( 708 ) Net amount of assets 1,911 1,437 3,348 Gross amounts not offset: Cash collateral ( 1,387 ) - ( 1,387 ) Non-cash collateral ( 242 ) - ( 242 ) Net amount $ 282 $ 1,437 $ 1,719 Financial Liabilities Gross amount of recognized liabilities $ 1,005 $ 2,921 $ 3,926 Gross amounts offset ( 138 ) - ( 138 ) Net amount of liabilities 867 2,921 3,788 Gross amounts not offset: Cash collateral ( 557 ) - ( 557 ) Non-cash collateral - - - Net amount $ 310 $ 2,921 $ 3,231 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Federal Income Taxes [Abstract] | |
Federal Income Tax Expense | For the Years Ended December 31, 2020 2019 2018 Current $ ( 61 ) $ 181 $ 91 Deferred ( 15 ) ( 148 ) 153 Federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 |
Reconciliation of effective tax rate differences | For the Years Ended December 31, 2020 2019 2018 Income (loss) before taxes $ 423 $ 919 $ 1,885 Federal statutory rate 21 % 21 % 21 % Federal income tax expense (benefit) at federal statutory rate 89 193 396 Effect of: Tax-preferred investment income (1) ( 98 ) ( 99 ) ( 87 ) Tax credits ( 39 ) ( 40 ) ( 39 ) Excess tax benefits from stock-based compensation 3 ( 9 ) ( 5 ) Tax impact associated with the Tax Cuts and Jobs Act (2) ( 37 ) ( 17 ) ( 19 ) Other items 6 5 ( 2 ) Federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 Effective tax rate - 18 % 4 % 13 % (1) Relates primarily to separate account dividends eligible for the dividends-received deduction. (2) In 2018, we recognized a $ 27 million tax benefit from the impact of the reduced federal statutory rate under the Tax Cuts and Jobs Act (the “Tax Act”) on our adoption of an Internal Revenue Service pronouncement related to variable annuity contracts. In 2019, we recognized a $ 17 million tax benefit from the impact of the reduced corporate tax rate under the Tax Act on our election to revalue policyholder tax reserves. In 2020, we recognized a $ 37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period . |
Federal Income Tax Asset Liability | As of December 31, 2020 2019 Current $ 147 $ 60 Deferred ( 3,256 ) ( 2,443 ) Total federal income tax asset (liability) $ ( 3,109 ) $ ( 2,383 ) |
Significant components of deferred tax assets and liabilities | As of December 31, 2020 2019 Deferred Tax Assets Future contract benefits and other contract holder funds $ 2,377 $ 643 Reinsurance related embedded derivative asset 82 69 Compensation and benefit plans 212 190 Intangibles 27 26 Tax credits 19 - Net operating losses 218 216 Other 36 14 Total deferred tax assets $ 2,971 $ 1,158 Deferred Tax Liabilities DAC $ 382 $ 813 VOBA 167 194 Net unrealized gain on fixed maturity AFS securities 4,001 2,308 Net unrealized gain on trading securities 90 72 Investment activity 1,249 109 Other 338 105 Total deferred tax liabilities $ 6,227 $ 3,601 Net deferred tax asset (liability) $ ( 3,256 ) $ ( 2,443 ) |
Reconciliation Of Unrecognized Tax Benefits | For the Years Ended December 31, 2020 2019 Balance as of beginning-of-year $ 48 $ 16 Increases for prior year tax positions - 32 Increases for current year tax positions 3 - Balance as of end-of-year $ 51 $ 48 |
DAC, VOBA, DSI and DFEL (Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DAC, VOBA, DSI and DFEL [Abstract] | |
DAC | For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 7,352 $ 9,448 $ 7,887 Cumulative effect from adoption of new accounting standard 5 - - Business acquired (sold) through reinsurance ( 10 ) - ( 246 ) Deferrals 1,446 1,902 1,600 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 796 ) ( 950 ) ( 951 ) Unlocking ( 231 ) ( 489 ) ( 115 ) Adjustment related to realized (gains) losses ( 19 ) 54 ( 47 ) Adjustment related to unrealized (gains) losses ( 2,182 ) ( 2,613 ) 1,320 Balance as of end-of-year $ 5,565 $ 7,352 $ 9,448 |
VOBA | For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 342 $ 816 $ 516 Business acquired (sold) through reinsurance - - ( 11 ) Business acquired - - 30 Deferrals 3 6 7 Amortization: Amortization, excluding unlocking ( 105 ) ( 114 ) ( 127 ) Unlocking ( 205 ) 140 ( 60 ) Accretion of interest (1) 44 45 48 Adjustment related to realized (gains) losses - ( 1 ) ( 2 ) Adjustment related to unrealized (gains) losses 168 ( 550 ) 415 Balance as of end-of-year $ 247 $ 342 $ 816 (1) The interest accrual rates utilized to calculate the accretion of interest ranged from 4.2 % to 6.9 %. |
Estimated Future Amortization Of VOBA | 2021 $ 67 2022 65 2023 64 2024 59 2025 52 |
DSI | For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 234 $ 248 $ 238 Business acquired (sold) through reinsurance - - ( 21 ) Deferrals 7 26 47 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 20 ) ( 29 ) ( 28 ) Unlocking ( 1 ) ( 3 ) - Adjustment related to realized (gains) losses ( 1 ) 2 ( 1 ) Adjustment related to unrealized (gains) losses ( 6 ) ( 10 ) 13 Balance as of end-of-year $ 213 $ 234 $ 248 |
DFEL | For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 650 $ 2,769 $ 1,445 Cumulative effect from adoption of new accounting standard 4 - - Deferrals 1,003 1,095 875 Amortization, net of interest: Amortization, excluding unlocking, net of interest ( 538 ) ( 544 ) ( 482 ) Unlocking ( 275 ) ( 426 ) ( 53 ) Adjustment related to realized (gains) losses 25 - ( 20 ) Adjustment related to unrealized (gains) losses ( 468 ) ( 2,244 ) 1,004 Balance as of end-of-year $ 401 $ 650 $ 2,769 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance [Abstract] | |
Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss) | For the Years Ended December 31, 2020 2019 2018 Direct insurance premiums and fee income $ 13,304 $ 13,498 $ 12,041 Reinsurance assumed 95 91 89 Reinsurance ceded ( 1,656 ) ( 1,579 ) ( 1,543 ) Total insurance premiums and fee income $ 11,743 $ 12,010 $ 10,587 Direct insurance benefits $ 10,630 $ 9,574 $ 8,592 Reinsurance recoveries netted against benefits ( 1,953 ) ( 1,694 ) ( 1,806 ) Total benefits $ 8,677 $ 7,880 $ 6,786 |
Schedule Of Assets In Support Of Reserves | As of As of December 31, December 31, 2020 2019 Fixed maturity AFS securities $ 1,531 $ 2,308 Trading securities 3,357 3,534 Equity securities 17 14 Mortgage loans on real estate 832 698 Derivative investments 103 130 Other investments 167 94 Cash and invested cash 92 62 Accrued investment income 42 57 Other assets 3 - Total $ 6,144 $ 6,897 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
Changes In Carrying Amount Of Goodwill, By Reportable Segment | For the Year Ended December 31, 2020 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 ( 1,554 ) - - 634 Group Protection 684 - - - 684 Total goodwill $ 3,932 $ ( 2,154 ) $ - $ - $ 1,778 For the Year Ended December 31, 2019 Gross Accumulated Goodwill Impairment Net as of as of Acquisition Goodwill Beginning- Beginning- Accounting as of End- of-Year of-Year Adjustments Impairment of-Year Annuities $ 1,040 $ ( 600 ) $ - $ - $ 440 Retirement Plan Services 20 - - - 20 Life Insurance 2,188 ( 1,554 ) - - 634 Group Protection 688 - ( 4 ) - 684 Total goodwill $ 3,936 $ ( 2,154 ) $ ( 4 ) $ - $ 1,778 |
Schedule Of Intangible Assets By Reportable Segment | As of December 31, 2020 As of December 31, 2019 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Retirement Plan Services: Mutual fund contract rights (1) $ 5 $ - $ 5 $ - Life Insurance: Sales force 100 59 100 55 Group Protection: VOCRA 576 55 576 25 VODA 31 5 31 2 Insurance licenses (1) 3 - 3 - Total $ 715 $ 119 $ 715 $ 82 (1) No amortization recorded as the intangible asset has indefinite life. |
Future estimated amortization of specifically identifiable intangible assets | 2021 $ 37 2022 37 2023 37 2024 37 2025 37 Thereafter 403 |
Guaranteed Benefit Features (Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Guaranteed Benefit Features [Abstract] | |
Information On Guaranteed Death Benefit Features | As of December 31, 2020 (1) 2019 (1) Return of Net Deposits Total account value $ 109,856 $ 101,601 Net amount at risk (2) 72 71 Average attained age of contract holders 66 years 65 years Minimum Return Total account value $ 100 $ 92 Net amount at risk (2) 12 13 Average attained age of contract holders 78 years 77 years Guaranteed minimum return 5 % 5 % Anniversary Contract Value Total account value $ 27,650 $ 25,763 Net amount at risk (2) 390 384 Average attained age of contract holders 72 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 Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 117 $ 161 $ 100 Changes in reserves 30 ( 24 ) 77 Benefits paid ( 26 ) ( 20 ) ( 16 ) Balance as of end-of-year $ 121 $ 117 $ 161 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | As of December 31, 2020 2019 Asset Type Domestic equity $ 70,362 $ 64,093 International equity 20,855 19,852 Fixed income 43,521 41,405 Total $ 134,738 $ 125,350 Percent of total variable annuity separate account values 98 % 98 % |
Liability For Unpaid Claims (Ta
Liability For Unpaid Claims (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Liability For Unpaid Claims [Abstract] | |
Changes In Liability For Unpaid Claims | For the Years Ended December 31, 2020 2019 2018 Balance as of beginning-of-year $ 5,552 $ 5,335 $ 2,222 Reinsurance recoverable 152 143 57 Net balance as of beginning-of-year 5,400 5,192 2,165 Business acquired (1) - - 2,842 Incurred related to: Current year 3,517 3,193 2,531 Prior years: Interest 148 151 120 All other incurred (2) ( 209 ) ( 308 ) ( 208 ) Total incurred 3,456 3,036 2,443 Paid related to: Current year ( 1,707 ) ( 1,518 ) ( 1,197 ) Prior years ( 1,366 ) ( 1,310 ) ( 1,061 ) Total paid ( 3,073 ) ( 2,828 ) ( 2,258 ) Net balance as of end-of-year 5,783 5,400 5,192 Reinsurance recoverable 151 152 143 Balance as of end-of-year $ 5,934 $ 5,552 $ 5,335 (1) Represents acquired group life and disability reserves, net, as of May 1, 2018. See Note 3 for additional information. (2) All other incurred is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A negative number implies a favorable result where claim resolutions were more favorable than assumed. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the long-term life of the block of claims. It will vary from actual experience in any one period, both favorably and unfavorably. |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term and Long-Term Debt [Abstract] | |
Schedule Of Changes In Debt | As of December 31, 2020 2019 Short-Term Debt Current maturities of long-term debt $ - $ 300 Total short-term debt $ - $ 300 Long-Term Debt, Excluding Current Portion Senior notes: 4.85 % notes, due 2021 (1) $ - $ 296 4.20 % notes, due 2022 (1) 300 300 4.00 % notes, due 2023 (1) 500 500 3.35 % notes, due 2025 (1) 300 300 3.625 % notes, due 2026 (1) 400 400 3.80 % notes, due 2028 (1) 500 500 3.05 % notes, due 2030 (1) 500 500 3.40 % notes, due 2031 (1) 500 - 6.15 % notes, due 2036 (1) 243 243 6.30 % notes, due 2037 (1)(2) 375 375 7.00 % notes, due 2040 (1)(2) 500 500 4.35 % notes, due 2048 (1) 450 450 4.375 % notes, due 2050 (1) 300 - Total senior notes 4,868 4,364 Term loans: LIBOR + 87.5 bps loan, due 2024 250 250 Total term loans 250 250 Capital securities: LIBOR + 236 bps, due 2066 (3) 722 722 LIBOR + 204 bps, due 2067 (3) 491 491 Total capital securities 1,213 1,213 Unamortized premiums (discounts) ( 6 ) ( 4 ) Unamortized debt issuance costs ( 38 ) ( 34 ) Unamortized adjustments from discontinued hedges 370 118 Fair value hedge on interest rate swap agreements 25 160 Total long-term debt $ 6,682 $ 6,067 (1) We have the option to repurchase the outstanding notes by paying the greater of 100 % of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. (2) Categorized as operating debt for leverage ratio calculations as the proceeds were primarily used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. (3) To hedge the variability in rates, we purchased interest rate swaps to lock in a fixed rate of approximately 5 % over the remaining terms of the capital securities . |
Schedule Of Extinguishment Of Debt | For the Years Ended December 31, 2020 2019 2018 Principal balance outstanding prior to payoff (1) $ 796 $ 109 $ 287 Unamortized debt issuance costs and discounts ( 2 ) ( 1 ) ( 1 ) Amount paid to retire debt ( 809 ) ( 150 ) ( 309 ) Gain (loss) on early extinguishment of debt, pre-tax $ ( 15 ) $ ( 42 ) $ ( 23 ) (1) During the second quarter of 2020, we redeemed our $ 296 million outstanding principal amount of 4.85 % senior notes due 2021 and repaid our $ 500 million LIBOR + 150 bps term loan due 2022 that was issued in the first quarter of 2020. During 2019, we repurchased $ 105 million of our 6.15 % senior notes due 2036 and $ 4 million of our 4.85 % senior notes due 2021. During 2018, we repurchased $ 287 million of our 8.75 % senior notes due 2019. |
Future Principal Payments | 2021 $ - 2022 300 2023 500 2024 250 2025 300 Thereafter 4,981 Total $ 6,331 |
Credit facilities and letters of credit | As of December 31, 2020 Expiration Maximum LOCs Date Available Issued Credit Facilities Five-year revolving credit facility July 31, 2024 $ 2,250 $ 219 LOC facility (1) August 26, 2031 990 943 LOC facility (1) October 1, 2031 954 954 Total $ 4,194 $ 2,116 (1) Our wholly-owned subsidiaries entered into irrevocable LOC facility agreements with third-party lenders supporting inter-company reinsurance agreements. |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contingencies And Commitments [Abstract] | |
Finance Lease Expense | For the Years Ended December 31, 2020 2019 Amortization of ROU assets (1) $ 53 $ 67 Interest on lease liabilities (2) 6 13 Total $ 59 $ 80 (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 Years Ended December 31, 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 54 $ 56 Financing cash flows from finance leases 53 96 Supplemental Non-cash Information ROU assets obtained in exchange for new lease obligations: Operating leases $ 10 $ 80 |
Future Minimum Lease Payments | Operating Finance Leases Leases 2021 $ 51 $ 62 2022 46 72 2023 43 79 2024 29 17 2025 22 7 Thereafter 47 4 Total future minimum lease payments 238 241 Less: Amount representing interest 44 7 Present value of minimum lease payments $ 194 $ 234 |
Shares and Stockholders' Equi_2
Shares and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shares and Stockholders' Equity [Abstract] | |
Changes In Common stock (Number Of Shares) | For the Years Ended December 31, 2020 2019 2018 Common Stock Balance as of beginning-of-year 196,668,532 205,862,760 218,090,114 Stock issued for exercise of warrants - 258,633 212,670 Stock compensation/issued for benefit plans 547,209 942,318 800,325 Retirement/cancellation of shares ( 4,886,050 ) ( 10,395,179 ) ( 13,240,349 ) Balance as of end-of-year 192,329,691 196,668,532 205,862,760 Common Stock as of End-of-Year Basic basis 192,329,691 196,668,532 205,862,760 Diluted basis 193,672,296 199,196,043 209,034,686 |
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | For the Years Ended December 31, 2020 2019 2018 Weighted-average shares, as used in basic calculation 193,610,225 200,608,737 215,936,448 Shares to cover exercise of outstanding warrants - 58,765 568,602 Shares to cover non-vested stock 687,240 973,901 1,534,142 Average stock options outstanding during the year 746,742 1,507,049 1,739,029 Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants - ( 9,594 ) ( 81,260 ) Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the year) ( 576,582 ) ( 1,033,507 ) ( 1,074,406 ) Shares repurchasable from measured but unrecognized stock option expense ( 2,445 ) ( 217 ) ( 14,600 ) Average deferred compensation shares - - 944,151 Weighted-average shares, as used in diluted calculation 194,465,180 202,105,134 219,552,106 |
Components And Changes In Accumulated OCI | For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on AFS Securities Balance as of beginning-of-year $ 5,983 $ 557 $ 3,486 Cumulative effect from adoption of new accounting standards 45 - 674 Unrealized holding gains (losses) arising during the year 7,925 9,267 ( 6,274 ) Change in foreign currency exchange rate adjustment 180 46 ( 107 ) Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds ( 3,569 ) ( 2,462 ) 1,748 Income tax benefit (expense) ( 970 ) ( 1,457 ) 981 Less: Reclassification adjustment for gains (losses) included in net income (loss) ( 53 ) ( 28 ) ( 42 ) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 12 ) ( 20 ) Income tax benefit (expense) 4 8 13 Balance as of end-of-year $ 9,611 $ 5,983 $ 557 Unrealized OTTI on AFS Securities Balance as of beginning-of-year $ 45 $ 33 $ 44 (Increases) attributable to: Cumulative effect from adoption of new accounting standards ( 45 ) - 9 Gross OTTI recognized in OCI during the year - ( 16 ) - Change in DAC, VOBA, DSI and DFEL - 1 - Income tax benefit (expense) - 3 - Decreases attributable to: Changes in fair value, sales, maturities or other settlements of AFS securities - 31 ( 19 ) Change in DAC, VOBA, DSI and DFEL - ( 1 ) ( 6 ) Income tax benefit (expense) - ( 6 ) 5 Balance as of end-of-year $ - $ 45 $ 33 Unrealized Gain (Loss) on Derivative Instruments Balance as of beginning-of-year $ ( 11 ) $ 139 $ ( 29 ) Cumulative effect from adoption of new accounting standard - - ( 6 ) Unrealized holding gains (losses) arising during the year ( 257 ) ( 93 ) 144 Change in foreign currency exchange rate adjustment ( 174 ) ( 52 ) 111 Change in DAC, VOBA, DSI and DFEL ( 17 ) ( 4 ) ( 13 ) Income tax benefit (expense) 94 31 ( 51 ) Less: Reclassification adjustment for gains (losses) included in net income (loss) 48 42 24 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Balance as of end-of-year $ ( 402 ) $ ( 11 ) $ 139 Foreign Currency Translation Adjustment Balance as of beginning-of-year $ ( 17 ) $ ( 23 ) $ ( 14 ) Foreign currency translation adjustment arising during the year 5 6 ( 9 ) Balance as of end-of-year $ ( 12 ) $ ( 17 ) $ ( 23 ) Funded Status of Employee Benefit Plans Balance as of beginning-of-year $ ( 327 ) $ ( 299 ) $ ( 257 ) Cumulative effect from adoption of new accounting standard - - ( 35 ) Adjustment arising during the year 74 ( 20 ) ( 12 ) Income tax benefit (expense) ( 13 ) ( 8 ) 5 Balance as of end-of-year $ ( 266 ) $ ( 327 ) $ ( 299 ) |
Schedule of Reclassifications Out Of AOCI | For the Years Ended December 31, 2020 2019 2018 Unrealized Gain (Loss) on AFS Securities Gross reclassification $ ( 53 ) $ ( 28 ) $ ( 42 ) Total realized gain (loss) Associated amortization of DAC, VOBA, DSI and DFEL 32 ( 12 ) ( 20 ) Total realized gain (loss) Reclassification before income Income (loss) from continuing tax benefit (expense) ( 21 ) ( 40 ) ( 62 ) operations before taxes Income tax benefit (expense) 4 8 13 Federal income tax expense (benefit) Reclassification, net of income tax $ ( 17 ) $ ( 32 ) $ ( 49 ) Net income (loss) Unrealized OTTI on AFS Securities Gross reclassification $ - $ 4 $ 8 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) - 4 8 operations before taxes Income tax benefit (expense) - ( 1 ) ( 2 ) Federal income tax expense (benefit) Reclassification, net of income tax $ - $ 3 $ 6 Net income (loss) Unrealized Gain (Loss) on Derivative Instruments Gross reclassifications: Interest rate contracts $ 2 $ 3 $ 4 Net investment income Interest rate contracts ( 16 ) ( 5 ) ( 7 ) Interest and debt expense Foreign currency contracts 56 35 27 Net investment income Foreign currency contracts 6 9 - Total realized gain (loss) Total gross reclassifications 48 42 24 Associated amortization of DAC, VOBA, DSI and DFEL ( 1 ) ( 1 ) ( 2 ) Commissions and other expenses Reclassifications before income Income (loss) from continuing tax benefit (expense) 47 41 22 operations before taxes Income tax benefit (expense) ( 10 ) ( 9 ) ( 5 ) Federal income tax expense (benefit) Reclassifications, net of income tax $ 37 $ 32 $ 17 Net income (loss) |
Realized Gain (Loss) (Tables)
Realized Gain (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Realized Gain (Loss) [Abstract] | |
Schedule Of Realized Gain (Loss) | For the Years Ended December 31, 2020 2019 2018 Fixed maturity AFS securities: Gross gains $ 31 $ 45 $ 38 Gross losses ( 84 ) ( 73 ) ( 80 ) Credit loss benefit (expense) (1) ( 26 ) - - Gross OTTI - ( 16 ) ( 7 ) Realized gain (loss) on equity securities (2) 8 ( 6 ) ( 17 ) Credit loss benefit (expense) on mortgage loans on real estate ( 117 ) ( 1 ) 2 Other gain (loss) on investments ( 7 ) ( 9 ) 2 Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds 31 ( 13 ) ( 22 ) Total realized gain (loss) related to certain financial assets ( 164 ) ( 73 ) ( 84 ) Realized gain (loss) on the mark-to-market on certain instruments (3)(4) 26 ( 127 ) 4 Indexed annuity and IUL contracts net derivatives results: (5) Gross gain (loss) 37 ( 80 ) ( 51 ) Associated amortization of DAC, VOBA, DSI and DFEL ( 25 ) 2 12 Variable annuity net derivatives results: (6) Gross gain (loss) ( 367 ) ( 389 ) 295 Associated amortization of DAC, VOBA, DSI and DFEL ( 20 ) 57 ( 35 ) Total realized gain (loss) $ ( 513 ) $ ( 610 ) $ 141 (1) Includes changes in the allowance for credit losses as well as direct write-downs to amortized cost as a result of negative credit events. (2) Includes market adjustments on equity securities still held of $ 8 million and $( 4 ) million for the years ended December 31, 2020 and 2019, respectively. (3) Represents changes in the fair values of certain derivative investments (not including those associated with our variable and indexed annuity and IUL contracts net derivative results), reinsurance related embedded derivatives mortgage loans on real estate accounted for under the fair value option and trading securities. See Notes 1 and 9 for information regarding Modco. (4) Includes gains and losses from fair value changes on mortgage loans on real estate accounted for under the fair value option of $( 24 ) million for the year ended December 31, 2020. (5) Represents the net difference between the change in fair value of the index 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 options we may purchase or sell in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. (6) Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GLB and GDB riders, including the cost of purchasing the hedging instruments. |
Commissions and Other Expenses
Commissions and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commissions And Other Expenses [Abstract] | |
Details underlying commissions and other expenses | For the Years Ended December 31, 2020 2019 2018 Commissions $ 2,183 $ 2,549 $ 2,256 General and administrative expenses 2,072 2,210 1,953 Expenses associated with reserve financing and LOCs 94 88 84 DAC and VOBA deferrals and interest, net of amortization ( 156 ) ( 540 ) ( 402 ) Broker-dealer expenses 493 481 465 Specifically identifiable intangible asset amortization 37 26 9 Taxes, licenses and fees 321 343 313 Acquisition and integration costs related to mergers and acquisitions 20 130 85 Total $ 5,064 $ 5,287 $ 4,763 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement and Deferred Compensation Plans [Abstract] | |
Benefit Plans' Assets and Obligations | As of or For the Years Ended December 31, 2020 2019 2020 2019 Other Postretirement Pension Plans Benefit Plans Fair value of plan assets $ 1,670 $ 1,520 $ 66 $ 69 Projected benefit obligation 1,698 1,646 79 78 Funded status $ ( 28 ) $ ( 126 ) $ ( 13 ) $ ( 9 ) Amounts Recognized on the Consolidated Balance Sheets Other assets $ 88 $ 12 $ - $ - Other liabilities ( 116 ) ( 138 ) ( 13 ) ( 9 ) Net amount recognized $ ( 28 ) $ ( 126 ) $ ( 13 ) $ ( 9 ) Weighted-Average Assumptions Benefit obligations: Weighted-average discount rate 2.58 % 3.14 % 2.96 % 3.50 % Net periodic benefit cost: Weighted-average discount rate 3.12 % 4.10 % 3.50 % 4.50 % Expected return on plan assets 6.10 % 6.48 % 6.50 % 6.50 % |
Fair Value Of Benefit Plan Assets | As of December 31, 2020 2019 Fixed maturity securities: Corporate bonds $ 320 $ 274 U.S. government bonds 246 280 Foreign government bonds 138 67 State and municipal bonds 29 29 Limited partnerships and common and preferred stock 671 599 Bulk annuity insurance policy 178 165 Cash and invested cash 88 106 Other investments 66 69 Total $ 1,736 $ 1,589 |
Deferred Compensation Plans Liabilities And Investments | As of December 31, 2020 2019 Total liabilities (1) $ 743 $ 645 Investments dedicated to fund liabilities (2) 229 202 (1) Reported in other liabilities on our Consolidated Balance Sheets. (2) Reported in other assets on our Consolidated Balance Sheets. |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Incentive Compensation Plans [Abstract] | |
Compensation Expense By Award Type | For the Years Ended December 31, 2020 2019 2018 Stock options $ 10 $ 8 $ 5 Performance shares 5 17 15 RSUs 36 37 32 Total $ 51 $ 62 $ 52 Recognized tax benefit $ 11 $ 13 $ 11 |
Total unrecognized compensation expense for all stock-based incentive compensation plans | For the Years Ended December 31, 2020 2019 2018 Weighted- Weighted- Weighted- Average Average Average Expense Period Expense Period Expense Period Stock options $ 8 0.7 $ 9 0.9 $ 9 1.1 Performance shares 14 1.3 15 1.3 14 0.9 RSUs 37 1.2 42 1.4 50 1.2 Total unrecognized stock-based incentive compensation expense $ 59 $ 66 $ 73 |
Option price assumptions used for stock option incentive plans | For the Years Ended December 31, 2020 2019 2018 Weighted-average fair value per option granted $ 12.25 $ 13.23 $ 18.74 Weighted-average assumptions: Dividend yield 3.0 % 2.8 % 2.1 % Expected volatility 30.1 % 26.9 % 27.2 % Risk-free interest rate (1) 0.3 - 1.4 % 2.1 - 2.5 % 2.5 - 2.9 % Expected life (in years) 5.8 5.8 5.8 (1) Risk-free interest rate expressed as a range and not a weighted average. |
Summary of activity for stock options with service conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2019 2,894,656 $ 55.67 Granted 837,329 60.86 Exercised ( 146,370 ) 32.70 Forfeited or expired ( 126,656 ) 62.72 Outstanding as of December 31, 2020 3,458,959 $ 57.64 6.46 $ 12 Vested or expected to vest as of December 31, 2020 (1) 3,181,759 $ 56.93 6.32 $ 12 Exercisable as of December 31, 2020 2,141,140 $ 54.26 5.12 $ 12 (1) Includes estimated forfeitures. |
Summary of activity for stock options with performance conditions | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding as of December 31, 2019 209,104 $ 61.17 Granted 56,125 23.49 Exercised ( 17,687 ) 45.60 Forfeited or expired ( 38,892 ) 59.29 Outstanding as of December 31, 2020 208,650 $ 52.70 2.20 $ 2 Vested or expected to vest as of December 31, 2020 (1) 190,370 $ 54.74 2.03 $ 1 Exercisable as of December 31, 2020 172,006 $ 57.21 1.82 $ 1 (1) Includes estimated forfeitures. |
Summary of activity for performance shares | Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2019 (1) 471,071 $ 77.29 Granted 233,039 64.62 Vested ( 134,282 ) 79.61 Forfeited ( 27,120 ) 70.54 Outstanding as of December 31, 2020 (1) 542,708 $ 71.61 (1) Represents target award amounts. |
Summary of activity for restricted stock units | Weighted- Average Grant-Date Shares Fair Value Outstanding as of December 31, 2019 1,551,129 $ 70.09 Granted 623,599 60.83 Vested ( 413,309 ) 70.96 Forfeited ( 103,517 ) 66.48 Outstanding as of December 31, 2020 1,657,902 $ 66.62 |
Statutory Information and Res_2
Statutory Information and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Information and Restrictions [Abstract] | |
Statutory Capital and Surplus | As of December 31, 2020 2019 U.S. capital and surplus $ 8,938 $ 8,564 For the Years Ended December 31, 2020 2019 2018 U.S. net gain (loss) from operations, after-tax $ ( 271 ) $ 409 $ 692 U.S. net income (loss) 29 388 1,019 U.S. dividends to LNC holding company 660 600 925 |
Effects on statutory surplus compared to NAIC statutory surplus | As of December 31, 2020 2019 State Prescribed Practices Calculation of reserves using the Indiana universal life method $ 14 $ 24 Conservative valuation rate on certain annuities ( 44 ) ( 49 ) Calculation of reserves using continuous CARVM ( 1 ) - State Permitted Practice Derivative instruments and equity indexed reserves ( 100 ) - Vermont Subsidiaries Permitted Practices (1) Lesser of LOC and XXX additional reserve as surplus 1,897 1,947 LLC notes and variable value surplus notes 1,640 1,648 Excess of loss reinsurance agreements 452 419 (1) These permitted practices are related to structures that continue to be allowed in accordance with the grandfathered structures under the provisions of AG48 or are compliant under AG48 requirements. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Carrying And Estimated Fair Values Of Financial Instruments | As of December 31, 2020 As of December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Assets Fixed maturity AFS securities $ 123,044 $ 123,044 $ 105,200 $ 105,200 Trading securities 4,501 4,501 4,673 4,673 Equity securities 129 129 103 103 Mortgage loans on real estate 16,763 18,219 16,339 16,872 Derivative investments (1) 3,109 3,109 1,911 1,911 Other investments 3,974 3,974 2,983 2,983 Cash and invested cash 1,708 1,708 2,563 2,563 Other assets: GLB direct embedded derivatives 450 450 450 450 GLB ceded embedded derivatives 82 82 60 60 Indexed annuity ceded embedded derivatives 550 550 927 927 Separate account assets 167,965 167,965 153,566 153,566 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 3,594 ) ( 3,594 ) ( 2,585 ) ( 2,585 ) Other contract holder funds: Remaining guaranteed interest and similar contracts ( 1,854 ) ( 1,854 ) ( 1,900 ) ( 1,900 ) Account values of certain investment contracts ( 40,947 ) ( 49,745 ) ( 38,639 ) ( 46,822 ) Short-term debt - - ( 300 ) ( 304 ) Long-term debt ( 6,682 ) ( 7,067 ) ( 6,067 ) ( 6,217 ) Reinsurance related embedded derivatives ( 392 ) ( 392 ) ( 327 ) ( 327 ) Other liabilities: Derivative liabilities (1) ( 906 ) ( 906 ) ( 349 ) ( 349 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Benefit Plans’ Assets (2) 1,736 1,736 1,589 1,589 (1) We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty. (2) Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 18 for information regarding our benefit plans. |
Schedule of Mortgage Loans With Election Of Fair Value Option | As of December 31, 2020 Commercial mortgage loans: (1) Fair value $ 832 Aggregate contractual principal 839 (1) As of December 31, 2020, no loans for which the fair value option has been elected were in non-accrual status and none were more than 90 days past due and still accruing interest. |
Fair Value Of Assets And Liabilities On A Recurring Basis | As of December 31, 2020 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 $ - $ 97,668 $ 5,121 $ 102,789 U.S. government bonds 473 6 5 484 State and municipal bonds - 6,921 - 6,921 Foreign government bonds - 396 74 470 RMBS - 3,074 2 3,076 CMBS - 1,505 - 1,505 ABS - 6,614 570 7,184 Hybrid and redeemable preferred securities 54 457 104 615 Mortgage loans on real estate - - 832 832 Trading securities 5 3,852 644 4,501 Equity securities 22 48 59 129 Derivative investments (1) - 1,733 3,575 5,308 Cash and invested cash - 1,708 - 1,708 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 82 82 Indexed annuity ceded embedded derivatives - - 550 550 Separate account assets 606 167,351 - 167,957 Total assets $ 1,160 $ 291,333 $ 12,068 $ 304,561 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 3,594 ) $ ( 3,594 ) Reinsurance related embedded derivatives - ( 392 ) - ( 392 ) Other liabilities: Derivative liabilities (1) - ( 1,072 ) ( 2,033 ) ( 3,105 ) Total liabilities $ - $ ( 1,464 ) $ ( 5,627 ) $ ( 7,091 ) Benefit Plans’ Assets $ 207 $ 1,529 $ - $ 1,736 As of December 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 $ - $ 84,435 $ 4,281 $ 88,716 U.S. government bonds 424 6 5 435 State and municipal bonds - 5,884 - 5,884 Foreign government bonds - 303 90 393 RMBS - 3,230 11 3,241 CMBS - 1,082 1 1,083 ABS - 4,621 268 4,889 Hybrid and redeemable preferred securities 77 404 78 559 Trading securities 50 3,957 666 4,673 Equity securities 25 48 30 103 Derivative investments (1) - 1,212 1,735 2,947 Cash and invested cash - 2,563 - 2,563 Other assets: GLB direct embedded derivatives - - 450 450 GLB ceded embedded derivatives - - 60 60 Indexed annuity ceded embedded derivatives - - 927 927 Separate account assets 639 152,916 - 153,555 Total assets $ 1,215 $ 260,661 $ 8,602 $ 270,478 Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ - $ - $ ( 2,585 ) $ ( 2,585 ) Reinsurance related embedded derivatives - ( 327 ) - ( 327 ) Other liabilities: Derivative liabilities (1) - ( 518 ) ( 867 ) ( 1,385 ) GLB ceded embedded derivatives - - ( 9 ) ( 9 ) Total liabilities $ - $ ( 845 ) $ ( 3,461 ) $ ( 4,306 ) Benefit Plans’ Assets $ 195 $ 1,394 $ - $ 1,589 (1) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty. |
Fair Value Measured On A Recurring Basis Reconciliation | For the Year Ended December 31, 2020 Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net Net (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 4,281 $ ( 8 ) $ 284 $ 464 $ 100 $ 5,121 U.S. government bonds 5 - - - - 5 Foreign government bonds 90 1 3 ( 20 ) - 74 RMBS 11 - - - ( 9 ) 2 CMBS 1 ( 1 ) - - - - ABS 268 - 7 496 ( 201 ) 570 Hybrid and redeemable preferred securities 78 - ( 2 ) 10 18 104 Mortgage loans on real estate - ( 1 ) ( 10 ) 56 787 832 Trading securities 666 11 - ( 32 ) ( 1 ) 644 Equity securities 30 4 - 20 5 59 Derivative investments 868 986 267 ( 363 ) ( 216 ) 1,542 Other assets: (6) GLB direct embedded derivatives 450 - - - - 450 GLB ceded embedded derivatives 60 22 - - - 82 Indexed annuity ceded embedded derivatives 927 538 - ( 915 ) - 550 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 2,585 ) ( 1,009 ) - - - ( 3,594 ) Other liabilities – GLB ceded embedded derivatives (6) ( 9 ) 9 - - - - Total, net $ 5,141 $ 552 $ 549 $ ( 284 ) $ 483 $ 6,441 For the Year Ended December 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 (3) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,269 $ 3 $ 180 $ 878 $ ( 49 ) $ 4,281 U.S. government bonds - - - - 5 5 Foreign government bonds 109 - 6 ( 25 ) - 90 RMBS 7 - - 21 ( 17 ) 11 CMBS 2 1 - 5 ( 7 ) 1 ABS 134 - 1 619 ( 486 ) 268 Hybrid and redeemable preferred securities 75 - 3 - - 78 Trading securities 67 17 - 850 ( 268 ) 666 Equity securities 25 ( 12 ) - 17 - 30 Derivative investments 534 10 163 161 - 868 Other assets: (6) GLB direct embedded derivatives 123 327 - - - 450 GLB ceded embedded derivatives 72 ( 12 ) - - - 60 Indexed annuity ceded embedded derivatives 902 158 - ( 133 ) - 927 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,305 ) ( 900 ) - ( 380 ) - ( 2,585 ) Other liabilities – GLB ceded embedded derivatives (6) - ( 9 ) - - - ( 9 ) Total, net $ 4,014 $ ( 417 ) $ 353 $ 2,013 $ ( 822 ) $ 5,141 For the Year Ended December 31, 2018 Purchases, Gains Issuances, Transfers Items (Losses) Sales, Into or Included in Maturities, Out Beginning in OCI Settlements, of Ending Fair Net and Calls, Level 3, Fair Value Income Other (1) Net (2) Net (3)(4) Value Investments: (5) Fixed maturity AFS securities: Corporate bonds $ 3,091 $ 10 $ ( 199 ) $ 429 $ ( 62 ) $ 3,269 U.S. government bonds 5 - - ( 5 ) - - Foreign government bonds 110 - ( 1 ) - - 109 RMBS 12 - - 7 ( 12 ) 7 CMBS 6 - - 35 ( 39 ) 2 ABS 118 - ( 1 ) 223 ( 206 ) 134 Hybrid and redeemable preferred securities 76 - ( 1 ) - - 75 Equity AFS securities 162 - - - ( 162 ) - Trading securities 49 ( 5 ) - 30 ( 7 ) 67 Equity securities - ( 1 ) - - 26 25 Derivative investments 30 170 ( 69 ) 403 - 534 Other assets: (6) GLB direct embedded derivatives 903 ( 780 ) - - - 123 GLB ceded embedded derivatives 51 21 - - - 72 Indexed annuity ceded embedded derivatives 11 ( 117 ) - 1,008 - 902 Future contract benefits – indexed annuity and IUL contracts embedded derivatives (6) ( 1,418 ) 198 - ( 85 ) - ( 1,305 ) Other liabilities – GLB ceded embedded - - - - - - derivatives (6) ( 67 ) 67 - - - - Total, net $ 3,139 $ ( 437 ) $ ( 271 ) $ 2,045 $ ( 462 ) $ 4,014 (1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). (2) Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $ 67 million and ABS of $ 17 million. (3) Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years. (4) Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets. (5) Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). (6) Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Schedule Of Investment Holdings Movements | For the Year Ended December 31, 2020 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,126 $ ( 250 ) $ ( 43 ) $ ( 237 ) $ ( 132 ) $ 464 Foreign government bonds - - ( 20 ) - - ( 20 ) ABS 572 - - ( 76 ) - 496 Hybrid and redeemable preferred securities 14 ( 4 ) - - - 10 Mortgage loans on real estate 71 ( 15 ) - - - 56 Trading securities 300 ( 126 ) ( 40 ) ( 166 ) - ( 32 ) Equity securities 22 ( 2 ) - - - 20 Derivative investments 520 ( 412 ) ( 471 ) - - ( 363 ) Other assets – indexed annuity ceded embedded derivatives 25 - - ( 940 ) - ( 915 ) Future contract benefits – indexed annuity - and IUL contracts embedded derivatives ( 284 ) - - 284 - - Total, net $ 2,366 $ ( 809 ) $ ( 574 ) $ ( 1,135 ) $ ( 132 ) $ ( 284 ) For the Year Ended December 31, 2019 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 1,170 $ ( 28 ) $ ( 78 ) $ ( 156 ) $ ( 30 ) $ 878 Foreign government bonds - - ( 25 ) - - ( 25 ) RMBS 21 - - - - 21 CMBS 7 - - ( 2 ) - 5 ABS 646 ( 8 ) - ( 19 ) - 619 Trading securities 872 - - ( 22 ) - 850 Equity securities 50 ( 33 ) - - - 17 Derivative investments 555 ( 63 ) ( 331 ) - - 161 Other assets – indexed annuity ceded embedded derivatives 56 - - ( 189 ) - ( 133 ) Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 591 ) - - 211 - ( 380 ) Total, net $ 2,786 $ ( 132 ) $ ( 434 ) $ ( 177 ) $ ( 30 ) $ 2,013 For the Year Ended December 31, 2018 Issuances Sales Maturities Settlements Calls Total Investments: Fixed maturity AFS securities: Corporate bonds $ 947 $ ( 161 ) $ ( 3 ) $ ( 277 ) $ ( 77 ) $ 429 U.S. government bonds - ( 5 ) - - - ( 5 ) RMBS 7 - - - - 7 CMBS 39 - - ( 4 ) - 35 ABS 240 ( 17 ) - - - 223 Trading securities 54 ( 24 ) - - - 30 Equity securities 1 ( 1 ) - - - - Derivative investments 365 464 ( 426 ) - - 403 Other assets – indexed annuity ceded embedded derivatives 1,030 - - ( 22 ) - 1,008 Future contract benefits – indexed annuity and IUL contracts embedded derivatives ( 284 ) - - 199 - ( 85 ) Total, net $ 2,399 $ 256 $ ( 429 ) $ ( 104 ) $ ( 77 ) $ 2,045 |
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | For the Years Ended December 31, 2020 2019 2018 GLB $ 671 $ 1,015 $ ( 75 ) Derivative investments 536 168 90 Embedded derivatives – indexed annuity and IUL contracts 634 ( 97 ) ( 38 ) Total, net (1) $ 1,841 $ 1,086 $ ( 23 ) (1) Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Changes in Unrealized Gains (Losses) Included in OCI | For the Year Ended December 31, 2020 Fixed maturity AFS securities: Corporate bonds $ 58 Foreign government bonds 4 ABS 5 Hybrid and redeemable preferred securities ( 3 ) Total, net $ 64 |
Components Of The Transfers In And Out Of Level 3 | For the Year Ended December 31, 2020 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 343 $ ( 243 ) $ 100 U.S. government bonds 5 ( 5 ) - RMBS 1 ( 10 ) ( 9 ) ABS 20 ( 221 ) ( 201 ) Hybrid and redeemable preferred securities 18 - 18 Mortgage loans on real estate 787 - 787 Trading securities 33 ( 34 ) ( 1 ) Equity securities 5 - 5 Derivative investments - ( 216 ) ( 216 ) Total, net $ 1,212 $ ( 729 ) $ 483 For the Year Ended December 31, 2019 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 173 $ ( 222 ) $ ( 49 ) U.S. government bonds 5 - 5 RMBS - ( 17 ) ( 17 ) CMBS - ( 7 ) ( 7 ) ABS 9 ( 495 ) ( 486 ) Trading securities 5 ( 273 ) ( 268 ) Total, net $ 192 $ ( 1,014 ) $ ( 822 ) For the Year Ended December 31, 2018 Transfers Transfers Into Out of Level 3 Level 3 Total Investments: Fixed maturity AFS securities: Corporate bonds $ 78 $ ( 140 ) $ ( 62 ) RMBS - ( 12 ) ( 12 ) CMBS 1 ( 40 ) ( 39 ) ABS - ( 206 ) ( 206 ) Equity AFS securities - ( 162 ) ( 162 ) Trading securities - ( 7 ) ( 7 ) Equity securities 26 - 26 Total, net $ 105 $ ( 567 ) $ ( 462 ) |
Fair Value Inputs Quantitative Information | Weighted Average Fair Valuation Significant Assumption or Input Value Technique Unobservable Inputs Input Ranges Range (1) Assets Investments: Fixed maturity AFS and trading securities: Corporate bonds $ 3,370 Discounted cash flow Liquidity/duration adjustment (2) 0.2 % - 19.9 % 1.8 % Foreign government bonds 29 Discounted cash flow Liquidity/duration adjustment (2) 6.0 % - 6.0 % 6.0 % ABS 20 Discounted cash flow Liquidity/duration adjustment (2) 3.5 % - 3.5 % 3.5 % Equity securities 22 Discounted cash flow Liquidity/duration adjustment (2) 4.5 % - 6.0 % 5.6 % Other assets – GLB direct and ceded embedded derivatives 532 Discounted cash flow Long-term lapse rate (3) 1 % - 30 % (10) % Utilization of guaranteed withdrawals (4) 85 % - 100 % 94 % Claims utilization factor (5) 60 % - 100 % (10) % Premiums utilization factor (5) 80 % - 115 % (10) % NPR (6) 0.06 % - 1.35 % 0.95 % Mortality rate (7) (9) (10) Volatility (8) 1 % - 28 % 14.53 % Indexed annuity ceded embedded derivatives 550 Discounted cash flow Lapse rate (3) 0 % - 9 % (10) % Mortality rate (7) (9) (10) Liabilities Future contract benefits – indexed annuity and IUL contracts embedded derivatives $ ( 3,594 ) Discounted cash flow Lapse rate (3) 0 % - 9 % (10) % Mortality rate (7) (9) (10) (1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted. (2) 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. (3) 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. (4) The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. (5) 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. (6) The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption. (7) 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. (8) 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. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index. (9) The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. (10) A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information [Abstract] | |
Reconciliation Of Revenue From Segments To Consolidated | For the Years Ended December 31, 2020 2019 2018 Revenues Operating revenues: Annuities $ 4,455 $ 4,600 $ 4,383 Retirement Plan Services 1,213 1,200 1,178 Life Insurance 7,516 7,438 6,922 Group Protection 4,793 4,588 3,757 Other Operations 185 220 235 Excluded realized gain (loss), pre-tax ( 721 ) ( 794 ) ( 46 ) Amortization of DFEL associated with benefit ratio unlocking, pre-tax ( 2 ) 6 ( 5 ) Total revenues $ 17,439 $ 17,258 $ 16,424 |
Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss) | For the Years Ended December 31, 2020 2019 2018 Net Income (Loss) Income (loss) from operations: Annuities $ 983 $ 954 $ 1,102 Retirement Plan Services 168 172 171 Life Insurance ( 34 ) 259 645 Group Protection 43 238 187 Other Operations ( 295 ) ( 268 ) ( 225 ) Excluded realized gain (loss), after-tax ( 570 ) ( 627 ) ( 37 ) Benefit ratio unlocking, after-tax 194 277 ( 136 ) Net impact from the Tax Cuts and Jobs Act 37 17 19 Acquisition and integration costs related to mergers and acquisitions, after-tax ( 15 ) ( 103 ) ( 67 ) Gain (loss) on early extinguishment of debt, after-tax ( 12 ) ( 33 ) ( 18 ) Net income (loss) $ 499 $ 886 $ 1,641 |
Reconciliation of Net Investment Income From Segments to Consolidated | For the Years Ended December 31, 2020 2019 2018 Net Investment Income Annuities $ 1,272 $ 1,140 $ 1,005 Retirement Plan Services 933 924 899 Life Insurance 2,823 2,658 2,697 Group Protection 330 307 260 Other Operations 152 194 224 Total net investment income $ 5,510 $ 5,223 $ 5,085 |
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | For the Years Ended December 31, 2020 2019 2018 Amortization of DAC and VOBA, Net of Interest Annuities $ 387 $ 408 $ 410 Retirement Plan Services 29 26 28 Life Insurance 785 779 711 Group Protection 114 111 92 Total amortization of DAC and VOBA, net of interest $ 1,315 $ 1,324 $ 1,241 |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss) | For the Years Ended December 31, 2020 2019 2018 Federal Income Tax Expense (Benefit) Annuities $ 149 $ 139 $ 183 Retirement Plan Services 24 23 29 Life Insurance ( 33 ) 47 147 Group Protection 11 63 50 Other Operations ( 82 ) ( 92 ) ( 77 ) Excluded realized gain (loss) ( 151 ) ( 167 ) ( 9 ) Gain (loss) on early extinguishment of debt ( 3 ) ( 9 ) ( 5 ) Benefit ratio unlocking 51 74 ( 36 ) Net impact from the Tax Cuts and Jobs Act ( 37 ) ( 17 ) ( 19 ) Acquisition and integration costs related to mergers and acquisitions ( 5 ) ( 28 ) ( 19 ) Total federal income tax expense (benefit) $ ( 76 ) $ 33 $ 244 |
Reconciliation Of Assets From Segments To Consolidated | As of December 31, 2020 2019 Assets Annuities $ 184,678 $ 167,443 Retirement Plan Services 45,372 40,184 Life Insurance 101,941 92,561 Group Protection 10,201 9,467 Other Operations 23,756 25,106 Total assets $ 365,948 $ 334,761 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |
Summary of supplemental cash flow data | For the Years Ended December 31, 2020 2019 2018 Interest paid $ 283 $ 281 $ 281 Income taxes paid (received) 22 260 90 Significant non-cash investing and financing transactions: Equity securities received in exchange of fixed maturity AFS securities 19 - - Reduction of other investments in connection with the expiration of a repurchase agreement - ( 150 ) - Investments received in financing transactions - - 263 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results Of Operations | For the Three Months Ended March 31, June 30, September 30, December 31, 2020 Total revenues $ 4,425 $ 3,517 $ 5,361 $ 4,135 Total expenses 4,391 3,678 4,901 4,046 Net income (loss) 52 ( 94 ) 398 143 Earnings (loss) per common share – basic: Net income (loss) 0.27 ( 0.49 ) 2.06 0.74 Earnings (loss) per common share – diluted: Net income (loss) 0.15 ( 0.49 ) 2.01 0.74 2019 Total revenues $ 3,965 $ 4,310 $ 4,638 $ 4,344 Total expenses 3,697 3,889 4,888 3,863 Net income (loss) 252 363 ( 161 ) 431 Earnings (loss) per common share – basic: Net income (loss) 1.23 1.80 ( 0.81 ) 2.18 Earnings (loss) per common share – diluted: Net income (loss) 1.22 1.79 ( 0.83 ) 2.15 |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Product Information [Line Items] | |||
Estimated Contract Life UL Policies (In Years) | 40 years | ||
Estimated Contract Life VUL Policies (In Years) | 40 years | ||
Front End Load Annuity Products Assumed Life (In Years) | 25 years | ||
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | ||
Total Scenarios To Value GLB liability | 47,000,000 | ||
Dividend Expenses | $ | $ 53 | $ 51 | $ 56 |
MBS [Member] | |||
Product Information [Line Items] | |||
Severity of second lien loans | 100.00% | ||
Severity of first lien loans | 30.00% | ||
Sales Force Intangibles [Member] | |||
Product Information [Line Items] | |||
Useful Life of Intangible Assets (In Years) | 25 years | ||
VOCRA [Member] | |||
Product Information [Line Items] | |||
Useful Life of Intangible Assets (In Years) | 20 years | ||
VODA [Member] | |||
Product Information [Line Items] | |||
Useful Life of Intangible Assets (In Years) | 13 years | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 30 years | ||
Traditional Contract Acquisition Cost Amortization Period (In Years) | 30 | ||
Participating Policies as a Percentage of the Face Amount of the Insurance In Force | 1.00% | 1.00% | |
Minimum [Member] | |||
Product Information [Line Items] | |||
Estimated Contract Life Fixed and Variable Deferred Annuities (In Years) | 15 years | ||
Life Insurance Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 7.75% | ||
Life Insurance Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Traditional Direct Individual Life Reserves | 2.25% | ||
Annuities Segment [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 12.75% | ||
Annuities Segment [Member] | Minimum [Member] | |||
Product Information [Line Items] | |||
Investment Yield Assumptions for Immediate and Deferred Paid-Up Annuities | 1.25% | ||
Commercial [Member] | |||
Product Information [Line Items] | |||
Number of days past due to qualify as delinquent | 60 days | ||
Number of missed payments to qualify as delinqent | 2 | ||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Number of missed payments to qualify loans as non-accrual | 3 | ||
Loan-to-value ratio indicating principal is greater than collateral | 100.00% | ||
Commercial [Member] | Maximum [Member] | |||
Product Information [Line Items] | |||
Debt-service coverage ratio indicating property income not covering debt payments | 1 | ||
Residential [Member] | |||
Product Information [Line Items] | |||
Period In Which Loans No Longer Accrue Interest In Days | 90 days | ||
Swiss Re [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 15 years | ||
Athene Holding Ltd. [Member] | |||
Product Information [Line Items] | |||
No. of Years in Which Deferred Gain From Reinsurance Transaction is Recognized as Income | 20 years |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 8,686 | $ 8,854 | |
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (218) | ||
Accounting Standards Update 2019-05 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 15 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||||||||||
Revenues | $ 4,135 | $ 5,361 | $ 3,517 | $ 4,425 | $ 4,344 | $ 4,638 | $ 4,310 | $ 3,965 | $ 17,439 | $ 17,258 | $ 16,424 | |
Net income (loss) | $ 143 | $ 398 | $ (94) | $ 52 | $ 431 | $ (161) | $ 363 | $ 252 | $ 499 | $ 886 | $ 1,641 | |
Liberty Transaction [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition agreement date | May 1, 2018 | |||||||||||
Capital stock acquired, percent | 100.00% | 100.00% | ||||||||||
Acquisition related costs | $ 85 | |||||||||||
Revenues | $ 1,500 | |||||||||||
Net income (loss) | $ 36 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Gains (losses) for consolidated variable interest entities | $ 0 | $ 0 |
Outstanding Principal Balance of Surplus Note Issued By LRCVV And Held By LFLLCI | 611 | |
Long-Term Senior Note Issued In Exchange For Corporate Bond Afs Security | 275 | |
Outstanding Principal Balance of Long-Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 963 | |
Maxiumum Principal Balance of Long Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 1,100 | |
Carrying amount of other investments | 3,984 | 2,994 |
Limited Partnerships and Limited Liability Companies [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying amount of other investments | 2,100 | 1,900 |
Carrying Amount Of Investments In Qualified Affordable Housing Projects | 7 | 13 |
Income Tax Credits And Other Tax Benefits From Qualified Affordable Housing Projects | 1 | $ 2 |
Non-Affiliated VIE [Member] | ||
Variable Interest Entity [Line Items] | ||
Surplus notes | 0 | |
Maximum exposure to loss related to unconsolidated VIE's | 0 | |
Non-Affiliated VIE, Two [Member] | ||
Variable Interest Entity [Line Items] | ||
Outstanding Principal Balance of Long-Term Senior Note Issued In Exchange For Corporate Bond AFS Security | 359 | |
Maxiumum Principal Balance of Long Term Senior Note Issued In Exchange For Corporate Bond AFS Security | $ 500 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated Variable Interest Entity Asset and Liability Information) (Details) - Total Return Swap [Member] $ in Millions | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ||
Number of Instruments | item | 1 | 1 |
Notional Amounts | $ | $ 611 | $ 613 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)loansecurityitem | Dec. 31, 2019USD ($)securityloanitem | Dec. 31, 2018USD ($) | |
Investments [Line Items] | |||
Increase (decrease) in gross AFS securities unrealized losses | $ (45) | ||
Unrealized gain (loss), trading securities | $ 118 | $ 228 | $ (58) |
Number of partnerships in alternative investment portfolio | item | 271 | 258 | |
Alternative investments as a percentage of overall invested assets | 1.00% | 1.00% | |
Net portion of OTTI recognized in OCI, pre-tax | $ 15 | $ 0 | |
Fair value of collateral received that we are permitted to sell or re-pledge | $ 25 | ||
Investment commitments | 2,900 | ||
Investment commitments for limited partnerships | 1,400 | ||
Investment commitments for mortgage loans on real estate | 989 | ||
Investment commitments for private placements | $ 508 | ||
Minimum [Member] | |||
Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 80.00% | ||
Maximum [Member] | |||
Investments [Line Items] | |||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ||
Federal Home Loan Mortgage Corporation [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,200 | $ 1,300 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Federal National Mortgage Association [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 1,000 | $ 1,000 | |
Concentration risk, percentage | 1.00% | 1.00% | |
Consumer Non-Cyclical Industry [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 20,300 | $ 16,300 | |
Concentration risk, percentage | 13.00% | 12.00% | |
Financial Service [Member] | Investments [Member] | |||
Investments [Line Items] | |||
Fair value | $ 19,600 | $ 16,400 | |
Concentration risk, percentage | 13.00% | 12.00% | |
Corporate Bonds [Member] | |||
Investments [Line Items] | |||
Percentage of fair value rated as investment grade | 96.00% | 96.00% | |
Amortized cost of portfolio rated below investment grade | $ 4,100 | $ 3,200 | |
Fair value of portfolio rated below investment grade | $ 4,200 | $ 3,300 | |
Commercial [Member] | |||
Investments [Line Items] | |||
Number of impaired loans | security | 4 | 1 | |
Impaired financing receivable, principal balance | $ 1 | ||
Commercial [Member] | Maximum [Member] | |||
Investments [Line Items] | |||
Impaired financing receivable, principal balance | $ 1 | ||
Commercial [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 24.00% | 24.00% | |
Commercial [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Texas [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 10.00% | 11.00% | |
Residential [Member] | |||
Investments [Line Items] | |||
Number of loans past due | loan | 147 | 38 | |
Number of impaired loans | security | 76 | 4 | |
Impaired financing receivable, principal balance | $ 34 | $ 1 | |
Residential [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | California [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 32.00% | 34.00% | |
Residential [Member] | Mortgage Loans On Real Estate [Member] | Geographic Concentration Risk [Member] | Florida [Member] | |||
Investments [Line Items] | |||
Concentration risk, percentage | 18.00% | 20.00% |
Investments (Reconciliation Of
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | $ 104,174 | $ 94,295 |
Gross unrealized gains | 19,081 | 11,086 |
Gross unrealized losses | 198 | 240 |
Allowance for Credit Losses | 13 | 0 |
OTTI | (59) | |
Fair Value | 123,044 | 105,200 |
Fixed Maturity AFS Securities [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 104,174 | |
Allowance for Credit Losses | 13 | |
Fair Value | 123,044 | |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 86,289 | 79,417 |
Gross unrealized gains | 16,662 | 9,479 |
Gross unrealized losses | 150 | 184 |
Allowance for Credit Losses | 12 | |
OTTI | (4) | |
Fair Value | 102,789 | 88,716 |
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 | 397 | 384 |
Gross unrealized gains | 88 | 51 |
Gross unrealized losses | 1 | |
Fair Value | 484 | 435 |
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 | 5,360 | 4,778 |
Gross unrealized gains | 1,561 | 1,113 |
Gross unrealized losses | 7 | |
Fair Value | 6,921 | 5,884 |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 384 | 329 |
Gross unrealized gains | 87 | 64 |
Gross unrealized losses | 1 | |
Fair Value | 470 | 393 |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 2,765 | 3,042 |
Gross unrealized gains | 313 | 190 |
Gross unrealized losses | 1 | 10 |
Allowance for Credit Losses | 1 | |
OTTI | (19) | |
Fair Value | 3,076 | 3,241 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 1,390 | 1,038 |
Gross unrealized gains | 115 | 45 |
Gross unrealized losses | 1 | |
OTTI | (1) | |
Fair Value | 1,505 | 1,083 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ||
Amortized Cost | 7,041 | 4,810 |
Gross unrealized gains | 158 | 62 |
Gross unrealized losses | 15 | 18 |
OTTI | (35) | |
Fair Value | 7,184 | 4,889 |
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 | 548 | 497 |
Gross unrealized gains | 97 | 82 |
Gross unrealized losses | 30 | 20 |
Fair Value | $ 615 | $ 559 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | $ 104,174 | $ 94,295 |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 123,044 | $ 105,200 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | 104,174 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | 123,044 | |
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 | 3,319 | |
Due after one year through five years | 15,016 | |
Due after five years through ten years | 19,105 | |
Due after ten years | 55,538 | |
Amortized Cost | 92,978 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Due in one year or less | 3,344 | |
Due after one year through five years | 16,052 | |
Due after five years through ten years | 21,660 | |
Due after ten years | 70,223 | |
Fair Value | 111,279 | |
Fixed Maturity AFS Securities [Member] | Structured securities [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Amortized Cost | 11,196 | |
Available-for-sale Securities, Debt Maturities, Fair Value | ||
Fair Value | $ 11,765 |
Investments (Fair Value And Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | $ 4,808 | $ 5,673 |
Greater Than Twelve Months | 1,068 | 1,848 |
Fair Value - Total | 5,876 | 7,521 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 117 | 73 |
Greater Than Twelve Months | 81 | 170 |
Gross Unrealized Losses - Total | $ 198 | $ 243 |
Total number of fixed maturity AFS securities in an unrealized loss position | security | 802 | 895 |
Fixed Maturity AFS Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Unrealized holding gains (losses) arising during the period | $ 1 | |
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 | 3,039 | $ 2,935 |
Greater Than Twelve Months | 607 | 1,406 |
Fair Value - Total | 3,646 | 4,341 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 92 | 46 |
Greater Than Twelve Months | 58 | 141 |
Gross Unrealized Losses - Total | 150 | 187 |
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 | 28 | |
Fair Value - Total | 28 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Gross Unrealized Losses - Total | 1 | |
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 | 333 | |
Greater Than Twelve Months | 18 | |
Fair Value - Total | 351 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 7 | |
Gross Unrealized Losses - Total | 7 | |
Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 57 | |
Fair Value - Total | 57 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Gross Unrealized Losses - Total | 1 | |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 45 | 536 |
Greater Than Twelve Months | 7 | 15 |
Fair Value - Total | 52 | 551 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | 10 |
Gross Unrealized Losses - Total | 1 | 10 |
Fixed Maturity AFS Securities [Member] | CMBS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 48 | |
Greater Than Twelve Months | 4 | |
Fair Value - Total | 52 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 1 | |
Gross Unrealized Losses - Total | 1 | |
Fixed Maturity AFS Securities [Member] | ABS [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less Than or Equal to Twelve Months | 1,527 | 1,792 |
Greater Than Twelve Months | 358 | 303 |
Fair Value - Total | 1,885 | 2,095 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 9 | 8 |
Greater Than Twelve Months | 6 | 10 |
Gross Unrealized Losses - Total | 15 | 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 | 112 | 29 |
Greater Than Twelve Months | 96 | 102 |
Fair Value - Total | 208 | 131 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ||
Less Than or Equal to Twelve Months | 13 | 1 |
Greater Than Twelve Months | 17 | 19 |
Gross Unrealized Losses - Total | $ 30 | $ 20 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) $ in Millions | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Nine months or greater, but less than twelve months | $ 4,808 | $ 5,673 |
Fair Value - Twelve months or greater | 1,068 | 1,848 |
Fair Value - Total | 5,876 | 7,521 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 117 | 73 |
Gross Unrealized Losses - Twelve months or greater | 81 | 170 |
Gross Unrealized Losses - Total | $ 198 | $ 243 |
Number of Securities - Total | security | 802 | 895 |
Fair Value Decline, Greater Than 20% [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less than six months | $ 63 | $ 15 |
Fair Value - Six months or greater, but less than nine months | 2 | 10 |
Fair Value - Nine months or greater, but less than twelve months | 23 | |
Fair Value - Twelve months or greater | 30 | 132 |
Fair Value - Total | 118 | 157 |
Gross Unrealized Losses - Less than six months | 23 | 5 |
Gross Unrealized Losses - Six months or greater, but less than nine months | 1 | 3 |
Gross Unrealized Losses - Nine months or greater, but less than twelve months | 7 | |
Gross Unrealized Losses - Twelve months or greater | 11 | 76 |
Gross Unrealized Losses - Total | $ 42 | $ 84 |
Number of Securities - Less than six months | security | 14 | 7 |
Number of Securities - Six months or greater, but less than nine months | security | 4 | 4 |
Number of Securities - Nine months or greater, but less than twelve months | security | 14 | |
Number of Securities - Twelve months or greater | security | 20 | 31 |
Number of Securities - Total | security | 52 | 42 |
Investments (Changes In Allowan
Investments (Changes In Allowance For Credit Losses On AFS) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Balance as of beginning-of-year | $ 0 |
Balance as of end of-year | 13 |
Accrued interest receivable on fixed maturity AFS securities | 1,000 |
Fixed Maturity AFS Securities [Member] | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Additions for securities for which credit losses were not previously recognized | 45 |
Additions (reductions) for securities for which credit losses were previously recognized | (2) |
Reductions for securities disposed | (17) |
Reductions for securities charged-off | (13) |
Balance as of end of-year | 13 |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Additions for securities for which credit losses were not previously recognized | 43 |
Additions (reductions) for securities for which credit losses were previously recognized | (1) |
Reductions for securities disposed | (17) |
Reductions for securities charged-off | (13) |
Balance as of end of-year | 12 |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Additions for securities for which credit losses were not previously recognized | 1 |
Balance as of end of-year | 1 |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |
Additions for securities for which credit losses were not previously recognized | 1 |
Additions (reductions) for securities for which credit losses were previously recognized | $ (1) |
Investments (Schedule Of Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) - Fixed Maturity AFS Securities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance as of beginning-of-year | $ 355 | $ 378 |
Increases attributable to: | ||
Credit losses on securities for which an OTTI was not previously recognized | 13 | 5 |
Credit losses on securities for which an OTTI was previously recognized | 3 | 2 |
Decreases attributable to: | ||
Securities sold, paid down or matured | (160) | (30) |
Balance as of end-of-year | $ 211 | $ 355 |
Investments (Fair Value of Trad
Investments (Fair Value of Trading Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 4,501 | $ 4,673 |
Corporate Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 3,107 | 2,947 |
U.S. Government Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 45 | |
Foreign Government Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 92 | 44 |
RMBS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 132 | 170 |
CMBS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 134 | 163 |
ABS [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 966 | 1,238 |
State And Municipal Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | 28 | 17 |
Hybrid And Redeemable Preferred Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities | $ 42 | $ 49 |
Investments (Composition Of Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | $ 16,855 | $ 16,279 |
Allowance for credit losses | (204) | (2) |
Unamortized premium (discount) | 8 | 6 |
Mark-to-market gains (losses) | (5) | |
Total carrying value | 16,763 | 16,339 |
30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 32 | 30 |
60 to 89 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 8 | 10 |
90 Or More Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 69 | 16 |
Commercial [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | 16,245 | 15,620 |
Allowance for credit losses | (187) | |
Unamortized premium (discount) | (14) | (17) |
Mark-to-market gains (losses) | (5) | |
Total carrying value | 16,043 | 15,606 |
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 4 | 3 |
Residential [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Current | 610 | 659 |
Allowance for credit losses | (17) | (2) |
Unamortized premium (discount) | 22 | 23 |
Total carrying value | 720 | 733 |
Residential [Member] | 30 to 59 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 28 | 27 |
Residential [Member] | 60 to 89 Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | 8 | 10 |
Residential [Member] | 90 Or More Days Past Due [Member] | ||
Mortgage Loans On Real Estate Aging [Abstract] | ||
Past due | $ 69 | $ 16 |
Investments (Schedule Of Averag
Investments (Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information about impaired mortgage loans on real estate | |||
Average carrying value for impaired mortgage loans on real estate | $ 21 | $ 5 | |
Interest income recognized on impaired mortgage loans on real estate | 1 | ||
Interest income collected on impaired mortgage loans on real estate | $ 1 |
Investments (Amortized Cost Of
Investments (Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Nonaccrual | 71 | 17 |
Commercial [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Residential [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no ACL | ||
Nonaccrual | $ 71 | $ 17 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators For Commercial Mortgage Loans) (Details) - Commercial [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 16,235 | $ 15,606 |
Percent of total | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 15,236 | $ 14,206 |
Percent of total | 93.80% | 91.00% |
Debt-service coverage ratio | 2.36 | 2.35 |
Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 952 | $ 1,399 |
Percent of total | 5.90% | 9.00% |
Debt-service coverage ratio | 1.69 | 1.87 |
Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized Cost | $ 47 | $ 1 |
Percent of total | 0.30% | 0.00% |
Debt-service coverage ratio | 1.21 | 1.09 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage Loans By Year Of Origination) (Details) - Commercial [Member] $ in Millions | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 1,536 | |
2019 | 3,401 | |
2018 | 2,583 | |
2017 | 1,955 | |
2016 | 1,909 | |
2015 and prior | 4,851 | |
Total | 16,235 | $ 15,606 |
Loan-to-value ratio, less than 65% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,504 | |
2019 | 3,141 | |
2018 | 2,382 | |
2017 | 1,786 | |
2016 | 1,713 | |
2015 and prior | 4,710 | |
Total | $ 15,236 | 14,206 |
2020 | item | 2.86 | |
2019 | item | 2.25 | |
2018 | item | 2.16 | |
2017 | item | 2.34 | |
2016 | item | 2.37 | |
2015 and prior | item | 2.38 | |
Loan-to-value ratio, 65% to 74% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 32 | |
2019 | 258 | |
2018 | 186 | |
2017 | 169 | |
2016 | 174 | |
2015 and prior | 133 | |
Total | $ 952 | 1,399 |
2020 | item | 1.52 | |
2019 | item | 1.78 | |
2018 | item | 1.49 | |
2017 | item | 1.73 | |
2016 | item | 1.56 | |
2015 and prior | item | 1.95 | |
Loan-to-value ratio, 75% to 100% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | $ 2 | |
2018 | 15 | |
2016 | 22 | |
2015 and prior | 8 | |
Total | $ 47 | $ 1 |
2019 | item | 1.74 | |
2018 | item | 0.71 | |
2016 | item | 1.58 | |
2015 and prior | item | 1.02 |
Investments (Credit Quality I_2
Investments (Credit Quality Indicators For Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage Loans Credit Quality [Line Items] | ||
Mortgage loans on real estate, ACL | $ 204 | $ 2 |
Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 737 | $ 735 |
Percent of total | 100.00% | 100.00% |
Mortgage loans on real estate, ACL | $ 17 | $ 2 |
Performing [Member] | Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 666 | $ 718 |
Percent of total | 90.40% | 97.70% |
Nonperforming [Member] | Residential [Member] | ||
Mortgage Loans Credit Quality [Line Items] | ||
Amortized Cost | $ 71 | $ 17 |
Percent of total | 9.60% | 2.30% |
Investments (Residential Mortga
Investments (Residential Mortgage Loans By Year Of Origination) (Details) - Residential [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 184 | |
2019 | 366 | |
2018 | 187 | |
Total | 737 | $ 735 |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 176 | |
2019 | 315 | |
2018 | 175 | |
Total | 666 | 718 |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 8 | |
2019 | 51 | |
2018 | 12 | |
Total | $ 71 | $ 17 |
Investmenst (Changes In Allowan
Investmenst (Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Balance as of beginning-of-year | $ 2 |
Additions from provision for credit loss expense | 188 |
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (74) |
Balance as of end-of-year | 204 |
Changes in economic assumptions increasing provision | 114 |
Accrued interest receivable excluded from credit losses | 49 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of beginning-of-year | 88 |
Unfunded Loan Commitment [Member] | |
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | 2 |
Commercial [Member] | |
Additions from provision for credit loss expense | 178 |
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (53) |
Balance as of end-of-year | 187 |
Commercial [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of beginning-of-year | 62 |
Residential [Member] | |
Balance as of beginning-of-year | 2 |
Additions from provision for credit loss expense | 10 |
Additions (reductions) for mortgage loans on real estate for which credit losses were previously recognized | (21) |
Balance as of end-of-year | 17 |
Residential [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |
Balance as of beginning-of-year | $ 26 |
Investments (Changes In The Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) - Commercial [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Losses | ||
Balance as of beginning-of-year | $ 3 | |
Additions | ||
Charge-offs, net of recoveries | (3) | |
Balance as of end-of-year |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 5,685 | $ 5,454 | $ 5,271 |
Investment expense | (175) | (231) | (186) |
Net investment income | 5,510 | 5,223 | 5,085 |
Fixed Maturity AFS Securities [Member] | AFS Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 4,334 | 4,281 | 4,209 |
Trading Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 202 | 191 | 84 |
Equity Securities [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 3 | 4 | 4 |
Mortgage Loans On Real Estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 677 | 629 | 496 |
Real estate [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1 | 1 | 1 |
Policy loans [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 125 | 129 | 123 |
Invested Cash [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 12 | 40 | 26 |
Commercial mortgage loan prepayment and bond makewhole premiums [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 82 | 119 | 79 |
Alternative investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 197 | 22 | 222 |
Consent fees [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 7 | 8 | 4 |
Other Investments [Member] | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 45 | $ 30 | $ 23 |
Investments (Credit Loss Expens
Investments (Credit Loss Expense Incurred) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss expense recognized in net income (loss) | $ (26) | $ (16) | $ (7) |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 1 | |
Net credit loss expense recognized in net income (loss) | (25) | (15) | (7) |
Fixed Maturity AFS Securities [Member] | Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss expense recognized in net income (loss) | (25) | (14) | (5) |
Fixed Maturity AFS Securities [Member] | RMBS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss expense recognized in net income (loss) | $ (1) | (1) | (1) |
Fixed Maturity AFS Securities [Member] | ABS [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Gross credit loss expense recognized in net income (loss) | $ (1) | $ (1) |
Investments (Payables For Colla
Investments (Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying Value Of Payables For Collateral On Investments [Abstract] | ||
Collateral payable for derivative investments | $ 2,976 | $ 1,388 |
Securities pledged under securities lending agreements | 116 | 114 |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 3,130 | 3,580 |
Total payables for collateral on investments | 6,222 | 5,082 |
Fair Value Of Related Investments Or Collateral [Abstract] | ||
Collateral payable for derivative investments | 2,976 | 1,388 |
Securities pledged under securities lending agreements | 112 | 110 |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 5,049 | 5,480 |
Total payables for collateral on investments | $ 8,137 | $ 6,978 |
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 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 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% |
Investments (Schedule Of Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (decrease) in payables for collateral on investments | |||
Collateral payable for derivative investments | $ 1,588 | $ 751 | $ (128) |
Securities pledged under securities lending agreements | 2 | 26 | (134) |
Securities pledged under repurchase agreements | (150) | (380) | |
Investments pledged for FHLBI | (450) | (350) | 1,030 |
Total increase (decrease) in payables for collateral on investments | $ 1,140 | $ 277 | $ 388 |
Investments (Schedule of Securi
Investments (Schedule of Securities Pledged by Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 116 | $ 114 |
Total gross secured borrowings | 116 | 114 |
Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 114 | 114 |
Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 2 | |
Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total gross secured borrowings | 116 | 114 |
Overnight and Continuous [Member] | Corporate Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | 114 | $ 114 |
Overnight and Continuous [Member] | Foreign Government Bonds [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending | $ 2 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Derivatives [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 13 | |
Cash flow hedge, reclassified to earnings, net | 0 | $ 0 |
Exposure Associated With Collateralization Events | 0 | $ 0 |
Credit Default Swap, Seller [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Requirement If Netting Agreements Not In Place | $ 1 | |
Indexed Annuity [Member] | ||
Credit Derivatives [Line Items] | ||
Derivative term | 6 years | |
Maximum [Member] | ||
Credit Derivatives [Line Items] | ||
Non-performance Risk Adjustment | $ 0 |
Derivative Instruments (Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | $ 216,826 | $ 163,315 |
Asset Fair Value | 6,390 | 4,384 |
Liability Fair Value | 7,091 | 4,306 |
Interest Rate Contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 138,772 | |
Foreign currency contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 3,393 | |
Equity market contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 74,610 | |
Credit contracts [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 51 | |
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 | 82 | 60 |
Liability Fair Value | 9 | |
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||
Outstanding derivative instruments with off-balance-sheet risks | ||
Notional Amounts | 5,266 | 5,261 |
Asset Fair Value | 234 | 299 |
Liability Fair Value | 714 | 296 |
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 | 135,434 | 112,921 |
Asset Fair Value | 1,587 | 1,082 |
Liability Fair Value | 159 | 219 |
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 | 304 | 262 |
Asset Fair Value | 1 | 1 |
Liability Fair Value | 8 | 3 |
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 | 74,610 | 43,555 |
Asset Fair Value | 3,486 | 1,442 |
Liability Fair Value | 1,952 | 664 |
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 | 51 | 55 |
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 | 2,177 | 2,387 |
Asset Fair Value | 87 | 108 |
Liability Fair Value | 563 | 245 |
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 | 3,089 | 2,874 |
Asset Fair Value | 147 | 191 |
Liability Fair Value | 151 | 51 |
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 | 1,161 | 1,261 |
Asset Fair Value | 123 | |
Liability Fair Value | 272 | 203 |
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 | 450 | 450 |
Reinsurance Related Embedded Derivatives [Member] | 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 | 392 | 327 |
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 | 550 | 927 |
Liability Fair Value | $ 3,594 | $ 2,585 |
Derivative Instruments (Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 54,995 | |
Remaining Life - 1 - 5 Years | 77,548 | |
Remaining Life - 6 - 10 Years | 36,110 | |
Remaining Life - 11 - 30 Years | 38,664 | |
Remaining Life Over - 30 Years | 9,509 | |
Remaining Life - Total Years | 216,826 | $ 163,315 |
Interest Rate Contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | 14,052 | |
Remaining Life - 1 - 5 Years | 57,331 | |
Remaining Life - 6 - 10 Years | 29,217 | |
Remaining Life - 11 - 30 Years | 36,959 | |
Remaining Life Over - 30 Years | 1,213 | |
Remaining Life - Total Years | $ 138,772 | |
Derivative maturity date | Apr. 20, 2067 | |
Foreign currency contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 227 | |
Remaining Life - 1 - 5 Years | 411 | |
Remaining Life - 6 - 10 Years | 1,062 | |
Remaining Life - 11 - 30 Years | 1,693 | |
Remaining Life Over - 30 Years | ||
Remaining Life - Total Years | $ 3,393 | |
Derivative maturity date | Jun. 17, 2050 | |
Equity market contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life Less Than 1 Year | $ 40,716 | |
Remaining Life - 1 - 5 Years | 19,755 | |
Remaining Life - 6 - 10 Years | 5,831 | |
Remaining Life - 11 - 30 Years | 12 | |
Remaining Life Over - 30 Years | 8,296 | |
Remaining Life - Total Years | 74,610 | |
Credit contracts [Member] | ||
Maturity of the notional amounts of derivative financial instruments | ||
Remaining Life - 1 - 5 Years | 51 | |
Remaining Life - Total Years | $ 51 |
Derivative Instruments (Cumulat
Derivative Instruments (Cumulative Basis Adjustments For Fair Value Hedges) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed Maturity AFS Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged assets | $ 824 | $ 776 |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged assets | 271 | 202 |
Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amortized cost of the hedged liabilities | (900) | (1,035) |
Cumulative fair value hedging adjustment included in the amortized cost of the hedged liabilities | (25) | (160) |
Discontinued Hedges [Member] | Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cumulative fair value hedging adjustment included in the amortized cost of the hedged liabilities | $ (370) | $ (118) |
Derivative Instruments (Change
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | $ 5,673 | ||
Income tax benefit (expense) | 76 | $ (33) | $ (244) |
Balance as of end-of-period | 8,931 | 5,673 | |
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | (11) | 139 | (29) |
Change in foreign currency exchange rate adjustment | (174) | (52) | 111 |
Change in DAC, VOBA, DSI and DFEL | (17) | (4) | (13) |
Income tax benefit (expense) | 94 | 31 | (51) |
Reclassification adjustment for gains (losses) included in net income (loss) | 48 | 42 | 24 |
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (1) | (2) |
Income tax benefit (expense) | (10) | (9) | (5) |
Balance as of end-of-period | (402) | (11) | 139 |
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 | (350) | (201) | 100 |
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) | 2 | 3 | 4 |
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) | (16) | (5) | (7) |
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 | 93 | 108 | 44 |
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) | 56 | 35 | 27 |
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) | $ 6 | $ 9 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | (6) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | |||
Balance as of beginning-of-year | $ (6) |
Derivative Instruments (Effects
Derivative Instruments (Effects Of Qualifying And Non-Qualifying Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Realized Gain (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | $ (513) | $ (610) |
Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | 5,510 | 5,223 |
Interest and Debt Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Line Items in which the Effects of Fair Value or Cash Flow Hedges are Recorded | 284 | 326 |
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) | 1,287 | 984 |
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 | 2 | 3 |
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 | (16) | (5) |
Interest Rate Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | Net Investment Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 69 | 63 |
Derivatives designated as hedging instruments | (69) | (63) |
Interest Rate Contracts [Member] | Fair Value Hedges [Member] | Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedged items | 136 | (93) |
Derivatives designated as hedging instruments | (136) | 93 |
Foreign currency 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) | (3) | (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 | 6 | 9 |
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 | 56 | 35 |
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) | 971 | (137) |
Credit 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) | (6) | |
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) | 32 | 306 |
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) | (65) | (324) |
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) | $ (471) | $ (742) |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Gains (losses) | |
Gains (losses) | $ (216) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | |
Gains (losses) | |
Gains (losses) | 24 |
Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | |
Gains (losses) | |
Gains (losses) | 36 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | 4 |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | (14) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | (7) |
Designated as Hedging Instrument [Member] | Interest and Debt Expense [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | 13 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Cash Flow Hedges [Member] | Foreign currency contracts [Member] | |
Gains (losses) | |
Gains (losses) | 27 |
Designated as Hedging Instrument [Member] | Realized Gain (Loss) [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | 37 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Interest Rate Contracts [Member] | |
Gains (losses) | |
Gains (losses) | (150) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Foreign currency contracts [Member] | |
Gains (losses) | |
Gains (losses) | 5 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Equity market contracts [Member] | |
Gains (losses) | |
Gains (losses) | 444 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | GLB Embedded Derivatives [Member] | |
Gains (losses) | |
Gains (losses) | (692) |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Realized Gain (Loss) [Member] | Reinsurance Related [Member] | |
Gains (losses) | |
Gains (losses) | 54 |
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) | 81 |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments [Member] | Commissions and other expenses [Member] | Equity market contracts [Member] | |
Gains (losses) | |
Gains (losses) | $ (18) |
Derivative Instruments (Gains_2
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | $ 5,510 | $ 5,223 | $ 5,085 |
Offset to realized gain (loss) | (513) | (610) | 141 |
Offset to interest and debt expense | $ (284) | $ (326) | (297) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Other Comprehensive Income (Loss) [Member] | |||
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | |||
Offset to net investment income | 4 | ||
Offset to realized gain (loss) | 27 | ||
Offset to interest and debt expense | $ (7) |
Derivative Instruments (Open Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Credit Default Swap, Seller [Member] | ||
Summary Of Credit Derivatives | ||
Maximum potential payout | $ 51 | $ 55 |
Derivative Contract, Maturing 12-20-2025 [Member] | ||
Summary Of Credit Derivatives | ||
Maturity | Dec. 20, 2025 | |
Credit rating of underlying obligation | BBB+ | |
Number of instruments | item | 1 | |
Fair value | $ 1 | |
Maximum potential payout | $ 51 | |
Derivative Contract, Maturing 12-20-2024 [Member] | ||
Summary Of Credit Derivatives | ||
Maturity | Dec. 20, 2024 | |
Credit rating of underlying obligation | BBB+ | |
Number of instruments | item | 1 | |
Fair value | $ 1 | |
Maximum potential payout | $ 55 |
Derivative Instruments (Collate
Derivative Instruments (Collateral Support Agreements) (Details) - Credit Default Swap, Seller [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk related contingent features collateral | ||
Maximum potential payout | $ 51 | $ 55 |
Less: Counterparty thresholds | ||
Maximum collateral potentially required to post | $ 51 | $ 55 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | $ 2,976 | $ 1,387 |
Collateral Posted by LNC (Held by Counter-Party) | (1,061) | (557) |
AA- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 1,233 | 441 |
Collateral Posted by LNC (Held by Counter-Party) | (371) | (167) |
A+ [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 1,119 | 555 |
Collateral Posted by LNC (Held by Counter-Party) | (445) | (339) |
A [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 53 | 36 |
Collateral Posted by LNC (Held by Counter-Party) | ||
A- [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral Posted by Counter-Party (Held by LNC) | 571 | 355 |
Collateral Posted by LNC (Held by Counter-Party) | $ (245) | $ (51) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Offsetting Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Derivative Instruments, Gross amount of recognized assets | $ 4,978 | $ 2,619 |
Derivative Instruments, Gross amounts offset | (1,869) | (708) |
Derivative Instruments, Net amount of assets | 3,109 | 1,911 |
Derivative Instruments, Cash collateral | (2,976) | (1,387) |
Derivative Instruments, Non-cash collateral | (56) | (242) |
Derivative Instruments, Net amount | 77 | 282 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,082 | 1,437 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of assets | 1,082 | 1,437 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 1,082 | 1,437 |
Total, Gross amount of recognized assets | 6,060 | 4,056 |
Total, Gross amounts offset | (1,869) | (708) |
Total, Net amount of assets | 4,191 | 3,348 |
Total, Cash collateral | (2,976) | (1,387) |
Total, Non-cash collateral | (56) | (242) |
Total, Net amount | 1,159 | 1,719 |
Financial Liabilities | ||
Derivative Instruments, Gross amount of recognized liabilities | 1,456 | 1,005 |
Derivative Instruments, Gross amounts offset | (330) | (138) |
Derivative Instruments, Net amount of liabilities | 1,126 | 867 |
Derivative Instruments, Cash collateral | (1,061) | (557) |
Derivative Instruments, Non-cash collateral | ||
Derivative Instruments, Net amount | 65 | 310 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 3,986 | 2,921 |
Embedded Derivative Instruments, Gross amounts offset | ||
Embedded Derivative Instruments, Net amount of liabilities | 3,986 | 2,921 |
Embedded Derivative Instruments, Cash collateral | ||
Embedded Derivative Instruments, Non-cash collateral | ||
Embedded Derivative Instruments, Net amount | 3,986 | 2,921 |
Total, Gross amount of recognized liabilities | 5,442 | 3,926 |
Total, Gross amounts offset | (330) | (138) |
Total, Net amount of liabilities | 5,112 | 3,788 |
Total, Cash collateral | (1,061) | (557) |
Total, Net amount | $ 4,051 | $ 3,231 |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Income Taxes [Abstract] | |||
Net operating loss carryforwards | $ 1,000 | ||
Valuation allowance | 0 | ||
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | 51 | $ 48 | |
Possible decrease in unrecognized tax benefits | 10 | ||
Interest and penalty expense related to uncertain tax positions | 0 | 0 | $ 0 |
Accrued interest and penalty expense related to unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Federal Income Taxes (Federal I
Federal Income Taxes (Federal Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense (benefit), continuing operations [Abstract] | |||
Current | $ (61) | $ 181 | $ 91 |
Deferred | (15) | (148) | 153 |
Federal income tax expense (benefit) | $ (76) | $ 33 | $ 244 |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of effective tax rate differences [Abstract] | |||
Income (loss) before taxes | $ 423 | $ 919 | $ 1,885 |
Federal statutory rate | 21.00% | 21.00% | 21.00% |
Federal income tax expense (benefit) at federal statutory rate | $ 89 | $ 193 | $ 396 |
Effect of: | |||
Tax-preferred investment income | (98) | (99) | (87) |
Tax credits | (39) | (40) | (39) |
Excess tax benefits from share-based compensation | 3 | (9) | (5) |
Tax impact associated with the Tax Cuts and Jobs Act | (37) | (17) | (19) |
Other items | 6 | 5 | (2) |
Federal income tax expense (benefit) | $ (76) | $ 33 | $ 244 |
Effective tax rate | (18.00%) | 4.00% | 13.00% |
Variable Annuity [Member] | |||
Effect of: | |||
Tax impact associated with the Tax Cuts and Jobs Act | $ (27) |
Federal Income Taxes (Federal_2
Federal Income Taxes (Federal Income Tax Asset Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Federal income tax asset (liability) [Abstract] | ||
Current | $ 147 | $ 60 |
Deferred | (3,256) | (2,443) |
Total federal income tax asset (liability) | $ (3,109) | $ (2,383) |
Federal Income Taxes (Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets | ||
Future contract benefits and other contract holder funds | $ 2,377 | $ 643 |
Reinsurance related embedded derivative asset | 82 | 69 |
Compensation and benefit plans | 212 | 190 |
Intangibles | 27 | 26 |
Tax credits | 19 | |
Net operating losses | 218 | 216 |
Other | 36 | 14 |
Total deferred tax assets | 2,971 | 1,158 |
Deferred Tax Liabilities | ||
DAC | 382 | 813 |
VOBA | 167 | 194 |
Net unrealized gain on fixed maturity AFS securities | 4,001 | 2,308 |
Net unrealized gain on trading securities | 90 | 72 |
Investment activity | 1,249 | 109 |
Other | 338 | 105 |
Total deferred tax liabilities | 6,227 | 3,601 |
Net deferred tax asset (liability) | $ (3,256) | $ (2,443) |
Federal Income Taxes (Reconci_2
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||
Balance as of beginning-of-year | $ 48 | $ 16 |
Increases for prior year tax positions | 32 | |
Increases for current year tax positions | 3 | |
Balance as of end-of-year | $ 51 | $ 48 |
DAC, VOBA, DSI, and DFEL (DAC)
DAC, VOBA, DSI, and DFEL (DAC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in DAC [Roll Forward] | |||
Balance as of beginning-of-year | $ 7,352 | $ 9,448 | $ 7,887 |
Business acquired (sold) through reinsurance | (10) | (246) | |
Deferrals | 1,446 | 1,902 | 1,600 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (796) | (950) | (951) |
Unlocking | (231) | (489) | (115) |
Adjustment related to realized gains (losses) | (19) | 54 | (47) |
Adjustment related to unrealized gains (losses) | (2,182) | (2,613) | 1,320 |
Balance as of end-of-year | 5,565 | $ 7,352 | $ 9,448 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Amortization, net of interest: | |||
Balance as of end-of-year | $ 5 |
DAC, VOBA, DSI, and DFEL (VOBA)
DAC, VOBA, DSI, and DFEL (VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in VOBA [Roll Forward] | |||
Balance as of beginning-of-year | $ 342 | $ 816 | $ 516 |
Business acquired (sold) through reinsurance | (11) | ||
Business acquired | 30 | ||
Deferrals | 3 | 6 | 7 |
Amortization: | |||
Amortization, excluding unlocking | (105) | (114) | (127) |
Unlocking | (205) | 140 | (60) |
Accretion of interest | 44 | 45 | 48 |
Adjustment related to realized (gains) losses | (1) | (2) | |
Adjustment related to unrealized (gains) losses | 168 | (550) | 415 |
Balance as of end-of-year | $ 247 | $ 342 | $ 816 |
Interest accrual rate, low end | 4.20% | 4.20% | 4.20% |
Interest accrual rate, high end | 6.90% | 6.90% | 6.90% |
DAC, VOBA, DSI, and DFEL (Estim
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Estimated future amortization of VOBA, net of interest [Abstract] | |
2021 | $ 67 |
2022 | 65 |
2023 | 64 |
2024 | 59 |
2025 | $ 52 |
DAC, VOBA, DSI, and DFEL (DSI)
DAC, VOBA, DSI, and DFEL (DSI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in DSI [Roll Forward] | |||
Balance as of beginning-of-year | $ 234 | $ 248 | $ 238 |
Business acquired (sold) through reinsurance | (21) | ||
Deferrals | 7 | 26 | 47 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (20) | (29) | (28) |
Unlocking | (1) | (3) | |
Adjustment related to realized (gains) losses | (1) | 2 | (1) |
Adjustment related to unrealized (gains) losses | (6) | (10) | 13 |
Balance as of end-of-year | $ 213 | $ 234 | $ 248 |
DAC, VOBA, DSI, and DFEL (DFEL)
DAC, VOBA, DSI, and DFEL (DFEL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in DFEL [Abstract] | |||
Balance as of beginning-of-year | $ 650 | $ 2,769 | $ 1,445 |
Deferrals | 1,003 | 1,095 | 875 |
Amortization, net of interest: | |||
Amortization, excluding unlocking, net of interest | (538) | (544) | (482) |
Unlocking | (275) | (426) | (53) |
Adjustment related to realized (gains) losses | 25 | (20) | |
Adjustment related to unrealized (gains) losses | (468) | (2,244) | 1,004 |
Balance as of end-of-year | 401 | $ 650 | $ 2,769 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Amortization, net of interest: | |||
Balance as of end-of-year | $ 4 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Ceded Credit Risk [Line Items] | ||||
Reinsurance ACL and deposit assets | $ 192 | |||
Maximum retention per single insured life on fixed and VUL insurance contracts | $ 20 | |||
Percent of mortality risk reinsured on newly issued non-term life insurance contracts | 17.00% | |||
Reinsurance recoverables | $ 16,496 | $ 17,144 | ||
Funds withheld reinsurance liabilities | 1,946 | 1,810 | ||
Swiss Re [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance receivable | 1,200 | 1,300 | ||
Trust funded to support reinsurance receivable | 1,200 | |||
Funds withheld reinsurance liabilities | 151 | |||
Liabilities for reinsurance related embedded derivatives | 35 | |||
Protective [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverables | 11,300 | 11,800 | ||
Trust funded to support reinsurance receivable | 15,200 | 14,700 | ||
Athene Holding Ltd. [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Amount of amortization, after-tax, of deferred gain on business sold | 29 | 30 | $ 8 | |
Deposit assets | 5,800 | 6,600 | ||
Reserves associated with modified coinsurance reinsurance arrangements | 6,144 | $ 6,897 | ||
Letter of credit | 170 | |||
Athene Holding Ltd. [Member] | Over-Collateralization [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Reserves associated with modified coinsurance reinsurance arrangements | $ 185 |
Reinsurance (Reinsurance Amount
Reinsurance (Reinsurance Amounts Recorded on Consolidated Statements of Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reinsurance [Abstract] | |||
Direct insurance premiums and fee income | $ 13,304 | $ 13,498 | $ 12,041 |
Reinsurance assumed | 95 | 91 | 89 |
Reinsurance ceded | (1,656) | (1,579) | (1,543) |
Total insurance premiums and fee income | 11,743 | 12,010 | 10,587 |
Direct insurance benefits | 10,630 | 9,574 | 8,592 |
Reinsurance recoveries netted against benefits | (1,953) | (1,694) | (1,806) |
Benefits | $ 8,677 | $ 7,880 | $ 6,786 |
Reinsurance (Schedule Of Assets
Reinsurance (Schedule Of Assets In Support Of Reserves) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | $ 123,044 | $ 105,200 | ||
Trading securities | 4,501 | 4,673 | ||
Equity securities | 129 | 103 | ||
Mortgage loans on real estate | 16,763 | 16,339 | ||
Derivative investments | 3,109 | 1,911 | ||
Other investments | 3,984 | 2,994 | ||
Cash and invested cash | 1,708 | 2,563 | $ 2,345 | $ 1,628 |
Accrued investment income | 1,257 | 1,148 | ||
Other assets | 15,960 | 16,170 | ||
Athene Holding Ltd. [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Fixed maturity AFS securities | 1,531 | 2,308 | ||
Trading securities | 3,357 | 3,534 | ||
Equity securities | 17 | 14 | ||
Mortgage loans on real estate | 832 | 698 | ||
Derivative investments | 103 | 130 | ||
Other investments | 167 | 94 | ||
Cash and invested cash | 92 | 62 | ||
Accrued investment income | 42 | 57 | ||
Other assets | 3 | |||
Total | 6,144 | 6,897 | ||
Commercial [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Mortgage loans on real estate | $ 16,043 | $ 15,606 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | ||
Future sales volume and product mix used to forcast | 10 years | |
Goodwill impairment |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets (Changes In Carrying Amount Of Goodwill, By Reportable Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill Gross | $ 3,932 | $ 3,936 | |
Accumulated impairment as of beginning-of-year | (2,154) | (2,154) | |
Acquisition accounting adjustments | (4) | ||
Impairment | |||
Net goodwill as of end-of-year | 1,778 | 1,778 | |
Annuities Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 1,040 | 1,040 | |
Accumulated impairment as of beginning-of-year | (600) | (600) | |
Impairment | |||
Net goodwill as of end-of-year | 440 | 440 | |
Retirement Plan Services Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 20 | 20 | |
Impairment | |||
Net goodwill as of end-of-year | 20 | 20 | |
Life Insurance Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 2,188 | 2,188 | |
Accumulated impairment as of beginning-of-year | (1,554) | (1,554) | |
Impairment | |||
Net goodwill as of end-of-year | 634 | 634 | |
Group Protection Segment [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill Gross | 684 | $ 688 | |
Acquisition accounting adjustments | (4) | ||
Impairment | |||
Net goodwill as of end-of-year | $ 684 | $ 684 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets (Schedule Of Intangible Assets By Reportable Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | $ 715 | $ 715 |
Accumulated amortization | 119 | 82 |
Retirement Plan Services Segment [Member] | Mutual Fund Contract Rights [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 5 | 5 |
Life Insurance Segment [Member] | Sales Force [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 100 | 100 |
Accumulated amortization | 59 | 55 |
Group Protection Segment [Member] | Insurance Licenses [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 3 | 3 |
Group Protection Segment [Member] | VOCRA [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 576 | 576 |
Accumulated amortization | 55 | 25 |
Group Protection Segment [Member] | VODA [Member] | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ||
Gross carrying amount | 31 | 31 |
Accumulated amortization | $ 5 | $ 2 |
Goodwill and Specifically Ide_6
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Specifically Identifiable Intangible Assets [Abstract] | |
2021 | $ 37 |
2022 | 37 |
2023 | 37 |
2024 | 37 |
2025 | 37 |
Thereafter | $ 403 |
Guaranteed Benefit Features (Na
Guaranteed Benefit Features (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |||
Percent of permanent life insurance in force | 38.00% | 37.00% | |
Percent of permanent life insurance sales | 31.00% | 27.00% | 36.00% |
Guaranteed Benefit Features (In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 134,738 | $ 125,350 |
Return of Net Deposits [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | 109,856 | 101,601 |
Net amount at risk | $ 72 | $ 71 |
Average attained age of contract holders | 66 years | 65 years |
Minimum Return [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 100 | $ 92 |
Net amount at risk | $ 12 | $ 13 |
Average attained age of contract holders | 78 years | 77 years |
Guaranteed minimum return | 5.00% | 5.00% |
Anniversary Contract Value [Member] | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 27,650 | $ 25,763 |
Net amount at risk | $ 390 | $ 384 |
Average attained age of contract holders | 72 years | 71 years |
Guaranteed Benefit Features (Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Guaranteed Benefit Features [Abstract] | |||
Balance as of beginning-of-year | $ 117 | $ 161 | $ 100 |
Changes in reserves | 30 | (24) | 77 |
Benefits paid | (26) | (20) | (16) |
Balance as of end-of-period | $ 121 | $ 117 | $ 161 |
Guaranteed Benefit Features (Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 134,738 | $ 125,350 |
Percent of total variable annuity separate account values | 98.00% | 98.00% |
Domestic Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 70,362 | $ 64,093 |
International Equity [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | 20,855 | 19,852 |
Fixed Income [Member] | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ||
Total | $ 43,521 | $ 41,405 |
Liability For Unpaid Claims (Na
Liability For Unpaid Claims (Narrative) (Details) | Dec. 31, 2020 |
Minimum [Member] | |
Discount rate | 2.75% |
Maximum [Member] | |
Discount rate | 5.00% |
Liability For Unpaid Claims (Ch
Liability For Unpaid Claims (Changes In Liability For Unpaid Claims) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability For Unpaid Claims [Abstract] | |||
Balance as of beginning-of-year | $ 5,552 | $ 5,335 | $ 2,222 |
Reinsurance recoverable | 152 | 143 | 57 |
Net balance as of beginning-of-year | 5,400 | 5,192 | 2,165 |
Business acquired | 2,842 | ||
Incurred related to: | |||
Current year | 3,517 | 3,193 | 2,531 |
Interest | 148 | 151 | 120 |
All other incurred | (209) | (308) | (208) |
Total incurred | 3,456 | 3,036 | 2,443 |
Paid related to: | |||
Current year | (1,707) | (1,518) | (1,197) |
Prior years | (1,366) | (1,310) | (1,061) |
Total paid | (3,073) | (2,828) | (2,258) |
Net balance as of end-of-year | 5,783 | 5,400 | 5,192 |
Reinsurance recoverable | 151 | 152 | 143 |
Balance as of end-of-year | $ 5,934 | $ 5,552 | $ 5,335 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Non-operating indebtedness of subsidiaries to total capitalization, maximum | 7.50% |
Debt instrument, Consecutive years of non-payment of interest resulting in default | 10 years |
Capital Securities [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 1,200,000,000 |
Risk based capital ratio threshold | 175.00% |
Capital securities covenant percentage | 10.00% |
Five-year revolving credit facility [Member] | |
Debt Instrument [Line Items] | |
Maximum Issuance Of Line of Credit | $ 2,250,000,000 |
Minimum consolidated net worth | $ 10,600,000,000 |
Percentage of aggregate net proceeds of equity issuances | 50.00% |
Debt to capital ratio (low end of range) | 0.35% |
Debt to capital ratio (high end of range) | 1.00% |
Delaware Trust Facility [Member] | |
Debt Instrument [Line Items] | |
Facility agreement term | 10 years |
Pre-capitalized securities, sold by trust | $ 500,000,000 |
Facility fee rate | 1.691% |
Stockholders' equity threshold triggering required facility exercise | $ 2,750,000,000 |
Potential Issuance In Exchange For US Treasury Securities [Member] | Senior Notes 2.330%, Due 2030 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 2.33% |
Potential Issuance In Exchange For US Treasury Securities [Member] | Delaware Trust Facility [Member] | Senior Notes 2.330%, Due 2030 [Member] | |
Debt Instrument [Line Items] | |
Principal balance | $ 500,000,000 |
Interest rate | 2.33% |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Schedule Of Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Current maturities of long-term debt | $ 300 | |
Total short-term debt | 300 | |
Total long-term debt | $ 6,682 | 6,067 |
Fixed rate, swap | 5.00% | |
Debt repurchase option, Repayment as percent of principal | 100.00% | |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 4,868 | 4,364 |
Term loans | 250 | 250 |
Capital securities | 1,213 | 1,213 |
Unamortized premiums (discounts) | (6) | (4) |
Unamortized debt issuance costs | (38) | (34) |
Unamortized adjustments from discontinued hedges | 370 | 118 |
Fair value hedge on interest rate swap agreements | 25 | 160 |
Total long-term debt | $ 6,682 | 6,067 |
4.85% notes, due 2021 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | 296 | |
Interest rate | 4.85% | |
4.20% notes, due 2022 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 300 | 300 |
Interest rate | 4.20% | |
4.00% notes, due 2023 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 500 | 500 |
Interest rate | 4.00% | |
3.35% notes, due 2025 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 300 | 300 |
Interest rate | 3.35% | |
3.625% notes, due 2026 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 400 | 400 |
Interest rate | 3.625% | |
3.80% notes, due 2028 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 500 | 500 |
Interest rate | 3.80% | |
3.05% notes, due 2030 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 500 | 500 |
Interest rate | 3.05% | |
3.40% notes, due 2031 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 500 | |
Interest rate | 3.40% | |
6.15% notes, due 2036 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 243 | 243 |
Interest rate | 6.15% | |
6.30% notes, due 2037 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 375 | 375 |
Interest rate | 6.30% | |
7.00% notes, due 2040 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 500 | 500 |
Interest rate | 7.00% | |
4.35% notes, due 2048 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 450 | 450 |
Interest rate | 4.35% | |
4.375% notes, due 2050 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior Long Term Notes | $ 300 | |
Interest rate | 4.375% | |
LIBOR + 87.5 bps loan, due 2024 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Term loans | $ 250 | 250 |
Variable rate | 0.875% | |
LIBOR +236 bps, due 2066 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital securities | $ 722 | 722 |
Variable rate | 2.36% | |
LIBOR +204 bps, due 2067 [Member] | Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital securities | $ 491 | $ 491 |
Variable rate | 2.04% |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Schedule of Extinguishment of Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Principal balance outstanding prior to payoff | $ 796 | $ 109 | $ 287 | |
Unamortized debt issuance costs and discounts | (2) | (1) | (1) | |
Amount paid to retire debt | (809) | (150) | (309) | |
Gain (loss) on early extinguishment of debt, pre-tax | (15) | (42) | $ (23) | |
6.15% Notes, Due 2036 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Repurchase amount | $ 105 | |||
Interest rate | 6.15% | |||
4.85% Notes, Due 2021 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Principal balance outstanding prior to payoff | $ 296 | |||
Repurchase amount | $ 4 | |||
Interest rate | 4.85% | 4.85% | ||
LIBOR + 150 bps Term Loan Issued, Due 2022 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Principal balance outstanding prior to payoff | $ 500 | |||
Variable rate | 1.50% | |||
8.75% notes, due 2019 [Member] | ||||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ||||
Repurchase amount | $ 287 | |||
Interest rate | 8.75% |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt (Future Principal Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Future principal payments due on long-term debt [Abstract] | |
2022 | $ 300 |
2023 | 500 |
2024 | 250 |
2025 | 300 |
Thereafter | 4,981 |
Total | $ 6,331 |
Short-Term and Long-Term Debt_6
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Credit Facilities | Total |
Maximum Available | $ 4,194 |
LOCs issued | $ 2,116 |
Five-year revolving credit facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | Five-year revolving credit facility |
Expiration Date | Jul. 31, 2024 |
Maximum Available | $ 2,250 |
LOCs issued | $ 219 |
LOC facility due August 2031 [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | LOC facility (1) |
Expiration Date | Aug. 26, 2031 |
Maximum Available | $ 990 |
LOCs issued | $ 943 |
LOC facility due October 2031 [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facilities | LOC facility (1) |
Expiration Date | Oct. 1, 2031 |
Maximum Available | $ 954 |
LOCs issued | $ 954 |
Contingencies And Commitments_2
Contingencies And Commitments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Operating lease ROU asset | $ 182 | $ 233 | |
Operating lease liability | $ 194 | $ 240 | |
Weighted average discount rate, operating lease | 3.20% | 3.20% | |
Weighted average remaining operating lease term | 6 years | 6 years | |
Operating lease expense | $ 50 | $ 54 | $ 50 |
Finance lease, net book value | 75 | 128 | |
Finance lease, accumulated amortization | $ 398 | 345 | |
Weighted average discount rate, finance lease | 2.20% | ||
Weighted average remaining finance lease term | 2 years | ||
Number of leases not yet commenced | contract | 0 | ||
Loss contingency accrual, insurance-related assessment, premium tax offset | $ (9) | $ (12) | |
Maximum [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate | $ 90 |
Contingencies And Commitments_3
Contingencies And Commitments (Finance Lease Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contingencies And Commitments [Abstract] | ||
Amortization of ROU assets | $ 53 | $ 67 |
Interest on lease liabilities | 6 | 13 |
Total | $ 59 | $ 80 |
Contingencies And Commitments_4
Contingencies And Commitments (Cash Flow Information Related To Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contingencies And Commitments [Abstract] | ||
Operating cash flows from operating leases | $ 54 | $ 56 |
Financing cash flows from finance leases | 53 | 96 |
Operating leases | $ 10 | $ 80 |
Contingencies And Commitments_5
Contingencies And Commitments (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 51 | |
2022 | 46 | |
2023 | 43 | |
2024 | 29 | |
2025 | 22 | |
Thereafter | 47 | |
Total future minimum lease payments | 238 | |
Less: Amount representing interest | 44 | |
Present value of minimum lease payments | 194 | $ 240 |
Finance Leases | ||
2021 | 62 | |
2022 | 72 | |
2023 | 79 | |
2024 | 17 | |
2025 | 7 | |
Thereafter | 4 | |
Total future minimum lease payments | 241 | |
Less: Amount representing interest | 7 | |
Present value of minimum lease payments | $ 234 |
Shares and Stockholders' Equi_3
Shares and Stockholders' Equity (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Shares and Stockholders' Equity [Abstract] | ||
Deferred compensation plan mark to market adjustment | $ 18 | |
Shares issuable per warrant | 1 |
Shares and Stockholders' Equi_4
Shares and Stockholders' Equity (Changes In Common stock (Number Of Shares)) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes In Common Stock (Number Of Shares) [Line Items] | |||
Balance as of beginning-of-year | 196,668,532 | ||
Balance as of end-of-year | 192,329,691 | 196,668,532 | |
Common Stock [Member] | |||
Changes In Common Stock (Number Of Shares) [Line Items] | |||
Balance as of beginning-of-year | 196,668,532 | 205,862,760 | 218,090,114 |
Stock issued for exercise of warrants | 258,633 | 212,670 | |
Stock compensation/issued for benefit plans | 547,209 | 942,318 | 800,325 |
Retirement/cancellation of shares | (4,886,050) | (10,395,179) | (13,240,349) |
Balance as of end-of-year | 192,329,691 | 196,668,532 | 205,862,760 |
Common stock as of End-of-Year | |||
Basic basis | 192,329,691 | 196,668,532 | 205,862,760 |
Diluted basis | 193,672,296 | 199,196,043 | 209,034,686 |
Shares And Stockholders' Equi_5
Shares And Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 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 | 193,610,225 | 200,608,737 | 215,936,448 |
Shares to cover exercise of outstanding warrants | 58,765 | 568,602 | |
Shares to cover non-vested stock | 687,240 | 973,901 | 1,534,142 |
Average stock options outstanding during the period | 746,742 | 1,507,049 | 1,739,029 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | (9,594) | (81,260) | |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | (576,582) | (1,033,507) | (1,074,406) |
Shares repurchasable from measured but unrecognized stock option expense | (2,445) | (217) | (14,600) |
Average deferred compensation shares | 944,151 | ||
Weighted-average shares, as used in diluted calculation | 194,465,180 | 202,105,134 | 219,552,106 |
Shares And Stockholders' Equi_6
Shares And Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ 5,673 | ||
Less: | |||
Balance as of end-of-period | 8,931 | $ 5,673 | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ (6) | ||
Unrealized Gain (Loss) on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 5,983 | 557 | 3,486 |
Unrealized holding gains (losses) arising during the period | 7,925 | 9,267 | (6,274) |
Change in foreign currency exchange rate adjustment | 180 | 46 | (107) |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | (3,569) | (2,462) | 1,748 |
Income tax benefit (expense) | (970) | (1,457) | 981 |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | (53) | (28) | (42) |
Associated amortization of DAC, VOBA, DSI, and DFEL | 32 | (12) | (20) |
Income tax benefit (expense) | 4 | 8 | 13 |
Less: | |||
Balance as of end-of-period | 9,611 | 5,983 | 557 |
Unrealized Gain (Loss) on AFS Securities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 45 | 674 | |
Less: | |||
Balance as of end-of-period | 45 | ||
Unrealized OTTI on AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | 45 | 33 | 44 |
(Increases) attributable to: | |||
Gross OTTI recognized in OCI during the period | (16) | ||
Change in DAC, VOBA, DSI and DFEL | 1 | ||
Income tax benefit (expense) | 3 | ||
Decreases attributable to | |||
Changes in fair value, sales, maturities or other settlements of AFS securities | 31 | (19) | |
Change in DAC, VOBA, DSI, and DFEL | (1) | (6) | |
Income tax benefit (expense) | (6) | 5 | |
Less: | |||
Balance as of end-of-period | 45 | 33 | |
Unrealized OTTI on AFS Securities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (45) | 9 | |
Less: | |||
Balance as of end-of-period | (45) | ||
Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (11) | 139 | (29) |
Unrealized holding gains (losses) arising during the period | (257) | (93) | 144 |
Change in foreign currency exchange rate adjustment | (174) | (52) | 111 |
Decreases attributable to | |||
Change in DAC, VOBA, DSI and DFEL | (17) | (4) | (13) |
Income tax benefit (expense) | 94 | 31 | (51) |
Less: | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 48 | 42 | 24 |
Associated amortization of DAC, VOBA, DSI and DFEL | (1) | (1) | (2) |
Income tax benefit (expense) | (10) | (9) | (5) |
Balance as of end-of-period | (402) | (11) | 139 |
Unrealized Gain (Loss) on Derivative Instruments [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (6) | ||
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (17) | (23) | (14) |
Change in foreign currency exchange rate adjustment | 5 | 6 | (9) |
Less: | |||
Balance as of end-of-period | (12) | (17) | (23) |
Funded Status of Employee Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | (327) | (299) | (257) |
Less: | |||
Adjustment arising during the period | 74 | (20) | (12) |
Income tax benefit (expense) | (13) | (8) | 5 |
Balance as of end-of-period | $ (266) | $ (327) | (299) |
Funded Status of Employee Benefit Plans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance as of beginning-of-year | $ (35) |
Shares And Stockholders' Equi_7
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | $ (513) | $ (610) | $ 141 |
Net investment income | 5,510 | 5,223 | 5,085 |
Interest and debt expense | (284) | (326) | (297) |
Commissions and other expenses | (5,064) | (5,287) | (4,763) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | (53) | (28) | (42) |
Reclassifications before income tax benefit (expense) | (21) | (40) | (62) |
Income tax benefit (expense) | 4 | 8 | 13 |
Reclassifications, net of income tax | (17) | (32) | (49) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 32 | (12) | (20) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 4 | 8 | |
Reclassifications before income tax benefit (expense) | 4 | 8 | |
Income tax benefit (expense) | (1) | (2) | |
Reclassifications, net of income tax | 3 | 6 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Nonoperating income expense | 48 | 42 | 24 |
Reclassifications before income tax benefit (expense) | 47 | 41 | 22 |
Income tax benefit (expense) | (10) | (9) | (5) |
Reclassifications, net of income tax | 37 | 32 | 17 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Interest Rate Contracts [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment income | 2 | 3 | 4 |
Interest and debt expense | (16) | (5) | (7) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Foreign currency contracts [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total realized gain (loss) | 6 | 9 | |
Net investment income | 56 | 35 | 27 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | Associated amortization of DAC, VOBA, DSI and DFEL [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Commissions and other expenses | $ (1) | $ (1) | $ (2) |
Realized Gain (Loss) (Schedule
Realized Gain (Loss) (Schedule Of Realized Gain (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Realized gain (loss) related to certain investments | |||
AFS securities. Gross gains | $ 31 | $ 45 | $ 38 |
AFS securities. Gross losses | (84) | (73) | (80) |
Credit loss benefit (expense) | (26) | ||
AFS securities. Gross OTTI | (16) | (7) | |
Realized gain (loss) on equity securities | 8 | (6) | (17) |
Credit loss benefit (expense) on mortgage loans on real estate | (117) | (1) | 2 |
Other gain (loss) on investments | (7) | (9) | 2 |
Associated amortization of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | 31 | (13) | (22) |
Total realized gain (loss) related to certain financial assets | (164) | (73) | (84) |
Realized gain (loss) on the mark-to-market on certain instruments | 26 | (127) | 4 |
Indexed annuity and IUL contracts net derivatives results: | |||
Gross gain (loss) | 37 | (80) | (51) |
Associated amortization of DAC, VOBA, DSI, and DFEL | (25) | 2 | 12 |
Variable annuity net derivatives results: | |||
Gross gain (loss) | (367) | (389) | 295 |
Associated amortization of DAC, VOBA, DSI, and DFEL | (20) | 57 | (35) |
Total realized gain (loss) | (513) | (610) | $ 141 |
Mortgage Loans On Real Estate [Member] | |||
Realized gain (loss) related to certain investments | |||
Realized gain (loss) on the mark-to-market on certain instruments | (24) | ||
Equity Securities [Member] | |||
Realized gain (loss) related to certain investments | |||
Realized gain (loss) on equity securities | $ 8 | $ (4) |
Commissions and Other Expense_2
Commissions and Other Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details underlying commissions and other expenses [Abstract] | |||
Commissions | $ 2,183 | $ 2,549 | $ 2,256 |
General and administrative expenses | 2,072 | 2,210 | 1,953 |
Expenses associated with reserve financing and unrelated LOCs | 94 | 88 | 84 |
DAC and VOBA deferrals and interest, net of amortization | (156) | (540) | (402) |
Broker-dealer expenses | 493 | 481 | 465 |
Specifically identifiable intangible asset amortization | 37 | 26 | 9 |
Taxes, licenses and fees | 321 | 343 | 313 |
Acquisition and integration costs related to mergers and acquisitions | 20 | 130 | 85 |
Total | $ 5,064 | $ 5,287 | $ 4,763 |
Retirement and Deferred Compe_3
Retirement and Deferred Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit expense (recovery) | $ (11) | $ 8 | $ (2) |
Expected benefit payments in the next fiscal year | 110 | ||
Defined contribution plans expense | 100 | 104 | 93 |
Deferred compensation plans expense | $ 35 | 28 | $ 4 |
Elective Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | $ 2 |
Retirement and Deferred Compe_4
Retirement and Deferred Compensation Plans (Benefit Plans' Assets and Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1,736 | $ 1,589 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,670 | 1,520 |
Projected benefit obligation | 1,698 | 1,646 |
Funded status | (28) | (126) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other assets | 88 | 12 |
Other liabilities | (116) | (138) |
Net amount recognized | $ (28) | $ (126) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 2.58% | 3.14% |
Weighted-Average Assumptions, Net periodic benefit cost: | ||
Weighted-average discount rate | 3.12% | 4.10% |
Expected return on plan assets | 6.10% | 6.48% |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 66 | $ 69 |
Projected benefit obligation | 79 | 78 |
Funded status | (13) | (9) |
Amounts Recognized on the Consolidated Balance Sheets | ||
Other liabilities | (13) | (9) |
Net amount recognized | $ (13) | $ (9) |
Weighted-Average Assumptions, Benefit obligations: | ||
Weighted-average discount rate | 2.96% | 3.50% |
Weighted-Average Assumptions, Net periodic benefit cost: | ||
Weighted-average discount rate | 3.50% | 4.50% |
Expected return on plan assets | 6.50% | 6.50% |
Retirement and Deferred Compe_5
Retirement and Deferred Compensation Plans (Fair Value of Benefit Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 1,736 | $ 1,589 |
Corporate Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 320 | 274 |
U.S. Government Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 246 | 280 |
Foreign Government Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 138 | 67 |
State And Municipal Bonds [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 29 | 29 |
Limited Partnerships And Common And Preferred Stock [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 671 | 599 |
Bulk Annuity Insurance Policy [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 178 | 165 |
Invested Cash [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | 88 | 106 |
Other Investments [Member] | ||
Fair Value of Benefit Plans' Assets [Abstract] | ||
Fair value of plan assets | $ 66 | $ 69 |
Retirement and Deferred Compe_6
Retirement and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement and Deferred Compensation Plans [Abstract] | ||
Total liabilities | $ 743 | $ 645 |
Investments dedicated to fund liabilities | $ 229 | $ 202 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance Shares [Member] | |||
Narrative [Abstract] | |||
Vesting period (in years) | 3 years | ||
Performance Shares [Member] | Maximum [Member] | |||
Narrative [Abstract] | |||
Share based compensation, Performance issuance as percent or original grant | 200.00% | ||
Performance Shares [Member] | Minimum [Member] | |||
Narrative [Abstract] | |||
Share based compensation, Performance issuance as percent or original grant | 0.00% | ||
Stock options with performance conditions [Member] | |||
Narrative [Abstract] | |||
Contractual term | 5 years | ||
Vesting period (in years) | 2 years | ||
Total fair value of options vested | $ 1 | $ 1 | $ 1 |
Total intrinsic value of options exercised | $ 1 | 1 | 2 |
Stock options with service conditions [Member] | |||
Narrative [Abstract] | |||
Contractual term | 10 years | ||
Vesting period (in years) | 3 years | ||
Total fair value of options vested | $ 8 | 7 | 6 |
Total intrinsic value of options exercised | $ 3 | $ 3 | $ 11 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans (Compensation Expense By Award Type) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Compensation expense | $ 51 | $ 62 | $ 52 |
Recognized tax benefit | 11 | 13 | 11 |
Stock Options [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Compensation expense | 10 | 8 | 5 |
Performance Shares [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Compensation expense | 5 | 17 | 15 |
RSUs [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Compensation expense | $ 36 | $ 37 | $ 32 |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans (Total unrecognized compensation expense for all stock-based incentive compensation plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Expense | $ 59 | $ 66 | $ 73 |
Stock Options [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Expense | $ 8 | $ 9 | $ 9 |
Weighted average period (in years) | 8 months 12 days | 10 months 24 days | 1 year 1 month 6 days |
Performance Shares [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Expense | $ 14 | $ 15 | $ 14 |
Weighted average period (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 10 months 24 days |
RSUs [Member] | |||
Share-based compensation arrangement by share-based payment award [Line Items] | |||
Expense | $ 37 | $ 42 | $ 50 |
Weighted average period (in years) | 1 year 2 months 12 days | 1 year 4 months 24 days | 1 year 2 months 12 days |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock option incentive plans) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions: | |||
Weighted-average fair value per option granted (in dollars per share) | $ 12.25 | $ 13.23 | $ 18.74 |
Dividend yield | 3.00% | 2.80% | 2.10% |
Expected volatility | 30.10% | 26.90% | 27.20% |
Risk-free interest rate, minimum | 0.30% | 2.10% | 2.50% |
Risk-free interest rate, maximum | 1.40% | 2.50% | 2.90% |
Expected life (in years) | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 9 months 18 days |
Stock Based Incentive Compensat
Stock Based Incentive Compensation Plans (Summary of activity for stock options with service conditions) (Details) - Stock options with service conditions [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Shares | |
Outstanding as of beginning of year (in shares) | shares | 2,894,656 |
Granted - original (in shares) | shares | 837,329 |
Exercised (includes shares tendered) (in shares) | shares | (146,370) |
Forfeited or expired (in shares) | shares | (126,656) |
Outstanding as of end of year (in shares) | shares | 3,458,959 |
Vested or expected to vest as of end of year (in shares) | shares | 3,181,759 |
Exercisable as of end of year (in shares) | shares | 2,141,140 |
Summary of activity for stock options, additional disclosures [Abstract] | |
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 55.67 |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 60.86 |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 32.70 |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 62.72 |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 57.64 |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 56.93 |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 54.26 |
Weighted average remaining contractual term outstanding as of end of year (in years) | 6 years 5 months 15 days |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 6 years 3 months 25 days |
Weighted average remaining contractual term exercisable as of end of year (in years) | 5 years 1 month 13 days |
Aggregate intrinsic value outstanding as of end of year | $ | $ 12 |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 12 |
Aggregate intrinsic value exercisable as of end of year | $ | $ 12 |
Stock Based Incentive Compens_2
Stock Based Incentive Compensation Plans (Summary of activity for stock options with performance conditions) (Details) - Stock options with performance conditions [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Shares | |
Outstanding as of beginning of year (in shares) | shares | 209,104 |
Granted - original (in shares) | shares | 56,125 |
Exercised (includes shares tendered) (in shares) | shares | (17,687) |
Forfeited or expired (in shares) | shares | (38,892) |
Outstanding as of end of year (in shares) | shares | 208,650 |
Vested or expected to vest as of end of year (in shares) | shares | 190,370 |
Exercisable as of end of year (in shares) | shares | 172,006 |
Summary of activity for stock options, additional disclosures [Abstract] | |
Weighted average exercise price as of beginning of year (in dollars per share) | $ / shares | $ 61.17 |
Weighted average exercise price granted - original (in dollars per share) | $ / shares | 23.49 |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $ / shares | 45.60 |
Weighted average exercise price forfeited or expired (in dollars per share) | $ / shares | 59.29 |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $ / shares | 52.70 |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $ / shares | 54.74 |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $ / shares | $ 57.21 |
Weighted average remaining contractual term outstanding as of end of year (in years) | 2 years 2 months 12 days |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | 2 years 10 days |
Weighted average remaining contractual term exercisable as of end of year (in years) | 1 year 9 months 25 days |
Aggregate intrinsic value outstanding as of end of year | $ | $ 2 |
Aggregate intrinsic value vested or expected to vest as of end of year | $ | 1 |
Aggregate intrinsic value exercisable as of end of year | $ | $ 1 |
Stock-Based Incentive Compens_7
Stock-Based Incentive Compensation Plans (Summary of activity for performance shares) (Details) - Performance Shares [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares: | |
Outstanding as of beginning of year (in shares) | shares | 471,071 |
Granted (in shares) | shares | 233,039 |
Vested (in shares) | shares | (134,282) |
Forfeited (in shares) | shares | (27,120) |
Outstanding as of end of year (in shares) | shares | 542,708 |
Weighted-Average Grant Date Fair Value | |
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ / shares | $ 77.29 |
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | 64.62 |
Weighted-average grant date fair value, vested (in dollars per share) | $ / shares | 79.61 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $ / shares | 70.54 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ / shares | $ 71.61 |
Stock-Based Incentive Compens_8
Stock-Based Incentive Compensation Plans (Summary of activity for restricted stock units) (Details) - Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Shares: | |
Outstanding as of beginning of year (in shares) | shares | 1,551,129 |
Granted (in shares) | shares | 623,599 |
Vested (in shares) | shares | (413,309) |
Forfeited (in shares) | shares | (103,517) |
Outstanding as of end of year (in shares) | shares | 1,657,902 |
Weighted-Average Grant Date Fair Value | |
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $ / shares | $ 70.09 |
Weighted-average grant date fair value, granted (in dollars per share) | $ / shares | 60.83 |
Weighted-average grant date fair value, vested (in dollars per share) | $ / shares | 70.96 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $ / shares | 66.48 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $ / shares | $ 66.62 |
Statutory Information and Res_3
Statutory Information and Restrictions (Narrative) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Statutory Information and Restrictions [Abstract] | |
RBC Ratio Company Action Level Low End | 75.00% |
RBC Ratio Company Action Level High End | 100.00% |
Indiana Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
New York Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
Amount of dividends that could be paid in the next year without prior approval | $ 865 |
Statutory Information and Res_4
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statutory Information and Restrictions [Abstract] | ||
U.S. capital and surplus | $ 8,938 | $ 8,564 |
Statutory Information and Res_5
Statutory Information and Restrictions (Net Gain Loss From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Information and Restrictions [Abstract] | |||
U.S. net gain (loss) from operations, after-tax | $ (271) | $ 409 | $ 692 |
U.S. net income (loss) | 29 | 388 | 1,019 |
U.S. dividends to LNC holding company | $ 660 | $ 600 | $ 925 |
Statutory Information and Res_6
Statutory Information and Restrictions (Effects on statutory surplus compared to NAIC statutory surplus) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Calculation of reserves using the Indiana universal life method [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 14 | $ 24 |
Conservative valuation rate on certain variable annuities [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (44) | (49) |
Calculation of reserves using continuous CARVM [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (1) | |
Derivative instruments and equity indexed reserves [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | (100) | |
Lesser of LOC and XXX additional reserve as surplus [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 1,897 | 1,947 |
LLC Notes And Variable Value Surplus Notes [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | 1,640 | 1,648 |
Excess Of Loss Reinsurance Treaties [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $ 452 | $ 419 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 304,561 | $ 270,478 |
Liabilities measured at fair value | 7,091 | 4,306 |
Fair Value, Recurring [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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturity AFS securities | $ 123,044 | $ 105,200 |
Trading securities | 4,501 | 4,673 |
Equity securities | 129 | 103 |
Mortgage loans on real estate | 16,763 | 16,339 |
Derivative investments | 3,109 | 1,911 |
Other investments | 3,984 | 2,994 |
Other contract holder funds: | ||
Benefit Plans' Assets | 1,736 | 1,589 |
Carrying Value [Member] | ||
Assets | ||
Trading securities | 4,501 | 4,673 |
Equity securities | 129 | 103 |
Mortgage loans on real estate | 16,763 | 16,339 |
Derivative investments | 3,109 | 1,911 |
Other investments | 3,974 | 2,983 |
Cash and invested cash | 1,708 | 2,563 |
Other assets - GLB embedded derivatives | 450 | 450 |
Other assets - GLB ceded embedded derivatives | 82 | 60 |
Indexed annuity ceded embedded derivatives | 550 | 927 |
Separate account assets | 167,965 | 153,566 |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,854) | (1,900) |
Account values of certain investment contracts | (40,947) | (38,639) |
Short-term debt | (300) | |
Long-term debt | (6,682) | (6,067) |
Reinsurance related embedded derivatives | (392) | (327) |
Benefit Plans' Assets | 1,736 | 1,589 |
Fair Value [Member] | ||
Assets | ||
Trading securities | 4,501 | 4,673 |
Equity securities | 129 | 103 |
Mortgage loans on real estate | 18,219 | 16,872 |
Derivative investments | 3,109 | 1,911 |
Other investments | 3,974 | 2,983 |
Cash and invested cash | 1,708 | 2,563 |
Other assets - GLB embedded derivatives | 450 | 450 |
Other assets - GLB ceded embedded derivatives | 82 | 60 |
Indexed annuity ceded embedded derivatives | 550 | 927 |
Separate account assets | 167,965 | 153,566 |
Other contract holder funds: | ||
Remaining guaranteed interest and similar contracts | (1,854) | (1,900) |
Account values of certain investment contracts | (49,745) | (46,822) |
Short-term debt | (304) | |
Long-term debt | (7,067) | (6,217) |
Reinsurance related embedded derivatives | (392) | (327) |
Benefit Plans' Assets | 1,736 | 1,589 |
Fixed Maturity AFS Securities [Member] | Carrying Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 123,044 | 105,200 |
Fixed Maturity AFS Securities [Member] | Fair Value [Member] | ||
Assets | ||
Fixed maturity AFS securities | 123,044 | 105,200 |
Future Contract Benefits [Member] | Carrying Value [Member] | ||
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (3,594) | (2,585) |
Future Contract Benefits [Member] | Fair Value [Member] | ||
Future contract benefits: | ||
Indexed annuity and IUL contracts embedded derivatives | (3,594) | (2,585) |
Other Liabilities [Member] | Carrying Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - derivative liabilities | (906) | (349) |
Other Liabilities [Member] | Fair Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - derivative liabilities | $ (906) | (349) |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Carrying Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | (9) | |
Other Liabilities [Member] | GLB Ceded Embedded Derivatives [Member] | Fair Value [Member] | ||
Other contract holder funds: | ||
Other liabilities - GLB embedded derivatives | $ (9) |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule of Mortgage Loans With Election Of Fair Value Option) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | $ 832 | $ 0 |
Commercial [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value | 832 | |
Aggregate contractual principal | $ 839 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | $ 304,561 | $ 270,478 |
Liabilities measured at fair value | (7,091) | (4,306) |
Benefit Plans' Assets | 1,736 | 1,589 |
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 | 1,160 | 1,215 |
Benefit Plans' Assets | 207 | 195 |
Significant Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 291,333 | 260,661 |
Liabilities measured at fair value | (1,464) | (845) |
Benefit Plans' Assets | 1,529 | 1,394 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 12,068 | 8,602 |
Liabilities measured at fair value | (5,627) | (3,461) |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 102,789 | 88,716 |
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 | 97,668 | 84,435 |
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 | 5,121 | 4,281 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 7,184 | |
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 | 6,614 | |
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 | 570 | |
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 | 484 | 435 |
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 | 473 | 424 |
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 | 6 | 6 |
U.S. Government Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5 | 5 |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 470 | 393 |
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 | 396 | 303 |
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 | 74 | 90 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 3,076 | 3,241 |
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 | 3,074 | 3,230 |
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 | 2 | 11 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,505 | 1,083 |
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 | 1,505 | 1,082 |
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 | 1 | |
CLOs [Member] | Fixed Maturity AFS Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,889 | |
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 | 4,621 | |
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 | 268 | |
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 | 6,921 | 5,884 |
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 | 6,921 | 5,884 |
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 | 615 | 559 |
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 | 54 | 77 |
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 | 457 | 404 |
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 | 104 | 78 |
Mortgage Loans On Real Estate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 832 | |
Mortgage Loans On Real Estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 832 | |
Trading Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 4,501 | 4,673 |
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 | 5 | 50 |
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 | 3,852 | 3,957 |
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 | 644 | 666 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 129 | 103 |
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 | 22 | 25 |
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 | 48 | 48 |
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 | 59 | 30 |
Derivative Investments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 5,308 | 2,947 |
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 | 1,733 | 1,212 |
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 | 3,575 | 1,735 |
Invested Cash [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 1,708 | 2,563 |
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 | 1,708 | 2,563 |
Reinsurance Related Embedded Derivatives [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (392) | (327) |
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 | (392) | (327) |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 450 | 450 |
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 | 450 | 450 |
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 82 | 60 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (9) | |
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 | 82 | 60 |
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 | (9) | |
Indexed Annuity And IUL Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 550 | |
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 | 927 | |
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 | (3,594) | (2,585) |
Indexed Annuity And IUL Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 550 | |
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 | 927 | |
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 | (3,594) | (2,585) |
Separate Account Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Assets measured at fair value | 167,957 | 153,555 |
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 | 606 | 639 |
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 | 167,351 | 152,916 |
Derivative Liabilities [Member] | Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Liabilities measured at fair value | (3,105) | (1,385) |
Derivative 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 | (1,072) | (518) |
Derivative 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 | $ (2,033) | $ (867) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | $ 5,141 | $ 4,014 | $ 3,139 |
Items Included in Net Income | 552 | (417) | (437) |
Gains (Losses) in OCI and Other | 549 | 353 | (271) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (284) | 2,013 | 2,045 |
Transfers Into or Out of Level 3, Net | 483 | (822) | (462) |
Ending Fair Value | 6,441 | 5,141 | 4,014 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 4,281 | 3,269 | 3,091 |
Items Included in Net Income | (8) | 3 | 10 |
Gains (Losses) in OCI and Other | 284 | 180 | (199) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 464 | 878 | 429 |
Transfers Into or Out of Level 3, Net | 100 | (49) | (62) |
Ending Fair Value | 5,121 | 4,281 | 3,269 |
Corporate Bonds [Member] | Fixed Maturity AFS Securities [Member] | Liberty Transaction [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 67 | ||
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 5 | 5 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (5) | ||
Transfers Into or Out of Level 3, Net | 5 | ||
Ending Fair Value | 5 | 5 | |
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 90 | 109 | 110 |
Items Included in Net Income | 1 | ||
Gains (Losses) in OCI and Other | 3 | 6 | (1) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (20) | (25) | |
Transfers Into or Out of Level 3, Net | |||
Ending Fair Value | 74 | 90 | 109 |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 11 | 7 | 12 |
Items Included in Net Income | |||
Gains (Losses) in OCI and Other | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 21 | 7 | |
Transfers Into or Out of Level 3, Net | (9) | (17) | (12) |
Ending Fair Value | 2 | 11 | 7 |
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 1 | 2 | 6 |
Items Included in Net Income | (1) | 1 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 5 | 35 | |
Transfers Into or Out of Level 3, Net | (7) | (39) | |
Ending Fair Value | 1 | 2 | |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 268 | 134 | |
Gains (Losses) in OCI and Other | 7 | 1 | |
Issuances, Sales, Maturities, Settlements, Calls, Net | 496 | 619 | |
Transfers Into or Out of Level 3, Net | (201) | (486) | |
Ending Fair Value | 570 | 268 | 134 |
ABS [Member] | Fixed Maturity AFS Securities [Member] | Liberty Transaction [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Issuances, Sales, Maturities, Settlements, Calls, Net | 17 | ||
CLOs [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 134 | 118 | |
Gains (Losses) in OCI and Other | (1) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 223 | ||
Transfers Into or Out of Level 3, Net | (206) | ||
Ending Fair Value | 134 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 78 | 75 | 76 |
Gains (Losses) in OCI and Other | (2) | 3 | (1) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 10 | ||
Transfers Into or Out of Level 3, Net | 18 | ||
Ending Fair Value | 104 | 78 | 75 |
Equity AFS Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 162 | ||
Transfers Into or Out of Level 3, Net | (162) | ||
Mortgage Loans On Real Estate [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Items Included in Net Income | (1) | ||
Gains (Losses) in OCI and Other | (10) | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | 56 | ||
Transfers Into or Out of Level 3, Net | 787 | ||
Ending Fair Value | 832 | ||
Trading Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 666 | 67 | 49 |
Items Included in Net Income | 11 | 17 | (5) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (32) | 850 | 30 |
Transfers Into or Out of Level 3, Net | (1) | (268) | (7) |
Ending Fair Value | 644 | 666 | 67 |
Equity Securities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 30 | 25 | |
Items Included in Net Income | 4 | (12) | (1) |
Issuances, Sales, Maturities, Settlements, Calls, Net | 20 | 17 | |
Transfers Into or Out of Level 3, Net | 5 | 26 | |
Ending Fair Value | 59 | 30 | 25 |
Derivative Investments [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 868 | 534 | 30 |
Items Included in Net Income | 986 | 10 | 170 |
Gains (Losses) in OCI and Other | 267 | 163 | (69) |
Issuances, Sales, Maturities, Settlements, Calls, Net | (363) | 161 | 403 |
Transfers Into or Out of Level 3, Net | (216) | ||
Ending Fair Value | 1,542 | 868 | 534 |
GLB Direct Embedded Derivatives [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 450 | 123 | 903 |
Items Included in Net Income | 327 | (780) | |
Ending Fair Value | 450 | 450 | 123 |
GLB Direct Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (9) | ||
Items Included in Net Income | (9) | ||
Ending Fair Value | (9) | ||
GLB Ceded Embedded Derivatives [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 60 | 72 | 51 |
Items Included in Net Income | 22 | (12) | 21 |
Ending Fair Value | 82 | 60 | 72 |
GLB Ceded Embedded Derivatives [Member] | Other Liabilities [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (9) | (67) | |
Items Included in Net Income | 9 | 67 | |
Ending Fair Value | (9) | ||
Indexed Annuity And IUL Contracts [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 927 | ||
Items Included in Net Income | 538 | ||
Issuances, Sales, Maturities, Settlements, Calls, Net | (915) | ||
Ending Fair Value | 550 | 927 | |
Indexed Annuity And IUL Contracts [Member] | Other Assets [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | 927 | 902 | 11 |
Items Included in Net Income | 158 | (117) | |
Issuances, Sales, Maturities, Settlements, Calls, Net | (133) | 1,008 | |
Ending Fair Value | 927 | 902 | |
Indexed Annuity And IUL Contracts [Member] | Future Contract Benefits [Member] | |||
Level 3 Unobservable Input Reconciliation | |||
Beginning Fair Value | (2,585) | (1,305) | (1,418) |
Items Included in Net Income | (1,009) | (900) | 198 |
Issuances, Sales, Maturities, Settlements, Calls, Net | (380) | (85) | |
Ending Fair Value | $ (3,594) | $ (2,585) | $ (1,305) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | $ 2,366 | $ 2,786 | $ 2,399 |
Sales | (809) | (132) | 256 |
Maturities | (574) | (434) | (429) |
Settlements | (1,135) | (177) | (104) |
Calls | (132) | (30) | (77) |
Total | (284) | 2,013 | 2,045 |
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 | 1,126 | 1,170 | 947 |
Sales | (250) | (28) | (161) |
Maturities | (43) | (78) | (3) |
Settlements | (237) | (156) | (277) |
Calls | (132) | (30) | (77) |
Total | 464 | 878 | 429 |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Sales | (5) | ||
Total | (5) | ||
Foreign Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Maturities | (20) | (25) | |
Total | (20) | (25) | |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 21 | 7 | |
Total | 21 | 7 | |
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 | 7 | 39 | |
Settlements | (2) | (4) | |
Total | 5 | 35 | |
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 | 572 | 240 | |
Sales | (17) | ||
Settlements | (76) | ||
Total | 496 | 223 | |
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 | 646 | ||
Sales | (8) | ||
Settlements | (19) | ||
Total | 619 | ||
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 14 | ||
Sales | (4) | ||
Total | 10 | ||
Mortgage Loans On Real Estate [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 71 | ||
Sales | (15) | ||
Total | 56 | ||
Trading Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 300 | 872 | 54 |
Sales | (126) | (24) | |
Maturities | (40) | ||
Settlements | (166) | (22) | |
Total | (32) | 850 | 30 |
Equity Securities [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 22 | 50 | 1 |
Sales | (2) | (33) | (1) |
Total | 20 | 17 | |
Derivative Investments [Member] | |||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | |||
Issuances | 520 | 555 | 365 |
Sales | (412) | (63) | 464 |
Maturities | (471) | (331) | (426) |
Total | (363) | 161 | 403 |
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 | 25 | 56 | 1,030 |
Settlements | (940) | (189) | (22) |
Total | (915) | (133) | 1,008 |
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 | (284) | (591) | (284) |
Settlements | $ 284 | 211 | 199 |
Total | $ (380) | $ (85) |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 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 | $ 1,841 | $ 1,086 | $ (23) |
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 | 671 | 1,015 | (75) |
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 | 536 | 168 | 90 |
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 | $ 634 | $ (97) | $ (38) |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments (Changes in Unrealized Gains (Losses) Included in OCI) (Details) - Fixed Maturity AFS Securities [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | $ 64 |
Corporate Bonds [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | 58 |
Foreign Government Bonds [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | 4 |
ABS [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | 5 |
Hybrid And Redeemable Preferred Securities [Member] | |
Fair Value Assets And Liabilities Measured On Recurring Basis Level 3 Activity [Line Items] | |
Unrealized gains (losses) included in OCI, net | $ (3) |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | $ 1,212 | $ 192 | $ 105 |
Transfers Out of Level 3 | (729) | (1,014) | (567) |
Transfers Into or Out of Level 3, Net | 483 | (822) | (462) |
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 | 343 | 173 | 78 |
Transfers Out of Level 3 | (243) | (222) | (140) |
Transfers Into or Out of Level 3, Net | 100 | (49) | (62) |
RMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 1 | ||
Transfers Out of Level 3 | (10) | (17) | (12) |
Transfers Into or Out of Level 3, Net | (9) | (17) | (12) |
ABS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 20 | 9 | |
Transfers Out of Level 3 | (221) | (495) | (206) |
Transfers Into or Out of Level 3, Net | (201) | (486) | (206) |
U.S. Government Bonds [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | 5 | |
Transfers Out of Level 3 | (5) | ||
Transfers Into or Out of Level 3, Net | 5 | ||
CMBS [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 1 | ||
Transfers Out of Level 3 | (7) | (40) | |
Transfers Into or Out of Level 3, Net | (7) | (39) | |
Hybrid And Redeemable Preferred Securities [Member] | Fixed Maturity AFS Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 18 | ||
Transfers Into or Out of Level 3, Net | 18 | ||
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) | ||
Mortgage Loans On Real Estate [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 787 | ||
Transfers Into or Out of Level 3, Net | 787 | ||
Trading Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 33 | 5 | |
Transfers Out of Level 3 | (34) | (273) | (7) |
Transfers Into or Out of Level 3, Net | (1) | $ (268) | (7) |
Equity Securities [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Into Level 3 | 5 | 26 | |
Transfers Into or Out of Level 3, Net | 5 | $ 26 | |
Derivative Investments [Member] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Transfers Out of Level 3 | (216) | ||
Transfers Into or Out of Level 3, Net | $ (216) |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) $ in Millions | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 304,561 | $ 270,478 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (7,091) | (4,306) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 12,068 | 8,602 |
Liabilities Fair Value Disclosure [Abstract] | ||
Liabilities measured at fair value | $ | (5,627) | $ (3,461) |
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 | $ | 3,370 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | 29 | |
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 | $ | $ 20 | |
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 | 0.002 | |
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] | ||
Derivative assets, measurement input | 0.060 | |
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 | 0.035 | |
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 | 0.199 | |
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] | ||
Derivative assets, measurement input | 0.060 | |
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 | 0.035 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Corporate Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.018 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | Foreign Government Bonds [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.060 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Fixed Maturity AFS Securities [Member] | Weighted Average [Member] | ABS [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Fixed maturity AFS and trading securities, measurement input | 0.035 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 22 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Minimum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.045 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Maximum [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.060 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Equity Securities [Member] | Weighted Average [Member] | Equity Securities [Member] | Liquidity/Duration Adjustment [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Equity securities, measurement input | 0.056 | |
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 | $ | $ 532 | |
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 | 0.0006 | |
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 | 0.0135 | |
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 | 0.28 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Utilization Of Guaranteed Withdrawls [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.94 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | NPR [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.0095 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | GLB Direct And Ceded Embedded Derivatives [Member] | Weighted Average [Member] | Other Assets [Member] | Volatility [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0.1453 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Assets Fair Value Disclosure | $ | $ 550 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Minimum [Member] | Long-Term Lapse Rate [Member] | ||
Liabilities Fair Value Disclosure [Abstract] | ||
Derivative assets, measurement input | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow Valuation Technique [Member] | Indexed Annuity And IUL Contracts [Member] | Maximum [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 | $ | $ (3,594) | |
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 | |
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 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 4,135 | $ 5,361 | $ 3,517 | $ 4,425 | $ 4,344 | $ 4,638 | $ 4,310 | $ 3,965 | $ 17,439 | $ 17,258 | $ 16,424 |
Annuities Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,455 | 4,600 | 4,383 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,213 | 1,200 | 1,178 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 7,516 | 7,438 | 6,922 | ||||||||
Group Protection Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 4,793 | 4,588 | 3,757 | ||||||||
Other Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 185 | 220 | 235 | ||||||||
Excluded Realized Gain (Loss), Pre-Tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (721) | (794) | (46) | ||||||||
Amortization Of DFEL Associated With Benefit Ratio Unlocking, Pre-Tax [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ (2) | $ 6 | $ (5) |
Segment Information (Reconcil_2
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | $ 143 | $ 398 | $ (94) | $ 52 | $ 431 | $ (161) | $ 363 | $ 252 | $ 499 | $ 886 | $ 1,641 |
Excluded Realized Gain (Loss) [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | (570) | (627) | (37) | ||||||||
Benefit Ratio Unlocking [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | 194 | 277 | (136) | ||||||||
Net Impact From the Tax Cuts And Jobs Act [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | 37 | 17 | 19 | ||||||||
Acquisition And Integration Costs Related To Mergers And Acquisitions [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | (15) | (103) | (67) | ||||||||
Gain (Loss) On Early Extinguishment Of Debt [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | (12) | (33) | (18) | ||||||||
Annuities Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | 983 | 954 | 1,102 | ||||||||
Retirement Plan Services Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | 168 | 172 | 171 | ||||||||
Life Insurance Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | (34) | 259 | 645 | ||||||||
Group Protection Segment [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | 43 | 238 | 187 | ||||||||
Other Operations [Member] | |||||||||||
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | |||||||||||
Net income (loss) | $ (295) | $ (268) | $ (225) |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Net Investment Income From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Abstract] | |||
Total net investment income | $ 5,510 | $ 5,223 | $ 5,085 |
Annuities Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 1,272 | 1,140 | 1,005 |
Retirement Plan Services Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 933 | 924 | 899 |
Life Insurance Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 2,823 | 2,658 | 2,697 |
Group Protection Segment [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | 330 | 307 | 260 |
Other Operations [Member] | |||
Net Investment Income [Abstract] | |||
Total net investment income | $ 152 | $ 194 | $ 224 |
Segment Information (Reconcil_4
Segment Information (Reconciliation of DAC VOBA Amortization From Segments to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 1,315 | $ 1,324 | $ 1,241 |
Annuities Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 387 | 408 | 410 |
Retirement Plan Services Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 29 | 26 | 28 |
Life Insurance Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | 785 | 779 | 711 |
Group Protection Segment [Member] | |||
Amortization of DAC and VOBA, Net of Interest | |||
Amortization of DAC and VOBA, net of interest | $ 114 | $ 111 | $ 92 |
Segment Information (Reconcil_5
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ (76) | $ 33 | $ 244 |
Annuities Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 149 | 139 | 183 |
Retirement Plan Services Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 24 | 23 | 29 |
Life Insurance Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (33) | 47 | 147 |
Group Protection Segment [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 11 | 63 | 50 |
Other Operations [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (82) | (92) | (77) |
Excluded Realized Gain (Loss) [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (151) | (167) | (9) |
Gain (Loss) On Early Extinguishment Of Debt [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (3) | (9) | (5) |
Benefit Ratio Unlocking [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | 51 | 74 | (36) |
Net Impact From the Tax Cuts And Jobs Act [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | (37) | (17) | (19) |
Acquisition And Integration Costs Related To Mergers And Acquisitions [Member] | |||
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | |||
Income tax expense (benefit) | $ (5) | $ (28) | $ (19) |
Segment Information (Reconcil_6
Segment Information (Reconciliation Of Assets From Segments To Consolidated) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 365,948 | $ 334,761 |
Annuities Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 184,678 | 167,443 |
Retirement Plan Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 45,372 | 40,184 |
Life Insurance Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 101,941 | 92,561 |
Group Protection Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,201 | 9,467 |
Other Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 23,756 | $ 25,106 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Disclosures of Cash Flow Data [Abstract] | |||
Interest paid | $ 283 | $ 281 | $ 281 |
Income taxes paid (received) | 22 | 260 | 90 |
Significant non-cash investing and financing transactions: | |||
Equity securities received in exchange of fixed maturity AFS securities | $ 19 | ||
Reduction of other investments in connection with the expiration of a repurchase agreement | $ (150) | ||
Investments received in financing transactions | $ 263 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 4,135 | $ 5,361 | $ 3,517 | $ 4,425 | $ 4,344 | $ 4,638 | $ 4,310 | $ 3,965 | $ 17,439 | $ 17,258 | $ 16,424 |
Total expenses | 4,046 | 4,901 | 3,678 | 4,391 | 3,863 | 4,888 | 3,889 | 3,697 | 17,016 | 16,339 | 14,539 |
Net income (loss) | $ 143 | $ 398 | $ (94) | $ 52 | $ 431 | $ (161) | $ 363 | $ 252 | $ 499 | $ 886 | $ 1,641 |
Earnings (loss) per common share - basic: | |||||||||||
Net income (loss) (in dollars per share) | $ 0.74 | $ 2.06 | $ (0.49) | $ 0.27 | $ 2.18 | $ (0.81) | $ 1.80 | $ 1.23 | $ 2.58 | $ 4.41 | $ 7.60 |
Earnings (loss) per common share - diluted: | |||||||||||
Net income (loss) (in dollars per share) | $ 0.74 | $ 2.01 | $ (0.49) | $ 0.15 | $ 2.15 | $ (0.83) | $ 1.79 | $ 1.22 | $ 2.56 | $ 4.38 | $ 7.40 |
Parent Company [Member] | |||||||||||
Total revenues | $ 971 | $ 1,001 | $ 1,183 | ||||||||
Total expenses | 345 | 410 | 340 | ||||||||
Net income (loss) | $ 499 | $ 886 | $ 1,641 |
SCHEDULE I - CONSOLIDATED SUM_2
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | $ 132,670 | |
Carrying Value | 153,956 | |
Trading Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 4,072 | |
Fair Value | 4,501 | |
Carrying Value | 4,501 | |
Mortgage Loans On Real Estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 16,972 | |
Fair Value | 18,219 | |
Carrying Value | 16,763 | |
Real estate [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 10 | |
Carrying Value | 10 | |
Policy loans [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 2,426 | |
Carrying Value | 2,426 | |
Derivative Instruments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 910 | |
Fair Value | 3,109 | |
Carrying Value | 3,109 | |
Other Investments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 3,974 | |
Fair Value | 3,974 | |
Carrying Value | 3,974 | |
Fixed Maturity AFS Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 104,174 | |
Fair Value | 123,044 | |
Carrying Value | 123,044 | |
Fixed Maturity AFS Securities [Member] | Mortgage-Backed And Asset-Backed Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 11,196 | |
Fair Value | 11,765 | |
Carrying Value | 11,765 | |
Fixed Maturity AFS Securities [Member] | Hybrid And Redeemable Preferred Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 548 | |
Fair Value | 615 | |
Carrying Value | 615 | |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | U.S. government and government agencies and authorities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 397 | |
Fair Value | 484 | |
Carrying Value | 484 | |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | Foreign governments [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 384 | |
Fair Value | 470 | |
Carrying Value | 470 | |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | State And Municipal Bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 5,360 | |
Fair Value | 6,921 | |
Carrying Value | 6,921 | |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | Public utilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 14,096 | |
Fair Value | 17,288 | |
Carrying Value | 17,288 | |
Fixed Maturity AFS Securities [Member] | Bonds [Member] | All other corporate bonds [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 72,193 | |
Fair Value | 85,501 | |
Carrying Value | 85,501 | |
Equity Securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 132 | |
Fair Value | 129 | |
Carrying Value | 129 | |
Equity Securities [Member] | Nonredeemable preferred securities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 50 | |
Fair Value | 40 | |
Carrying Value | 40 | |
Equity Securities [Member] | Common Stock [Member] | Public utilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 5 | |
Fair Value | 7 | |
Carrying Value | 7 | |
Equity Securities [Member] | Common Stock [Member] | Banks, trusts, and insurance companies [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 33 | |
Fair Value | 38 | |
Carrying Value | 38 | |
Equity Securities [Member] | Common Stock [Member] | Industrial, miscellaneous and all other [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Cost | 44 | |
Fair Value | 44 | |
Carrying Value | 44 | |
Parent Company [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Derivative Liabilities | 552 | $ 110 |
Parent Company [Member] | Other Liabilities [Member] | ||
Summary of investments, other than investments in related parties [Line Items] | ||
Derivative Liabilities | $ 906 |
SCHEDULE II - CONDENSED FINAN_2
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Derivative investments | $ 3,109 | $ 1,911 | ||
Other investments | 3,984 | 2,994 | ||
Cash and invested cash | 1,708 | 2,563 | $ 2,345 | $ 1,628 |
Other assets | 15,960 | 16,170 | ||
Total assets | 365,948 | 334,761 | ||
Liabilities | ||||
Short-term debt | 300 | |||
Long-term debt | 6,682 | 6,067 | ||
Payables for collateral on investments | 6,222 | 5,082 | ||
Other liabilities | 13,823 | 13,482 | ||
Total liabilities | 343,249 | 315,072 | ||
Contingencies and Commitments | ||||
Stockholders' Equity | ||||
Preferred stock - 10,000,000 shares authorized | ||||
Common stock - 800,000,000 shares authorized | 5,082 | 5,162 | ||
Retained earnings | 8,686 | 8,854 | ||
Accumulated other comprehensive income (loss) | 8,931 | 5,673 | ||
Total stockholders' equity | 22,699 | 19,689 | 14,350 | |
Total Liabilities and Stockholders' Equity | 365,948 | 334,761 | ||
Parent Company [Member] | ||||
Assets | ||||
Investments in subsidiaries | 27,677 | 24,029 | ||
Other investments | 933 | 382 | ||
Cash and invested cash | 114 | 577 | $ 420 | $ 620 |
Loans and accrued interest to subsidiaries | 2,960 | 2,446 | ||
Other assets | 83 | 28 | ||
Total assets | 31,767 | 27,462 | ||
Liabilities | ||||
Common stock dividends payable | 81 | 79 | ||
Derivative investments liability | 552 | 110 | ||
Short-term debt | 300 | |||
Long-term debt | 6,682 | 6,067 | ||
Loans from subsidiaries | 1,424 | 844 | ||
Payables for collateral on investments | 7 | 6 | ||
Other liabilities | 322 | 367 | ||
Total liabilities | 9,068 | 7,773 | ||
Contingencies and Commitments | ||||
Stockholders' Equity | ||||
Preferred stock - 10,000,000 shares authorized | ||||
Common stock - 800,000,000 shares authorized | 5,082 | 5,162 | ||
Retained earnings | 8,686 | 8,854 | ||
Accumulated other comprehensive income (loss) | 8,931 | 5,673 | ||
Total stockholders' equity | 22,699 | 19,689 | ||
Total Liabilities and Stockholders' Equity | $ 31,767 | $ 27,462 |
SCHEDULE II - CONDENSED FINAN_3
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheets) (Additional Information) (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Parenthetical Information | ||
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
SCHEDULE II - CONDENSED FINAN_4
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Net investment income | $ 5,510 | $ 5,223 | $ 5,085 | ||||||||
Other revenues | 658 | 604 | 602 | ||||||||
Total revenues | $ 4,135 | $ 5,361 | $ 3,517 | $ 4,425 | $ 4,344 | $ 4,638 | $ 4,310 | $ 3,965 | 17,439 | 17,258 | 16,424 |
Expenses | |||||||||||
Operating and administrative expenses | 2,072 | 2,210 | 1,953 | ||||||||
Total expenses | 4,046 | 4,901 | 3,678 | 4,391 | 3,863 | 4,888 | 3,889 | 3,697 | 17,016 | 16,339 | 14,539 |
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries | 423 | 919 | 1,885 | ||||||||
Federal income tax expense (benefit) | (76) | 33 | 244 | ||||||||
Net income (loss) | $ 143 | $ 398 | $ (94) | $ 52 | $ 431 | $ (161) | $ 363 | $ 252 | 499 | 886 | 1,641 |
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized investment gains (losses) | 3,192 | 5,288 | (3,449) | ||||||||
Foreign currency translation adjustment | 5 | 6 | (9) | ||||||||
Funded status of employee benefit plans | 61 | (28) | (7) | ||||||||
Total other comprehensive income (loss), net of tax | 3,258 | 5,266 | (3,465) | ||||||||
Comprehensive income (loss) | 3,757 | 6,152 | (1,824) | ||||||||
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Dividends from subsidiaries | 840 | 830 | 1,025 | ||||||||
Interest from subsidiaries | 127 | 158 | 148 | ||||||||
Net investment income | 4 | 11 | 7 | ||||||||
Realized gain (loss) | 2 | 3 | |||||||||
Total revenues | 971 | 1,001 | 1,183 | ||||||||
Expenses | |||||||||||
Operating and administrative expenses | 50 | 51 | 18 | ||||||||
Interest - subsidiaries | 20 | 48 | 34 | ||||||||
Interest - other | 275 | 311 | 288 | ||||||||
Total expenses | 345 | 410 | 340 | ||||||||
Income (loss) before federal income taxes, equity in income (loss) of subsidiaries | 626 | 591 | 843 | ||||||||
Federal income tax expense (benefit) | (45) | (52) | (42) | ||||||||
Income (loss) before equity in income (loss) of subsidiaries | 671 | 643 | 885 | ||||||||
Equity in income (loss) of subsidiaries | (172) | 243 | 756 | ||||||||
Net income (loss) | 499 | 886 | 1,641 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized investment gains (losses) | 3,192 | 5,288 | (3,449) | ||||||||
Foreign currency translation adjustment | 5 | 6 | (9) | ||||||||
Funded status of employee benefit plans | 61 | (28) | (7) | ||||||||
Total other comprehensive income (loss), net of tax | 3,258 | 5,266 | (3,465) | ||||||||
Comprehensive income (loss) | $ 3,757 | $ 6,152 | $ (1,824) |
SCHEDULE II - CONDENSED FINAN_5
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | $ 143 | $ 398 | $ (94) | $ 52 | $ 431 | $ (161) | $ 363 | $ 252 | $ 499 | $ 886 | $ 1,641 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Other | 169 | 425 | 89 | ||||||||
Net cash provided by (used in) operating activities | 534 | (2,686) | 1,943 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Net change in collateral on investments, derivatives and related settlements | 1,474 | 79 | 735 | ||||||||
Sale of business, net | (12) | ||||||||||
Net cash provided by (used in) investing activities | (9,481) | (5,499) | (5,815) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Payment of long-term debt, including current maturities | (1,096) | (308) | (537) | ||||||||
Issuance of long-term debt, net of issuance costs | 1,289 | 744 | 1,094 | ||||||||
Payment related to early extinguishment of debt | (13) | (42) | (23) | ||||||||
Repurchase of common stock | (275) | (550) | (900) | ||||||||
Dividends paid to common stockholders | (311) | (303) | (289) | ||||||||
Other | (6) | ||||||||||
Net cash provided by (used in) financing activities | 8,092 | 8,403 | 4,589 | ||||||||
Net increase (decrease) in cash, invested cash and restricted cash | (855) | 218 | 717 | ||||||||
Cash, invested cash and restricted cash as of beginning-of-year | 2,563 | 2,345 | 2,563 | 2,345 | 1,628 | ||||||
Cash, invested cash and restricted cash as of end-of-year | 1,708 | 2,563 | 1,708 | 2,563 | 2,345 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income (loss) | 499 | 886 | 1,641 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Equity in (income) loss of subsidiaries greater than distributions | 172 | (243) | (756) | ||||||||
Realized (gain) loss | (2) | (3) | |||||||||
Change in federal income tax accruals | 24 | 24 | 15 | ||||||||
Other | 31 | 106 | (27) | ||||||||
Net cash provided by (used in) operating activities | 726 | 771 | 870 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Capital contribution to subsidiaries | (518) | (50) | (502) | ||||||||
Net change in collateral on investments, derivatives and related settlements | (303) | (279) | 89 | ||||||||
Net cash provided by (used in) investing activities | (821) | (329) | (413) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Payment of long-term debt, including current maturities | (1,096) | (308) | (537) | ||||||||
Issuance of long-term debt, net of issuance costs | 1,289 | 744 | 1,094 | ||||||||
Payment related to early extinguishment of debt | (13) | (42) | (23) | ||||||||
Increase (decrease) in loans from subsidiaries, net | 565 | 264 | 52 | ||||||||
Increase (decrease) in loans to subsidiaries, net | (514) | (70) | (48) | ||||||||
Common stock issued for benefit plans | (7) | (20) | (6) | ||||||||
Repurchase of common stock | (275) | (550) | (900) | ||||||||
Dividends paid to common stockholders | (311) | (303) | (289) | ||||||||
Other | (6) | ||||||||||
Net cash provided by (used in) financing activities | (368) | (285) | (657) | ||||||||
Net increase (decrease) in cash, invested cash and restricted cash | (463) | 157 | (200) | ||||||||
Cash, invested cash and restricted cash as of beginning-of-year | $ 577 | $ 420 | 577 | 420 | 620 | ||||||
Cash, invested cash and restricted cash as of end-of-year | $ 114 | $ 577 | $ 114 | $ 577 | $ 420 |
SCHEDULE III - CONDENSED SUPPLE
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 5,812 | $ 7,694 | $ 10,264 |
Future Contract Benefits | 40,814 | 36,420 | 34,648 |
Unearned Premiums | |||
Other Contract Holder Funds | 105,405 | 98,018 | 91,233 |
Insurance Premiums | 5,372 | 5,513 | 4,601 |
Net Investment Income | 5,510 | 5,223 | 5,085 |
Benefits and Interest Credited | 11,600 | 10,660 | 9,403 |
Amortization of DAC and VOBA | 1,294 | 1,368 | 1,204 |
Other Operating Expenses | 4,138 | 4,352 | 3,955 |
Premiums Written | |||
Annuities Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 3,782 | 3,790 | 3,660 |
Future Contract Benefits | 4,183 | 3,862 | 3,509 |
Unearned Premiums | |||
Other Contract Holder Funds | 35,218 | 29,493 | 23,493 |
Insurance Premiums | 121 | 502 | 390 |
Net Investment Income | 1,272 | 1,140 | 1,005 |
Benefits and Interest Credited | 1,245 | 1,248 | 1,465 |
Amortization of DAC and VOBA | 365 | 452 | 373 |
Other Operating Expenses | 1,467 | 1,463 | 1,428 |
Premiums Written | |||
Retirement Plan Services Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 120 | 176 | 243 |
Future Contract Benefits | 11 | 9 | 8 |
Unearned Premiums | |||
Other Contract Holder Funds | 22,912 | 20,553 | 19,761 |
Net Investment Income | 933 | 924 | 899 |
Benefits and Interest Credited | 617 | 587 | 557 |
Amortization of DAC and VOBA | 29 | 26 | 28 |
Other Operating Expenses | 375 | 392 | 393 |
Premiums Written | |||
Life Insurance Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 1,723 | 3,519 | 6,151 |
Future Contract Benefits | 20,127 | 16,249 | 13,139 |
Unearned Premiums | |||
Other Contract Holder Funds | 39,797 | 39,941 | 40,997 |
Insurance Premiums | 950 | 885 | 817 |
Net Investment Income | 2,823 | 2,658 | 2,697 |
Benefits and Interest Credited | 6,077 | 5,616 | 4,759 |
Amortization of DAC and VOBA | 786 | 779 | 711 |
Other Operating Expenses | 720 | 737 | 660 |
Premiums Written | |||
Group Protection Segment [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 187 | 209 | 210 |
Future Contract Benefits | 5,986 | 5,601 | 5,396 |
Unearned Premiums | |||
Other Contract Holder Funds | 213 | 194 | 197 |
Insurance Premiums | 4,280 | 4,113 | 3,383 |
Net Investment Income | 330 | 307 | 260 |
Benefits and Interest Credited | 3,505 | 3,041 | 2,460 |
Amortization of DAC and VOBA | 114 | 111 | 92 |
Other Operating Expenses | 1,120 | 1,134 | 967 |
Premiums Written | |||
Other Operations [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Future Contract Benefits | 10,507 | 10,699 | 12,596 |
Unearned Premiums | |||
Other Contract Holder Funds | 7,265 | 7,837 | 6,785 |
Insurance Premiums | 21 | 13 | 11 |
Net Investment Income | 152 | 194 | 224 |
Benefits and Interest Credited | 156 | 168 | 162 |
Other Operating Expenses | 456 | 626 | 507 |
Premiums Written |
SCHEDULE IV - CONSOLIDATED RE_2
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated reinsurance, net [Abstract] | |||
Premiums Earned, Net, Total | $ 5,372 | $ 5,513 | $ 4,601 |
Reinsurance Related [Member] | |||
Consolidated reinsurance, net [Abstract] | |||
Gross Amount | 13,304 | 13,498 | 12,041 |
Ceded to Other Companies | 1,656 | 1,579 | 1,543 |
Assumed from Other Companies | 95 | 91 | 89 |
Premiums Earned, Net, Total | 11,743 | 12,010 | 10,587 |
Gross Amount, Life Insurance in Force | 1,653,625 | 1,524,977 | 1,420,500 |
Ceded to Other Companies, Life Insurance in Force | 674,256 | 628,654 | 667,900 |
Assumed from Other Companies, Life Insurance in Force | 7,875 | 7,611 | 8,700 |
Premiums, Net, Life Insurance in Force, Total | $ 987,244 | $ 903,934 | $ 761,300 |
Percentage of Amount Assumed to Net, Life Insurance in Force | 0.80% | 0.80% | 1.10% |
Life Insurance And Annuity Reserves And Claims Due [Member] | Reinsurance Related [Member] | |||
Consolidated reinsurance, net [Abstract] | |||
Gross Amount | $ 10,474 | $ 10,725 | $ 9,742 |
Ceded to Other Companies | 1,621 | 1,545 | 1,509 |
Assumed from Other Companies | 88 | 82 | 81 |
Premiums Earned, Net, Total | $ 8,941 | $ 9,262 | $ 8,314 |
Percentage of Amount Assumed to Net | 1.00% | 0.90% | 1.00% |
Accident And Health Life Insurance Reserves [Member] | Reinsurance Related [Member] | |||
Consolidated reinsurance, net [Abstract] | |||
Gross Amount | $ 2,830 | $ 2,773 | $ 2,299 |
Ceded to Other Companies | 35 | 34 | 34 |
Assumed from Other Companies | 7 | 9 | 8 |
Premiums Earned, Net, Total | $ 2,802 | $ 2,748 | $ 2,273 |
Percentage of Amount Assumed to Net | 0.20% | 0.30% | 0.40% |