Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE CO | |
Entity Central Index Key | 727,892 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-Sale: | ||
Fixed maturities, at fair value (amortized cost: 2015, $21,023; 2014, $21,354) | $ 22,360 | $ 23,243 |
Common stocks, at fair value (cost: 2015 and 2014, $2) | 7 | 7 |
Mortgage loans, at amortized cost (less allowance for loan losses: 2015, $20; 2014, $23) | 3,235 | 3,298 |
Policy loans | 823 | 805 |
Other Investments | 961 | 987 |
Total investments | 27,386 | 28,340 |
Cash and cash equivalents | 606 | 307 |
Reinsurance recoverables | 2,371 | 2,268 |
Other receivables | 211 | 206 |
Accrued investment income | 247 | 255 |
Deferred acquisition costs | 2,600 | 2,576 |
Other assets | 4,801 | 5,006 |
Separate account assets | 74,447 | 79,178 |
Total assets | 112,669 | 118,136 |
Liabilities: | ||
Policyholder account balances, future policy benefits and claims | 29,448 | 29,805 |
Short-term borrowings | 200 | 200 |
Other liabilities | 4,427 | 4,650 |
Separate account liabilities | 74,447 | 79,178 |
Total liabilities | 108,522 | 113,833 |
Shareholder's equity: | ||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | 3 | 3 |
Additional paid-in capital | 2,466 | 2,464 |
Retained earnings | 1,122 | 1,107 |
Accumulated other comprehensive income, net of tax | 556 | 729 |
Total shareholder's equity | 4,147 | 4,303 |
Total liabilities and shareholder's equity | $ 112,669 | $ 118,136 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 21,023 | $ 21,354 |
Common stocks, cost | 2 | 2 |
Mortgage loans, allowance for loan losses | $ 20 | $ 23 |
Common stock, par value (in dollars per share) | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Premiums | $ 95 | $ 105 | $ 300 | $ 319 |
Net investment income | 296 | 319 | 904 | 975 |
Policy and contract charges | 470 | 445 | 1,405 | 1,357 |
Other revenues | 103 | 98 | 320 | 292 |
Net realized investment gains (losses) | (11) | 7 | 5 | 12 |
Total revenues | 953 | 974 | 2,934 | 2,955 |
Benefits and expenses | ||||
Benefits, claims, losses and settlement expenses | 236 | 262 | 817 | 750 |
Interest credited to fixed accounts | 171 | 168 | 503 | 529 |
Amortization of deferred acquisition costs | 112 | 94 | 241 | 226 |
Other insurance and operating expenses | 170 | 188 | 539 | 560 |
Total benefits and expenses | 689 | 712 | 2,100 | 2,065 |
Pretax income | 264 | 262 | 834 | 890 |
Income tax provision | 40 | 38 | 144 | 125 |
Net income | 224 | 224 | 690 | 765 |
Supplemental Disclosures: | ||||
Total other-than-temporary impairment losses on securities | (7) | (5) | (8) | (6) |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 1 | 1 | 1 |
Net impairment losses recognized in net realized investment gains | $ (7) | $ (4) | $ (7) | $ (5) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 224 | $ 224 | $ 690 | $ 765 |
Net unrealized gains (losses) on securities: | ||||
Net unrealized securities gains (losses) arising during the period | (83) | (137) | (354) | 285 |
Reclassification of net securities (gains) losses included in net income | 6 | (6) | (5) | (9) |
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables | 51 | (1) | 183 | (168) |
Total net unrealized gains (losses) on securities | (26) | (144) | (176) | 108 |
Net unrealized gains on derivatives: | ||||
Reclassification of net derivative losses included in net income | 1 | 1 | 3 | 3 |
Total net unrealized gains on derivatives | 1 | 1 | 3 | 3 |
Total other comprehensive income (loss), net of tax | (25) | (143) | (173) | 111 |
Total comprehensive income | $ 199 | $ 81 | $ 517 | $ 876 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Common shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] |
Beginning balance at Dec. 31, 2013 | $ 4,158 | $ 3 | $ 2,463 | $ 1,042 | $ 650 |
Comprehensive income: | |||||
Net income | 765 | 765 | |||
Other comprehensive income (loss), net of tax | 111 | 111 | |||
Total comprehensive income | 876 | ||||
Tax adjustment on share-based incentive compensation plan | 1 | 1 | |||
Cash dividends to Ameriprise Financial, Inc. | (500) | (500) | |||
Ending balance at Sep. 30, 2014 | 4,535 | 3 | 2,464 | 1,307 | 761 |
Beginning balance at Dec. 31, 2014 | 4,303 | 3 | 2,464 | 1,107 | 729 |
Comprehensive income: | |||||
Net income | 690 | 690 | |||
Other comprehensive income (loss), net of tax | (173) | (173) | |||
Total comprehensive income | 517 | ||||
Tax adjustment on share-based incentive compensation plan | 2 | 2 | |||
Cash dividends to Ameriprise Financial, Inc. | (675) | (675) | |||
Ending balance at Sep. 30, 2015 | $ 4,147 | $ 3 | $ 2,466 | $ 1,122 | $ 556 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 690 | $ 765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion, net | 10 | 6 |
Deferred income tax benefit | (5) | (96) |
Contractholder and policyholder charges, non-cash | (249) | (246) |
Loss from equity method investments | 25 | 20 |
Net realized investment gains | (14) | (20) |
Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains | 9 | 8 |
Change in operating assets and liabilities: | ||
Deferred acquisition costs | 40 | 30 |
Policyholder account balances, future policy benefits and claims, net | 879 | 735 |
Derivatives, net of collateral | (162) | (483) |
Reinsurance recoverables | (95) | (70) |
Other receivables | 16 | (23) |
Accrued investment income | 8 | 19 |
Other, net | 406 | (61) |
Net cash provided by operating activities | 1,558 | 584 |
Available-for-Sale securities: | ||
Proceeds from sales | 120 | 280 |
Maturities, sinking fund payments and calls | 2,090 | 1,843 |
Purchases | (1,768) | (827) |
Proceeds from maturities and repayments of mortgage loans | 469 | 407 |
Funding of mortgage loans | (397) | (373) |
Proceeds from sales and collections of other investments | 94 | 103 |
Purchase of other investments | (124) | (267) |
Purchase of land, buildings, equipment and software | (8) | (6) |
Change in policy loans, net | (18) | (31) |
Advance on line of credit to Ameriprise Financial, Inc. | 0 | (15) |
Repayment from Ameriprise Financial, Inc. on line of credit | 0 | 15 |
Other, net | 30 | 10 |
Net cash provided by investing activities | 488 | 1,139 |
Policyholder account balances: | ||
Deposits and other additions | 1,514 | 1,526 |
Net transfers to separate accounts | (141) | (167) |
Surrenders and other benefits | (2,169) | (1,896) |
Change in short-term borrowings, net | 0 | (301) |
Proceeds from line of credit with Ameriprise Financial, Inc. | 6 | 42 |
Payments on line of credit with Ameriprise Financial, Inc. | (6) | (192) |
Tax adjustment on share-based incentive compensation plan | 2 | 1 |
Cash received for purchased options with deferred premiums | 8 | 8 |
Cash paid for purchased options with deferred premiums | (286) | (302) |
Cash dividend to Ameriprise Financial, Inc. | (675) | (500) |
Net cash used in financing activities | (1,747) | (1,781) |
Net increase (decrease) in cash and cash equivalents | 299 | (58) |
Cash and cash equivalents at beginning of period | 307 | 344 |
Cash and cash equivalents at end of period | 606 | 286 |
Supplemental Disclosures: | ||
Income taxes paid (received), net | (145) | 393 |
Interest paid on borrowings | 1 | 1 |
Non-cash investing activity: | ||
Affordable housing partnership commitments not yet remitted | $ 9 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation RiverSource Life Insurance Company is a stock life insurance company with two wholly owned subsidiaries, RiverSource Life Insurance Co. of New York and RiverSource Tax Advantaged Investments, Inc. (“RTA”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been made. All adjustments made were of a normal recurring nature. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 , filed with the Securities and Exchange Commission on February 24, 2015. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Transfers and Servicing In June 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting standards related to transfers and servicing. The update requires repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. The standard requires disclosures related to transfers of financial assets accounted for as sales in transactions that are similar to repurchase agreements. The standard also requires disclosures on the remaining contractual maturity of the agreements, disaggregation of the gross obligation by class of collateral pledged and potential risks associated with the agreements and the related collateral pledged in repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings. The standard is effective for interim and annual periods beginning after December 15, 2014, except for the disclosure requirements for repurchase agreements, security lending transactions and repurchase-to-maturity transactions accounted for as secured borrowings which are effective for interim periods beginning after March 15, 2015. The standard requires entities to present changes in accounting for transactions outstanding at the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations. See Note 9 and Note 11 for the required disclosures. Receivables - Troubled Debt Restructuring by Creditors In January 2014, the FASB updated the accounting standard related to recognizing residential real estate obtained through a repossession or foreclosure from a troubled debtor. The update clarifies the criteria for derecognition of the loan receivable and recognition of the real estate property. The standard is effective for interim and annual periods beginning after December 15, 2014 and can be applied under a modified retrospective transition method or a prospective transition method. The adoption of the standard did not have any effect on the Company’s consolidated financial condition and results of operations. Investments - Equity Method and Joint Ventures In January 2014, the FASB updated the accounting standard related to investments in qualified affordable housing projects. The update allows for an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the investment in a qualified affordable housing project is amortized in proportion to the tax credits and other tax benefits received. The net investment performance is recognized as a component of income tax expense (benefit). The standard is effective for interim and annual periods beginning after December 15, 2014 and should be applied retrospectively to all periods presented. The Company did not elect the proportional amortization method. Future Adoption of New Accounting Standards Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the FASB updated the accounting standards related to fair value measurement. The update applies to investments that are measured at net asset value (“NAV”). The standard eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share as a practical expedient. In addition, the update limits disclosures to investments for which the entity elected to measure the fair value using the practical expedient rather than all eligible investments. The standard is effective for interim and annual periods beginning after December 15, 2015. The standard should be applied retrospectively to all periods presented and early adoption is permitted. There will be no impact of the standard to the Company’s consolidated financial condition and results of operations. Consolidation In February 2015, the FASB updated the accounting standard for consolidation. The update changes the accounting for the consolidation model for limited partnerships and a variable interest entity (“VIE”) and excludes certain money market funds from the consolidation analysis. Specific to the consolidation analysis of a VIE, the update clarifies consideration of fees paid to a decision maker and amends the related party guidance. The standard is effective for periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption or applied retrospectively. There will be no impact of the standard to the Company's consolidated financial condition and results of operations. Presentation of Financial Statements - Going Concern In August 2014, the FASB updated the accounting standard related to an entity’s assessment of its ability to continue as a going concern. The standard requires that management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. In situations where there is substantial doubt about an entity’s ability to continue as a going concern, disclosure should be made so that a reader can understand the conditions that raise substantial doubt, management’s assessment of those conditions and any plan management has to mitigate those conditions. The standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. There will be no impact of the standard to the Company’s consolidated financial condition and results of operations. Revenue from Contracts with Customers In May 2014, the FASB updated the accounting standards for revenue from contracts with customers. The update provides a five step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaining and fulfilling a customer contract. In addition, the standard requires disclosure of quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB updated the accounting standards to defer the effective date by one year. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is prohibited. The standard may be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Variable Interest Entities [Text Block] | Variable Interest Entities The Company has variable interests in affordable housing partnerships for which it is not the primary beneficiary and therefore does not consolidate. The Company’s maximum exposure to loss as a result of its investments in affordable housing partnerships is limited to the carrying value of these investments. The carrying value is reflected in other investments and was $486 million and $504 million as of September 30, 2015 and December 31, 2014 , respectively. The Company has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships. The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities, commercial mortgage backed securities and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its carrying value. The carrying value is included in Available-for-Sale fixed maturities on the consolidated balance sheets. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 4 for additional information about these structured investments. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments [Text Block] | Investments Available-for-Sale securities distributed by type were as follows: September 30, 2015 Description of Securities Amortized Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,814 $ 1,129 $ (163 ) $ 14,780 $ 3 Residential mortgage backed securities 3,131 121 (28 ) 3,224 (8 ) Commercial mortgage backed securities 2,048 102 (3 ) 2,147 — State and municipal obligations 1,010 153 (27 ) 1,136 — Asset backed securities 759 46 (1 ) 804 — Foreign government bonds and obligations 223 18 (11 ) 230 — U.S. government and agencies obligations 38 1 — 39 — Total fixed maturities 21,023 1,570 (233 ) 22,360 (5 ) Common stocks 2 5 — 7 3 Total $ 21,025 $ 1,575 $ (233 ) $ 22,367 $ (2 ) December 31, 2014 Description of Securities Amortized Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,763 $ 1,474 $ (54 ) $ 15,183 $ 3 Residential mortgage backed securities 3,374 150 (32 ) 3,492 (9 ) Commercial mortgage backed securities 2,116 115 (3 ) 2,228 — State and municipal obligations 947 191 (25 ) 1,113 — Asset backed securities 882 56 (1 ) 937 — Foreign government bonds and obligations 236 21 (6 ) 251 — U.S. government and agencies obligations 36 3 — 39 — Total fixed maturities 21,354 2,010 (121 ) 23,243 (6 ) Common stocks 2 5 — 7 3 Total $ 21,356 $ 2,015 $ (121 ) $ 23,250 $ (3 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. As of September 30, 2015 and December 31, 2014 , investment securities with a fair value of $815 million and $1.2 billion , respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $364 million and $689 million , respectively, may be sold, pledged or rehypothecated by the counterparty. As of both September 30, 2015 and December 31, 2014 , fixed maturity securities comprised approximately 82% of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At both September 30, 2015 and December 31, 2014 , approximately $1.2 billion of securities were internally rated by Columbia Management Investment Advisers, LLC, an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: September 30, 2015 December 31, 2014 Ratings Amortized Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 4,707 $ 4,928 22 % $ 5,111 $ 5,374 23 % AA 1,017 1,201 5 967 1,158 5 A 4,028 4,472 20 4,452 5,062 22 BBB 9,965 10,526 47 9,328 10,165 44 Below investment grade 1,306 1,233 6 1,496 1,484 6 Total fixed maturities $ 21,023 $ 22,360 100 % $ 21,354 $ 23,243 100 % At September 30, 2015 and December 31, 2014 , approximately 48% and 46% , respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2015 Less than 12 months 12 months or more Total Description of Securities Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 195 $ 2,757 $ (129 ) 24 $ 196 $ (34 ) 219 $ 2,953 $ (163 ) Residential mortgage backed securities 21 250 (3 ) 56 545 (25 ) 77 795 (28 ) Commercial mortgage backed securities 19 208 (2 ) 3 34 (1 ) 22 242 (3 ) State and municipal obligations 7 32 (1 ) 2 102 (26 ) 9 134 (27 ) Asset backed securities 8 76 (1 ) 1 8 — 9 84 (1 ) Foreign government bonds and obligations 8 46 (3 ) 14 23 (8 ) 22 69 (11 ) Total 258 $ 3,369 $ (139 ) 100 $ 908 $ (94 ) 358 $ 4,277 $ (233 ) December 31, 2014 Less than 12 months 12 months or more Total Description of Securities Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 106 $ 1,093 $ (36 ) 40 $ 689 $ (18 ) 146 $ 1,782 $ (54 ) Residential mortgage backed securities 17 138 (2 ) 55 670 (30 ) 72 808 (32 ) Commercial mortgage backed securities 9 80 — 9 95 (3 ) 18 175 (3 ) State and municipal obligations 1 5 — 2 102 (25 ) 3 107 (25 ) Asset backed securities 5 52 — 3 32 (1 ) 8 84 (1 ) Foreign government bonds and obligations 4 10 (1 ) 14 27 (5 ) 18 37 (6 ) Total 142 $ 1,378 $ (39 ) 123 $ 1,615 $ (82 ) 265 $ 2,993 $ (121 ) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is primarily attributable to a widening of credit spreads. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Beginning balance $ 33 $ 54 $ 33 $ 54 Credit losses for which an other-than-temporary impairment was previously recognized — 1 — 1 Reductions for securities sold during the period (realized) — (22 ) — (22 ) Ending balance $ 33 $ 33 $ 33 $ 33 The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as deferred acquisition costs (“DAC”), deferred sales inducement costs (“DSIC”), unearned revenue, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI: Net Unrealized Securities Gains Deferred AOCI Related to Net Unrealized Securities Gains (in millions) Balance at January 1, 2014 $ 1,033 $ (366 ) $ 667 Net unrealized securities gains arising during the period (1) 441 (156 ) 285 Reclassification of net securities gains included in net income (15 ) 6 (9 ) Impact of other adjustments (258 ) 90 (168 ) Balance at September 30, 2014 $ 1,201 $ (426 ) $ 775 (2) Balance at January 1, 2015 $ 1,148 $ (407 ) $ 741 Net unrealized securities losses arising during the period (1) (545 ) 191 (354 ) Reclassification of net securities gains included in net income (7 ) 2 (5 ) Impact of other adjustments 281 (98 ) 183 Balance at September 30, 2015 $ 877 $ (312 ) $ 565 (2) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Includes $1 million and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at September 30, 2015 and 2014 , respectively. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Gross realized investment gains $ 1 $ 15 $ 23 $ 24 Gross realized investment losses (4 ) (1 ) (9 ) (4 ) Other-than-temporary impairments (7 ) (4 ) (7 ) (5 ) Total $ (10 ) $ 10 $ 7 $ 15 Other-than-temporary impairments for the three months and nine months ended September 30, 2015 primarily related to credit losses on corporate debt securities. Other-than-temporary impairments for the three months and nine months ended September 30, 2014 primarily related to credit losses on non-agency residential mortgage backed securities and corporate debt securities. Available-for-Sale securities by contractual maturity at September 30, 2015 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,009 $ 1,026 Due after one year through five years 5,327 5,743 Due after five years through 10 years 5,023 5,104 Due after 10 years 3,726 4,312 15,085 16,185 Residential mortgage backed securities 3,131 3,224 Commercial mortgage backed securities 2,048 2,147 Asset backed securities 759 804 Common stocks 2 7 Total $ 21,025 $ 22,367 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. Net investment income is summarized as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities $ 257 $ 277 $ 783 $ 841 Mortgage loans 43 46 134 137 Other investments 6 3 14 20 306 326 931 998 Less: investment expenses 10 7 27 23 Total $ 296 $ 319 $ 904 $ 975 |
Financing Receivables
Financing Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Financing Receivables The Company’s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Allowance for Loan Losses Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. The Company does not currently have an allowance for loan losses for residential mortgage loans. The following table presents a rollforward of the allowance for loan losses for commercial mortgage loans and syndicated loans for the nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2015 2014 (in millions) Beginning balance $ 28 $ 28 Charge-offs (3 ) (3 ) Provisions 1 2 Ending balance $ 26 $ 27 Individually evaluated for impairment $ 5 $ 8 Collectively evaluated for impairment 21 19 The recorded investment in commercial and residential mortgage loans and syndicated loans by impairment method was as follows: September 30, 2015 December 31, 2014 (in millions) Individually evaluated for impairment $ 31 $ 32 Collectively evaluated for impairment 3,669 3,740 Total $ 3,700 $ 3,772 As of September 30, 2015 and December 31, 2014 , the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $12 million and $4 million , respectively. During the three months ended September 30, 2015 and 2014 , the Company purchased $46 million and $71 million , respectively, and sold $8 million and $2 million , respectively, of syndicated loans. During the nine months ended September 30, 2015 and 2014 , the Company purchased $82 million and $161 million , respectively, and sold $15 million and $12 million , respectively, consisting primarily of syndicated loans. Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $8 million and $10 million as of September 30, 2015 and December 31, 2014 , respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 1% of total commercial mortgage loans at both September 30, 2015 and December 31, 2014 . Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in millions) South Atlantic $ 736 $ 710 28 % 27 % Pacific 722 673 27 26 Mountain 241 236 9 9 West North Central 218 223 8 8 Middle Atlantic 204 210 8 8 East North Central 202 237 7 9 West South Central 125 151 5 6 New England 122 130 5 5 East South Central 72 62 3 2 2,642 2,632 100 % 100 % Less: allowance for loan losses 20 23 Total $ 2,622 $ 2,609 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in millions) Retail $ 917 $ 956 35 % 36 % Office 524 535 20 20 Apartments 478 473 18 18 Industrial 470 447 18 17 Mixed use 36 46 1 2 Hotel 34 32 1 1 Other 183 143 7 6 2,642 2,632 100 % 100 % Less: allowance for loan losses 20 23 Total $ 2,622 $ 2,609 Residential Mortgage Loans The recorded investment in residential mortgage loans at September 30, 2015 and December 31, 2014 was $613 million and $689 million , respectively. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management updates FICO scores and LTV ratios semiannually. As of September 30, 2015 and December 31, 2014 , no allowance for loan losses was recorded. Residential mortgage loans are presented net of unamortized discount of $24 million and $34 million as of September 30, 2015 and December 31, 2014 , respectively. As of September 30, 2015 and December 31, 2014 , approximately 4% and 5% , respectively, of residential mortgage loans had FICO scores below 640 . As of both September 30, 2015 and December 31, 2014 , approximately 1% of the Company’s residential mortgage loans had LTV ratios greater than 90% . The Company’s most significant geographic concentration for residential mortgage loans is in California representing 37% of the portfolio as of both September 30, 2015 and December 31, 2014 . No other state represents more than 10% of the total residential mortgage loan portfolio. Syndicated Loans The recorded investment in syndicated loans at September 30, 2015 and December 31, 2014 was $445 million and $451 million , respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at September 30, 2015 and December 31, 2014 were $5 million and $3 million , respectively. Troubled Debt Restructurings The recorded investment in restructured loans was not material as of September 30, 2015 and December 31, 2014 . The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income recognized for the three months and nine months ended September 30, 2015 and 2014 . There are no material commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions relative to current experience and management expectations. To the extent that expectations change as a result of this review, management updates valuation assumptions. The impact in the third quarter of 2015 primarily reflected the difference between the Company’s previously assumed interest rates versus the continued low interest rate environment partially offset by improved persistency. The impact in the third quarter of 2014 primarily reflected the difference between the Company’s assumed interest rates partially offset by improved persistency and mortality experience and a benefit from updating the Company's variable annuity living benefit withdrawal utilization assumption. The balances of and changes in DAC were as follows: 2015 2014 (in millions) Balance at January 1 $ 2,576 $ 2,633 Capitalization of acquisition costs 201 196 Amortization, excluding the impact of valuation assumptions review (235 ) (219 ) Amortization, impact of valuation assumptions review (6 ) (7 ) Impact of change in net unrealized securities losses (gains) 64 (30 ) Balance at September 30 $ 2,600 $ 2,573 The balances of and changes in DSIC, which are included in other assets, were as follows: 2015 2014 (in millions) Balance at January 1 $ 361 $ 409 Capitalization of sales inducement costs 3 4 Amortization, excluding the impact of valuation assumptions review (43 ) (40 ) Amortization, impact of valuation assumptions review 1 (2 ) Impact of change in net unrealized securities losses (gains) 10 (3 ) Balance at September 30 $ 332 $ 368 |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities | Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities Policyholder account balances, future policy benefits and claims consisted of the following: September 30, 2015 December 31, 2014 (in millions) Policyholder account balances Fixed annuities $ 11,446 $ 12,700 Variable annuity fixed sub-accounts 4,914 4,860 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,884 2,856 Indexed universal life (“IUL”) insurance 727 534 Other life insurance 804 840 Total policyholder account balances 20,775 21,790 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 1,273 693 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 31 (41 ) (1) Other annuity liabilities 73 115 Fixed annuities life contingent liabilities 1,502 1,511 Equity indexed annuities (“EIA”) 27 29 Life, disability income and long term care insurance 5,150 5,106 VUL/UL and other life insurance additional liabilities 444 437 Total future policy benefits 8,500 7,850 Policy claims and other policyholders’ funds 173 165 Total policyholder account balances, future policy benefits and claims $ 29,448 $ 29,805 (1) Includes the value of GMAB embedded derivatives that was a net asset at December 31, 2014 reported as a contra liability. Separate account liabilities consisted of the following: September 30, 2015 December 31, 2014 (in millions) Variable annuity $ 67,930 $ 72,125 VUL insurance 6,483 7,016 Other insurance 34 37 Total $ 74,447 $ 79,178 |
Variable Annuity and Insurance
Variable Annuity and Insurance Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Insurance [Abstract] | |
Variable Annuity and Insurance Guarantees | Variable Annuity and Insurance Guarantees The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up (“GGU”) benefits. In addition, the Company offers contracts with GMWB and GMAB provisions. The Company previously offered contracts containing guaranteed minimum income benefit (“GMIB”) provisions. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: September 30, 2015 December 31, 2014 Variable Annuity Guarantees by Benefit Type (1) Total Contract Net Weighted Average Attained Age Total Contract Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 53,360 $ 51,507 $ 417 65 $ 55,378 $ 53,565 $ 24 64 Five/six-year reset 9,293 6,730 131 65 10,360 7,821 28 64 One-year ratchet 6,724 6,351 396 67 7,392 7,006 39 66 Five-year ratchet 1,611 1,553 31 63 1,773 1,717 2 63 Other 859 841 92 71 959 941 38 70 Total — GMDB $ 71,847 $ 66,982 $ 1,067 65 $ 75,862 $ 71,050 $ 131 64 GGU death benefit $ 1,040 $ 987 $ 114 67 $ 1,072 $ 1,019 $ 123 67 GMIB $ 274 $ 253 $ 14 68 $ 343 $ 321 $ 9 67 GMWB: GMWB $ 3,163 $ 3,152 $ 2 69 $ 3,671 $ 3,659 $ 1 68 GMWB for life 36,130 35,997 361 66 36,843 36,735 95 65 Total — GMWB $ 39,293 $ 39,149 $ 363 66 $ 40,514 $ 40,394 $ 96 65 GMAB $ 3,988 $ 3,972 $ 42 58 $ 4,247 $ 4,234 $ 2 58 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. The net amount at risk for GMDB, GGU and GMAB guarantees is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB and GMWB guarantees is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The present value is calculated using a discount rate that is consistent with assumptions embedded in the Company’s annuity pricing models. The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2015 December 31, 2014 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,413 63 $ 6,076 62 The net amount at risk for UL secondary guarantees is defined as the current guaranteed death benefit amount in excess of the current policyholder value. Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2014 $ 4 $ 6 $ (383 ) $ (62 ) $ 206 Incurred claims 8 1 528 7 54 Paid claims (3 ) — — — (13 ) Balance at September 30, 2014 $ 9 $ 7 $ 145 $ (55 ) $ 247 Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 9 — 580 72 70 Paid claims (3 ) — — — (19 ) Balance at September 30, 2015 $ 15 $ 7 $ 1,273 $ 31 $ 314 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: September 30, 2015 December 31, 2014 (in millions) Mutual funds: Equity $ 38,571 $ 41,403 Bond 23,760 25,060 Other 4,997 4,490 Total mutual funds $ 67,328 $ 70,953 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Short-term Debt [Abstract] | |
Short-term Borrowings [Text Block] | Short-term Borrowings The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of September 30, 2015 and December 31, 2014 , the Company has pledged $26 million and $18 million , respectively, of agency residential mortgage backed securities and $26 million and $34 million , respectively, of commercial mortgage backed securities. The amount of the Company’s liability including accrued interest as of both September 30, 2015 and December 31, 2014 was $50 million . The remaining maturity of outstanding repurchase agreements was less than two months as of September 30, 2015 and less than four months as of December 31, 2014 . The weighted average annualized interest rate on the repurchase agreements held as of September 30, 2015 and December 31, 2014 was 0.5% and 0.4% , respectively. RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has pledged Available-for-Sale securities consisting of commercial mortgage backed securities to collateralize its obligation under these borrowings. The fair value of the securities pledged is recorded in investments and was $295 million and $298 million as of September 30, 2015 and December 31, 2014 , respectively. The amount of the Company’s liability including accrued interest as of both September 30, 2015 and December 31, 2014 was $150 million . The remaining maturity of outstanding FHLB advances was less than three months as of September 30, 2015 and less than two months as of December 31, 2014 . The weighted average annualized interest rate on the FHLB advances held as of both September 30, 2015 and December 31, 2014 was 0.3% . |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities [Table Text Block] | Fair Values of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: September 30, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,443 $ 1,337 $ 14,780 Residential mortgage backed securities — 3,180 44 3,224 Commercial mortgage backed securities — 2,142 5 2,147 State and municipal obligations — 1,136 — 1,136 Asset backed securities — 696 108 804 Foreign government bonds and obligations — 230 — 230 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 20,862 1,494 22,360 Common stocks 3 4 — 7 Cash equivalents 50 522 — 572 Other assets: Interest rate derivative contracts — 2,238 — 2,238 Equity derivative contracts 281 1,437 — 1,718 Foreign exchange derivative contracts 4 36 — 40 Other derivative contracts — 1 — 1 Total other assets 285 3,712 — 3,997 Separate account assets — 74,447 — 74,447 Total assets at fair value $ 342 $ 99,547 $ 1,494 $ 101,383 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 317 317 GMWB and GMAB embedded derivatives — — 1,107 1,107 (1) Total policyholder account balances, future policy benefits and claims — 5 1,424 1,429 (2) Other liabilities: Interest rate derivative contracts — 1,168 — 1,168 Equity derivative contracts 265 1,735 — 2,000 Credit derivative contracts — 5 — 5 Foreign exchange derivative contracts — 6 — 6 Other derivative contracts — 13 — 13 Total other liabilities 265 2,927 — 3,192 Total liabilities at fair value $ 265 $ 2,932 $ 1,424 $ 4,621 (1) The fair value of the GMWB and GMAB embedded derivatives included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. (2) The Company’s adjustment for nonperformance risk resulted in a $497 million cumulative decrease to the embedded derivatives. December 31, 2014 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,830 $ 1,353 $ 15,183 Residential mortgage backed securities — 3,483 9 3,492 Commercial mortgage backed securities — 2,138 90 2,228 State and municipal obligations — 1,113 — 1,113 Asset backed securities — 786 151 937 Foreign government bonds and obligations — 251 — 251 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 21,636 1,603 23,243 Common stocks 3 3 1 7 Cash equivalents 1 235 — 236 Other assets: Interest rate derivative contracts — 1,955 — 1,955 Equity derivative contracts 282 1,711 — 1,993 Foreign exchange derivative contracts — 29 — 29 Total other assets 282 3,695 — 3,977 Separate account assets — 79,178 — 79,178 Total assets at fair value $ 290 $ 104,747 $ 1,604 $ 106,641 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 6 $ — $ 6 IUL embedded derivatives — — 242 242 GMWB and GMAB embedded derivatives — — 479 479 (1) Total policyholder account balances, future policy benefits and claims — 6 721 727 (2) Other liabilities: Interest rate derivative contracts — 1,136 — 1,136 Equity derivative contracts 376 2,286 — 2,662 Foreign exchange derivative contracts — 2 — 2 Other derivative contracts — 11 — 11 Total other liabilities 376 3,435 — 3,811 Total liabilities at fair value $ 376 $ 3,441 $ 721 $ 4,538 (1) The fair value of the GMWB and GMAB embedded derivatives included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. (2) The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives. The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis: Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total (in millions) Balance, July 1, 2015 $ 1,339 $ 8 $ 34 $ 118 $ 1,499 Total gains (losses) included in: Net income (1 ) — — 1 — (1) Other comprehensive income (3 ) — — 2 (1 ) Purchases 91 37 — — 128 Settlements (89 ) (1 ) (2 ) — (92 ) Transfers out of Level 3 — — (27 ) (13 ) (40 ) Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, IUL GMWB and Total (in millions) Balance, July 1, 2015 $ 292 $ 235 $ 527 Total (gains) losses included in: Net income (1 ) (1) 805 (2) 804 Issues 31 69 100 Settlements (5 ) (2 ) (7 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 811 $ 811 Interest credited to fixed accounts (1 ) — (1 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks Other Derivatives Contracts (in millions) Balance, July 1, 2014 $ 1,376 $ 10 $ 15 $ 149 $ 1,550 $ 1 $ 1 Total gains (losses) included in: Net income — — — 1 1 (1) — (1 ) (2) Other comprehensive income (11 ) — — (1 ) (12 ) — — Purchases 37 — — — 37 — 1 Settlements (24 ) — — (1 ) (25 ) — — Transfers into Level 3 — — 78 — 78 — — Transfers out of Level 3 — — — — — (1 ) — Balance, September 30, 2014 $ 1,378 $ 10 $ 93 $ 148 $ 1,629 $ — $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in: Net investment income $ — $ — $ — $ 1 $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — — (1 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, IUL Embedded GMWB and GMAB Total (in millions) Balance, July 1, 2014 $ 184 $ (347 ) $ (163 ) Total losses included in: Net income — 207 (1) 207 Issues 21 65 86 Settlements (3 ) (2 ) (5 ) Balance, September 30, 2014 $ 202 $ (77 ) $ 125 Changes in unrealized losses relating to liabilities held at September 30, 2014 included in: Benefits, claims, losses and settlement expenses $ — $ 208 $ 208 (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (10 ) — — 2 (8 ) (1 ) Purchases 142 68 31 1 242 — Settlements (147 ) (2 ) (4 ) (2 ) (155 ) — Transfers into Level 3 — — 6 — 6 — Transfers out of Level 3 — (31 ) (118 ) (45 ) (194 ) — Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total losses included in: Net income 13 (1) 426 (2) 439 Issues 76 197 273 Settlements (14 ) 5 (9 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 438 $ 438 Interest credited to fixed accounts 13 — 13 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks Other Derivatives Contracts (in millions) Balance, January 1, 2014 $ 1,516 $ 58 $ 30 $ 218 $ 1,822 $ — $ — Total gains (losses) included in: Net income 1 — — 1 2 (1) — (1 ) (2) Other comprehensive income 3 — — — 3 — — Purchases 94 11 39 — 144 1 2 Sales (11 ) — — — (11 ) — — Settlements (225 ) (2 ) — (2 ) (229 ) — — Transfers into Level 3 — — 78 — 78 — — Transfers out of Level 3 — (57 ) (54 ) (69 ) (180 ) (1 ) — Balance, September 30, 2014 $ 1,378 $ 10 $ 93 $ 148 $ 1,629 $ — $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — $ — Benefits, claims, losses and settlement expenses — — — — — — (1 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, IUL Embedded GMWB and Total (in millions) Balance, January 1, 2014 $ 125 $ (575 ) $ (450 ) Total losses included in: Net income 14 (1) 327 (2) 341 Issues 69 184 253 Settlements (6 ) (13 ) (19 ) Balance, September 30, 2014 $ 202 $ (77 ) $ 125 Changes in unrealized losses relating to liabilities held at September 30, 2014 included in: Benefits, claims, losses and settlement expenses $ — $ 327 $ 327 Interest credited to fixed accounts 14 — 14 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. The increase to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $162 million and $59 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the three months ended September 30, 2015 and 2014 , respectively. The increase to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $154 million and $68 million , net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual for the nine months ended September 30, 2015 and 2014 , respectively. Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: September 30, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,323 Discounted cash flow Yield/spread to U.S. Treasuries 1.3 % - 4.0% 1.7% IUL embedded derivatives $ 317 Discounted cash flow Nonperformance risk (1) 80 bps GMWB and GMAB embedded derivatives $ 1,107 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.3 % - 21.2% Nonperformance risk (1) 80 bps December 31, 2014 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,311 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % - 3.9% 1.5 % IUL embedded derivatives $ 242 Discounted cash flow Nonperformance risk (1) 65 bps GMWB and GMAB embedded derivatives $ 479 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 51.1% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.2 % - 20.9% Nonperformance risk (1) 65 bps Elective contractholder strategy allocations (4) 0.0 % - 3.0% . (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. (4) The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. As of September 30, 2015, the Company is no longer including this input in the fair value measurement. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk, surrender rate and elective investment allocation model used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) liability value. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution system and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities primarily include U.S. Treasuries. Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. In addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and options. Other derivative contracts consist of the Company's macro hedge program. See Note 12 for further information on the macro hedge program. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial at September 30, 2015 and December 31, 2014 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims The Company values the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significant inputs to the EIA calculation include observable interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The fair value of the IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption to the fair value, the IUL embedded derivatives are classified as Level 3. The embedded derivatives attributable to these provisions are recorded in policyholder account balances, future policy benefits and claims. The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. Other derivative contracts consist of the Company’s macro hedge program. See Note 12 for further information on the macro hedge program. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at September 30, 2015 and December 31, 2014 . See Note 11 and Note 12 for further information on the credit risk of derivative instruments and related collateral. During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the tables with balances of assets and liabilities measured at fair value on a recurring basis. September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,235 $ — $ — $ 3,322 $ 3,322 Policy loans 823 — — 805 805 Other investments 455 — 413 37 450 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,730 $ — $ — $ 12,705 $ 12,705 Short-term borrowings 200 — 200 — 200 Other liabilities 89 — — 86 86 Separate account liabilities 355 — 355 — 355 December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,298 $ — $ — $ 3,413 $ 3,413 Policy loans 805 — — 793 793 Other investments 463 — 403 55 458 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,979 $ — $ — $ 13,996 $ 13,996 Short-term borrowings 200 — 200 — 200 Other liabilities 124 — — 121 121 Separate account liabilities 400 — 400 — 400 Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. The fair value of residential mortgage loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. Given the significant unobservable inputs to the valuation of mortgage loans, these measurements are classified as Level 3. Policy Loans Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Other Investments Other investments primarily consist of syndicated loans and an investment in FHLB. The fair value of syndicated loans is obtained from a third party pricing service or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for this asset. Policyholder Account Balances, Future Policy Benefits and Claims The fair value of fixed annuities in deferral status is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. Short-term Borrowings The fair value of short-term borrowings is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2. Other Liabilities Other liabilities consist of future funding commitments to affordable housing partnerships. The fair value of these future funding commitments is determined by discounting cash flows. The fair value of these commitments includes an adjustment for the Company’s nonperformance risk and is classified as Level 3 due to the use of the significant unobservable input. Separate Account Liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets represents the exit price for the separate account liabilities. Separate account liabilities are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments and repurchase agreements are subject to master netting arrangements and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: September 30, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,384 $ — $ 3,384 $ (2,420 ) $ (473 ) $ (445 ) $ 46 OTC cleared 505 — 505 (415 ) (89 ) — 1 Exchange-traded 108 — 108 (4 ) — — 104 Total derivatives $ 3,997 $ — $ 3,997 $ (2,839 ) $ (562 ) $ (445 ) $ 151 December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,612 $ — $ 3,612 $ (2,934 ) $ (228 ) $ (418 ) $ 32 OTC cleared 304 — 304 (222 ) (82 ) — — Exchange-traded 61 — 61 — — — 61 Total derivatives $ 3,977 $ — $ 3,977 $ (3,156 ) $ (310 ) $ (418 ) $ 93 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: September 30, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,761 $ — $ 2,761 $ (2,420 ) $ — $ (324 ) $ 17 OTC cleared 415 — 415 (415 ) — — — Exchange-traded 16 — 16 (4 ) — — 12 Total derivatives 3,192 — 3,192 (2,839 ) — (324 ) 29 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,242 $ — $ 3,242 $ (2,839 ) $ — $ (374 ) $ 29 December 31, 2014 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,589 $ — $ 3,589 $ (2,934 ) $ — $ (655 ) $ — OTC cleared 222 — 222 (222 ) — — — Total derivatives 3,811 — 3,811 (3,156 ) — (655 ) — Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,861 $ — $ 3,861 $ (3,156 ) $ — $ (705 ) $ — (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. In the tables above, the amounts of assets or liabilities presented in the Consolidated Balance Sheets are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables. When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral. The Company’s freestanding derivative instruments are reflected in other assets and other liabilities. Repurchase agreements are reflected in short-term borrowings. See Note 12 for additional disclosures related to the Company’s derivative instruments and Note 9 for additional disclosures related to the Company’s repurchase agreements. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities [Text Block] | Derivatives and Hedging Activities Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations. The Company’s freestanding derivatives are recorded at fair value and are reflected in other assets or other liabilities. The Company’s freestanding derivative instruments are all subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 11 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives: Assets Liabilities Derivatives not designated Balance Sheet September 30, December 31, Balance Sheet Location September 30, December 31, (in millions) (in millions) GMWB and GMAB Interest rate contracts Other assets $ 2,238 $ 1,955 Other liabilities $ 1,168 $ 1,136 Equity contracts Other assets 1,706 1,954 Other liabilities 1,998 2,650 Credit contracts Other assets — — Other liabilities 5 — Foreign exchange contracts Other assets 40 29 Other liabilities 6 2 Embedded derivatives (1) N/A — — Policyholder account balances, future policy benefits and claims (2) 1,107 479 Total GMWB and GMAB 3,984 3,938 4,284 4,267 Other derivatives: Equity EIA embedded derivatives N/A — — Policyholder account balances, future policy benefits and claims 5 6 IUL Other assets 12 39 Other liabilities 2 12 IUL embedded derivatives N/A — — Policyholder account balances, future policy benefits and claims 317 242 Other Macro hedge program Other assets 1 — Other liabilities 13 11 Total other derivatives 13 39 337 271 Total derivatives $ 3,997 $ 3,977 $ 4,621 $ 4,538 N/A Not applicable. (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. (2) The fair value of the GMWB and GMAB embedded derivatives at September 30, 2015 included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. See Note 10 for additional information regarding the Company’s fair value measurement of derivative instruments. The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income: Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives not designated as hedging instruments Location of Gain (Loss) on Derivatives Recognized in Income Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 (in millions) GMWB and GMAB Interest rate contracts Benefits, claims, losses and settlement expenses $ 536 $ 100 $ 360 $ 609 Equity contracts Benefits, claims, losses and settlement expenses 328 143 69 (244 ) Credit contracts Benefits, claims, losses and settlement expenses (10 ) (1 ) (5 ) (23 ) Foreign exchange contracts Benefits, claims, losses and settlement expenses 6 (13 ) (2 ) (14 ) Embedded derivatives (1) Benefits, claims, losses and settlement expenses (872 ) (270 ) (628 ) (498 ) Total GMWB and GMAB (12 ) (41 ) (206 ) (170 ) Other derivatives: Interest rate Tax hedge Net investment income — — — 3 Equity EIA Interest credited to fixed accounts (1 ) — (1 ) 1 EIA embedded derivatives Interest credited to fixed accounts 1 — 1 (1 ) IUL Interest credited to fixed accounts (15 ) 2 (16 ) 13 IUL embedded derivatives Interest credited to fixed accounts 6 2 1 (9 ) Other Macro hedge program Benefits, claims, losses and settlement expenses (13 ) (1 ) (13 ) 2 Total other derivatives (22 ) 3 (28 ) 9 Total derivatives $ (34 ) $ (38 ) $ (234 ) $ (161 ) (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps. At September 30, 2015 and December 31, 2014 , the gross notional amount of derivative contracts for the Company’s GMWB and GMAB provisions was $134.1 billion and $132.0 billion , respectively. The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2015 (1) $ 107 $ 28 2016 327 75 2017 266 75 2018 208 124 2019 255 101 2020-2026 652 223 Total $ 1,815 $ 626 (1) 2015 amounts represent the amounts payable and receivable for the period from October 1, 2015 to December 31, 2015 . Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. The Company has a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on its statutory surplus and to cover some of the residual risks not covered by other hedging activities. As a means of economically hedging these risks, the Company uses a combination of options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives used contain settlement provisions linked to both equity returns and interest rates; the remaining are interest rate contracts or equity contracts. The gross notional amount of these derivative contracts was $2.9 billion and $1.2 billion at September 30, 2015 and December 31, 2014 , respectively. EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of these derivative contracts was $1.3 billion and $953 million at September 30, 2015 and December 31, 2014 , respectively. Embedded Derivatives Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA and IUL product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives. Cash Flow Hedges The Company has amounts classified in AOCI related to gains and losses associated with the effective portion of previously designated cash flow hedges. The Company reclassifies these amounts into income as the forecasted transactions impact earnings. During the nine months ended September 30, 2015 , the Company held no derivatives that were designated as cash flow hedges. At September 30, 2015 , the Company expects to reclassify $6 million of deferred loss on derivative instruments from AOCI to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the nine months ended September 30, 2015 and 2014 , no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the nine months ended September 30, 2015 and 2014 , amounts recognized in earnings on derivative transactions that were ineffective were not material. The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in AOCI: 2015 2014 (in millions) Net unrealized derivative losses at January 1 $ (12 ) $ (17 ) Reclassification of realized losses (1) 4 5 Income tax provision (1 ) (2 ) Net unrealized derivative losses at September 30 $ (9 ) $ (14 ) (1) Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is three years and relates to interest credited on forecasted fixed premium product sales. Credit Risk Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. See Note 11 for additional information on the Company’s credit exposure related to derivative assets. Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. At September 30, 2015 and December 31, 2014 , the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $269 million and $367 million , respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 2015 and December 31, 2014 was $254 million and $367 million , respectively. If the credit contingent provisions of derivative contracts in a net liability position at September 30, 2015 and December 31, 2014 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $15 million and nil , respectively. |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity [Text Block] | Shareholder’s Equity The following table provides information related to amounts reclassified from AOCI: Three Months Ended September 30, Nine Months Ended AOCI Reclassification Location of (Gain) Loss Recognized in Income 2015 2014 2015 2014 (in millions) Net unrealized (gains) losses on Available-for-Sale securities Net realized investment gains (losses) $ 10 $ (10 ) $ (7 ) $ (15 ) Tax (benefit) expense Income tax provision (4 ) 4 2 6 Net of tax $ 6 $ (6 ) $ (5 ) $ (9 ) Losses on cash flow hedges: Swaptions Net investment income $ 1 $ 2 $ 4 $ 5 Tax benefit Income tax provision — (1 ) (1 ) (2 ) Net of tax $ 1 $ 1 $ 3 $ 3 See Note 4 for additional information related to the impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverable on net unrealized securities gains/losses included in AOCI. See Note 12 for additional information regarding the Company’s cash flow hedges. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate was 15.2% and 14.5% for the three months ended September 30, 2015 and 2014 , respectively. The Company’s effective tax rate was 17.2% and 14.0% for the nine months ended September 30, 2015 and 2014 , respectively. The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction and low income housing tax credits. The increase in the effective tax rate for the nine months ended September 30, 2015 compared to the prior year period was primarily the result of an $18 million benefit in the first quarter of 2014 related to the completion of an Internal Revenue Service (“IRS”) audit. Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $7 million which will expire beginning December 31, 2015. The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will not allow the Company to realize certain state deferred tax assets and state net operating losses. The valuation allowance for state deferred tax assets and state net operating losses was $8 million at both September 30, 2015 and December 31, 2014 . As of September 30, 2015 and December 31, 2014 , the Company had $163 million and $160 million , respectively, of gross unrecognized tax benefits. If recognized, approximately $9 million and $7 million , net of federal tax benefits, of unrecognized tax benefits at September 30, 2015 and December 31, 2014 , respectively, would affect the effective tax rate. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $130 million to $140 million in the next 12 months due to resolution of IRS examinations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $1 million in interest and penalties for both the three months ended September 30, 2015 and 2014 . The Company recognized a net increase of $2 million and $3 million in interest and penalties for the nine months ended September 30, 2015 and 2014 , respectively. At September 30, 2015 and December 31, 2014 , the Company had a payable of $42 million and $40 million , respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns as part of its inclusion in the consolidated federal income tax returns of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for federal income tax purposes, these years, except for 2007, continue to remain open as a consequence of certain unagreed-upon issues. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2012 and remain open for all years after 2012. |
Guarantees and Contingencies
Guarantees and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Contingencies | Guarantees and Contingencies Guarantees The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations (“NOLHGA”) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At both September 30, 2015 and December 31, 2014 , the estimated liability was $14 million and the related premium tax asset was $12 million . The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. Contingencies Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquiries (including a multistate insurance department examination and a market conduct examination by the State of Minnesota). The Company has cooperated and will continue to cooperate with the applicable regulators. The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Securities Disclosure [Table Text Block] | Available-for-Sale securities distributed by type were as follows: September 30, 2015 Description of Securities Amortized Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,814 $ 1,129 $ (163 ) $ 14,780 $ 3 Residential mortgage backed securities 3,131 121 (28 ) 3,224 (8 ) Commercial mortgage backed securities 2,048 102 (3 ) 2,147 — State and municipal obligations 1,010 153 (27 ) 1,136 — Asset backed securities 759 46 (1 ) 804 — Foreign government bonds and obligations 223 18 (11 ) 230 — U.S. government and agencies obligations 38 1 — 39 — Total fixed maturities 21,023 1,570 (233 ) 22,360 (5 ) Common stocks 2 5 — 7 3 Total $ 21,025 $ 1,575 $ (233 ) $ 22,367 $ (2 ) December 31, 2014 Description of Securities Amortized Gross Gross Fair Noncredit (1) (in millions) Fixed maturities: Corporate debt securities $ 13,763 $ 1,474 $ (54 ) $ 15,183 $ 3 Residential mortgage backed securities 3,374 150 (32 ) 3,492 (9 ) Commercial mortgage backed securities 2,116 115 (3 ) 2,228 — State and municipal obligations 947 191 (25 ) 1,113 — Asset backed securities 882 56 (1 ) 937 — Foreign government bonds and obligations 236 21 (6 ) 251 — U.S. government and agencies obligations 36 3 — 39 — Total fixed maturities 21,354 2,010 (121 ) 23,243 (6 ) Common stocks 2 5 — 7 3 Total $ 21,356 $ 2,015 $ (121 ) $ 23,250 $ (3 ) (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments with Fixed Maturities Disclosure [Table Text Block] | A summary of fixed maturity securities by rating was as follows: September 30, 2015 December 31, 2014 Ratings Amortized Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 4,707 $ 4,928 22 % $ 5,111 $ 5,374 23 % AA 1,017 1,201 5 967 1,158 5 A 4,028 4,472 20 4,452 5,062 22 BBB 9,965 10,526 47 9,328 10,165 44 Below investment grade 1,306 1,233 6 1,496 1,484 6 Total fixed maturities $ 21,023 $ 22,360 100 % $ 21,354 $ 23,243 100 % |
Available-for-Sale Securities Continuous Unrealized Loss Disclosure [Table Text Block] | The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: September 30, 2015 Less than 12 months 12 months or more Total Description of Securities Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 195 $ 2,757 $ (129 ) 24 $ 196 $ (34 ) 219 $ 2,953 $ (163 ) Residential mortgage backed securities 21 250 (3 ) 56 545 (25 ) 77 795 (28 ) Commercial mortgage backed securities 19 208 (2 ) 3 34 (1 ) 22 242 (3 ) State and municipal obligations 7 32 (1 ) 2 102 (26 ) 9 134 (27 ) Asset backed securities 8 76 (1 ) 1 8 — 9 84 (1 ) Foreign government bonds and obligations 8 46 (3 ) 14 23 (8 ) 22 69 (11 ) Total 258 $ 3,369 $ (139 ) 100 $ 908 $ (94 ) 358 $ 4,277 $ (233 ) December 31, 2014 Less than 12 months 12 months or more Total Description of Securities Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 106 $ 1,093 $ (36 ) 40 $ 689 $ (18 ) 146 $ 1,782 $ (54 ) Residential mortgage backed securities 17 138 (2 ) 55 670 (30 ) 72 808 (32 ) Commercial mortgage backed securities 9 80 — 9 95 (3 ) 18 175 (3 ) State and municipal obligations 1 5 — 2 102 (25 ) 3 107 (25 ) Asset backed securities 5 52 — 3 32 (1 ) 8 84 (1 ) Foreign government bonds and obligations 4 10 (1 ) 14 27 (5 ) 18 37 (6 ) Total 142 $ 1,378 $ (39 ) 123 $ 1,615 $ (82 ) 265 $ 2,993 $ (121 ) |
Credit Losses on Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss): Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Beginning balance $ 33 $ 54 $ 33 $ 54 Credit losses for which an other-than-temporary impairment was previously recognized — 1 — 1 Reductions for securities sold during the period (realized) — (22 ) — (22 ) Ending balance $ 33 $ 33 $ 33 $ 33 |
Other Comprehensive Income Available-for-Sale Securities Disclosure [Table Text Block] | The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in AOCI: Net Unrealized Securities Gains Deferred AOCI Related to Net Unrealized Securities Gains (in millions) Balance at January 1, 2014 $ 1,033 $ (366 ) $ 667 Net unrealized securities gains arising during the period (1) 441 (156 ) 285 Reclassification of net securities gains included in net income (15 ) 6 (9 ) Impact of other adjustments (258 ) 90 (168 ) Balance at September 30, 2014 $ 1,201 $ (426 ) $ 775 (2) Balance at January 1, 2015 $ 1,148 $ (407 ) $ 741 Net unrealized securities losses arising during the period (1) (545 ) 191 (354 ) Reclassification of net securities gains included in net income (7 ) 2 (5 ) Impact of other adjustments 281 (98 ) 183 Balance at September 30, 2015 $ 877 $ (312 ) $ 565 (2) (1) Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. (2) Includes $1 million and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at September 30, 2015 and 2014 , respectively. |
Available-for-Sale Securities Recognized in Earnings Disclosure [Table Text Block] | Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Gross realized investment gains $ 1 $ 15 $ 23 $ 24 Gross realized investment losses (4 ) (1 ) (9 ) (4 ) Other-than-temporary impairments (7 ) (4 ) (7 ) (5 ) Total $ (10 ) $ 10 $ 7 $ 15 |
Available-for-Sale Securities Contractual Maturity Disclosure [Table Text Block] | Available-for-Sale securities by contractual maturity at September 30, 2015 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 1,009 $ 1,026 Due after one year through five years 5,327 5,743 Due after five years through 10 years 5,023 5,104 Due after 10 years 3,726 4,312 15,085 16,185 Residential mortgage backed securities 3,131 3,224 Commercial mortgage backed securities 2,048 2,147 Asset backed securities 759 804 Common stocks 2 7 Total $ 21,025 $ 22,367 |
Schedule of Net Investment Income [Table Text Block] | Net investment income is summarized as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities $ 257 $ 277 $ 783 $ 841 Mortgage loans 43 46 134 137 Other investments 6 3 14 20 306 326 931 998 Less: investment expenses 10 7 27 23 Total $ 296 $ 319 $ 904 $ 975 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Loan Losses [Table Text Block] | The following table presents a rollforward of the allowance for loan losses for commercial mortgage loans and syndicated loans for the nine months ended and the ending balance of the allowance for loan losses by impairment method: September 30, 2015 2014 (in millions) Beginning balance $ 28 $ 28 Charge-offs (3 ) (3 ) Provisions 1 2 Ending balance $ 26 $ 27 Individually evaluated for impairment $ 5 $ 8 Collectively evaluated for impairment 21 19 |
Schedule of Recorded Investment in Financing Receivables by Impairment Method [Table Text Block] | The recorded investment in commercial and residential mortgage loans and syndicated loans by impairment method was as follows: September 30, 2015 December 31, 2014 (in millions) Individually evaluated for impairment $ 31 $ 32 Collectively evaluated for impairment 3,669 3,740 Total $ 3,700 $ 3,772 |
Schedule of Commercial Mortgage Loans by Geographic Region [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in millions) South Atlantic $ 736 $ 710 28 % 27 % Pacific 722 673 27 26 Mountain 241 236 9 9 West North Central 218 223 8 8 Middle Atlantic 204 210 8 8 East North Central 202 237 7 9 West South Central 125 151 5 6 New England 122 130 5 5 East South Central 72 62 3 2 2,642 2,632 100 % 100 % Less: allowance for loan losses 20 23 Total $ 2,622 $ 2,609 |
Schedule of Commercial Mortgage Loans by Property Type [Table Text Block] | Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in millions) Retail $ 917 $ 956 35 % 36 % Office 524 535 20 20 Apartments 478 473 18 18 Industrial 470 447 18 17 Mixed use 36 46 1 2 Hotel 34 32 1 1 Other 183 143 7 6 2,642 2,632 100 % 100 % Less: allowance for loan losses 20 23 Total $ 2,622 $ 2,609 |
Deferred Acquisition Costs an25
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | |
Schedule of balances of and changes in DAC | The balances of and changes in DAC were as follows: 2015 2014 (in millions) Balance at January 1 $ 2,576 $ 2,633 Capitalization of acquisition costs 201 196 Amortization, excluding the impact of valuation assumptions review (235 ) (219 ) Amortization, impact of valuation assumptions review (6 ) (7 ) Impact of change in net unrealized securities losses (gains) 64 (30 ) Balance at September 30 $ 2,600 $ 2,573 |
Schedule of balances of and changes in DSIC | The balances of and changes in DSIC, which are included in other assets, were as follows: 2015 2014 (in millions) Balance at January 1 $ 361 $ 409 Capitalization of sales inducement costs 3 4 Amortization, excluding the impact of valuation assumptions review (43 ) (40 ) Amortization, impact of valuation assumptions review 1 (2 ) Impact of change in net unrealized securities losses (gains) 10 (3 ) Balance at September 30 $ 332 $ 368 |
Policyholder Account Balances26
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Policyholder Account Balances, Future Policy Benefits and Claims & Separate Account Liabilities | |
Policyholder account balances, future policy benefits and unpaid claims disclosure | Policyholder account balances, future policy benefits and claims consisted of the following: September 30, 2015 December 31, 2014 (in millions) Policyholder account balances Fixed annuities $ 11,446 $ 12,700 Variable annuity fixed sub-accounts 4,914 4,860 Variable universal life (“VUL”)/universal life (“UL”) insurance 2,884 2,856 Indexed universal life (“IUL”) insurance 727 534 Other life insurance 804 840 Total policyholder account balances 20,775 21,790 Future policy benefits Variable annuity guaranteed minimum withdrawal benefits (“GMWB”) 1,273 693 Variable annuity guaranteed minimum accumulation benefits (“GMAB”) 31 (41 ) (1) Other annuity liabilities 73 115 Fixed annuities life contingent liabilities 1,502 1,511 Equity indexed annuities (“EIA”) 27 29 Life, disability income and long term care insurance 5,150 5,106 VUL/UL and other life insurance additional liabilities 444 437 Total future policy benefits 8,500 7,850 Policy claims and other policyholders’ funds 173 165 Total policyholder account balances, future policy benefits and claims $ 29,448 $ 29,805 (1) Includes the value of GMAB embedded derivatives that was a net asset at December 31, 2014 reported as a contra liability. |
Schedule of Separate Account Liabilities by Policy Type | Separate account liabilities consisted of the following: September 30, 2015 December 31, 2014 (in millions) Variable annuity $ 67,930 $ 72,125 VUL insurance 6,483 7,016 Other insurance 34 37 Total $ 74,447 $ 79,178 |
Variable Annuity and Insuranc27
Variable Annuity and Insurance Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Insurance [Abstract] | |
Schedule of Variable Annuity Guarantees [Table Text Block] | The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: September 30, 2015 December 31, 2014 Variable Annuity Guarantees by Benefit Type (1) Total Contract Net Weighted Average Attained Age Total Contract Net Weighted Average Attained Age (in millions, except age) GMDB: Return of premium $ 53,360 $ 51,507 $ 417 65 $ 55,378 $ 53,565 $ 24 64 Five/six-year reset 9,293 6,730 131 65 10,360 7,821 28 64 One-year ratchet 6,724 6,351 396 67 7,392 7,006 39 66 Five-year ratchet 1,611 1,553 31 63 1,773 1,717 2 63 Other 859 841 92 71 959 941 38 70 Total — GMDB $ 71,847 $ 66,982 $ 1,067 65 $ 75,862 $ 71,050 $ 131 64 GGU death benefit $ 1,040 $ 987 $ 114 67 $ 1,072 $ 1,019 $ 123 67 GMIB $ 274 $ 253 $ 14 68 $ 343 $ 321 $ 9 67 GMWB: GMWB $ 3,163 $ 3,152 $ 2 69 $ 3,671 $ 3,659 $ 1 68 GMWB for life 36,130 35,997 361 66 36,843 36,735 95 65 Total — GMWB $ 39,293 $ 39,149 $ 363 66 $ 40,514 $ 40,394 $ 96 65 GMAB $ 3,988 $ 3,972 $ 42 58 $ 4,247 $ 4,234 $ 2 58 (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Schedule of UL Secondary Guarantees [Table Text Block] | The following table provides information related to insurance guarantees for which the Company has established additional liabilities: September 30, 2015 December 31, 2014 Net Amount at Risk Weighted Average Attained Age Net Amount at Risk Weighted Average Attained Age (in millions, except age) UL secondary guarantees $ 6,413 63 $ 6,076 62 |
Schedule of Changes in Additional Liabilities for Variable Annuity and Insurance Guarantees [Table Text Block] | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows: GMDB & GGU GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2014 $ 4 $ 6 $ (383 ) $ (62 ) $ 206 Incurred claims 8 1 528 7 54 Paid claims (3 ) — — — (13 ) Balance at September 30, 2014 $ 9 $ 7 $ 145 $ (55 ) $ 247 Balance at January 1, 2015 $ 9 $ 7 $ 693 $ (41 ) $ 263 Incurred claims 9 — 580 72 70 Paid claims (3 ) — — — (19 ) Balance at September 30, 2015 $ 15 $ 7 $ 1,273 $ 31 $ 314 (1) The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Schedule of Separate Account Balances By Asset Type [Table Text Block] | The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: September 30, 2015 December 31, 2014 (in millions) Mutual funds: Equity $ 38,571 $ 41,403 Bond 23,760 25,060 Other 4,997 4,490 Total mutual funds $ 67,328 $ 70,953 |
Fair Values of Assets and Lia28
Fair Values of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: September 30, 2015 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,443 $ 1,337 $ 14,780 Residential mortgage backed securities — 3,180 44 3,224 Commercial mortgage backed securities — 2,142 5 2,147 State and municipal obligations — 1,136 — 1,136 Asset backed securities — 696 108 804 Foreign government bonds and obligations — 230 — 230 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 20,862 1,494 22,360 Common stocks 3 4 — 7 Cash equivalents 50 522 — 572 Other assets: Interest rate derivative contracts — 2,238 — 2,238 Equity derivative contracts 281 1,437 — 1,718 Foreign exchange derivative contracts 4 36 — 40 Other derivative contracts — 1 — 1 Total other assets 285 3,712 — 3,997 Separate account assets — 74,447 — 74,447 Total assets at fair value $ 342 $ 99,547 $ 1,494 $ 101,383 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 5 $ — $ 5 IUL embedded derivatives — — 317 317 GMWB and GMAB embedded derivatives — — 1,107 1,107 (1) Total policyholder account balances, future policy benefits and claims — 5 1,424 1,429 (2) Other liabilities: Interest rate derivative contracts — 1,168 — 1,168 Equity derivative contracts 265 1,735 — 2,000 Credit derivative contracts — 5 — 5 Foreign exchange derivative contracts — 6 — 6 Other derivative contracts — 13 — 13 Total other liabilities 265 2,927 — 3,192 Total liabilities at fair value $ 265 $ 2,932 $ 1,424 $ 4,621 (1) The fair value of the GMWB and GMAB embedded derivatives included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. (2) The Company’s adjustment for nonperformance risk resulted in a $497 million cumulative decrease to the embedded derivatives. December 31, 2014 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ — $ 13,830 $ 1,353 $ 15,183 Residential mortgage backed securities — 3,483 9 3,492 Commercial mortgage backed securities — 2,138 90 2,228 State and municipal obligations — 1,113 — 1,113 Asset backed securities — 786 151 937 Foreign government bonds and obligations — 251 — 251 U.S. government and agencies obligations 4 35 — 39 Total Available-for-Sale securities: Fixed maturities 4 21,636 1,603 23,243 Common stocks 3 3 1 7 Cash equivalents 1 235 — 236 Other assets: Interest rate derivative contracts — 1,955 — 1,955 Equity derivative contracts 282 1,711 — 1,993 Foreign exchange derivative contracts — 29 — 29 Total other assets 282 3,695 — 3,977 Separate account assets — 79,178 — 79,178 Total assets at fair value $ 290 $ 104,747 $ 1,604 $ 106,641 Liabilities Policyholder account balances, future policy benefits and claims: EIA embedded derivatives $ — $ 6 $ — $ 6 IUL embedded derivatives — — 242 242 GMWB and GMAB embedded derivatives — — 479 479 (1) Total policyholder account balances, future policy benefits and claims — 6 721 727 (2) Other liabilities: Interest rate derivative contracts — 1,136 — 1,136 Equity derivative contracts 376 2,286 — 2,662 Foreign exchange derivative contracts — 2 — 2 Other derivative contracts — 11 — 11 Total other liabilities 376 3,435 — 3,811 Total liabilities at fair value $ 376 $ 3,441 $ 721 $ 4,538 (1) The fair value of the GMWB and GMAB embedded derivatives included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. (2) The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives. |
Summary of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total (in millions) Balance, July 1, 2015 $ 1,339 $ 8 $ 34 $ 118 $ 1,499 Total gains (losses) included in: Net income (1 ) — — 1 — (1) Other comprehensive income (3 ) — — 2 (1 ) Purchases 91 37 — — 128 Settlements (89 ) (1 ) (2 ) — (92 ) Transfers out of Level 3 — — (27 ) (13 ) (40 ) Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, IUL GMWB and Total (in millions) Balance, July 1, 2015 $ 292 $ 235 $ 527 Total (gains) losses included in: Net income (1 ) (1) 805 (2) 804 Issues 31 69 100 Settlements (5 ) (2 ) (7 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized (gains) losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 811 $ 811 Interest credited to fixed accounts (1 ) — (1 ) (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks Other Derivatives Contracts (in millions) Balance, July 1, 2014 $ 1,376 $ 10 $ 15 $ 149 $ 1,550 $ 1 $ 1 Total gains (losses) included in: Net income — — — 1 1 (1) — (1 ) (2) Other comprehensive income (11 ) — — (1 ) (12 ) — — Purchases 37 — — — 37 — 1 Settlements (24 ) — — (1 ) (25 ) — — Transfers into Level 3 — — 78 — 78 — — Transfers out of Level 3 — — — — — (1 ) — Balance, September 30, 2014 $ 1,378 $ 10 $ 93 $ 148 $ 1,629 $ — $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in: Net investment income $ — $ — $ — $ 1 $ 1 $ — $ — Benefits, claims, losses and settlement expenses — — — — — — (1 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, IUL Embedded GMWB and GMAB Total (in millions) Balance, July 1, 2014 $ 184 $ (347 ) $ (163 ) Total losses included in: Net income — 207 (1) 207 Issues 21 65 86 Settlements (3 ) (2 ) (5 ) Balance, September 30, 2014 $ 202 $ (77 ) $ 125 Changes in unrealized losses relating to liabilities held at September 30, 2014 included in: Benefits, claims, losses and settlement expenses $ — $ 208 $ 208 (1) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks (in millions) Balance, January 1, 2015 $ 1,353 $ 9 $ 90 $ 151 $ 1,603 $ 1 Total gains (losses) included in: Net income (1 ) — — 1 — (1) — Other comprehensive income (10 ) — — 2 (8 ) (1 ) Purchases 142 68 31 1 242 — Settlements (147 ) (2 ) (4 ) (2 ) (155 ) — Transfers into Level 3 — — 6 — 6 — Transfers out of Level 3 — (31 ) (118 ) (45 ) (194 ) — Balance, September 30, 2015 $ 1,337 $ 44 $ 5 $ 108 $ 1,494 $ — Changes in unrealized gains (losses) relating to assets held at September 30, 2015 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — (1) Included in net investment income in the Consolidated Statements of Income. Policyholder Account Balances, IUL GMWB and GMAB Embedded Derivatives Total (in millions) Balance, January 1, 2015 $ 242 $ 479 $ 721 Total losses included in: Net income 13 (1) 426 (2) 439 Issues 76 197 273 Settlements (14 ) 5 (9 ) Balance, September 30, 2015 $ 317 $ 1,107 $ 1,424 Changes in unrealized losses relating to liabilities held at September 30, 2015 included in: Benefits, claims, losses and settlement expenses $ — $ 438 $ 438 Interest credited to fixed accounts 13 — 13 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Available-for-Sale Securities: Fixed Maturities Corporate Residential Commercial Asset Total Common Stocks Other Derivatives Contracts (in millions) Balance, January 1, 2014 $ 1,516 $ 58 $ 30 $ 218 $ 1,822 $ — $ — Total gains (losses) included in: Net income 1 — — 1 2 (1) — (1 ) (2) Other comprehensive income 3 — — — 3 — — Purchases 94 11 39 — 144 1 2 Sales (11 ) — — — (11 ) — — Settlements (225 ) (2 ) — (2 ) (229 ) — — Transfers into Level 3 — — 78 — 78 — — Transfers out of Level 3 — (57 ) (54 ) (69 ) (180 ) (1 ) — Balance, September 30, 2014 $ 1,378 $ 10 $ 93 $ 148 $ 1,629 $ — $ 1 Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in: Net investment income $ (1 ) $ — $ — $ 1 $ — $ — $ — Benefits, claims, losses and settlement expenses — — — — — — (1 ) (1) Included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. Policyholder Account Balances, IUL Embedded GMWB and Total (in millions) Balance, January 1, 2014 $ 125 $ (575 ) $ (450 ) Total losses included in: Net income 14 (1) 327 (2) 341 Issues 69 184 253 Settlements (6 ) (13 ) (19 ) Balance, September 30, 2014 $ 202 $ (77 ) $ 125 Changes in unrealized losses relating to liabilities held at September 30, 2014 included in: Benefits, claims, losses and settlement expenses $ — $ 327 $ 327 Interest credited to fixed accounts 14 — 14 (1) Included in interest credited to fixed accounts in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Significant Unobservable Inputs Used in the Fair Value Measurements [Table Text Block] | The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities: September 30, 2015 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,323 Discounted cash flow Yield/spread to U.S. Treasuries 1.3 % - 4.0% 1.7% IUL embedded derivatives $ 317 Discounted cash flow Nonperformance risk (1) 80 bps GMWB and GMAB embedded derivatives $ 1,107 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 75.6% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.3 % - 21.2% Nonperformance risk (1) 80 bps December 31, 2014 Fair Value Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 1,311 Discounted cash flow Yield/spread to U.S. Treasuries 1.0 % - 3.9% 1.5 % IUL embedded derivatives $ 242 Discounted cash flow Nonperformance risk (1) 65 bps GMWB and GMAB embedded derivatives $ 479 Discounted cash flow Utilization of guaranteed withdrawals (2) 0.0 % - 51.1% Surrender rate 0.0 % - 59.1% Market volatility (3) 5.2 % - 20.9% Nonperformance risk (1) 65 bps Elective contractholder strategy allocations (4) 0.0 % - 3.0% . (1) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. (2) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. (3) Market volatility is implied volatility of fund of funds and managed volatility funds. (4) The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. As of September 30, 2015, the Company is no longer including this input in the fair value measurement. |
Schedule of Carrying Value and the Estimated Fair Value of Financial Instruments That are Not Reported at Fair Value [Table Text Block] | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the tables with balances of assets and liabilities measured at fair value on a recurring basis. September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,235 $ — $ — $ 3,322 $ 3,322 Policy loans 823 — — 805 805 Other investments 455 — 413 37 450 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 11,730 $ — $ — $ 12,705 $ 12,705 Short-term borrowings 200 — 200 — 200 Other liabilities 89 — — 86 86 Separate account liabilities 355 — 355 — 355 December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 3,298 $ — $ — $ 3,413 $ 3,413 Policy loans 805 — — 793 793 Other investments 463 — 403 55 458 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,979 $ — $ — $ 13,996 $ 13,996 Short-term borrowings 200 — 200 — 200 Other liabilities 124 — — 121 121 Separate account liabilities 400 — 400 — 400 |
Offsetting Assets and Liabili29
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Schedule of Gross and Net Information About the Company's Assets Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: September 30, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,384 $ — $ 3,384 $ (2,420 ) $ (473 ) $ (445 ) $ 46 OTC cleared 505 — 505 (415 ) (89 ) — 1 Exchange-traded 108 — 108 (4 ) — — 104 Total derivatives $ 3,997 $ — $ 3,997 $ (2,839 ) $ (562 ) $ (445 ) $ 151 December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,612 $ — $ 3,612 $ (2,934 ) $ (228 ) $ (418 ) $ 32 OTC cleared 304 — 304 (222 ) (82 ) — — Exchange-traded 61 — 61 — — — 61 Total derivatives $ 3,977 $ — $ 3,977 $ (3,156 ) $ (310 ) $ (418 ) $ 93 (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Schedule of Gross and Net Information About the Company's Liabilities Subject to Master Netting Arrangements [Table Text Block] | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: September 30, 2015 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 2,761 $ — $ 2,761 $ (2,420 ) $ — $ (324 ) $ 17 OTC cleared 415 — 415 (415 ) — — — Exchange-traded 16 — 16 (4 ) — — 12 Total derivatives 3,192 — 3,192 (2,839 ) — (324 ) 29 Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,242 $ — $ 3,242 $ (2,839 ) $ — $ (374 ) $ 29 December 31, 2014 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Securities Collateral Net Amount (in millions) Derivatives: OTC $ 3,589 $ — $ 3,589 $ (2,934 ) $ — $ (655 ) $ — OTC cleared 222 — 222 (222 ) — — — Total derivatives 3,811 — 3,811 (3,156 ) — (655 ) — Repurchase agreements 50 — 50 — — (50 ) — Total $ 3,861 $ — $ 3,861 $ (3,156 ) $ — $ (705 ) $ — (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gross Fair Value of Derivative Instruments, Including Embedded Derivatives [Table Text Block] | The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives: Assets Liabilities Derivatives not designated Balance Sheet September 30, December 31, Balance Sheet Location September 30, December 31, (in millions) (in millions) GMWB and GMAB Interest rate contracts Other assets $ 2,238 $ 1,955 Other liabilities $ 1,168 $ 1,136 Equity contracts Other assets 1,706 1,954 Other liabilities 1,998 2,650 Credit contracts Other assets — — Other liabilities 5 — Foreign exchange contracts Other assets 40 29 Other liabilities 6 2 Embedded derivatives (1) N/A — — Policyholder account balances, future policy benefits and claims (2) 1,107 479 Total GMWB and GMAB 3,984 3,938 4,284 4,267 Other derivatives: Equity EIA embedded derivatives N/A — — Policyholder account balances, future policy benefits and claims 5 6 IUL Other assets 12 39 Other liabilities 2 12 IUL embedded derivatives N/A — — Policyholder account balances, future policy benefits and claims 317 242 Other Macro hedge program Other assets 1 — Other liabilities 13 11 Total other derivatives 13 39 337 271 Total derivatives $ 3,997 $ 3,977 $ 4,621 $ 4,538 N/A Not applicable. (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. (2) The fair value of the GMWB and GMAB embedded derivatives at September 30, 2015 included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. |
Schedule of Gain (Loss) on Derivative Instruments [Table Text Block] | The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income: Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives not designated as hedging instruments Location of Gain (Loss) on Derivatives Recognized in Income Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 (in millions) GMWB and GMAB Interest rate contracts Benefits, claims, losses and settlement expenses $ 536 $ 100 $ 360 $ 609 Equity contracts Benefits, claims, losses and settlement expenses 328 143 69 (244 ) Credit contracts Benefits, claims, losses and settlement expenses (10 ) (1 ) (5 ) (23 ) Foreign exchange contracts Benefits, claims, losses and settlement expenses 6 (13 ) (2 ) (14 ) Embedded derivatives (1) Benefits, claims, losses and settlement expenses (872 ) (270 ) (628 ) (498 ) Total GMWB and GMAB (12 ) (41 ) (206 ) (170 ) Other derivatives: Interest rate Tax hedge Net investment income — — — 3 Equity EIA Interest credited to fixed accounts (1 ) — (1 ) 1 EIA embedded derivatives Interest credited to fixed accounts 1 — 1 (1 ) IUL Interest credited to fixed accounts (15 ) 2 (16 ) 13 IUL embedded derivatives Interest credited to fixed accounts 6 2 1 (9 ) Other Macro hedge program Benefits, claims, losses and settlement expenses (13 ) (1 ) (13 ) 2 Total other derivatives (22 ) 3 (28 ) 9 Total derivatives $ (34 ) $ (38 ) $ (234 ) $ (161 ) (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. |
Schedule of Payments to Make and Receive for Options [Table Text Block] | The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options: Premiums Payable Premiums Receivable (in millions) 2015 (1) $ 107 $ 28 2016 327 75 2017 266 75 2018 208 124 2019 255 101 2020-2026 652 223 Total $ 1,815 $ 626 (1) 2015 amounts represent the amounts payable and receivable for the period from October 1, 2015 to December 31, 2015 . |
Summary of Unrealized Derivative Losses Included in AOCI Related to Cash Flow Hedges [Table Text Block] | The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in AOCI: 2015 2014 (in millions) Net unrealized derivative losses at January 1 $ (12 ) $ (17 ) Reclassification of realized losses (1) 4 5 Income tax provision (1 ) (2 ) Net unrealized derivative losses at September 30 $ (9 ) $ (14 ) (1) Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income. |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Information Related to Amounts Reclassified from AOCI [Table Text Block] | The following table provides information related to amounts reclassified from AOCI: Three Months Ended September 30, Nine Months Ended AOCI Reclassification Location of (Gain) Loss Recognized in Income 2015 2014 2015 2014 (in millions) Net unrealized (gains) losses on Available-for-Sale securities Net realized investment gains (losses) $ 10 $ (10 ) $ (7 ) $ (15 ) Tax (benefit) expense Income tax provision (4 ) 4 2 6 Net of tax $ 6 $ (6 ) $ (5 ) $ (9 ) Losses on cash flow hedges: Swaptions Net investment income $ 1 $ 2 $ 4 $ 5 Tax benefit Income tax provision — (1 ) (1 ) (2 ) Net of tax $ 1 $ 1 $ 3 $ 3 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Sep. 30, 2015item |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable interests in affordable housing partnerships [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fixed maturities [Member] | ||
Variable Interest Entities | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
RTA [Member] | ||
Variable Interest Entities | ||
Carrying values of investments reflected in other investments | 486 | $ 504 |
Obligation to provide financial or other support to VIEs | $ 0 |
Investments (AFS by type) (Deta
Investments (AFS by type) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Investments | |||
Amortized cost | $ 21,025 | $ 21,356 | |
Gross unrealized gains | 1,575 | 2,015 | |
Gross unrealized losses | (233) | (121) | |
Fair value | 22,367 | 23,250 | |
Noncredit OTTI | [1] | (2) | (3) |
Securities owned and pledged as collateral, fair value | 815 | 1,200 | |
Amount eligible to be repledged by counterparty | 364 | 689 | |
Corporate debt securities [Member] | |||
Investments | |||
Amortized cost | 13,814 | 13,763 | |
Gross unrealized gains | 1,129 | 1,474 | |
Gross unrealized losses | (163) | (54) | |
Fair value | 14,780 | 15,183 | |
Noncredit OTTI | [1] | 3 | 3 |
Residential mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 3,131 | 3,374 | |
Gross unrealized gains | 121 | 150 | |
Gross unrealized losses | (28) | (32) | |
Fair value | 3,224 | 3,492 | |
Noncredit OTTI | [1] | (8) | (9) |
Commercial mortgage backed securities [Member] | |||
Investments | |||
Amortized cost | 2,048 | 2,116 | |
Gross unrealized gains | 102 | 115 | |
Gross unrealized losses | (3) | (3) | |
Fair value | 2,147 | 2,228 | |
State and municipal obligations [Member] | |||
Investments | |||
Amortized cost | 1,010 | 947 | |
Gross unrealized gains | 153 | 191 | |
Gross unrealized losses | (27) | (25) | |
Fair value | 1,136 | 1,113 | |
Asset backed securities [Member] | |||
Investments | |||
Amortized cost | 759 | 882 | |
Gross unrealized gains | 46 | 56 | |
Gross unrealized losses | (1) | (1) | |
Fair value | 804 | 937 | |
Foreign government bonds and obligations [Member] | |||
Investments | |||
Amortized cost | 223 | 236 | |
Gross unrealized gains | 18 | 21 | |
Gross unrealized losses | (11) | (6) | |
Fair value | 230 | 251 | |
U.S. government and agencies obligations [Member] | |||
Investments | |||
Amortized cost | 38 | 36 | |
Gross unrealized gains | 1 | 3 | |
Fair value | 39 | 39 | |
Total fixed maturities [Member] | |||
Investments | |||
Amortized cost | 21,023 | 21,354 | |
Gross unrealized gains | 1,570 | 2,010 | |
Gross unrealized losses | (233) | (121) | |
Fair value | 22,360 | 23,243 | |
Noncredit OTTI | [1] | $ (5) | $ (6) |
Fixed maturity securities as percentage of total investments | 82.00% | 82.00% | |
Fixed maturity investments rated internally | $ 1,200 | $ 1,200 | |
Common stocks [Member] | |||
Investments | |||
Amortized cost | 2 | 2 | |
Gross unrealized gains | 5 | 5 | |
Fair value | 7 | 7 | |
Noncredit OTTI | [1] | $ 3 | $ 3 |
[1] | Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |
Investments (Rating info) (Deta
Investments (Rating info) (Details) $ in Millions | Sep. 30, 2015USD ($)item | Dec. 31, 2014USD ($)item |
Investments | ||
Amortized cost | $ 21,025 | $ 21,356 |
Fair value | $ 22,367 | $ 23,250 |
Percentage of securities rated AAA that were GNMA, FNMA and FHLMC | 48.00% | 46.00% |
Number of holdings of other than GNMA, FNMA and FHLMC having greater than 10% of total equity | item | 0 | 0 |
AAA [Member] | ||
Investments | ||
Amortized cost | $ 4,707 | $ 5,111 |
Fair value | $ 4,928 | $ 5,374 |
Percent of total fair value | 22.00% | 23.00% |
AA [Member] | ||
Investments | ||
Amortized cost | $ 1,017 | $ 967 |
Fair value | $ 1,201 | $ 1,158 |
Percent of total fair value | 5.00% | 5.00% |
A [Member] | ||
Investments | ||
Amortized cost | $ 4,028 | $ 4,452 |
Fair value | $ 4,472 | $ 5,062 |
Percent of total fair value | 20.00% | 22.00% |
BBB [Member] | ||
Investments | ||
Amortized cost | $ 9,965 | $ 9,328 |
Fair value | $ 10,526 | $ 10,165 |
Percent of total fair value | 47.00% | 44.00% |
Below investment grade [Member] | ||
Investments | ||
Amortized cost | $ 1,306 | $ 1,496 |
Fair value | $ 1,233 | $ 1,484 |
Percent of total fair value | 6.00% | 6.00% |
Total fixed maturities [Member] | ||
Investments | ||
Amortized cost | $ 21,023 | $ 21,354 |
Fair value | $ 22,360 | $ 23,243 |
Percent of total fair value | 100.00% | 100.00% |
Investments (EITF info) (Detail
Investments (EITF info) (Details) $ in Millions | Sep. 30, 2015USD ($)item | Dec. 31, 2014USD ($)item |
Number of Securities | ||
Less than 12 months | item | 258 | 142 |
12 months or more | item | 100 | 123 |
Total | item | 358 | 265 |
Fair Value | ||
Less than 12 months | $ 3,369 | $ 1,378 |
12 months or more | 908 | 1,615 |
Total | 4,277 | 2,993 |
Unrealized Losses | ||
Less than 12 months | (139) | (39) |
12 months or more | (94) | (82) |
Total | $ (233) | $ (121) |
Corporate debt securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 195 | 106 |
12 months or more | item | 24 | 40 |
Total | item | 219 | 146 |
Fair Value | ||
Less than 12 months | $ 2,757 | $ 1,093 |
12 months or more | 196 | 689 |
Total | 2,953 | 1,782 |
Unrealized Losses | ||
Less than 12 months | (129) | (36) |
12 months or more | (34) | (18) |
Total | $ (163) | $ (54) |
Residential mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 21 | 17 |
12 months or more | item | 56 | 55 |
Total | item | 77 | 72 |
Fair Value | ||
Less than 12 months | $ 250 | $ 138 |
12 months or more | 545 | 670 |
Total | 795 | 808 |
Unrealized Losses | ||
Less than 12 months | (3) | (2) |
12 months or more | (25) | (30) |
Total | $ (28) | $ (32) |
Commercial mortgage backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 19 | 9 |
12 months or more | item | 3 | 9 |
Total | item | 22 | 18 |
Fair Value | ||
Less than 12 months | $ 208 | $ 80 |
12 months or more | 34 | 95 |
Total | 242 | 175 |
Unrealized Losses | ||
Less than 12 months | (2) | |
12 months or more | (1) | (3) |
Total | $ (3) | $ (3) |
State and municipal obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 7 | 1 |
12 months or more | item | 2 | 2 |
Total | item | 9 | 3 |
Fair Value | ||
Less than 12 months | $ 32 | $ 5 |
12 months or more | 102 | 102 |
Total | 134 | 107 |
Unrealized Losses | ||
Less than 12 months | (1) | |
12 months or more | (26) | (25) |
Total | $ (27) | $ (25) |
Asset backed securities [Member] | ||
Number of Securities | ||
Less than 12 months | item | 8 | 5 |
12 months or more | item | 1 | 3 |
Total | item | 9 | 8 |
Fair Value | ||
Less than 12 months | $ 76 | $ 52 |
12 months or more | 8 | 32 |
Total | 84 | 84 |
Unrealized Losses | ||
Less than 12 months | (1) | |
12 months or more | (1) | |
Total | $ (1) | $ (1) |
Foreign government bonds and obligations [Member] | ||
Number of Securities | ||
Less than 12 months | item | 8 | 4 |
12 months or more | item | 14 | 14 |
Total | item | 22 | 18 |
Fair Value | ||
Less than 12 months | $ 46 | $ 10 |
12 months or more | 23 | 27 |
Total | 69 | 37 |
Unrealized Losses | ||
Less than 12 months | (3) | (1) |
12 months or more | (8) | (5) |
Total | $ (11) | $ (6) |
Investments Investments (OTTI r
Investments Investments (OTTI rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities | ||||
Beginning balance | $ 33 | $ 54 | $ 33 | $ 54 |
Credit losses for which an other-than-temporary impairment was previously recognized | 0 | 1 | 0 | 1 |
Reductions for securities sold during the period (realized) | 0 | (22) | 0 | (22) |
Ending balance | $ 33 | $ 33 | $ 33 | $ 33 |
Investments (OCI rollforward) (
Investments (OCI rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income | |||||
Net unrealized securities gains (losses) arising during the period, net of tax | $ (83) | $ (137) | $ (354) | $ 285 | |
Reclassification of net securities gains included in net income, net of tax | 6 | (6) | (5) | (9) | |
Impact of other adjustments, net of tax | 51 | (1) | 183 | (168) | |
Net unrealized securities gains/losses, gross [Member] | |||||
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income | |||||
Balance at the beginning of the period | 1,148 | 1,033 | |||
Net unrealized securities gains (losses) arising during the period | [1] | (545) | 441 | ||
Reclassification of net securities gains included in net income | (7) | (15) | |||
Impact of other adjustments | 281 | (258) | |||
Balance at the end of the period | 877 | 1,201 | 877 | 1,201 | |
Deferred income tax [Member] | |||||
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income | |||||
Balance at the beginning of the period | (407) | (366) | |||
Net unrealized securities (gains) losses arising during the period | [1] | 191 | (156) | ||
Reclassification of net securities gains included in net income | 2 | 6 | |||
Impact of other adjustments | (98) | 90 | |||
Balance at the end of the period | (312) | (426) | (312) | (426) | |
Net unrealized securities gains/losses, net of tax [Member] | |||||
Rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income | |||||
Balance at the beginning of the period | 741 | 667 | |||
Net unrealized securities gains (losses) arising during the period, net of tax | [1] | (354) | 285 | ||
Reclassification of net securities gains included in net income, net of tax | (5) | (9) | |||
Impact of other adjustments, net of tax | 183 | (168) | |||
Balance at the end of the period | [2] | 565 | 775 | 565 | 775 |
Noncredit related impairments on securities and net unrealized securities losses on previously impaired securities, included in AOCI | $ 1 | $ (2) | $ 1 | $ (2) | |
[1] | Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. | ||||
[2] | Includes $1 million and $2 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at September 30, 2015 and 2014, respectively. |
Investments Investments (Realiz
Investments Investments (Realized GL info) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Gross realized investment gains | $ 1 | $ 15 | $ 23 | $ 24 |
Gross realized investment losses | (4) | (1) | (9) | (4) |
Other-than-temporary impairments | (7) | (4) | (7) | (5) |
Total | $ (10) | $ 10 | $ 7 | $ 15 |
Investments (AFS contractual ma
Investments (AFS contractual maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due within one year | $ 1,009 | |
Due after one year through five years | 5,327 | |
Due after five years through 10 years | 5,023 | |
Due after 10 years | 3,726 | |
Total having single maturity dates | 15,085 | |
Amortized cost | 21,025 | $ 21,356 |
Fair Value | ||
Due within one year | 1,026 | |
Due after one year through five years | 5,743 | |
Due after five years through 10 years | 5,104 | |
Due after 10 years | 4,312 | |
Total having single maturity dates | 16,185 | |
Fair value | 22,367 | 23,250 |
Residential mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 3,131 | |
Amortized cost | 3,131 | 3,374 |
Fair Value | ||
Without single maturity dates | 3,224 | |
Fair value | 3,224 | 3,492 |
Commercial mortgage backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2,048 | |
Amortized cost | 2,048 | 2,116 |
Fair Value | ||
Without single maturity dates | 2,147 | |
Fair value | 2,147 | 2,228 |
Asset backed securities [Member] | ||
Amortized Cost | ||
Without single maturity dates | 759 | |
Amortized cost | 759 | 882 |
Fair Value | ||
Without single maturity dates | 804 | |
Fair value | 804 | 937 |
Common stocks [Member] | ||
Amortized Cost | ||
Without single maturity dates | 2 | |
Amortized cost | 2 | 2 |
Fair Value | ||
Without single maturity dates | 7 | |
Fair value | $ 7 | $ 7 |
Investments (Net Inv Inc summar
Investments (Net Inv Inc summary) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 306 | $ 326 | $ 931 | $ 998 |
Less: investment expenses | 10 | 7 | 27 | 23 |
Total | 296 | 319 | 904 | 975 |
Fixed maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 257 | 277 | 783 | 841 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 43 | 46 | 134 | 137 |
Other investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 6 | $ 3 | $ 14 | $ 20 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Rollforward of the allowance for loan losses | |||||
Beginning balance | $ 28 | $ 28 | |||
Charge-offs | (3) | (3) | |||
Provisions | 1 | 2 | |||
Ending balance | $ 26 | $ 27 | 26 | 27 | |
Individually evaluated for impairment | 5 | 8 | 5 | 8 | |
Collectively evaluated for impairment | 21 | 19 | 21 | 19 | |
Recorded investment in financing receivables by impairment method | |||||
Individually evaluated for impairment | 31 | 31 | $ 32 | ||
Collectively evaluated for impairment | 3,669 | 3,669 | 3,740 | ||
Total | 3,700 | 3,700 | 3,772 | ||
Recorded investment in financing receivables individually evaluated for impairment with no related allowance for loan losses | 12 | 12 | $ 4 | ||
Loans purchased | 46 | 71 | 82 | 161 | |
Loans sold | $ 8 | $ 2 | $ 15 | $ 12 |
Financing Receivables (Credit Q
Financing Receivables (Credit Quality Information Text) (Details) $ in Millions | Sep. 30, 2015USD ($)item | Dec. 31, 2014USD ($) |
Credit quality information [Line Items] | ||
Total loans, gross | $ 3,700 | $ 3,772 |
90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | 8 | 10 |
Commercial mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Total loans, gross | $ 2,642 | $ 2,632 |
Percent of commercial mortgage loans with highest risk rating | 1.00% | 1.00% |
Residential mortgage loans [Member] | ||
Credit quality information [Line Items] | ||
Total loans, gross | $ 613 | $ 689 |
Allowance for loan losses on purchase of loans from affiliate | 0 | 0 |
Unamortized discount | $ 24 | $ 34 |
Percentage of residential mortgage loans below specific FICO score | 4.00% | 5.00% |
FICO Score | item | 640 | |
Percentage of residential mortgage loans above specific LTV ratio | 1.00% | 1.00% |
LTV Ratio | 90.00% | |
Percentage of loan portfolio represented by state of California | 37.00% | 37.00% |
Syndicated Loans [Member] | ||
Credit quality information [Line Items] | ||
Total loans, gross | $ 445 | $ 451 |
Syndicated Loans [Member] | 90 days or more past due [Member] | ||
Credit quality information [Line Items] | ||
Nonperforming loans | $ 5 | $ 3 |
Financing Receivables (Credit44
Financing Receivables (Credit Quality Information Tables) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 3,700 | $ 3,772 | ||
Less: allowance for loan losses | 26 | 28 | $ 27 | $ 28 |
Commercial mortgage loans [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | 2,642 | 2,632 | ||
Less: allowance for loan losses | 20 | 23 | ||
Total loans, net | $ 2,622 | $ 2,609 | ||
Percentage of commercial mortgage loans | 100.00% | 100.00% | ||
Commercial mortgage loans [Member] | Retail [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 917 | $ 956 | ||
Percentage of commercial mortgage loans | 35.00% | 36.00% | ||
Commercial mortgage loans [Member] | Office [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 524 | $ 535 | ||
Percentage of commercial mortgage loans | 20.00% | 20.00% | ||
Commercial mortgage loans [Member] | Apartments [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 478 | $ 473 | ||
Percentage of commercial mortgage loans | 18.00% | 18.00% | ||
Commercial mortgage loans [Member] | Industrial [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 470 | $ 447 | ||
Percentage of commercial mortgage loans | 18.00% | 17.00% | ||
Commercial mortgage loans [Member] | Mixed use [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 36 | $ 46 | ||
Percentage of commercial mortgage loans | 1.00% | 2.00% | ||
Commercial mortgage loans [Member] | Hotel [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 34 | $ 32 | ||
Percentage of commercial mortgage loans | 1.00% | 1.00% | ||
Commercial mortgage loans [Member] | Other [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 183 | $ 143 | ||
Percentage of commercial mortgage loans | 7.00% | 6.00% | ||
Commercial mortgage loans [Member] | South Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 736 | $ 710 | ||
Percentage of commercial mortgage loans | 28.00% | 27.00% | ||
Commercial mortgage loans [Member] | Pacific [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 722 | $ 673 | ||
Percentage of commercial mortgage loans | 27.00% | 26.00% | ||
Commercial mortgage loans [Member] | Mountain [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 241 | $ 236 | ||
Percentage of commercial mortgage loans | 9.00% | 9.00% | ||
Commercial mortgage loans [Member] | West North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 218 | $ 223 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | Middle Atlantic [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 204 | $ 210 | ||
Percentage of commercial mortgage loans | 8.00% | 8.00% | ||
Commercial mortgage loans [Member] | East North Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 202 | $ 237 | ||
Percentage of commercial mortgage loans | 7.00% | 9.00% | ||
Commercial mortgage loans [Member] | West South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 125 | $ 151 | ||
Percentage of commercial mortgage loans | 5.00% | 6.00% | ||
Commercial mortgage loans [Member] | New England [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 122 | $ 130 | ||
Percentage of commercial mortgage loans | 5.00% | 5.00% | ||
Commercial mortgage loans [Member] | East South Central [Member] | ||||
Commercial mortgage loans [Line Items] | ||||
Total loans, gross | $ 72 | $ 62 | ||
Percentage of commercial mortgage loans | 3.00% | 2.00% |
Financing Receivables (Troubled
Financing Receivables (Troubled Debt Restructurings) (Details) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Receivables [Abstract] | ||
Commitments to lend additional funds to borrowers for restructured loans | $ 0 | $ 0 |
Deferred Acquisition Costs an46
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Balances of and changes in DAC | ||
Balance at the beginning of the period | $ 2,576 | $ 2,633 |
Capitalization of acquisition costs | 201 | 196 |
Amortization, excluding the impact of valuation assumptions review | (235) | (219) |
Amoritzation, impact of valuation assumptions review | (6) | (7) |
Impact of change in net unrealized securities losses (gains) | 64 | (30) |
Balance at the end of the period | 2,600 | 2,573 |
Balances of and changes in DSIC | ||
Balance at the beginning of the period | 361 | 409 |
Capitalization of sales inducement costs | 3 | 4 |
Amortization, excluding the impact of valuation assumption review | (43) | (40) |
Amortization, impact of valuation assumptions review | 1 | (2) |
Impact of change in net unrealized securities losses (gains) | 10 | (3) |
Balance at the end of the period | $ 332 | $ 368 |
Policyholder Account Balances47
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities (Balances by product) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Policyholder account balances | $ 20,775 | $ 21,790 | |
Future policy benefits | 8,500 | 7,850 | |
Policy claims and other policyholders’ funds | 173 | 165 | |
Total Policyholder account balances, future policy benefits and claims | 29,448 | 29,805 | |
Separate Accounts Disclosure [Abstract] | |||
Variable annuity | 67,930 | 72,125 | |
VUL insurance | 6,483 | 7,016 | |
Other insurance | 34 | 37 | |
Total | 74,447 | 79,178 | |
Fixed annuities [Member] | |||
Policyholder account balances | 11,446 | 12,700 | |
Variable annuity fixed sub-accounts [Member] | |||
Policyholder account balances | 4,914 | 4,860 | |
VUL/UL insurance [Member] | |||
Policyholder account balances | 2,884 | 2,856 | |
IUL [Member] | |||
Policyholder account balances | 727 | 534 | |
Other life Insurance [Member] | |||
Policyholder account balances | 804 | 840 | |
Variable annuity GMWB [Member] | |||
Future policy benefits | 1,273 | 693 | |
Variable annuity GMAB [Member] | |||
Future policy benefits | 31 | (41) | [1] |
Other annuity liabilities [Member] | |||
Future policy benefits | 73 | 115 | |
Fixed annuities life contingent liabilities [Member] | |||
Future policy benefits | 1,502 | 1,511 | |
EIA [Member] | |||
Future policy benefits | 27 | 29 | |
Llife, disability income and long term care insurance [Member] | |||
Future policy benefits | 5,150 | 5,106 | |
VUL/UL and other life insurance additional liabilities [Member] | |||
Future policy benefits | $ 444 | $ 437 | |
[1] | Includes the value of GMAB embedded derivatives that was a net asset at December 31, 2014 reported as a contra liability. |
Variable Annuity and Insuranc48
Variable Annuity and Insurance Guarantees (VA guarantee details) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
GMDB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 71,847 | $ 75,862 |
Contract value in separate accounts | [1] | 66,982 | 71,050 |
Net amount at risk | [1] | $ 1,067 | $ 131 |
Weighted average attained age | [1] | 65 years | 64 years |
GMDB [Member] | Return of premium [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 53,360 | $ 55,378 |
Contract value in separate accounts | [1] | 51,507 | 53,565 |
Net amount at risk | [1] | $ 417 | $ 24 |
Weighted average attained age | [1] | 65 years | 64 years |
GMDB [Member] | Five/six-year reset [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 9,293 | $ 10,360 |
Contract value in separate accounts | [1] | 6,730 | 7,821 |
Net amount at risk | [1] | $ 131 | $ 28 |
Weighted average attained age | [1] | 65 years | 64 years |
GMDB [Member] | One-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 6,724 | $ 7,392 |
Contract value in separate accounts | [1] | 6,351 | 7,006 |
Net amount at risk | [1] | $ 396 | $ 39 |
Weighted average attained age | [1] | 67 years | 66 years |
GMDB [Member] | Five-year ratchet [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,611 | $ 1,773 |
Contract value in separate accounts | [1] | 1,553 | 1,717 |
Net amount at risk | [1] | $ 31 | $ 2 |
Weighted average attained age | [1] | 63 years | 63 years |
GMDB [Member] | Other [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 859 | $ 959 |
Contract value in separate accounts | [1] | 841 | 941 |
Net amount at risk | [1] | $ 92 | $ 38 |
Weighted average attained age | [1] | 71 years | 70 years |
GGU death benefit [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 1,040 | $ 1,072 |
Contract value in separate accounts | [1] | 987 | 1,019 |
Net amount at risk | [1] | $ 114 | $ 123 |
Weighted average attained age | [1] | 67 years | 67 years |
GMIB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 274 | $ 343 |
Contract value in separate accounts | [1] | 253 | 321 |
Net amount at risk | [1] | $ 14 | $ 9 |
Weighted average attained age | [1] | 68 years | 67 years |
GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 39,293 | $ 40,514 |
Contract value in separate accounts | [1] | 39,149 | 40,394 |
Net amount at risk | [1] | $ 363 | $ 96 |
Weighted average attained age | [1] | 66 years | 65 years |
GMWB [Member] | GMWB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 3,163 | $ 3,671 |
Contract value in separate accounts | [1] | 3,152 | 3,659 |
Net amount at risk | [1] | $ 2 | $ 1 |
Weighted average attained age | [1] | 69 years | 68 years |
GMWB [Member] | GMWB for life [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 36,130 | $ 36,843 |
Contract value in separate accounts | [1] | 35,997 | 36,735 |
Net amount at risk | [1] | $ 361 | $ 95 |
Weighted average attained age | [1] | 66 years | 65 years |
GMAB [Member] | |||
Variable Annuity Guarantees by Benefit Type | |||
Total contract value | [1] | $ 3,988 | $ 4,247 |
Contract value in separate accounts | [1] | 3,972 | 4,234 |
Net amount at risk | [1] | $ 42 | $ 2 |
Weighted average attained age | [1] | 58 years | 58 years |
[1] | Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. |
Variable Annuity and Insuranc49
Variable Annuity and Insurance Guarantees Variable Annuity and Insurance Guarantees (UL Secondary Guarantees) (Details) - UL secondary guarantees [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Insurance Guarantees by Benefit Type | ||
Net amount at risk | $ 6,413 | $ 6,076 |
Weighted average attained age | 63 years | 62 years |
Variable Annuity and Insuranc50
Variable Annuity and Insurance Guarantees (Liability rollforward) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
GMDB & GGU [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | $ 9 | $ 4 | |
Incurred claims | 9 | 8 | |
Paid claims | (3) | (3) | |
Balance at the end of the period | 15 | 9 | |
GMIB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 7 | 6 | |
Incurred claims | 1 | ||
Balance at the end of the period | 7 | 7 | |
GMWB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 693 | (383) | |
Incurred claims | [1] | 580 | 528 |
Balance at the end of the period | 1,273 | 145 | |
GMAB [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | (41) | (62) | |
Incurred claims | [1] | 72 | 7 |
Balance at the end of the period | 31 | (55) | |
UL [Member] | |||
Changes in additional liabilities for variable annuity and insurance guarantees | |||
Balance at the beginning of the period | 263 | 206 | |
Incurred claims | 70 | 54 | |
Paid claims | (19) | (13) | |
Balance at the end of the period | $ 314 | $ 247 | |
[1] | The incurred claims for GMWB and GMAB represent the total change in the liabilities (contra liabilities). |
Variable Annuity and Insuranc51
Variable Annuity and Insurance Guarantees (Separate account balance by type) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Mutual funds | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 67,328 | $ 70,953 |
Equity [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 38,571 | 41,403 |
Bond [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | 23,760 | 25,060 |
Other [Member] | ||
Variable Annuity and Insurance Guarantees | ||
Total mutual funds | $ 4,997 | $ 4,490 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Borrowings | ||
Amount of the company's liability including accrued interest | $ 200 | $ 200 |
Repurchase agreements [Member] | ||
Borrowings | ||
Amount of the company's liability including accrued interest | $ 50 | $ 50 |
Remaining maturity of outstanding amount | 2 months | 4 months |
Weighted average annual interest rate (as a percent) | 0.50% | 0.40% |
FHLB [Member] | ||
Borrowings | ||
Amount of the company's liability including accrued interest | $ 150 | $ 150 |
Remaining maturity of outstanding amount | 3 months | 2 months |
Weighted average annual interest rate (as a percent) | 0.30% | 0.30% |
Residential mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 26 | $ 18 |
Commercial mortgage backed securities [Member] | Repurchase agreements [Member] | ||
Borrowings | ||
Fair value of securities pledged | 26 | 34 |
Commercial mortgage backed securities [Member] | FHLB [Member] | ||
Borrowings | ||
Fair value of securities pledged | $ 295 | $ 298 |
Fair Values of Assets and Lia53
Fair Values of Assets and Liabilities (Assets & liabilities reported at FV) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Assets and liabilities measured at fair value | ||||
Derivative asset, fair value, gross asset | $ 3,997 | $ 3,977 | ||
Cumulative change in embedded derivatives due to nonperformance | 497 | 311 | ||
Assets | ||||
Available-for-sale securities: fixed maturities | 22,360 | 23,243 | ||
Common stocks | 7 | 7 | ||
Separate account assets | 74,447 | 79,178 | ||
GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member] | GMWB and GMAB [Member] | ||||
Assets and liabilities measured at fair value | ||||
Derivative liability, fair value, gross liability | 1,200 | 700 | ||
Derivative asset, fair value, gross asset | 112 | 221 | ||
Recurring basis [Member] | Level 1 [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 4 | 4 | ||
Common stocks | 3 | 3 | ||
Cash equivalents | 50 | 1 | ||
Other assets | 285 | 282 | ||
Total assets at fair value | 342 | 290 | ||
Liabilities | ||||
Other liabilities | 265 | 376 | ||
Total liabilities at fair value | 265 | 376 | ||
Recurring basis [Member] | Level 1 [Member] | Equity derivative contracts [Member] | ||||
Assets | ||||
Other assets | 281 | 282 | ||
Liabilities | ||||
Other liabilities | 265 | 376 | ||
Recurring basis [Member] | Level 1 [Member] | Foreign exchange derivatives contracts [Member] | ||||
Assets | ||||
Other assets | 4 | |||
Recurring basis [Member] | Level 1 [Member] | U.S. government and agencies obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 4 | 4 | ||
Recurring basis [Member] | Level 2 [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 20,862 | 21,636 | ||
Common stocks | 4 | 3 | ||
Cash equivalents | 522 | 235 | ||
Other assets | 3,712 | 3,695 | ||
Separate account assets | 74,447 | 79,178 | ||
Total assets at fair value | 99,547 | 104,747 | ||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 5 | 6 | ||
Other liabilities | 2,927 | 3,435 | ||
Total liabilities at fair value | 2,932 | 3,441 | ||
Recurring basis [Member] | Level 2 [Member] | Interest rate derivative contracts [Member] | ||||
Assets | ||||
Other assets | 2,238 | 1,955 | ||
Liabilities | ||||
Other liabilities | 1,168 | 1,136 | ||
Recurring basis [Member] | Level 2 [Member] | Equity derivative contracts [Member] | ||||
Assets | ||||
Other assets | 1,437 | 1,711 | ||
Liabilities | ||||
Other liabilities | 1,735 | 2,286 | ||
Recurring basis [Member] | Level 2 [Member] | Credit derivative contracts [Member] | ||||
Liabilities | ||||
Other liabilities | 5 | |||
Recurring basis [Member] | Level 2 [Member] | Foreign exchange derivatives contracts [Member] | ||||
Assets | ||||
Other assets | 36 | 29 | ||
Liabilities | ||||
Other liabilities | 6 | 2 | ||
Recurring basis [Member] | Level 2 [Member] | Other derivative contracts [Member] | ||||
Assets | ||||
Other assets | 1 | |||
Liabilities | ||||
Other liabilities | 13 | 11 | ||
Recurring basis [Member] | Level 2 [Member] | EIA embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 5 | 6 | ||
Recurring basis [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 13,443 | 13,830 | ||
Recurring basis [Member] | Level 2 [Member] | Residential mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 3,180 | 3,483 | ||
Recurring basis [Member] | Level 2 [Member] | Commercial mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 2,142 | 2,138 | ||
Recurring basis [Member] | Level 2 [Member] | State and municipal obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 1,136 | 1,113 | ||
Recurring basis [Member] | Level 2 [Member] | Asset backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 696 | 786 | ||
Recurring basis [Member] | Level 2 [Member] | Foreign government bonds and obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 230 | 251 | ||
Recurring basis [Member] | Level 2 [Member] | U.S. government and agencies obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 35 | 35 | ||
Recurring basis [Member] | Level 3 [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 1,494 | 1,603 | ||
Common stocks | 1 | |||
Total assets at fair value | 1,494 | 1,604 | ||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 1,424 | 721 | ||
Total liabilities at fair value | 1,424 | 721 | ||
Recurring basis [Member] | Level 3 [Member] | IUL embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 317 | 242 | ||
Recurring basis [Member] | Level 3 [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 1,107 | 479 | ||
Recurring basis [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 1,337 | 1,353 | ||
Recurring basis [Member] | Level 3 [Member] | Residential mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 44 | 9 | ||
Recurring basis [Member] | Level 3 [Member] | Commercial mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 5 | 90 | ||
Recurring basis [Member] | Level 3 [Member] | Asset backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 108 | 151 | ||
Recurring basis [Member] | Total [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 22,360 | 23,243 | ||
Common stocks | 7 | 7 | ||
Cash equivalents | 572 | 236 | ||
Other assets | 3,997 | 3,977 | ||
Separate account assets | 74,447 | 79,178 | ||
Total assets at fair value | 101,383 | 106,641 | ||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 1,429 | [1] | 727 | [2] |
Other liabilities | 3,192 | 3,811 | ||
Total liabilities at fair value | 4,621 | 4,538 | ||
Recurring basis [Member] | Total [Member] | Interest rate derivative contracts [Member] | ||||
Assets | ||||
Other assets | 2,238 | 1,955 | ||
Liabilities | ||||
Other liabilities | 1,168 | 1,136 | ||
Recurring basis [Member] | Total [Member] | Equity derivative contracts [Member] | ||||
Assets | ||||
Other assets | 1,718 | 1,993 | ||
Liabilities | ||||
Other liabilities | 2,000 | 2,662 | ||
Recurring basis [Member] | Total [Member] | Credit derivative contracts [Member] | ||||
Liabilities | ||||
Other liabilities | 5 | |||
Recurring basis [Member] | Total [Member] | Foreign exchange derivatives contracts [Member] | ||||
Assets | ||||
Other assets | 40 | 29 | ||
Liabilities | ||||
Other liabilities | 6 | 2 | ||
Recurring basis [Member] | Total [Member] | Other derivative contracts [Member] | ||||
Assets | ||||
Other assets | 1 | |||
Liabilities | ||||
Other liabilities | 13 | 11 | ||
Recurring basis [Member] | Total [Member] | EIA embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 5 | 6 | ||
Recurring basis [Member] | Total [Member] | IUL embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 317 | 242 | ||
Recurring basis [Member] | Total [Member] | GMWB and GMAB embedded derivatives [Member] | ||||
Liabilities | ||||
Policyholder account balances, future policy benefits and claims | 1,107 | [3] | 479 | [4] |
Recurring basis [Member] | Total [Member] | Corporate debt securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 14,780 | 15,183 | ||
Recurring basis [Member] | Total [Member] | Residential mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 3,224 | 3,492 | ||
Recurring basis [Member] | Total [Member] | Commercial mortgage backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 2,147 | 2,228 | ||
Recurring basis [Member] | Total [Member] | State and municipal obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 1,136 | 1,113 | ||
Recurring basis [Member] | Total [Member] | Asset backed securities [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 804 | 937 | ||
Recurring basis [Member] | Total [Member] | Foreign government bonds and obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | 230 | 251 | ||
Recurring basis [Member] | Total [Member] | U.S. government and agencies obligations [Member] | ||||
Assets | ||||
Available-for-sale securities: fixed maturities | $ 39 | $ 39 | ||
[1] | The Company’s adjustment for nonperformance risk resulted in a $497 million cumulative decrease to the embedded derivatives. | |||
[2] | The Company’s adjustment for nonperformance risk resulted in a $311 million cumulative decrease to the embedded derivatives. | |||
[3] | The fair value of the GMWB and GMAB embedded derivatives included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. | |||
[4] | The fair value of the GMWB and GMAB embedded derivatives included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. |
Fair Values of Assets and Lia54
Fair Values of Assets and Liabilities (Level 3 rollforwards-Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Corporate debt securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | $ 1,339 | $ 1,376 | $ 1,353 | $ 1,516 | |
Total gains (losses) included in net income | (1) | (1) | 1 | ||
Total gains (losses) included in other comprehensive income (loss) | (3) | (11) | (10) | 3 | |
Purchases | 91 | 37 | 142 | 94 | |
Sales | (11) | ||||
Settlements | (89) | (24) | (147) | (225) | |
Balance, at the end of the period | 1,337 | 1,378 | 1,337 | 1,378 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Net investment income | (1) | (1) | (1) | ||
Residential mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 8 | 10 | 9 | 58 | |
Purchases | 37 | 68 | 11 | ||
Settlements | (1) | (2) | (2) | ||
Transfers out of Level 3 | (31) | (57) | |||
Balance, at the end of the period | 44 | 10 | 44 | 10 | |
Commercial mortgage backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 34 | 15 | 90 | 30 | |
Purchases | 31 | 39 | |||
Settlements | (2) | (4) | |||
Transfers into Level 3 | 78 | 6 | 78 | ||
Transfers out of Level 3 | (27) | (118) | (54) | ||
Balance, at the end of the period | 5 | 93 | 5 | 93 | |
Asset backed securities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 118 | 149 | 151 | 218 | |
Total gains (losses) included in net income | 1 | 1 | 1 | 1 | |
Total gains (losses) included in other comprehensive income (loss) | 2 | (1) | 2 | ||
Purchases | 1 | ||||
Settlements | (1) | (2) | (2) | ||
Transfers out of Level 3 | (13) | (45) | (69) | ||
Balance, at the end of the period | 108 | 148 | 108 | 148 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Net investment income | (1) | 1 | 1 | 1 | |
Available-for-sale securities: fixed maturities [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1,499 | 1,550 | 1,603 | 1,822 | |
Total gains (losses) included in net income | [1] | 1 | 0 | 2 | |
Total gains (losses) included in other comprehensive income (loss) | (1) | (12) | (8) | 3 | |
Purchases | 128 | 37 | 242 | 144 | |
Sales | (11) | ||||
Settlements | (92) | (25) | (155) | (229) | |
Transfers into Level 3 | 78 | 6 | 78 | ||
Transfers out of Level 3 | (40) | (194) | (180) | ||
Balance, at the end of the period | 1,494 | 1,629 | 1,494 | 1,629 | |
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Net investment income | 0 | 1 | 0 | 0 | |
Common stocks [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1 | 1 | 0 | ||
Total gains (losses) included in other comprehensive income (loss) | (1) | ||||
Purchases | 1 | ||||
Transfers out of Level 3 | (1) | (1) | |||
Balance, at the end of the period | $ 0 | 0 | $ 0 | 0 | |
Other derivative contracts [Member] | |||||
Summary of changes in Level 3 assets measured at fair value on a recurring basis [Rollforward] | |||||
Balance, at the beginning of the period | 1 | 0 | |||
Total gains (losses) included in net income | [2] | (1) | (1) | ||
Purchases | 1 | 2 | |||
Balance, at the end of the period | 1 | 1 | |||
Changes in unrealized gains (losses) relating to assets held at the end of the period included in: | |||||
Benefits, claims, losses and settlement expenses | $ (1) | $ (1) | |||
[1] | Included in net investment income in the Consolidated Statements of Income. | ||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia55
Fair Values of Assets and Liabilities (Level 3 rollforwards-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Net increase to pretax income from embedded derivative liability | $ 162 | $ 59 | $ 154 | $ 68 | |
IUL embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 292 | 184 | 242 | 125 | |
Total gains (losses) included in net income | [1] | (1) | 13 | 14 | |
Issues | 31 | 21 | 76 | 69 | |
Settlements | (5) | (3) | (14) | (6) | |
Balance at the end of the period | 317 | 202 | 317 | 202 | |
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | |||||
Interest credited to fixed accounts | (1) | 13 | 14 | ||
GMWB and GMAB embedded derivatives [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 235 | (347) | 479 | (575) | |
Total gains (losses) included in net income | [2] | 805 | 207 | 426 | 327 |
Issues | 69 | 65 | 197 | 184 | |
Settlements | (2) | (2) | 5 | (13) | |
Balance at the end of the period | 1,107 | (77) | 1,107 | (77) | |
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | |||||
Benefits, claims, losses and settlement expenses | 811 | 208 | 438 | 327 | |
Total [Member] | |||||
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis [Rollforward] | |||||
Balance at the beginning of the period | 527 | (163) | 721 | (450) | |
Total gains (losses) included in net income | 804 | 207 | 439 | 341 | |
Issues | 100 | 86 | 273 | 253 | |
Settlements | (7) | (5) | (9) | (19) | |
Balance at the end of the period | 1,424 | 125 | 1,424 | 125 | |
Changes in unrealized gains (losses) relating to liabilities held at the end of the period included in: | |||||
Benefits, claims, losses and settlement expenses | 811 | $ 208 | 438 | 327 | |
Interest credited to fixed accounts | $ (1) | $ 13 | $ 14 | ||
[1] | Included in interest credited to fixed accounts in the Consolidated Statements of Income. | ||||
[2] | Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. |
Fair Values of Assets and Lia56
Fair Values of Assets and Liabilities (Unobservable inputs) (Details) - Discounted cash flow technique [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
IUL embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
IUL and GMWB and GMAB embedded derivatives, Fair Value | $ 317 | $ 242 | |
Nonperformance risk (as a percent) | [1] | 0.80% | 0.65% |
GMWB and GMAB embedded derivatives [Member] | |||
Fair values of assets and liabilities | |||
IUL and GMWB and GMAB embedded derivatives, Fair Value | $ 1,107 | $ 479 | |
Nonperformance risk (as a percent) | [1] | 0.80% | 0.65% |
GMWB and GMAB embedded derivatives [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 0.00% | 0.00% |
Surrender rate (as a percent) | 0.00% | 0.00% | |
Market volatility rate (as a percent) | [3] | 5.30% | 5.20% |
Elective contractholder strategy allocations (as a percent) | [4] | 0.00% | |
GMWB and GMAB embedded derivatives [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Utilization of guaranteed withdrawals (as a percent) | [2] | 75.60% | 51.10% |
Surrender rate (as a percent) | 59.10% | 59.10% | |
Market volatility rate (as a percent) | [3] | 21.20% | 20.90% |
Elective contractholder strategy allocations (as a percent) | [4] | 3.00% | |
Corporate debt securities [Member] | |||
Fair values of assets and liabilities | |||
Corporate debt securities (private placement) Fair Value | $ 1,323 | $ 1,311 | |
Corporate debt securities [Member] | Minimum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.30% | 1.00% | |
Corporate debt securities [Member] | Maximum [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 4.00% | 3.90% | |
Corporate debt securities [Member] | Weighted average [Member] | |||
Fair values of assets and liabilities | |||
Yield/spread to U.S. Treasuries (as a percent) | 1.70% | 1.50% | |
[1] | The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. | ||
[2] | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. | ||
[3] | Market volatility is implied volatility of fund of funds and managed volatility funds. | ||
[4] | The elective allocation represents the percentage of contractholders that are assumed to electively switch their investment allocation to a different allocation model. As of September 30, 2015, the Company is no longer including this input in the fair value measurement. |
Fair Values of Assets and Lia57
Fair Values of Assets and Liabilities (Financial Instruments not at FV) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Mortgage loans, net | $ 3,235 | $ 3,298 |
Policy loans | 823 | 805 |
Other investments | 961 | 987 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 29,448 | 29,805 |
Short-term borrowings | 200 | 200 |
Other liabilities | 4,427 | 4,650 |
Separate account liabilities | 74,447 | 79,178 |
Level 2 [Member] | ||
Financial Assets | ||
Other investments | 413 | 403 |
Financial Liabilities | ||
Short-term borrowings | 200 | 200 |
Separate account liabilities | 355 | 400 |
Level 3 [Member] | ||
Financial Assets | ||
Mortgage loans, net | 3,322 | 3,413 |
Policy loans | 805 | 793 |
Other investments | 37 | 55 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,705 | 13,996 |
Other liabilities | 86 | 121 |
Total [Member] | ||
Financial Assets | ||
Mortgage loans, net | 3,322 | 3,413 |
Policy loans | 805 | 793 |
Other investments | 450 | 458 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 12,705 | 13,996 |
Short-term borrowings | 200 | 200 |
Other liabilities | 86 | 121 |
Separate account liabilities | 355 | 400 |
Carrying value [Member] | ||
Financial Assets | ||
Mortgage loans, net | 3,235 | 3,298 |
Policy loans | 823 | 805 |
Other investments | 455 | 463 |
Financial Liabilities | ||
Policyholder account balances, future policy benefits and claims | 11,730 | 12,979 |
Short-term borrowings | 200 | 200 |
Other liabilities | 89 | 124 |
Separate account liabilities | $ 355 | $ 400 |
Offsetting Assets and Liabili58
Offsetting Assets and Liabilities (Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives: | |||
Gross amounts of recognized assets | $ 3,997 | $ 3,977 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (2,839) | (3,156) |
Cash collateral | (562) | (310) | |
Securities collateral | (445) | (418) | |
Net amount | 151 | 93 | |
OTC derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 3,384 | 3,612 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (2,420) | (2,934) |
Cash collateral | (473) | (228) | |
Securities collateral | (445) | (418) | |
Net amount | 46 | 32 | |
OTC cleared derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 505 | 304 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (415) | (222) |
Cash collateral | (89) | (82) | |
Net amount | 1 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives: | |||
Gross amounts of recognized assets | 108 | 61 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (4) | |
Net amount | $ 104 | $ 61 | |
[1] | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Offsetting Assets and Liabili59
Offsetting Assets and Liabilities (Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Repurchase agreements | |||
Gross amounts of recognized liabilities | $ 50 | $ 50 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Securities collateral | (50) | (50) | |
Net amount | 0 | 0 | |
Total | |||
Gross amounts of recognized liabilities | 3,242 | 3,861 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (2,839) | (3,156) |
Cash collateral | 0 | 0 | |
Securities collateral | (374) | (705) | |
Net amount | 29 | 0 | |
OTC derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 2,761 | 3,589 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (2,420) | (2,934) |
Securities collateral | (324) | (655) | |
Net amount | 17 | 0 | |
OTC cleared derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 415 | 222 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (415) | (222) |
Net amount | 0 | 0 | |
Exchange-traded derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 16 | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (4) | |
Net amount | 12 | ||
Total derivatives [Member] | |||
Derivatives | |||
Gross amounts of recognized liabilities | 3,192 | 3,811 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||
Financial instruments | [1] | (2,839) | (3,156) |
Cash collateral | 0 | 0 | |
Securities collateral | (324) | (655) | |
Net amount | $ 29 | $ 0 | |
[1] | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
Derivatives and Hedging Activ60
Derivatives and Hedging Activities (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | $ 3,997 | $ 3,977 | |
GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 112 | 221 | |
Derivative liability, fair value, gross liability | 1,200 | 700 | |
Derivatives not designated as hedging instruments [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 3,997 | 3,977 | |
Derivative liability, fair value, gross liability | 4,621 | 4,538 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 3,984 | 3,938 | |
Derivative liability, fair value, gross liability | 4,284 | 4,267 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Interest rate contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 2,238 | 1,955 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Interest rate contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 1,168 | 1,136 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 1,706 | 1,954 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 1,998 | 2,650 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Credit contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 5 | ||
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 40 | 29 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 6 | 2 | |
Derivatives not designated as hedging instruments [Member] | GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | PAB, FPB and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | [1],[2] | 1,107 | 479 |
Derivatives not designated as hedging instruments [Member] | EIA embedded derivatives [Member] | Equity contracts [Member] | PAB, FPB and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 5 | 6 | |
Derivatives not designated as hedging instruments [Member] | IUL [Member] | Equity contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 12 | 39 | |
Derivatives not designated as hedging instruments [Member] | IUL [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 2 | 12 | |
Derivatives not designated as hedging instruments [Member] | IUL embedded derivatives [Member] | Equity contracts [Member] | PAB, FPB and claims [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 317 | 242 | |
Derivatives not designated as hedging instruments [Member] | Macro hedge program [Member] | Other contracts [Member] | Other assets [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 1 | ||
Derivatives not designated as hedging instruments [Member] | Macro hedge program [Member] | Other contracts [Member] | Other liabilities [Member] | |||
Derivatives and Hedging Activities | |||
Derivative liability, fair value, gross liability | 13 | 11 | |
Derivatives not designated as hedging instruments [Member] | Other derivatives [Member] | |||
Derivatives and Hedging Activities | |||
Derivative asset, fair value, gross asset | 13 | 39 | |
Derivative liability, fair value, gross liability | $ 337 | $ 271 | |
[1] | The fair value of the GMWB and GMAB embedded derivatives at September 30, 2015 included $1.2 billion of individual contracts in a liability position and $112 million of individual contracts in an asset position. The fair value of the GMWB and GMAB embedded derivatives at December 31, 2014 included $700 million of individual contracts in a liability position and $221 million of individual contracts in an asset position. | ||
[2] | The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. |
Derivatives and Hedging Activ61
Derivatives and Hedging Activities (Income Statement) (Details) - Derivatives not designated as hedging instruments [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | $ (34) | $ (38) | $ (234) | $ (161) | |
GMWB and GMAB [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | (12) | (41) | (206) | (170) | |
GMWB and GMAB [Member] | Interest rate contracts [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 536 | 100 | 360 | 609 | |
GMWB and GMAB [Member] | Equity contracts [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 328 | 143 | 69 | (244) | |
GMWB and GMAB [Member] | Credit contracts [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | (10) | (1) | (5) | (23) | |
GMWB and GMAB [Member] | Foreign exchange contracts [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 6 | (13) | (2) | (14) | |
GMWB and GMAB [Member] | GMWB and GMAB embedded derivatives [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | [1] | (872) | (270) | (628) | (498) |
Tax hedge [Member] | Interest rate contracts [Member] | Net investment income [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 3 | ||||
EIA [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | (1) | (1) | 1 | ||
EIA embedded derivatives [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 1 | 1 | (1) | ||
IUL [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | (15) | 2 | (16) | 13 | |
IUL embedded derivatives [Member] | Equity contracts [Member] | Interest credited to fixed accounts [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | 6 | 2 | 1 | (9) | |
Macro hedge program [Member] | Other contracts [Member] | Benefits, claims, losses and settlement expenses [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | (13) | (1) | (13) | 2 | |
Other derivatives [Member] | |||||
Impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income | |||||
Amount of gain (loss) on derivatives recognized in income | $ (22) | $ 3 | $ (28) | $ 9 | |
[1] | The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. |
Derivatives and Hedging Activ62
Derivatives and Hedging Activities (Notional and Related Party Information) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Macro hedge program [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | $ 2,900 | $ 1,200 |
Freestanding non-VA derivatives [Member] | Derivatives not designated as hedging instruments [Member] | ||
Notional Disclosures [Abstract] | ||
Notional amounts of index options and futures contracts | 1,300 | 953 |
GMWB and GMAB embedded derivatives [Member] | Derivatives not designated as hedging instruments [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | $ 134,100 | $ 132,000 |
Derivatives and Hedging Activ63
Derivatives and Hedging Activities (Option Pay/Rec) (Details) $ in Millions | Sep. 30, 2015USD ($) | |
Summary of option premiums payable and receivable | ||
Premiums payable | $ 1,815 | |
Premiums receivable | 626 | |
2015 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 107 | [1] |
Premiums receivable | 28 | [1] |
2016 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 327 | |
Premiums receivable | 75 | |
2017 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 266 | |
Premiums receivable | 75 | |
2018 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 208 | |
Premiums receivable | 124 | |
2019 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 255 | |
Premiums receivable | 101 | |
2020-2026 [Member] | ||
Summary of option premiums payable and receivable | ||
Premiums payable | 652 | |
Premiums receivable | $ 223 | |
[1] | 2015 amounts represent the amounts payable and receivable for the period from October 1, 2015 to December 31, 2015. |
Derivatives and Hedging Activ64
Derivatives and Hedging Activities (Cash Flow Hedge Info) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Summary of Cash Flow Hedge Activity [Abstract] | |||
Derivatives designated as cash flow hedges | $ 0 | ||
Cash flow hedge loss to be reclassified within twelve months | $ 6 | ||
Longest period of time over which the entity hedges exposure to the variability in future cash flows | 3 years | ||
Rollforward of unrealized derivative losses included in AOCI related to cash flow hedges | |||
Net unrealized derivative losses at the beginning of the period | $ (12) | $ (17) | |
Reclassification of realized losses | [1] | 4 | 5 |
Income tax provision | (1) | (2) | |
Net unrealized derivative losses at the end of the period | $ (9) | $ (14) | |
[1] | Loss reclassified from AOCI to net investment income on the Consolidated Statements of Income |
Derivatives and Hedging Activ65
Derivatives and Hedging Activities (Credit Risk) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives liabilities, credit risk related contingent features | ||
Aggregate fair value of derivative contracts in a net liability position containing such credit contingent instruments | $ 269 | $ 367 |
Aggregate fair value of assets posted as collateral for such instruments | 254 | 367 |
Aggregate fair value of additional assets required to be posted or needed to settle the instruments | $ 15 | $ 0 |
Shareholder's Equity (Details)
Shareholder's Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amounts Reclassified from AOCI | ||||
Net realized investment gains (losses) | $ (11) | $ 7 | $ 5 | $ 12 |
Net investment income | 296 | 319 | 904 | 975 |
Income tax provision | (40) | (38) | (144) | (125) |
Net income | 224 | 224 | 690 | 765 |
Net unrealized (gains) losses on Available-for-Sale securities [Member] | Amount reclassified from AOCI [Member] | ||||
Amounts Reclassified from AOCI | ||||
Net realized investment gains (losses) | 10 | (10) | (7) | (15) |
Income tax provision | (4) | 4 | 2 | 6 |
Net income | 6 | (6) | (5) | (9) |
Losses on cash flow hedges [Member] | Amount reclassified from AOCI [Member] | ||||
Amounts Reclassified from AOCI | ||||
Net investment income | 1 | 2 | 4 | 5 |
Income tax provision | 0 | (1) | (1) | (2) |
Net income | $ 1 | $ 1 | $ 3 | $ 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective tax rate (as a percent) | 15.20% | 14.50% | 17.20% | 14.00% | ||
Benefits tax planning and completion of audits | $ 18 | |||||
Valuation allowance | $ 8 | $ 8 | $ 8 | |||
Gross unrecognized tax benefits | 163 | 163 | 160 | |||
Unrecognized tax benefits, net of federal tax benefits that would affect the effective tax rate if recognized | 9 | 9 | 7 | |||
Net increase in interest and penalties | 1 | $ 1 | 2 | $ 3 | ||
Payable related to accrued interest and penalties | 42 | 42 | $ 40 | |||
Minimum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examinations | 130 | 130 | ||||
Maximum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Decrease in gross unrecognized tax benefits due to resolution of IRS examinations | 140 | 140 | ||||
State and local jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
State net operating losses | $ 7 | $ 7 |
Guarantees and Contingencies (D
Guarantees and Contingencies (Details) - Future guaranty fund assessments [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies | ||
Liability related to guaranty fund assessments | $ 14 | $ 14 |
Premium tax asset | $ 12 | $ 12 |