COVER
COVER | Sep. 27, 2023 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Sep. 27, 2023 |
Entity Registrant Name | RIVERSOURCE LIFE INSURANCE COMPANY |
Entity Incorporation, State or Country Code | MN |
Entity File Number | 033-28976 |
Entity Tax Identification Number | 41-0823832 |
Entity Address, Address Line One | 1099 Ameriprise Financial Center |
Entity Address, City or Town | Minneapolis |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55474 |
City Area Code | 612 |
Local Phone Number | 671-3131 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock (par value $30 per share) |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000727892 |
Amendment Flag | false |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |||
Investments: | |||||
Market risk benefits | [1] | $ 1,015 | $ 539 | ||
Reinsurance recoverables (allowance for credit losses: 2022, $23; 2021, $11) | [1] | 4,228 | 5,456 | ||
Deferred acquisition costs | [1] | 2,759 | 2,821 | ||
Separate account assets | [1] | 70,876 | 92,238 | ||
Total assets | [1] | 115,403 | 141,253 | ||
Liabilities: | |||||
Policyholder account balances, future policy benefits and claims | [1] | 34,122 | 35,017 | ||
Market risk benefits | [1] | 2,118 | 3,440 | ||
Short-term borrowings | [1] | 201 | 200 | ||
Separate account liabilities | [1] | 70,876 | 92,238 | ||
Liabilities | [1] | 114,430 | 140,215 | ||
Shareholder's equity: | |||||
Common stock, $30 par value; 100,000 shares authorized, issued and outstanding | [1] | 3 | 3 | ||
Additional paid-in capital | [1] | 2,466 | 2,466 | ||
Accumulated deficit | [1] | (412) | (1,114) | ||
Accumulated other comprehensive income (loss), net of tax | [1] | (1,084) | (317) | ||
Total shareholder's equity | 973 | [2] | 1,038 | [1] | |
Total liabilities and shareholder's equity | [1] | 115,403 | 141,253 | ||
RiverSource Life | |||||
Investments: | |||||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | [1] | 16,135 | 16,239 | ||
Mortgage loans, at amortized cost (allowance for credit losses: 2022, $11; 2021, $12) | [1] | 1,768 | 1,788 | ||
Policy loans | [1] | 847 | 834 | ||
Other investments (allowance for credit losses: 2022, nil; 2021, nil) | [1] | 207 | 230 | ||
Total investments | [1] | 18,957 | 19,091 | ||
Cash and cash equivalents | [1] | 2,611 | 3,200 | ||
Receivables | [1] | 7,577 | 8,148 | ||
Accrued investment income | [1] | 145 | 124 | ||
Other assets | [1] | 4,726 | 7,311 | ||
Liabilities: | |||||
Short-term borrowings | 201 | 200 | |||
Long-term debt | [1] | 500 | 500 | ||
Other liabilities | [1] | 4,131 | 6,519 | ||
Consolidated investment entities | |||||
Investments: | |||||
Total investments | [1] | 2,354 | 2,184 | ||
Cash and cash equivalents | [1] | 133 | 121 | ||
Receivables | [1] | 20 | 17 | ||
Other assets | [1] | 2 | 3 | ||
Liabilities: | |||||
Long-term debt | [1] | 2,363 | 2,164 | ||
Other liabilities | [1] | $ 119 | $ 137 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock, par value (in dollars per share) | [1] | $ 30 | $ 30 |
Common stock, shares authorized (in shares) | [1] | 100,000 | 100,000 |
Common stock, shares issued (in shares) | [1] | 100,000 | 100,000 |
Common stock, shares outstanding (in shares) | [1] | 100,000 | 100,000 |
RiverSource Life | |||
Available-for-sale: Fixed maturities, amortized cost | [1] | $ 17,331 | $ 14,718 |
Available-for-Sale: Fixed maturities, allowance for credit losses | [1] | 22 | 1 |
Reinsurance recoverables, allowance for credit losses | [1] | 23 | 11 |
RiverSource Life | Mortgage loans | |||
Allowance for credit losses | [1] | 11 | 12 |
RiverSource Life | Other investments | |||
Allowance for credit losses | [1] | $ 0 | $ 0 |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Revenues | |||||
Premiums | $ 306 | [1] | $ (871) | [1] | $ 341 |
Net investment income | 827 | [1] | 827 | [1] | 869 |
Policy and contract charges | 2,078 | [1] | 2,250 | [1] | 2,094 |
Other revenues | 644 | [1] | 616 | [1] | 482 |
Net realized investment gains (losses) | (100) | [1] | 595 | [1] | (10) |
Total revenues | 3,755 | [1] | 3,417 | [1] | 3,776 |
Benefits and expenses | |||||
Benefits, claims, losses and settlement expenses | 236 | [1] | (157) | [1] | 1,805 |
Interest credited to fixed accounts | 665 | [1] | 600 | [1] | 644 |
Remeasurement (gains) losses of future policy benefit reserves | 1 | [1] | (52) | [1] | 0 |
Change in fair value of market risk benefits | 311 | [1] | (113) | [1] | 0 |
Amortization of deferred acquisition costs | 241 | [1] | 245 | [1] | 264 |
Interest and debt expense | 108 | [1] | 105 | [1] | 5 |
Other insurance and operating expenses | 682 | [1] | 751 | [1] | 665 |
Total benefits and expenses | 2,244 | [1] | 1,379 | [1] | 3,383 |
Pretax income (loss) | 1,511 | [1] | 2,038 | [1] | 393 |
Income tax provision (benefit) | 209 | [1] | 316 | [1] | (45) |
Net income | $ 1,302 | [2] | $ 1,722 | [2] | $ 438 |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 1,302 | [1] | $ 1,722 | [1] | $ 438 |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gains (losses) on securities | (2,035) | [2] | (848) | [2] | 428 |
Effect of changes in discount rate assumptions on certain long-duration contracts | 861 | [2] | 284 | [2] | 0 |
Effect of changes in instrument-specific credit risk on market risk benefits | 407 | [2] | 100 | [2] | 0 |
Total other comprehensive income (loss), net of tax | (767) | [2] | (464) | [2] | 428 |
Total comprehensive income (loss) | $ 535 | [2] | $ 1,258 | [2] | $ 866 |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Additional Paid-In Capital | Retained Earnings (Deficit) | Retained Earnings (Deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | ||||||
Beginning balance at Dec. 31, 2019 | $ 3,518 | $ (7) | $ 3 | $ 2,466 | $ 293 | $ (7) | $ 756 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 438 | 438 | ||||||||||||
Other comprehensive income (loss), net of tax | 428 | 428 | ||||||||||||
Cash dividends to Ameriprise Financial, Inc. | (800) | (800) | ||||||||||||
Ending balance at Dec. 31, 2020 | 3,577 | $ (1,897) | 3 | 2,466 | (76) | $ (860) | 1,184 | $ (1,037) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 1,722 | [1] | 1,722 | |||||||||||
Other comprehensive income (loss), net of tax | (464) | [2] | (464) | |||||||||||
Cash dividends to Ameriprise Financial, Inc. | (1,900) | (1,900) | ||||||||||||
Ending balance at Dec. 31, 2021 | 1,038 | [3] | 3 | [4] | 2,466 | [4] | (1,114) | [4] | (317) | [4] | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 1,302 | [1] | 1,302 | |||||||||||
Other comprehensive income (loss), net of tax | (767) | [2] | (767) | |||||||||||
Cash dividends to Ameriprise Financial, Inc. | (600) | (600) | ||||||||||||
Ending balance at Dec. 31, 2022 | [4] | $ 973 | $ 3 | $ 2,466 | $ (412) | $ (1,084) | ||||||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Net income | $ 1,302 | [1] | $ 1,722 | [1] | $ 438 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||
Depreciation, amortization and accretion, net | (201) | [1] | (98) | [1] | (22) | |
Deferred income tax (benefit) expense | 154 | [1] | 138 | [1] | (278) | |
Contractholder and policyholder charges, non-cash | (395) | [1] | (390) | [1] | (385) | |
Loss from equity method investments | 48 | [1] | 72 | [1] | 73 | |
Net realized investment (gains) losses | (3) | [1] | (611) | [1] | (12) | |
Impairments and provision for loan losses | 91 | [1] | (3) | [1] | 22 | |
Net losses (gains) of consolidated investment entities | 17 | [1] | (20) | [1] | (2) | |
Change in operating assets and liabilities: | ||||||
Deferred acquisition costs | 62 | [1] | (9) | [1] | 48 | |
Policyholder account balances, future policy benefits and claims, and market risk benefits, net | 1,013 | [1] | 1,482 | [1] | 3,441 | |
Derivatives, net of collateral | 311 | [1] | (575) | [1] | (134) | |
Reinsurance recoverables | 84 | [1] | (19) | [1] | (166) | |
Receivables | 279 | [1] | 114 | [1] | 62 | |
Accrued investment income | (21) | [1] | 10 | [1] | (3) | |
Current income tax, net | 72 | [1] | (321) | [1] | 378 | |
Other operating assets and liabilities of consolidated investment entities | 2 | [1] | 20 | [1] | 0 | |
Other, net | 136 | [1] | 66 | [1] | 79 | |
Net cash provided by (used in) operating activities | 2,951 | [1] | 1,578 | [1] | 3,539 | |
Available-for-Sale securities: | ||||||
Proceeds from sales | 1,309 | [1] | 555 | [1] | 102 | |
Maturities, sinking fund payments and calls | 1,563 | [1] | 2,804 | [1] | 2,813 | |
Purchases | (5,600) | [1] | (3,677) | [1] | (4,069) | |
Proceeds from sales, maturities and repayments of mortgage loans | 141 | [1] | 272 | [1] | 207 | |
Funding of mortgage loans | (124) | [1] | (215) | [1] | (135) | |
Proceeds from sales and collections of other investments | 24 | [1] | 93 | [1] | 123 | |
Purchase of other investments | (46) | [1] | (32) | [1] | (184) | |
Purchase of investments by consolidated investment entities | (961) | [1] | (1,603) | [1] | (57) | |
Proceeds from sales, maturities and repayments of investments by consolidated investment entities | 615 | [1] | 1,047 | [1] | 46 | |
Purchase of equipment and software | (13) | [1] | (13) | [1] | (10) | |
Change in policy loans, net | (13) | [1] | 12 | [1] | 21 | |
Cash paid for deposit receivable | (45) | [1] | (377) | [1] | (4) | |
Cash received for deposit receivable | 550 | [1] | 254 | [1] | 93 | |
Advance on line of credit to Ameriprise Financial, Inc. | (1,034) | [1] | (1) | [1] | (702) | |
Repayment from Ameriprise Financial, Inc. on line of credit | 1,034 | [1] | 1 | [1] | 702 | |
Cash paid for written options with deferred premiums | (619) | [1] | (552) | [1] | (338) | |
Cash received from written options with deferred premiums | 204 | [1] | 106 | [1] | 133 | |
Net cash impact of consolidating consolidated investment entities | 0 | [1] | 0 | [1] | 83 | |
Other, net | 21 | [1] | (39) | [1] | 2 | |
Net cash provided by (used in) investing activities | (2,994) | [1] | (1,365) | [1] | (1,174) | |
Policyholder account balances: | ||||||
Deposits and other additions | 1,169 | [1] | 1,553 | [1] | 1,649 | |
Net transfers from (to) separate accounts | (162) | [1] | (273) | [1] | (125) | |
Surrenders and other benefits | (1,459) | [1] | (1,365) | [1] | (1,357) | |
Proceeds from line of credit with Ameriprise Financial, Inc. | 0 | [1] | 6 | [1] | 186 | |
Payments on line of credit with Ameriprise Financial, Inc. | 0 | [1] | (6) | [1] | (236) | |
Proceeds from long-term debt with Ameriprise Financial, Inc. | 0 | [1] | 0 | [1] | 500 | |
Cash received for purchased options with deferred premiums | 378 | [1] | 1,350 | [1] | 40 | |
Cash paid for purchased options with deferred premiums | (197) | [1] | (156) | [1] | (211) | |
Borrowings by consolidated investment entities | 341 | [1] | 1,756 | [1] | 0 | |
Repayments of debt by consolidated investment entities | (4) | [1] | (1,142) | [1] | (1) | |
Cash dividends to Ameriprise Financial, Inc. | (600) | [1] | (1,900) | [1] | (800) | |
Net cash provided by (used in) financing activities | (534) | [1] | (177) | [1] | (355) | |
Net increase (decrease) in cash and cash equivalents | (577) | [1] | 36 | [1] | 2,010 | |
Cash and cash equivalents at beginning of period | 3,321 | [1] | 3,285 | [1] | 1,275 | |
Cash and cash equivalents at end of period | [1] | 2,744 | 3,321 | 3,285 | ||
Supplemental Disclosures: | ||||||
Income taxes paid (received), net | (17) | [1] | 496 | [1] | (143) | |
Non-cash investing activity: | ||||||
Exchange of an investment that resulted in a realized gain and an increase to amortized cost | 0 | [1] | 17 | [1] | 0 | |
Investments transferred in connection with reinsurance transaction | 0 | [1] | 7,513 | [1] | 0 | |
RiverSource Life | ||||||
Supplemental Disclosures: | ||||||
Interest paid | 3 | [1] | 0 | [1] | 2 | |
Consolidated investment entities | ||||||
Supplemental Disclosures: | ||||||
Interest paid | $ 75 | [1] | $ 90 | [1] | $ 0 | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). • RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. • RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”) and Columbia Cent CLO Advisors, LLC (“Columbia Cent”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. Columbia Cent provides asset management services to collateralized loan obligations (“CLOs”). 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 and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation. During 2022, the Company identified an error related to the shadow unearned revenue liability balance associated with universal life insurance products. The Company evaluated the error and determined that the impact was not material to the Company’s results for any prior period, but for comparability, the Company revised the prior period Consolidated Financial Statements and related disclosures impacted. A summary of the revision to the Company’s previously reported Consolidated Financial Statements is presented in Note 22. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 16. 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. Other than disclosed in Note 15, no other subsequent events or transactions requiring recognition or disclosure were identified. The Company’s principal products are variable annuities, structured variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add optional benefit riders to their contracts, such as guaranteed minimum death benefit (“GMDB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) riders. In 2020, the Company began offering structured variable annuities which give contractholders the option to allocate a portion of their account value to an indexed account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The Company discontinued most new sales of its variable annuities with living benefit guarantees by the end of 2021 and new sales were completely discontinued as of mid-2022. As the Company continues to optimize its risk profile and shift its business mix to lower risk offerings, it has discontinued new sales of its UL insurance with secondary guarantees and its single-pay fixed universal life with a long term care rider products at the end of 2021. The Company also offers immediate annuities, traditional life insurance and disability income (“DI”) insurance. In 2020, the Company discontinued sales of fixed deferred annuities. The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company adopted Accounting Standards Update (“ASU”), Financial Services – Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”), effective January 1, 2023 with a transition date of January 1, 2021. The significant accounting policies for market risk benefits (“MRB”); deferred acquisition costs (“DAC”); deferred sales inducement costs (“DSIC”); reinsurance; policyholder account balances, future policy benefits and claims; and unearned revenue liability were added or updated as a result of adopting ASU 2018-12. See Note 3 for additional information related to the transition and adoption impact. Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb potential significant losses of the VIE or the right to receive potential significant benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, valuation of derivative instruments, litigation reserves, future policy benefits, market risk benefits and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Prior to the adoption of ASU 2018-12, DAC and the corresponding recognition of DAC amortization was also considered among the more significant estimates. Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Prior to the Company’s adoption of ASU 2018-12, unrealized gains (losses) recorded in AOCI were also net of DAC, DSIC and unearned revenue. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (i.e., made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for-Sale securities are generally placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income. Other Investments Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans. Affordable housing partnerships are accounted for under the equity method. Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within Mortgage loans and syndicated loans are recorded within Other investments. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in Net investment income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income. Deposit Receivables For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made and any related embedded derivatives are included in Receivables. As amounts are received, consistent with the underlying contracts, deposit receivables are adjusted. Deposit receivables are accreted using the interest method and the accretion is reported in Other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivables The allowance for credit losses is calculated on an individual reinsurer basis. Deposit receivables are collateralized by underlying trust arrangements. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring (“TDR”). Modifications to loan terms do not automatically result in TDRs. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. If it is determined that foreclosure on a commercial mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated costs to sell, if applicable. Upon foreclosure, the commercial mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned within Other assets. Cash and Cash Equivalents Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums paid for traditional life, long term care (“LTC”), DI and life contingent immediate annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses. UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset and amortized based on estimated gross profits (“EGPs”) over the period the reinsurance policies are in-force. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include that the Company has no actual history of losses and that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured LTC business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims. See Note 9 for additional information on reinsurance. Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three As of both December 31, 2022 and 2021, land, buildings, equipment and software were $123 million, net of accumulated depreciation of $229 million and $216 million as of December 31, 2022 and 2021, respectively. Depreciation and amortization expense for the years ended December 31, 2022, 2021 and 2020 was $13 million, $14 million and $14 million, respectively. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in Other assets or Other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of Net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions accounted for as market risk benefits under ASU 2018-12. Prior to the adoption of ASU 2018-12, the GMAB and the non-life contingent benefits associated with GMWB provisions were also considered embedded derivatives. See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 18 for the impact of derivatives on the Consolidated Statements of Income. Market Risk Benefits Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Guarantees accounted for as market risk benefits include GMDB, guaranteed minimum income benefit (“GMIB”), GMWB and GMAB. If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit. Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract. Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in OCI. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to Ameriprise Financial’s advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as write-offs. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances. Unamortized DAC is reduced for actual experience in excess of expected experience. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. DAC is amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits. DAC related to all long-duration product types (except for life contingent payout annuities) is grouped on a calendar-year annual basis for each legal entity. Further disaggregation is reported for any contracts that include an additional liability for death or other insurance benefit. DAC related to life contingent payout annuities is grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter. DAC related to annuity products (including variable deferred annuities, structured variable annuities, fixed deferred annuities, and life contingent payout annuities) is amortized based on initial premium. DAC related to life insurance products (including UL insurance, VUL insurance, IUL insurance, term life insurance, and whole life insurance) is amortized based on original specified amount (i.e., face amount). DAC related to DI insurance is amortized based on original monthly benefit. The accounting contract term for annuity products (except for life contingent payout annuities) is over the projected accumulation period. Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid. The accounting contract term for life insurance products is over the projected life of the contract. DI insurance is amortized over the projected life of the contract, including the claim paying period. Deferred Acquisition Costs (Pre-adoption of ASU 2018-12) Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable, structured variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC were amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs varied based on persistency rates (assumptions at which contractholders and policyholders were expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and were management’s best estimates. Management regularly monitored financial market conditions and actual contractholder and policyholder behavior experience and compared them to its assumptions. These assumptions were updated whenever it appeared that earlier estimates should be revised. When assumptions were changed, the percentage of EGPs used to amortize DAC might have also changed. A change in the required amortization percentage was applied retrospectively; an increase in amortization percentage resulted in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage resulted in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions could have been either positive or negative in any particular period and was reflected in the period in which such changes were made. At each balance sheet date, the DAC balance was adjusted for the effect that would result from the realization of unrealized gains (losses) on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates were the rates at which variable annuity and VUL insurance contract values invested in separate accounts which were assumed to appreciate in the future. The rates used varied by equity and fixed income investments. Management reviewed and, where appropriate, adjusted its assumptions with respect to client asset value growth rates on a regular basis. The Company typically used a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate was reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceeded management’s near-term estimate were typically less than in a period when growth rates fell short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (“FASB”) updated the accounting standard related to long-duration insurance contracts (ASU 2018-12). The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis, and removing certain shadow adjustments previously recorded in AOCI. Adoption of the accounting standard will not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements. When the Company adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and AOCI and prior periods presented (i.e. 2021 and 2022) were recast. The adoption impact as of January 1, 2021 was a reduction in total equity of $1.9 billion, of which $0.9 billion and $1.0 billion were reflected in retained earnings and AOCI, respectively. The Consolidated Financial Statements were not recast for the comparative period ended December 31, 2020. The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Balance Sheets: As Filed December 31, 2022 Adjustment Post-adoption December 31, 2022 As Filed December 31, 2021 Adjustment Post-adoption December 31, 2021 (in millions) Assets Market risk benefits $ — $ 1,015 $ 1,015 $ — $ 539 $ 539 Reinsurance recoverables (allowance for credit losses: 2022, $23; 2021, $11) 4,412 (184) 4,228 4,529 927 5,456 Deferred acquisition costs 3,141 (382) 2,759 2,757 64 2,821 Other assets 4,791 (65) 4,726 7,015 296 7,311 Total assets $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 Liabilities and Shareholder’s Equity Liabilities: Policyholder account balances, future policy benefits and claims $ 36,057 $ (1,935) $ 34,122 $ 35,744 $ (727) $ 35,017 Market risk benefits — 2,118 2,118 — 3,440 3,440 Other liabilities 4,120 11 4,131 6,303 216 6,519 Total liabilities 114,236 194 114,430 137,286 2,929 140,215 Shareholder’s equity: Accumulated deficit (799) 387 (412) (912) (202) (1,114) Accumulated other comprehensive income (loss), net of tax (887) (197) (1,084) 584 (901) (317) Total shareholder’s equity 783 190 973 2,141 (1,103) 1,038 Total liabilities and shareholder’s equity $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Income: Years Ended December 31, As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021 (in millions) Revenues Policy and contract charges $ 2,091 $ (13) $ 2,078 $ 2,304 $ (54) $ 2,250 Total revenues 3,768 (13) 3,755 3,471 (54) 3,417 Benefits and expenses Benefits, claims, losses and settlement expenses 1,366 (1,130) 236 715 (872) (157) Remeasurement (gains) losses of future policy benefit reserves — 1 1 — (52) (52) Change in fair value of market risk benefits — 311 311 — (113) (113) Amortization of deferred acquisition costs 196 45 241 112 133 245 Other insurance and operating expenses 670 12 682 738 13 751 Total benefits and expenses 3,005 (761) 2,244 2,270 (891) 1,379 Pretax income (loss) 763 748 1,511 1,201 837 2,038 Income tax provision (benefit) 50 159 209 137 179 316 Net income (loss) $ 713 $ 589 $ 1,302 $ 1,064 $ 658 $ 1,722 The adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities. Future Adoption of New Accounting Standards Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB proposed amendments to ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period. The Company adopted the standard on January 1, 2023. The adoption of this update did not have an impact on the Company’s consolidated financial condition and results of operations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income: Years Ended December 31, 2022 2021 2020 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 164 $ 193 $ 173 Unaffiliated 14 17 14 Total 178 210 187 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 42 49 44 Unaffiliated 18 20 18 60 69 62 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 334 389 351 Unaffiliated 4 5 4 338 394 355 Total 398 463 417 Total revenue from contracts with customers 576 673 604 Revenue from other sources (1) 3,179 2,744 3,172 Total revenues $ 3,755 $ 3,417 $ 3,776 (1) Amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Policy and Contract Charges The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis. Other Revenues Administrative Fees The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Other Fees The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company's products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company's variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis. Receivables Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $48 million and $62 million as of December 31, 2022 and 2021, respectively. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company provides asset management services to CLOs which are considered to be VIEs that are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates the CLOs if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any support to these entities. The Company has unfunded commitments related to consolidated CLOs of $30 million and $27 million as of December 31, 2022 and 2021, respectively. See Note 21 for information on future funding commitments of other VIEs. See Note 2 for further discussion of the Company’s accounting policy on consolidation. CLOs CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary and has the power to direct the activities that most significantly impact the economic performance of the CLO. The Company’s maximum exposure to loss with respect to non-consolidated CLOs is limited to its amortized cost, which was $1 million as of both December 31, 2022 and 2021. The Company classifies these investments as Available-for-Sale securities. See Note 6 for additional information on these investments. Affordable Housing Partnerships and Other Real Estate Partnerships The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships. A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in other investments and was $92 million and $138 million as of December 31, 2022 and 2021, respectively. The Company had a liability of $7 million and $8 million as of December 31, 2022 and 2021, respectively, related to original purchase commitments not yet remitted to the VIEs. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments. Structured Investments 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, and commercial 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 amortized cost. See Note 6 for additional information on these structured investments. Fair Value of Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 14 for the definition of the three levels of the fair value hierarchy. The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 35 $ — $ 35 Common stocks — 3 — 3 Syndicated loans — 2,191 125 2,316 Total investments — 2,229 125 2,354 Receivables — 20 — 20 Other assets — 1 1 2 Total assets at fair value $ — $ 2,250 $ 126 $ 2,376 Liabilities Debt (1) $ — $ 2,363 $ — $ 2,363 Other liabilities — 119 — 119 Total liabilities at fair value $ — $ 2,482 $ — $ 2,482 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.2 billion as of December 31, 2022 and 2021, respectively. The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans Other Assets Balance, January 1, 2022 $ — $ 64 $ 3 Total gains (losses) included in: Net income — (11) (1) — Purchases — 69 — Sales — (4) — Settlements — (8) — Transfers into Level 3 2 218 1 Transfers out of Level 3 (2) (203) (3) Balance, December 31, 2022 $ — $ 125 $ 1 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2022 $ — $ (10) (1) $ — Syndicated Loans Other Assets (in millions) Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases 106 — Sales (38) — Settlements (49) — Transfers into Level 3 119 2 Transfers out of Level 3 (150) (2) Deconsolidation of consolidated investment entities (18) — Balance, December 31, 2021 $ 64 $ 3 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2021 $ — $ 1 (1) Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Total gains (losses) included in: Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2020 $ — $ — (1) Included in Net investment income. Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote. All Level 3 measurements as of December 31, 2022 and 2021 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Determination of Fair Value Assets Investments The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 14 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments. Receivables For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short term and the receivables have been collectible. The fair value of these receivables is classified as Level 2. Liabilities Debt The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2. Other Liabilities Other liabilities consist primarily of securities purchased but not yet settled held by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short term. The fair value of these liabilities is classified as Level 2. Other liabilities also include accrued interest on the CLO debt. Fair Value Option The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs. The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2022 December 31, 2021 (in millions) Syndicated loans Unpaid principal balance $ 2,525 $ 2,233 Excess unpaid principal over fair value (209) (52) Fair value $ 2,316 $ 2,181 Fair value of loans more than 90 days past due $ — $ — Fair value of loans in nonaccrual status 23 13 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 48 10 Debt Unpaid principal balance $ 2,636 $ 2,296 Excess unpaid principal over fair value (273) (132) Carrying value (1) $ 2,363 $ 2,164 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.2 billion as of December 31, 2022 and 2021, respectively. During the third quarter of 2022, the Company launched one new CLO and issued debt of $352 million. Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in Net investment income. Gains and losses related to changes in the fair value of investments are recorded in Net investment income and gains and losses on sales of investments are recorded in Net realized investment gains (losses). Interest expense on debt is recorded in Interest and debt expense with gains and losses related to changes in the fair value of debt recorded in Net investment income. Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for the years ended December 31, 2022, 2021 and 2020. Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,363 $ 2,164 5.3 % 1.7 % |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available-for-Sale securities distributed by type were as follows: December 31, 2022 Description of Securities Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 9,349 $ 180 $ (803) $ (20) $ 8,706 Residential mortgage backed securities 3,254 8 (303) — 2,959 Commercial mortgage backed securities 2,904 2 (255) — 2,651 State and municipal obligations 761 53 (26) (2) 786 Asset backed securities 1,025 10 (38) — 997 Foreign government bonds and obligations 37 — (2) — 35 U.S. government and agency obligations 1 — — — 1 Total $ 17,331 $ 253 $ (1,427) $ (22) $ 16,135 December 31, 2021 Description of Securities Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 In March 2020, the Company purchased $368 million of investments at fair value, primarily agency residential mortgage backed securities, from Ameriprise Financial. As of December 31, 2022 and 2021, accrued interest of $139 million and $118 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Accrued investment income As of December 31, 2022 and 2021, investment securities with a fair value of $2.6 billion and $2.4 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $302 million and $314 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of both December 31, 2022 and 2021, fixed maturity securities comprised approximately 85% 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. As of December 31, 2022 and 2021, $257 million and $359 million, respectively, of securities were internally rated by CMIA, an affiliate of the Company, using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: December 31, 2022 December 31, 2021 Ratings Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 6,313 $ 5,754 36 % $ 5,031 $ 5,107 31 % AA 1,159 1,188 7 757 932 6 A 1,572 1,594 10 1,662 2,013 12 BBB 7,646 7,023 43 6,293 7,063 44 Below investment grade (1) 641 576 4 975 1,124 7 Total fixed maturities $ 17,331 $ 16,135 100 % $ 14,718 $ 16,239 100 % (1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both December 31, 2022 and 2021. The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million and $2 million as of December 31, 2022 and 2021, respectively. These securities are not rated but are included in below investment grade due to their risk characteristics. As of December 31, 2022 and 2021, approximately 36% and 40%, respectively, of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. As of December 31, 2022, the Company had holdings in Ameriprise Advisor Financing 2, LLC (“AAF 2”), an affiliate of the Company, totaling $544 million that was 56% of the Company’s total shareholder’s equity. Also, the Company had an additional 30 issuers with holdings totaling $4.4 billion that individually were between 10% and 22% of the Company’s total shareholder’s equity as of December 31, 2022. As of December 31, 2021, the Company had holdings in Ameriprise Advisor Financing, LLC (“AAF”), an affiliate of the Company, totaling $289 million that was 28% of the Company’s total shareholder’s equity. Also, the Company had an additional 35 issuers with holdings totaling $4.9 billion that individually were between 10% and 24% of the Company’s total shareholder’s equity as of December 31, 2021. There were no other holdings of any other issuer greater than 10% of the Company’s total shareholder’s equity as of December 31, 2022 and 2021. The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded: Description of Securities December 31, 2022 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 405 $ 5,028 $ (443) 100 $ 1,532 $ (360) 505 $ 6,560 $ (803) Residential mortgage backed securities 189 1,643 (117) 52 826 (186) 241 2,469 (303) Commercial mortgage backed securities 176 1,746 (149) 58 666 (106) 234 2,412 (255) State and municipal obligations 40 126 (15) 26 59 (11) 66 185 (26) Asset backed securities 39 808 (28) 4 60 (10) 43 868 (38) Foreign government bonds and obligations 10 32 (1) 1 1 (1) 11 33 (2) Total 859 $ 9,383 $ (753) 241 $ 3,144 $ (674) 1,100 $ 12,527 $ (1,427) Description of Securities December 31, 2021 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) As part of the Company’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the year ended December 31, 2022 is primarily attributable to the impact of higher interest rates and wider credit spreads driven by continued market volatility, with no specific credit concerns. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2022 and 2021, approximately 93% and 92%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade. The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2020 $ — $ — $ — Additions for which credit losses were not previously recorded 13 — 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) — (3) Balance at December 31, 2020 10 — 10 Additions for which credit losses were not previously recorded — 1 1 Charge-offs (10) — (10) Balance at December 31, 2021 — 1 1 Additions for which credit losses were not previously recorded 20 — 20 Additional increases (decreases) on securities that had an allowance recorded in a previous period — 1 1 Balance at December 31, 2022 $ 20 $ 2 $ 22 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: Years Ended December 31, 2022 2021 2020 (in millions) Gross realized investment gains $ 28 $ 576 $ 17 Gross realized investment losses (25) (6) (2) Credit losses (21) (1) (10) Other impairments (70) (13) — Total $ (88) $ 556 $ 5 Credit losses for the year ended December 31, 2022 primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry. Credit losses for the year ended December 31, 2021 primarily related to recording an allowance for credit losses on certain state and municipal securities. Credit losses for the year ended December 31, 2020 primarily related to recording an allowance for credit losses on certain corporate debt securities, primarily in the oil and gas industry. Other impairments for the years ended December 31, 2022 and 2021 related to Available-for-Sale securities which the Company intended to sell. See Note 19 for a rollforward of net unrealized investment gains (losses) included in AOCI. Available-for-Sale securities by contractual maturity as of December 31, 2022 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 317 $ 315 Due after one year through five years 1,644 1,581 Due after five years through 10 years 3,608 3,104 Due after 10 years 4,579 4,528 10,148 9,528 Residential mortgage backed securities 3,254 2,959 Commercial mortgage backed securities 2,904 2,651 Asset backed securities 1,025 997 Total $ 17,331 $ 16,135 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 were not included in the maturities distribution. The following is a summary of Net investment income: Years Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ 615 $ 643 $ 777 Mortgage loans 73 102 115 Other investments 159 101 (3) 847 846 889 Less: investment expenses 20 19 20 Total $ 827 $ 827 $ 869 Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ (88) $ 556 $ 5 Mortgage loans (1) 57 (10) Other investments (11) (18) (5) Total $ (100) $ 595 $ (10) |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Financing Receivables | Financing ReceivablesFinancing receivables are comprised of commercial loans, policy loans and deposit receivables. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses. Allowance for Credit Losses The following table presents a rollforward of the allowance for credit losses: Commercial Loans (in millions) Balance at December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance at January 1, 2020 23 Provisions 12 Balance at December 31, 2020 35 Provisions (23) Balance at December 31, 2021 12 Provisions 1 Charge-offs (2) Balance at December 31, 2022 $ 11 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. The decrease in the allowance for credit losses provision for commercial loans in 2021 reflected the sale of certain commercial mortgage loans and syndicated loans in conjunction with the fixed deferred and immediate annuity reinsurance transaction in 2021. As of December 31, 2022 and 2021, accrued interest on commercial loans was $14 million and $11 million, respectively, and is recorded in Accrued investment income and excluded from the amortized cost basis of commercial loans. Purchases and Sales There were no commercial mortgage loans sold for the years ended December 31, 2022 and 2020. During the year ended December 31, 2021, the Company sold $746 million of commercial mortgage loans. During the years ended December 31, 2022, 2021 and 2020, the Company purchased $42 million, $26 million and $140 million, respectively, of syndicated loans, and sold nil, $340 million and $13 million, respectively, of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. Credit Quality Information There were no nonperforming loans as of both December 31, 2022 and 2021. All loans were considered to be performing. Commercial Loans 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. Loan-to-value ratio is the primary credit quality indicator included in this review. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2022 and 2021. 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. There were no commercial mortgage loans past due as of both December 31, 2022 and 2021. The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio: December 31, 2022 Loan-to-Value Ratio 2022 2021 2020 2019 2018 Prior Total (in millions) > 100% $ — $ — $ 2 $ 2 $ — $ 39 $ 43 80% - 100% 1 9 2 20 7 30 69 60% - 80% 39 85 17 52 9 104 306 40% - 60% 49 84 64 80 55 426 758 < 40% 16 8 27 42 78 432 603 Total $ 105 $ 186 $ 112 $ 196 $ 149 $ 1,031 $ 1,779 December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. 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 December 31, December 31, 2022 2021 2022 2021 (in millions) East North Central $ 192 $ 183 11 % 10 % East South Central 51 54 3 3 Middle Atlantic 100 107 6 6 Mountain 120 111 7 6 New England 17 21 1 1 Pacific 601 589 34 33 South Atlantic 467 477 26 26 West North Central 115 136 6 8 West South Central 116 122 6 7 1,779 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,768 $ 1,788 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2022 2021 2022 2021 (in millions) Apartments $ 465 $ 464 26 % 26 % Hotel 14 15 1 1 Industrial 295 293 17 16 Mixed use 55 57 3 3 Office 243 254 14 14 Retail 576 589 32 33 Other 131 128 7 7 1,779 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,768 $ 1,788 Syndicated Loans The recorded investment in syndicated loans as of December 31, 2022 and 2021 was $72 million and $43 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. There were no syndicated loans past due as of both December 31, 2022 and 2021. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating: December 31, 2022 Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — 5 — 3 — 2 10 Risk 2 5 13 2 5 — 11 36 Risk 1 3 5 1 3 5 9 26 Total $ 8 $ 23 $ 3 $ 11 $ 5 $ 22 $ 72 December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Deposit Receivables Deposit receivables were $7.4 billion and $7.9 billion as of December 31, 2022 and 2021, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both December 31, 2022 and 2021. Troubled Debt Restructurings There were no loans accounted for as a troubled debt restructuring by the Company during the years ended December 31, 2022, 2021 and 2020. There are no commitments to lend additional funds to borrowers whose loans have been restructured. |
Deferred Acquisition Costs and
Deferred Acquisition Costs and Deferred Sales Inducement Costs | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Acquisition Costs and Deferred Sales Inducement Costs | Deferred Acquisition Costs and Deferred Sales Inducement Costs The following tables summarize the balances of and changes in DAC, including the January 1, 2021 adoption of ASU 2018-12. Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance (in millions) Pre-adoption balance at December 31, 2020 $ 1,671 $ 22 $ 43 $ 7 $ 100 $ 452 Effect of shadow reserve adjustments 42 4 18 1 31 53 Post-adoption balance at January 1, 2021 1,713 26 61 8 131 505 Capitalization of acquisition costs 110 71 — — 3 54 Amortization (145) (6) (8) (1) (9) (47) Balance at December 31, 2021 $ 1,678 $ 91 $ 53 $ 7 $ 125 $ 512 Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total, (in millions) Pre-adoption balance at December 31, 2020 $ 108 $ (3) $ — $ 19 $ 89 $ 2,508 Effect of shadow reserve adjustments 149 6 — — — 304 Post-adoption balance at January 1, 2021 257 3 — 19 89 2,812 Capitalization of acquisition costs 9 — 1 2 4 254 Amortization (18) — — (2) (9) (245) Balance at December 31, 2021 $ 248 $ 3 $ 1 $ 19 $ 84 $ 2,821 Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance (in millions) Balance at January 1, 2022 $ 1,678 $ 91 $ 53 $ 7 $ 125 $ 512 Capitalization of acquisition costs 39 73 — — 1 55 Amortization (135) (15) (8) (1) (8) (46) Balance at December 31, 2022 $ 1,582 $ 149 $ 45 $ 6 $ 118 $ 521 Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total, (in millions) Balance at January 1, 2022 $ 248 $ 3 $ 1 $ 19 $ 84 $ 2,821 Capitalization of acquisition costs 5 — 1 1 4 179 Amortization (17) — — (2) (9) (241) Balance at December 31, 2022 $ 236 $ 3 $ 2 $ 18 $ 79 $ 2,759 The balances of and changes in DAC prior to the adoption of ASU 2018-12 were as follows: 2020 (in millions) Balance at January 1 $ 2,673 Capitalization of acquisition costs 216 Amortization (164) Amortization, impact of valuation assumptions review (100) Impact of change in net unrealized (gains) losses on securities (117) Balance at December 31 $ 2,508 The impact of the Company’s valuation assumption review to DAC for the year ended December 31, 2020 primarily reflected updates to interest rate assumptions, partially offset by a favorable impact from lower surrenders on annuity contracts with a withdrawal benefit. The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12. DSIC are recorded in Other assets. Variable Annuities Fixed Annuities Total, (in millions) Pre-adoption balance at December 31, 2020 $ 173 $ 14 $ 187 Effect of shadow reserve adjustments 8 8 16 Post-adoption balance at January 1, 2021 181 22 203 Capitalization of sales inducement costs 1 — 1 Amortization (18) (3) (21) Balance at December 31, 2021 $ 164 $ 19 $ 183 Variable Annuities Fixed Annuities Total, (in millions) Balance at January 1, 2022 $ 164 $ 19 $ 183 Capitalization of sales inducement costs 1 — 1 Amortization (16) (3) (19) Balance at December 31, 2022 $ 149 $ 16 $ 165 The balances of and changes in DSIC prior to the adoption of ASU 2018-12 were as follows: 2020 (in millions) Balance at January 1 $ 216 Capitalization of sales inducement costs 1 Amortization (13) Amortization, impact of valuation assumptions review (16) Impact of change in net unrealized (gains) losses on securities (1) Balance at December 31 $ 187 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company reinsures a portion of the insurance risks associated with its traditional life, DI and LTC insurance products through reinsurance agreements with unaffiliated reinsurance companies. The Company reinsures 100% of its insurance risk associated with its life contingent immediate annuity policies in force as of June 30, 2021 through a reinsurance agreement with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company. Policies issued on or after July 1, 2021 and policies issued by RiverSource Life of NY are not subject to this reinsurance agreement. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 (RiverSource Life of NY began in 2002) and new individual UL and VUL insurance policies beginning in 2002 (2003 for RiverSource Life of NY). Policies issued prior to these dates are not subject to these same reinsurance levels. However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its UL product with LTC benefits. The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth. Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 (2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms introduced prior to 2007 (2010 for RiverSource Life of NY). The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. As of December 31, 2022 and 2021, traditional life and UL insurance policies in force were $198.9 billion and $198.6 billion, respectively, of which $146.2 billion and $145.1 billion as of December 31, 2022 and 2021 were reinsured at the respective year ends. The effect of reinsurance on premiums for traditional long-duration products was as follows: Years Ended December 31, 2022 2021 2020 (in millions) Direct premiums $ 530 $ 490 $ 565 Reinsurance ceded (224) (1,361) (224) Net premiums $ 306 $ (871) $ 341 Policy and contract charges are presented on the Consolidated Statements of Income net of $165 million, $152 million and $140 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2022, 2021 and 2020, respectively. The amount of claims recovered through reinsurance on all contracts was $435 million, $404 million and $400 million for the years ended December 31, 2022, 2021 and 2020, respectively. Reinsurance recoverables include approximately $2.7 billion and $3.5 billion related to LTC risk ceded to Genworth as of December 31, 2022 and 2021, respectively. Policyholder account balances, future policy benefits and claims include $388 million and $413 million related to previously assumed reinsurance arrangements as of December 31, 2022 and 2021, respectively. |
Policyholder Account Balances,
Policyholder Account Balances, Future Policy Benefits and Claims | 12 Months Ended |
Dec. 31, 2022 | |
Policyholder Account Balance [Abstract] | |
Policyholder Account Balances, Future Policy Benefits and Claims | Policyholder Account Balances, Future Policy Benefits and Claims Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2022 December 31, 2021 (in millions) Policyholder account balances Policyholder account balances $ 24,986 $ 23,723 Future policy benefits Reserve for future policy benefits 7,495 9,721 Deferred profit liability 62 54 Additional liabilities for insurance guarantees 1,186 1,242 Other insurance and annuity liabilities 177 66 Total future policy benefits 8,920 11,083 Policy claims and other policyholders’ funds 216 211 Total policyholder account balances, future policy benefits and claims $ 34,122 $ 35,017 Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by the Company contain a GMDB. The Company previously offered contracts with GMAB, GMWB, and GMIB provisions. See Note 2 and Note 12 for information regarding the Company’s variable annuity guarantees. See Note 14 and Note 18 for additional information regarding the Company’s derivative instruments used to hedge risks related to these provisions. Structured Variable Annuities Structured variable annuities provide contractholders the option to allocate a portion of their account value to an indexed account held in a non-insulated separate account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the equity and interest rate risk related to the indexed account with freestanding derivative instruments. Fixed Annuities Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts. Insurance Liabilities Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL. The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses. The balances of and changes in policyholder account balances were as follows: Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2022 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Contract deposits 146 2,784 55 — 53 Policy charges (8) — — — — Surrenders and other benefits (450) (41) (744) (17) (124) Net transfer from (to) separate account liabilities (60) — — — — Other variable account adjustments — (791) — — — Interest credited 152 — 237 6 15 Balance at December 31, 2022 $ 4,752 $ 6,410 $ 6,799 $ 312 $ 471 Weighted-average crediting rate 3.2 % 1.1 % 3.5 % 1.9 % N/A Cash surrender value (1) $ 4,720 $ 5,986 $ 6,786 $ 277 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Contract deposits 134 233 218 (3) 3,620 Policy charges (178) (91) (116) — (393) Surrenders and other benefits (67) (70) (50) (56) (1,619) Net transfer from (to) separate account liabilities — (102) — — (162) Other variable account adjustments — — — — (791) Interest credited 53 57 68 20 608 Balance at December 31, 2022 $ 1,544 $ 1,520 $ 2,654 $ 524 $ 24,986 Weighted-average crediting rate 3.6 % 3.9 % 2.0 % 4.0 % Net amount at risk $ 9,187 $ 57,354 $ 15,043 $ 149 Cash surrender value (1) $ 1,382 $ 1,054 $ 2,148 $ 348 Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2021 $ 5,098 $ 1,377 $ 7,619 $ 318 $ 578 Contract deposits 332 2,699 59 — 69 Policy charges (11) — — — — Surrenders and other benefits (434) (15) (672) (9) (134) Net transfer from (to) separate account liabilities (168) — — — — Other variable account adjustments — 397 — — — Interest credited 155 — 245 14 14 Balance at December 31, 2021 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Weighted-average crediting rate 3.2 % 1.0 % 3.4 % 1.9 % N/A Cash surrender value (1) $ 4,936 $ 4,180 $ 7,232 $ 319 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,640 $ 1,476 $ 2,269 $ 605 $ 20,980 Contract deposits 157 232 242 (3) 3,787 Policy charges (181) (87) (111) — (390) Surrenders and other benefits (69) (80) (41) (61) (1,515) Net transfer from (to) separate account liabilities — (105) — — (273) Other variable account adjustments — — — — 397 Interest credited 55 57 175 22 737 Balance at December 31, 2021 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Weighted-average crediting rate 3.6 % 3.8 % 2.0 % 4.0 % Net amount at risk $ 9,619 $ 55,224 $ 15,461 $ 165 Cash surrender value (1) $ 1,424 $ 1,072 $ 2,013 $ 379 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities. Refer to Note 12 for the net amount at risk for market risk benefits associated with variable and structured variable annuities. Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative, and separate account liabilities. The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2022 and December 31, 2021 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums. December 31, 2022 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 169 $ 102 $ 18 $ — $ — $ 289 2 % – 2.99% 177 — — — — 177 3 % – 3.99% 2,611 — — 1 — 2,612 4 % – 5.00% 1,611 — — — — 1,611 Total $ 4,568 $ 102 $ 18 $ 1 $ — $ 4,689 Fixed accounts of structured variable annuities 1 % – 1.99% $ 12 $ 7 $ 3 $ 1 $ — $ 23 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 12 $ 7 $ 3 $ 1 $ — $ 23 Fixed annuities 1 % – 1.99% $ 460 $ 402 $ 132 $ 33 $ 10 $ 1,037 2 % – 2.99% 67 — — — — 67 3 % – 3.99% 3,344 — — — — 3,344 4 % – 5.00% 2,333 — — — — 2,333 Total $ 6,204 $ 402 $ 132 $ 33 $ 10 $ 6,781 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 3 $ 7 $ 14 $ — $ 25 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 3 $ 7 $ 14 $ — $ 25 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 55 — 1 — — 56 3 % – 3.99% 885 1 2 — — 888 4 % – 5.00% 569 — — — — 569 Total $ 1,509 $ 1 $ 3 $ — $ — $ 1,513 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable universal life insurance 1 % – 1.99% $ 4 $ 3 $ 2 $ — $ 9 $ 18 2 % – 2.99% 30 — 1 2 2 35 3 % – 3.99% 134 1 1 1 — 137 4 % – 5.00% 648 — — — — 648 Total $ 816 $ 4 $ 4 $ 3 $ 11 $ 838 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 126 — — — — 126 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 126 $ — $ 3 $ — $ — $ 129 Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 32 — — — — 32 4 % – 5.00% 314 — — — — 314 Total $ 346 $ — $ — $ — $ — $ 346 Total 1 % – 1.99% $ 646 $ 517 $ 165 $ 48 $ 19 $ 1,395 2 % – 2.99% 455 — 2 2 2 461 3 % – 3.99% 7,006 2 3 2 — 7,013 4 % – 5.00% 5,475 — — — — 5,475 Total $ 13,582 $ 519 $ 170 $ 52 $ 21 $ 14,344 Percentage of total account values that reset in: Next 12 months 99.8 % 96.3 % 93.8 % 100.0 % 100.0 % 99.6 % > 12 months to 24 months 0.1 3.0 5.8 — — 0.3 > 24 months 0.1 0.7 0.4 — — 0.1 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % December 31, 2021 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 283 $ 13 $ 8 $ — $ — $ 304 2 % – 2.99% 193 — — — — 193 3 % – 3.99% 2,729 — — 1 — 2,730 4 % – 5.00% 1,627 — — — — 1,627 Total $ 4,832 $ 13 $ 8 $ 1 $ — $ 4,854 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of structured variable annuities 1 % – 1.99% $ 13 $ — $ — $ — $ — $ 13 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 13 $ — $ — $ — $ — $ 13 Fixed annuities 1 % – 1.99% $ 1,009 $ 100 $ 86 $ 36 $ 10 $ 1,241 2 % – 2.99% 79 — — — — 79 3 % – 3.99% 3,637 — — — — 3,637 4 % – 5.00% 2,274 — — — — 2,274 Total $ 6,999 $ 100 $ 86 $ 36 $ 10 $ 7,231 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 4 $ 8 $ 15 $ — $ 28 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 4 $ 8 $ 15 $ — $ 28 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 46 — — — — 46 3 % – 3.99% 907 — — — — 907 4 % – 5.00% 617 — — — — 617 Total $ 1,570 $ — $ — $ — $ — $ 1,570 Fixed accounts of variable universal life insurance 1 % – 1.99% $ 11 $ — $ — $ — $ — $ 11 2 % – 2.99% 35 — — — — 35 3 % – 3.99% 137 — — — — 137 4 % – 5.00% 666 — — — — 666 Total $ 849 $ — $ — $ — $ — $ 849 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 130 — — — — 130 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 130 $ — $ 3 $ — $ — $ 133 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 35 — — — — 35 4 % – 5.00% 342 — — — — 342 Total $ 377 $ — $ — $ — $ — $ 377 Total 1 % – 1.99% $ 1,317 $ 117 $ 105 $ 51 $ 10 $ 1,600 2 % – 2.99% 483 — — — — 483 3 % – 3.99% 7,445 — — 1 — 7,446 4 % – 5.00% 5,526 — — — — 5,526 Total $ 14,771 $ 117 $ 105 $ 52 $ 10 $ 15,055 Percentage of total account values that reset in: Next 12 months 98.8 % 85.1 % 79.8 % 33.8 % 1.1 % 98.2 % > 12 months to 24 months 1.0 — 10.5 66.2 98.9 1.4 > 24 months 0.2 14.9 9.7 — — 0.4 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12. Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, All Products (in millions) Pre-adoption balance at December 31, 2020 $ 1,536 $ 633 $ 530 $ 5,749 $ 8,448 Effect of shadow reserve adjustments (175) — — (566) (741) Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach 4 — — 35 39 Effect of change in deferred profit liability (43) — — — (43) Effect of remeasurement of the liability at the current single A discount rate 215 265 238 1,965 2,683 Post-adoption balance at January 1, 2021 1,537 898 768 7,183 10,386 Less: reinsurance recoverable — 601 24 3,623 4,248 Post-adoption balance at January 1, 2021, after $ 1,537 $ 297 $ 744 $ 3,560 $ 6,138 Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2021 $ — $ 702 $ 238 $ 1,831 $ 2,771 Beginning balance at original discount rate — 536 183 1,498 2,217 Effect of changes in cash flow assumptions — — — (6) (6) Effect of actual variances from expected experience — 56 (35) (61) (40) Adjusted beginning of year balance $ — $ 592 $ 148 $ 1,431 $ 2,171 Issuances 38 78 18 — 134 Interest accrual — 29 9 73 111 Net premiums collected (38) (63) (20) (184) (305) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 636 $ 155 $ 1,320 $ 2,111 Effect of changes in discount rate assumptions — 141 33 227 401 Balance at December 31, 2021 $ — $ 777 $ 188 $ 1,547 $ 2,512 Present Value of Future Policy Benefits: Balance at January 1, 2021 $ 1,537 $ 1,600 $ 1,006 $ 9,014 $ 13,157 Beginning balance at original discount rate 1,321 1,169 714 6,716 9,920 Effect of changes in cash flow assumptions — — — (8) (8) Effect of actual variances from expected experience (14) 58 (40) (124) (120) Adjusted beginning of year balance $ 1,307 $ 1,227 $ 674 $ 6,584 $ 9,792 Issuances 39 78 18 — 135 Interest accrual 53 70 39 347 509 Benefit payments (168) (120) (43) (336) (667) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,231 $ 1,255 $ 688 $ 6,595 $ 9,769 Effect of changes in discount rate assumptions 139 343 226 1,755 2,463 Balance at December 31, 2021 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Adjustment due to reserve flooring $ — $ 1 $ — $ — $ 1 Net liability for future policy benefits $ 1,370 $ 822 $ 726 $ 6,803 $ 9,721 Less: reinsurance recoverable 1,265 558 25 3,443 5,291 Net liability for future policy benefits, after reinsurance recoverable $ 105 $ 264 $ 701 $ 3,360 $ 4,430 Discounted expected future gross premiums $ — $ 2,005 $ 1,158 $ 1,623 $ 4,786 Expected future gross premiums $ — $ 2,815 $ 1,395 $ 1,905 $ 6,115 Expected future benefit payments $ 1,707 $ 2,159 $ 1,217 $ 11,568 $ 16,651 Weighted average interest accretion rate 4.2 % 6.5 % 5.9 % 5.3 % Weighted average discount rate 2.6 % 2.8 % 2.8 % 2.9 % Weighted average duration of liability (in years) 7 8 9 10 The annual review of LTC future policy benefit reserves in the third quarter of 2021 resulted in assumption updates that decreased the net liability for future policy benefits $2 million, partially offset by a $1 million decrease to reinsurance recoverable, primarily reflecting updates to premium rate increase and benefit reduction assumptions. Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2022 $ — $ 777 $ 188 $ 1,547 $ 2,512 Beginning balance at original discount rate — 636 155 1,320 2,111 Effect of changes in cash flow assumptions — 1 1 52 54 Effect of actual variances from expected experience — 47 (22) (48) (23) Adjusted beginning of year balance $ — $ 684 $ 134 $ 1,324 $ 2,142 Issuances 42 57 12 — 111 Interest accrual — 34 7 65 106 Net premiums collected (42) (67) (16) (169) (294) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 708 $ 137 $ 1,220 $ 2,065 Effect of changes in discount rate assumptions — (22) (3) (13) (38) Balance at December 31, 2022 $ — $ 686 $ 134 $ 1,207 $ 2,027 Present Value of Future Policy Benefits: Balance at January 1, 2022 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Beginning balance at original discount rate 1,231 1,255 688 6,595 9,769 Effect of changes in cash flow assumptions — (8) 1 42 35 Effect of actual variances from expected experience (13) 52 (28) (36) (25) Adjusted beginning of year balance $ 1,218 $ 1,299 $ 661 $ 6,601 $ 9,779 Issuances 42 57 12 — 111 Interest accrual 49 73 38 336 496 Benefit payments (154) (116) (42) (368) (680) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,155 $ 1,313 $ 669 $ 6,569 $ 9,706 Effect of changes in discount rate assumptions (90) 6 27 (130) (187) Balance at December 31, 2022 $ 1,065 $ 1,319 $ 696 $ 6,439 $ 9,519 Adjustment due to reserve flooring $ — $ 3 $ — $ — $ 3 Net liability for future policy benefits $ 1,065 $ 636 $ 562 $ 5,232 $ 7,495 Less: reinsurance recoverable 949 443 19 2,649 4,060 Net liability for future policy benefits, after reinsurance recoverable $ 116 $ 193 $ 543 $ 2,583 $ 3,435 Discounted expected future gross premiums $ — $ 1,855 $ 926 $ 1,381 $ 4,162 Expected future gross premiums $ — $ 3,183 $ 1,331 $ 1,908 $ 6,422 Expected future benefit payments $ 1,595 $ 2,234 $ 1,169 $ 11,229 $ 16,227 Weighted average interest accretion rate 4.1 % 6.4 % 6.1 % 5.2 % Weighted average discount rate 5.2 % 5.5 % 5.4 % 5.4 % Weighted average duration of liability (in years) 6 7 8 9 The annual review of LTC future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits $10 million, partially offset by a $4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions. The annual review of term life insurance future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $9 million, offset by a $16 million decrease to reinsurance recoverable, reflecting updates to lapse assumptions. The balances of and changes in additional liabilities related to insurance guarantees were as follows: Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,120 $ 76 $ 46 $ 1,242 Interest accrual 32 5 1 38 Benefit accrual 108 8 — 116 Benefit payments (43) (14) (4) (61) Effect of actual variances from expected experience (19) 2 (2) (19) Impact of change in net unrealized (gains) losses on securities (98) (3) (29) (130) Balance at December 31, 2022 $ 1,100 $ 74 $ 12 $ 1,186 Weighted average interest accretion rate 2.9 % 7.0 % 4.1 % Weighted average discount rate 3.2 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 10 8 6 Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,030 $ 74 $ 58 $ 1,162 Interest accrual 29 5 1 35 Benefit accrual 129 8 3 140 Benefit payments (37) (12) (5) (54) Effect of actual variances from expected experience (10) 2 (1) (9) Impact of change in net unrealized (gains) losses on securities (21) (1) (10) (32) Balance at December 31, 2021 $ 1,120 $ 76 $ 46 $ 1,242 Weighted average interest accretion rate 2.9 % 7.0 % 4.0 % Weighted average discount rate 3.1 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 12 9 7 The amount of revenue and interest recognized in the Statement of Income was as follows: Years Ended December 31, 2022 2021 Gross Premiums Interest Expense Gross Premiums Interest Expense (in millions) Life contingent payout annuities $ 45 $ 49 $ 39 $ 53 Term and whole life insurance 169 39 166 41 Disability insurance 127 31 131 30 Long term care insurance 189 271 192 274 Total $ 530 $ 390 $ 528 $ 398 The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12. Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Total, (in millions) Pre-adoption balance at December 31, 2020 $ 19 $ 76 $ — $ 95 Effect of shadow reserve adjustments 5 10 153 168 Post-adoption balance at January 1, 2021 24 86 153 263 Deferral of revenue 3 34 55 92 Amortization (1) (8) (13) (22) Balance at December 31, 2021 $ 26 $ 112 $ 195 $ 333 Balance at January 1, 2022 $ 26 $ 112 $ 195 $ 333 Deferral of revenue 2 48 54 104 Amortization (1) (10) (16) (27) Balance at December 31, 2022 $ 27 $ 150 $ 233 $ 410 Market Risk Benefits Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity contracts issued by the Company contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions. The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions: • Return of premium – provides purchase payments minus adjusted partial surrenders. • Reset – provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision. The Company has GMWB riders in force, which contain one or more of the following provisions: • Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. • Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). • Withdrawals at a specified rate per year for joint contractholders while either is alive. • Withdrawals based on performance of the contract. • Withdrawals based on the age withdrawals begin. • Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue could obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. The net amount at risk for GMDB, and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following tables summarize the balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12. (in millions) Pre-adoption balance at December 31, 2020 $ 3,084 Effect of shadow reserve adjustments (3) Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date 670 Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation 20 Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits 1,058 Post-adoption balance at January 1, 2021 $ 4,829 Years Ended December 31, 2022 2021 (in millions, except age) Balance at beginning of period $ 2,901 $ 4,829 Issuances 27 45 Interest accrual and time decay (237) (294) Reserve increase from attributed fees collected 810 819 Reserve release for benefit payments and derecognition (29) (8) Effect of changes in interest rates and bond markets (4,193) (1,053) Effect of changes in equity markets and subaccount performance 2,258 (1,558) Effect of changes in equity index volatility 205 73 Actual policyholder behavior different from expected behavior 17 52 Effect of changes in other future expected assumptions (139) 123 Effect of changes in the instrument-specific credit risk on market risk benefits (517) (127) Balance at end of period $ 1,103 $ 2,901 Reconciliation of the gross balances in an asset or liability position: Asset position $ 1,015 $ 539 Liability position (2,118) (3,440) Net asset (liability) position $ (1,103) $ (2,901) Guaranteed benefit amount in excess of current account balances (net amount at risk): Death benefits $ 2,781 $ 251 Living benefits $ 3,364 $ 195 Composite (greater of) $ 5,830 $ 441 Weighted average attained age of contractholders 68 68 Changes in unrealized (gains) losses in net income relating to liabilities held at end of period $ (2,044) $ (2,502) Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period $ (505) $ (102) The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits: December 31, 2022 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 1,103 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 11.0% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 26.6% 12.1% Nonperformance risk (4) 95 bps 95 bps Mortality rate (5) 0.0% – 41.6% 1.5% December 31, 2021 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 2,901 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 10.6% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 25.4% 11.4% Nonperformance risk (4) 65 bps 65 bps Mortality rate (5) 0.0% – 54.5% 1.5% (1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals. (2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. (4) The nonperformance risk is the spread added to the U.S. Treasury curve. (5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract. Changes to Significant Inputs and Assumptions: During the years ended December 31, 2022 and 2021, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations: Year ended December 31, 2022 • Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $39 million. • Updates to surrender rates resulted in a decrease to pre-tax income of $200 million. • Updates to mortality rates resulted in a decrease to pre-tax income of $49 million. Year ended December 31, 2021 • Updates to surrender rates resulted in a decrease to pre-tax income of $185 million. Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions. Uncertainty of Fair Value Measurements Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rates used in the fair value measurement of market risk benefits in iso |
Separate Account Assets and Lia
Separate Account Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities The fair value of separate account assets is invested exclusively in mutual funds. No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2022, 2021 and 2020. The balances of and changes in separate account liabilities were as follows: Variable Annuities Variable Universal Life Total (in millions) Balance at January 1, 2022 $ 82,862 $ 9,376 $ 92,238 Premiums and deposits 1,067 425 1,492 Policy charges (1,396) (278) (1,674) Surrenders and other benefits (4,923) (286) (5,209) Investment return (14,450) (1,654) (16,104) Net transfer from (to) general account 63 70 133 Balance at December 31, 2022 $ 63,223 $ 7,653 $ 70,876 Cash surrender value $ 61,461 $ 7,200 $ 68,661 Variable Annuities Variable Universal Life Total (in millions) Balance at January 1, 2021 $ 79,299 $ 8,257 $ 87,556 Premiums and deposits 2,590 411 3,001 Policy charges (1,520) (263) (1,783) Surrenders and other benefits (6,336) (362) (6,698) Investment return 8,660 1,249 9,909 Net transfer from (to) general account 169 84 253 Balance at December 31, 2021 $ 82,862 $ 9,376 $ 92,238 Cash surrender value $ 80,746 $ 8,939 $ 89,685 |
Market Risk Benefits_Variable A
Market Risk Benefits/Variable Annuity and Insurance Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Market Risk Benefits/Variable Annuity and Insurance Guarantees | Policyholder Account Balances, Future Policy Benefits and Claims Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2022 December 31, 2021 (in millions) Policyholder account balances Policyholder account balances $ 24,986 $ 23,723 Future policy benefits Reserve for future policy benefits 7,495 9,721 Deferred profit liability 62 54 Additional liabilities for insurance guarantees 1,186 1,242 Other insurance and annuity liabilities 177 66 Total future policy benefits 8,920 11,083 Policy claims and other policyholders’ funds 216 211 Total policyholder account balances, future policy benefits and claims $ 34,122 $ 35,017 Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by the Company contain a GMDB. The Company previously offered contracts with GMAB, GMWB, and GMIB provisions. See Note 2 and Note 12 for information regarding the Company’s variable annuity guarantees. See Note 14 and Note 18 for additional information regarding the Company’s derivative instruments used to hedge risks related to these provisions. Structured Variable Annuities Structured variable annuities provide contractholders the option to allocate a portion of their account value to an indexed account held in a non-insulated separate account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the equity and interest rate risk related to the indexed account with freestanding derivative instruments. Fixed Annuities Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts. Insurance Liabilities Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL. The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years. Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses. The balances of and changes in policyholder account balances were as follows: Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2022 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Contract deposits 146 2,784 55 — 53 Policy charges (8) — — — — Surrenders and other benefits (450) (41) (744) (17) (124) Net transfer from (to) separate account liabilities (60) — — — — Other variable account adjustments — (791) — — — Interest credited 152 — 237 6 15 Balance at December 31, 2022 $ 4,752 $ 6,410 $ 6,799 $ 312 $ 471 Weighted-average crediting rate 3.2 % 1.1 % 3.5 % 1.9 % N/A Cash surrender value (1) $ 4,720 $ 5,986 $ 6,786 $ 277 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Contract deposits 134 233 218 (3) 3,620 Policy charges (178) (91) (116) — (393) Surrenders and other benefits (67) (70) (50) (56) (1,619) Net transfer from (to) separate account liabilities — (102) — — (162) Other variable account adjustments — — — — (791) Interest credited 53 57 68 20 608 Balance at December 31, 2022 $ 1,544 $ 1,520 $ 2,654 $ 524 $ 24,986 Weighted-average crediting rate 3.6 % 3.9 % 2.0 % 4.0 % Net amount at risk $ 9,187 $ 57,354 $ 15,043 $ 149 Cash surrender value (1) $ 1,382 $ 1,054 $ 2,148 $ 348 Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2021 $ 5,098 $ 1,377 $ 7,619 $ 318 $ 578 Contract deposits 332 2,699 59 — 69 Policy charges (11) — — — — Surrenders and other benefits (434) (15) (672) (9) (134) Net transfer from (to) separate account liabilities (168) — — — — Other variable account adjustments — 397 — — — Interest credited 155 — 245 14 14 Balance at December 31, 2021 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Weighted-average crediting rate 3.2 % 1.0 % 3.4 % 1.9 % N/A Cash surrender value (1) $ 4,936 $ 4,180 $ 7,232 $ 319 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,640 $ 1,476 $ 2,269 $ 605 $ 20,980 Contract deposits 157 232 242 (3) 3,787 Policy charges (181) (87) (111) — (390) Surrenders and other benefits (69) (80) (41) (61) (1,515) Net transfer from (to) separate account liabilities — (105) — — (273) Other variable account adjustments — — — — 397 Interest credited 55 57 175 22 737 Balance at December 31, 2021 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Weighted-average crediting rate 3.6 % 3.8 % 2.0 % 4.0 % Net amount at risk $ 9,619 $ 55,224 $ 15,461 $ 165 Cash surrender value (1) $ 1,424 $ 1,072 $ 2,013 $ 379 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities. Refer to Note 12 for the net amount at risk for market risk benefits associated with variable and structured variable annuities. Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative, and separate account liabilities. The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2022 and December 31, 2021 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums. December 31, 2022 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 169 $ 102 $ 18 $ — $ — $ 289 2 % – 2.99% 177 — — — — 177 3 % – 3.99% 2,611 — — 1 — 2,612 4 % – 5.00% 1,611 — — — — 1,611 Total $ 4,568 $ 102 $ 18 $ 1 $ — $ 4,689 Fixed accounts of structured variable annuities 1 % – 1.99% $ 12 $ 7 $ 3 $ 1 $ — $ 23 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 12 $ 7 $ 3 $ 1 $ — $ 23 Fixed annuities 1 % – 1.99% $ 460 $ 402 $ 132 $ 33 $ 10 $ 1,037 2 % – 2.99% 67 — — — — 67 3 % – 3.99% 3,344 — — — — 3,344 4 % – 5.00% 2,333 — — — — 2,333 Total $ 6,204 $ 402 $ 132 $ 33 $ 10 $ 6,781 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 3 $ 7 $ 14 $ — $ 25 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 3 $ 7 $ 14 $ — $ 25 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 55 — 1 — — 56 3 % – 3.99% 885 1 2 — — 888 4 % – 5.00% 569 — — — — 569 Total $ 1,509 $ 1 $ 3 $ — $ — $ 1,513 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable universal life insurance 1 % – 1.99% $ 4 $ 3 $ 2 $ — $ 9 $ 18 2 % – 2.99% 30 — 1 2 2 35 3 % – 3.99% 134 1 1 1 — 137 4 % – 5.00% 648 — — — — 648 Total $ 816 $ 4 $ 4 $ 3 $ 11 $ 838 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 126 — — — — 126 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 126 $ — $ 3 $ — $ — $ 129 Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 32 — — — — 32 4 % – 5.00% 314 — — — — 314 Total $ 346 $ — $ — $ — $ — $ 346 Total 1 % – 1.99% $ 646 $ 517 $ 165 $ 48 $ 19 $ 1,395 2 % – 2.99% 455 — 2 2 2 461 3 % – 3.99% 7,006 2 3 2 — 7,013 4 % – 5.00% 5,475 — — — — 5,475 Total $ 13,582 $ 519 $ 170 $ 52 $ 21 $ 14,344 Percentage of total account values that reset in: Next 12 months 99.8 % 96.3 % 93.8 % 100.0 % 100.0 % 99.6 % > 12 months to 24 months 0.1 3.0 5.8 — — 0.3 > 24 months 0.1 0.7 0.4 — — 0.1 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % December 31, 2021 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 283 $ 13 $ 8 $ — $ — $ 304 2 % – 2.99% 193 — — — — 193 3 % – 3.99% 2,729 — — 1 — 2,730 4 % – 5.00% 1,627 — — — — 1,627 Total $ 4,832 $ 13 $ 8 $ 1 $ — $ 4,854 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of structured variable annuities 1 % – 1.99% $ 13 $ — $ — $ — $ — $ 13 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 13 $ — $ — $ — $ — $ 13 Fixed annuities 1 % – 1.99% $ 1,009 $ 100 $ 86 $ 36 $ 10 $ 1,241 2 % – 2.99% 79 — — — — 79 3 % – 3.99% 3,637 — — — — 3,637 4 % – 5.00% 2,274 — — — — 2,274 Total $ 6,999 $ 100 $ 86 $ 36 $ 10 $ 7,231 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 4 $ 8 $ 15 $ — $ 28 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 4 $ 8 $ 15 $ — $ 28 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 46 — — — — 46 3 % – 3.99% 907 — — — — 907 4 % – 5.00% 617 — — — — 617 Total $ 1,570 $ — $ — $ — $ — $ 1,570 Fixed accounts of variable universal life insurance 1 % – 1.99% $ 11 $ — $ — $ — $ — $ 11 2 % – 2.99% 35 — — — — 35 3 % – 3.99% 137 — — — — 137 4 % – 5.00% 666 — — — — 666 Total $ 849 $ — $ — $ — $ — $ 849 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 130 — — — — 130 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 130 $ — $ 3 $ — $ — $ 133 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 35 — — — — 35 4 % – 5.00% 342 — — — — 342 Total $ 377 $ — $ — $ — $ — $ 377 Total 1 % – 1.99% $ 1,317 $ 117 $ 105 $ 51 $ 10 $ 1,600 2 % – 2.99% 483 — — — — 483 3 % – 3.99% 7,445 — — 1 — 7,446 4 % – 5.00% 5,526 — — — — 5,526 Total $ 14,771 $ 117 $ 105 $ 52 $ 10 $ 15,055 Percentage of total account values that reset in: Next 12 months 98.8 % 85.1 % 79.8 % 33.8 % 1.1 % 98.2 % > 12 months to 24 months 1.0 — 10.5 66.2 98.9 1.4 > 24 months 0.2 14.9 9.7 — — 0.4 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12. Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, All Products (in millions) Pre-adoption balance at December 31, 2020 $ 1,536 $ 633 $ 530 $ 5,749 $ 8,448 Effect of shadow reserve adjustments (175) — — (566) (741) Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach 4 — — 35 39 Effect of change in deferred profit liability (43) — — — (43) Effect of remeasurement of the liability at the current single A discount rate 215 265 238 1,965 2,683 Post-adoption balance at January 1, 2021 1,537 898 768 7,183 10,386 Less: reinsurance recoverable — 601 24 3,623 4,248 Post-adoption balance at January 1, 2021, after $ 1,537 $ 297 $ 744 $ 3,560 $ 6,138 Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2021 $ — $ 702 $ 238 $ 1,831 $ 2,771 Beginning balance at original discount rate — 536 183 1,498 2,217 Effect of changes in cash flow assumptions — — — (6) (6) Effect of actual variances from expected experience — 56 (35) (61) (40) Adjusted beginning of year balance $ — $ 592 $ 148 $ 1,431 $ 2,171 Issuances 38 78 18 — 134 Interest accrual — 29 9 73 111 Net premiums collected (38) (63) (20) (184) (305) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 636 $ 155 $ 1,320 $ 2,111 Effect of changes in discount rate assumptions — 141 33 227 401 Balance at December 31, 2021 $ — $ 777 $ 188 $ 1,547 $ 2,512 Present Value of Future Policy Benefits: Balance at January 1, 2021 $ 1,537 $ 1,600 $ 1,006 $ 9,014 $ 13,157 Beginning balance at original discount rate 1,321 1,169 714 6,716 9,920 Effect of changes in cash flow assumptions — — — (8) (8) Effect of actual variances from expected experience (14) 58 (40) (124) (120) Adjusted beginning of year balance $ 1,307 $ 1,227 $ 674 $ 6,584 $ 9,792 Issuances 39 78 18 — 135 Interest accrual 53 70 39 347 509 Benefit payments (168) (120) (43) (336) (667) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,231 $ 1,255 $ 688 $ 6,595 $ 9,769 Effect of changes in discount rate assumptions 139 343 226 1,755 2,463 Balance at December 31, 2021 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Adjustment due to reserve flooring $ — $ 1 $ — $ — $ 1 Net liability for future policy benefits $ 1,370 $ 822 $ 726 $ 6,803 $ 9,721 Less: reinsurance recoverable 1,265 558 25 3,443 5,291 Net liability for future policy benefits, after reinsurance recoverable $ 105 $ 264 $ 701 $ 3,360 $ 4,430 Discounted expected future gross premiums $ — $ 2,005 $ 1,158 $ 1,623 $ 4,786 Expected future gross premiums $ — $ 2,815 $ 1,395 $ 1,905 $ 6,115 Expected future benefit payments $ 1,707 $ 2,159 $ 1,217 $ 11,568 $ 16,651 Weighted average interest accretion rate 4.2 % 6.5 % 5.9 % 5.3 % Weighted average discount rate 2.6 % 2.8 % 2.8 % 2.9 % Weighted average duration of liability (in years) 7 8 9 10 The annual review of LTC future policy benefit reserves in the third quarter of 2021 resulted in assumption updates that decreased the net liability for future policy benefits $2 million, partially offset by a $1 million decrease to reinsurance recoverable, primarily reflecting updates to premium rate increase and benefit reduction assumptions. Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2022 $ — $ 777 $ 188 $ 1,547 $ 2,512 Beginning balance at original discount rate — 636 155 1,320 2,111 Effect of changes in cash flow assumptions — 1 1 52 54 Effect of actual variances from expected experience — 47 (22) (48) (23) Adjusted beginning of year balance $ — $ 684 $ 134 $ 1,324 $ 2,142 Issuances 42 57 12 — 111 Interest accrual — 34 7 65 106 Net premiums collected (42) (67) (16) (169) (294) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 708 $ 137 $ 1,220 $ 2,065 Effect of changes in discount rate assumptions — (22) (3) (13) (38) Balance at December 31, 2022 $ — $ 686 $ 134 $ 1,207 $ 2,027 Present Value of Future Policy Benefits: Balance at January 1, 2022 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Beginning balance at original discount rate 1,231 1,255 688 6,595 9,769 Effect of changes in cash flow assumptions — (8) 1 42 35 Effect of actual variances from expected experience (13) 52 (28) (36) (25) Adjusted beginning of year balance $ 1,218 $ 1,299 $ 661 $ 6,601 $ 9,779 Issuances 42 57 12 — 111 Interest accrual 49 73 38 336 496 Benefit payments (154) (116) (42) (368) (680) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,155 $ 1,313 $ 669 $ 6,569 $ 9,706 Effect of changes in discount rate assumptions (90) 6 27 (130) (187) Balance at December 31, 2022 $ 1,065 $ 1,319 $ 696 $ 6,439 $ 9,519 Adjustment due to reserve flooring $ — $ 3 $ — $ — $ 3 Net liability for future policy benefits $ 1,065 $ 636 $ 562 $ 5,232 $ 7,495 Less: reinsurance recoverable 949 443 19 2,649 4,060 Net liability for future policy benefits, after reinsurance recoverable $ 116 $ 193 $ 543 $ 2,583 $ 3,435 Discounted expected future gross premiums $ — $ 1,855 $ 926 $ 1,381 $ 4,162 Expected future gross premiums $ — $ 3,183 $ 1,331 $ 1,908 $ 6,422 Expected future benefit payments $ 1,595 $ 2,234 $ 1,169 $ 11,229 $ 16,227 Weighted average interest accretion rate 4.1 % 6.4 % 6.1 % 5.2 % Weighted average discount rate 5.2 % 5.5 % 5.4 % 5.4 % Weighted average duration of liability (in years) 6 7 8 9 The annual review of LTC future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits $10 million, partially offset by a $4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions. The annual review of term life insurance future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $9 million, offset by a $16 million decrease to reinsurance recoverable, reflecting updates to lapse assumptions. The balances of and changes in additional liabilities related to insurance guarantees were as follows: Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,120 $ 76 $ 46 $ 1,242 Interest accrual 32 5 1 38 Benefit accrual 108 8 — 116 Benefit payments (43) (14) (4) (61) Effect of actual variances from expected experience (19) 2 (2) (19) Impact of change in net unrealized (gains) losses on securities (98) (3) (29) (130) Balance at December 31, 2022 $ 1,100 $ 74 $ 12 $ 1,186 Weighted average interest accretion rate 2.9 % 7.0 % 4.1 % Weighted average discount rate 3.2 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 10 8 6 Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,030 $ 74 $ 58 $ 1,162 Interest accrual 29 5 1 35 Benefit accrual 129 8 3 140 Benefit payments (37) (12) (5) (54) Effect of actual variances from expected experience (10) 2 (1) (9) Impact of change in net unrealized (gains) losses on securities (21) (1) (10) (32) Balance at December 31, 2021 $ 1,120 $ 76 $ 46 $ 1,242 Weighted average interest accretion rate 2.9 % 7.0 % 4.0 % Weighted average discount rate 3.1 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 12 9 7 The amount of revenue and interest recognized in the Statement of Income was as follows: Years Ended December 31, 2022 2021 Gross Premiums Interest Expense Gross Premiums Interest Expense (in millions) Life contingent payout annuities $ 45 $ 49 $ 39 $ 53 Term and whole life insurance 169 39 166 41 Disability insurance 127 31 131 30 Long term care insurance 189 271 192 274 Total $ 530 $ 390 $ 528 $ 398 The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12. Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Total, (in millions) Pre-adoption balance at December 31, 2020 $ 19 $ 76 $ — $ 95 Effect of shadow reserve adjustments 5 10 153 168 Post-adoption balance at January 1, 2021 24 86 153 263 Deferral of revenue 3 34 55 92 Amortization (1) (8) (13) (22) Balance at December 31, 2021 $ 26 $ 112 $ 195 $ 333 Balance at January 1, 2022 $ 26 $ 112 $ 195 $ 333 Deferral of revenue 2 48 54 104 Amortization (1) (10) (16) (27) Balance at December 31, 2022 $ 27 $ 150 $ 233 $ 410 Market Risk Benefits Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity contracts issued by the Company contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions. The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions: • Return of premium – provides purchase payments minus adjusted partial surrenders. • Reset – provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. • Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision. The Company has GMWB riders in force, which contain one or more of the following provisions: • Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. • Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). • Withdrawals at a specified rate per year for joint contractholders while either is alive. • Withdrawals based on performance of the contract. • Withdrawals based on the age withdrawals begin. • Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue could obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. The net amount at risk for GMDB, and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero. The following tables summarize the balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12. (in millions) Pre-adoption balance at December 31, 2020 $ 3,084 Effect of shadow reserve adjustments (3) Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date 670 Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation 20 Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits 1,058 Post-adoption balance at January 1, 2021 $ 4,829 Years Ended December 31, 2022 2021 (in millions, except age) Balance at beginning of period $ 2,901 $ 4,829 Issuances 27 45 Interest accrual and time decay (237) (294) Reserve increase from attributed fees collected 810 819 Reserve release for benefit payments and derecognition (29) (8) Effect of changes in interest rates and bond markets (4,193) (1,053) Effect of changes in equity markets and subaccount performance 2,258 (1,558) Effect of changes in equity index volatility 205 73 Actual policyholder behavior different from expected behavior 17 52 Effect of changes in other future expected assumptions (139) 123 Effect of changes in the instrument-specific credit risk on market risk benefits (517) (127) Balance at end of period $ 1,103 $ 2,901 Reconciliation of the gross balances in an asset or liability position: Asset position $ 1,015 $ 539 Liability position (2,118) (3,440) Net asset (liability) position $ (1,103) $ (2,901) Guaranteed benefit amount in excess of current account balances (net amount at risk): Death benefits $ 2,781 $ 251 Living benefits $ 3,364 $ 195 Composite (greater of) $ 5,830 $ 441 Weighted average attained age of contractholders 68 68 Changes in unrealized (gains) losses in net income relating to liabilities held at end of period $ (2,044) $ (2,502) Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period $ (505) $ (102) The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits: December 31, 2022 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 1,103 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 11.0% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 26.6% 12.1% Nonperformance risk (4) 95 bps 95 bps Mortality rate (5) 0.0% – 41.6% 1.5% December 31, 2021 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 2,901 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 10.6% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 25.4% 11.4% Nonperformance risk (4) 65 bps 65 bps Mortality rate (5) 0.0% – 54.5% 1.5% (1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals. (2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. (4) The nonperformance risk is the spread added to the U.S. Treasury curve. (5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract. Changes to Significant Inputs and Assumptions: During the years ended December 31, 2022 and 2021, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations: Year ended December 31, 2022 • Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $39 million. • Updates to surrender rates resulted in a decrease to pre-tax income of $200 million. • Updates to mortality rates resulted in a decrease to pre-tax income of $49 million. Year ended December 31, 2021 • Updates to surrender rates resulted in a decrease to pre-tax income of $185 million. Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions. Uncertainty of Fair Value Measurements Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rates used in the fair value measurement of market risk benefits in iso |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Borrowings RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. As of December 31, 2022 and 2021, the Company had accessed collateralized borrowings and pledged (granted a lien on) certain investments, primarily commercial mortgage backed securities, with an aggregate fair value of $962 million and $1.0 billion, respectively. The amount of the Company’s liability including accrued interest was $201 million and $200 million as of December 31, 2022 and 2021, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of both December 31, 2022 and 2021. The weighted average annualized interest rate on the FHLB advances held as of December 31, 2022 and 2021 was 4.6% and 0.3%, respectively. Lines of Credit RiverSource Life Insurance Company, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under this line of credit may not exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to London Interbank Offered Rate (“LIBOR”) for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2022 and 2021. RiverSource Life of NY, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under this line of credit may not exceed the lesser of $25 million or 3% of RiverSource Life of NY’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period. Amounts borrowed may be repaid at any time with no prepayment penalty. The credit agreement is amended to extend the maturity on an annual basis with Ameriprise Financial, subject to the New York Department of Financial Services’ non-disapproval. There were no amounts outstanding on this line of credit as of both December 31, 2022 and 2021. RTA, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender not to exceed $100 million. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. This line of credit is automatically renewed annually with Ameriprise Financial. There were no amounts outstanding on this line of credit as of both December 31, 2022 and 2021. Long-Term Debt The Company has a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The surplus note is subordinate in right of payment to the prior payment in full of the Company’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life Insurance Company’s statutory surplus. Interest payments, which commenced on June 30, 2021, are due semiannually in arrears on June 30 and December 31. Subject to the preceding conditions, the Company may prepay all or a portion of the principal at any time. The outstanding balance was $500 million as of both December 31, 2022 and 2021 and is recorded in Long-term debt. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | 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 (See Note 5 for the balances of assets and liabilities for consolidated investment entities): December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 8,311 $ 395 $ 8,706 Residential mortgage backed securities — 2,959 — 2,959 Commercial mortgage backed securities — 2,651 — 2,651 State and municipal obligations — 786 — 786 Asset backed securities — 452 545 997 Foreign government bonds and obligations — 35 — 35 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,194 940 16,135 Cash equivalents 1,063 1,529 — 2,592 Market risk benefits — — 1,015 1,015 (1) Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 48 48 Other assets: Interest rate derivative contracts 7 260 — 267 Equity derivative contracts 129 2,564 — 2,693 Foreign exchange derivative contracts — 34 — 34 Credit derivative contracts — 13 — 13 Total other assets 136 2,871 — 3,007 Separate account assets at net asset value (“NAV”) 70,876 (2) Total assets at fair value $ 1,200 $ 19,594 $ 2,003 $ 93,673 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 44 $ 47 IUL embedded derivatives — — 739 739 Structured variable annuity embedded derivatives — — (137) (137) (3) Total policyholder account balances, future policy benefits and claims — 3 646 649 (4) Market risk benefits — — 2,118 2,118 (1) Other liabilities: Interest rate derivative contracts 4 351 — 355 Equity derivative contracts 138 2,228 — 2,366 Foreign exchange derivative contracts 6 4 — 10 Total other liabilities 148 2,583 — 2,731 Total liabilities at fair value $ 148 $ 2,586 $ 2,764 $ 5,498 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Market risk benefits — — 539 539 (1) Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at NAV 92,238 (2) Total assets at fair value $ 2,146 $ 21,999 $ 1,385 $ 117,768 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 1,367 1,372 (5) Market risk benefits — — 3,440 3,440 (1) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 4,807 $ 8,992 (1) See Note 12 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits. (2) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (3) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. (4) The Company’s adjustment for nonperformance risk resulted in a $139 million cumulative decrease to the embedded derivatives as of December 31, 2022. (5) The Company’s adjustment for nonperformance risk resulted in a $96 million cumulative decrease to the embedded derivatives as of December 31, 2021. 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income (1) — — (1) (1) (8) Other comprehensive income (loss) (44) — (25) (69) — Purchases 29 30 564 623 — Settlements (85) — (285) (370) (3) Transfers out of Level 3 — (30) — (30) — Balance at December 31, 2022 $ 395 $ — $ 545 $ 940 $ 48 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2022 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2022 $ (42) $ — $ (21) $ (63) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 406 $ 1,367 Total (gains) losses included in: Net income (9) (2) (105) (2) (633) (3) (747) Issues — 51 90 141 Settlements (3) (112) — (115) Balance at December 31, 2022 $ 44 $ 739 $ (137) (4) $ 646 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2022 $ — $ (105) (2) $ (633) (3) $ (738) Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 70 $ 1,054 Total (gains) losses included in: Net income 10 (2) 68 (2) 393 (3) 471 Issues — — (28) (28) Settlements (3) (98) (29) (130) Balance at December 31, 2021 $ 56 $ 905 $ 406 $ 1,367 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ — $ 68 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives (5) Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 (1) Included in Net investment income (2) Included in Interest credited to fixed accounts (3) Included in Benefits, claims, losses and settlement expenses (4) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. (5) GMWB and GMAB were accounted for as embedded derivatives prior to the adoption of ASU 2018-12. Upon adoption of ASU 2018-12, GMWB and GMAB are accounted for as market risk benefits. The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $45 million and $(23) million, net of the reinsurance accrual, for the years ended December 31, 2022 and 2021, respectively, and $196 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the year ended December 31, 2020 (prior to the adoption of ASU 2018-12). Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. 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: December 31, 2022 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 395 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.1 % - 2.3 % 1.4 % Asset backed securities $ 545 Discounted cash flow Annual default rate 2.4% 2.4 % Loss severity 25.0% 25.0 % Yield/spread to U.S. Treasuries (2) 320 bps - 550 bps 329 bps Fixed deferred indexed annuity ceded embedded derivatives $ 48 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 44 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 95 bps 95 bps IUL embedded derivatives $ 739 Discounted cash flow Nonperformance risk (5) 95 bps 95 bps Structured variable annuity embedded derivatives $ (137) (6) Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 95 bps 95 bps December 31, 2021 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8 % - 2.4 % 1.1 % Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8 % Loss severity 25.0% 25.0 % Yield/spread to swap rates (3) 175 bps - 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 65 bps 65 bps IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (5) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 65 bps 65 bps (1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the yield/spread to U.S. Treasuries for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to U.S. Treasuries divided by the aggregate balances of the tranches. (3) The weighted average for the yield/spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its yield/spread to swap divided by the aggregate balances of the tranches. (4) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (5) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. During the third quarter of 2022, the Company changed to using a U.S. Treasury curve as its observable discount rate curve reflecting the evolution of LIBOR discontinuation as an observable reference rate used by market participants. (6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. Level 3 measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company. Uncertainty of Fair Value Measurements Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities and asset backed securities in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the annual default rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss severity in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the yield/spread to swap rates in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the surrender rate used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in nonperformance risk and surrender rate used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value. Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement. 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 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 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. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value 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. The fair value of affiliated asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in the affiliated asset backed securities is classified as Level 3. 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. Cash Equivalents Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also 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. Receivables The Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3. 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 the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both December 31, 2022 and 2021. See Note 17 and Note 18 for further information on the credit risk of derivative instruments and related collateral. 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 is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy. Liabilities Policyholder Account Balances, Future Policy Benefits and Claims There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certain variable annuity riders (prior to the adoption of ASU 2018-12), fixed deferred indexed annuity, structured variable annuity and IUL products. Prior to the adoption of ASU 2018-12, the Company valued the embedded derivatives attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculated fair value as the present value of future expected benefit payments less the present value of future expected rider fees attributable to the embedded derivative feature. The projected cash flows used by these models included observable capital market assumptions and incorporated significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that included margins for risk, all of which the Company believed a market participant would expect. The fair value also reflected a current estimate of the Company’s nonperformance risk specific to these embedded derivatives. Given the significant unobservable inputs to this valuation, these measurements were classified as Level 3. The embedded derivatives attributable to these provisions were recorded in Policyholder account balances, future policy benefits and claims. Refer to Note 12 for additional information on these provisions accounted for as market risk benefits under ASU 2018-12. The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2. The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, the fixed deferred indexed annuity, structured variable annuity and 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. 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. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both December 31, 2022 and 2021. See Note 17 and Note 18 for further information on the credit risk of derivative instruments and related collateral. Fair Value on a Nonrecurring Basis The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $58 million and $93 million as of December 31, 2022 and 2021, respectively, and is classified as Level 3 in the fair value hierarchy. Assets and Liabilities Not Reported at Fair Value The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2022 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,768 $ — $ — $ 1,600 $ 1,600 Policy loans 847 — 847 — 847 Other investments 89 — 69 20 89 Receivables 7,372 — — 6,174 6,174 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 14,450 $ — $ — $ 12,470 $ 12,470 Short-term borrowings 201 — 201 — 201 Long-term debt 500 — 315 — 315 Other liabilities 8 — — 7 7 Separate account liabilities - investment contracts 298 — 298 — 298 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,289 $ — $ — $ 13,215 $ 13,215 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities - investment contracts 403 — 403 — 403 Other investments include syndicated loans and the Company’s membership in the FHLB. Receivables include deposit receivables. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans and deposit receivables. Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Short-term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 13 for further information on short-term borrowings and long-term debt. Other liabilities include future funding commitments to affordable housing partnerships |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Revenues See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates. The Company is the lessor of one real estate property which it leases to Ameriprise Financial under an operating lease that expires November 30, 2029. The Company earned $5 million in rental income for each of the years ended December 31, 2022, 2021 and 2020, which is reflected in Other revenues. The Company expects to earn $5 million in each year of the five year period ending December 31, 2027 and a total of $9 million thereafter. Expenses Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $320 million, $345 million and $358 million for the years ended December 31, 2022, 2021 and 2020, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Income Taxes The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due from (to) Ameriprise Financial for federal income taxes was $(56) million and $18 million as of December 31, 2022 and 2021, respectively, which is reflected in Other liabilities and Other assets, respectively. Investments The Company invested in AA and A rated asset backed securities issued by AAF as of December 31, 2021 and in AA, A and BBB rated asset backed securities issued by AAF 2 as of December 31, 2022, both affiliates of the Company. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2021, the fair value of these asset backed securities was $289 million. During the third quarter of 2022, the Company redeemed the outstanding AA and A rated securities issued by AAF at par and invested $564 million in new AA, A and BBB rated asset backed securities issued by AAF 2. As of December 31, 2022, the fair value of these asset backed securities was $544 million. The fair value of these asset backed securities is reported in Investments: Available-for-Sale Fixed Maturities, at fair value. Interest income from these asset backed securities was $17 million, $12 million and $14 million for the years ended December 31, 2022, 2021 and 2020, respectively, and is reported in Net investment income. Lines of Credit RiverSource Life Insurance Company, as the lender, has a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets as of the prior year end. The interest rate for any borrowing under the agreement is established by reference to LIBOR for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2022 and 2021. See Note 13 for information about additional lines of credit with an affiliate. Long-Term Debt See Note 13 for information about a surplus note to an affiliate. Dividends, Return of Capital or Distributions Cash dividends and return of capital or distributions paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2022 2021 2020 (in millions) Dividends paid to Ameriprise Financial $ 600 $ 1,900 $ 800 Dividend received from RiverSource Life of NY 63 — — Dividends received from RTA — 50 95 Return of capital received from RTA 80 — — On February 17, 2023, RiverSource Life Insurance Company’s Board of Directors declared a cash dividend of up to $200 million to Ameriprise Financial, payable on or after March 20, 2023, pending approval by the Minnesota Department of Commerce. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Regulatory Requirements | Regulatory Requirements The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company. The Company has met its minimum RBC requirements. Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, classifying surplus notes as a component of statutory surplus rather than debt, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets. State insurance statutes contain limitations as to the amount of dividends and other distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, payments in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company’s primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company’s statutory unassigned (deficit)/surplus was $(679) million and $175 million as of December 31, 2022 and 2021, respectively. In addition, dividends or distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus was $3.1 billion and $3.4 billion as of December 31, 2022 and 2021, respectively. Statutory net gain from operations and net income for RiverSource Life Insurance Company are summarized as follows: Years Ended December 31, 2022 2021 2020 (in millions) Statutory net gain from operations $ 1,615 $ 1,366 $ 1,393 Statutory net income 1,769 253 1,582 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments are subject to master netting 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: December 31, 2022 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,887 $ — $ 2,887 $ (2,313) $ (565) $ (5) $ 4 OTC cleared 23 — 23 (9) — — 14 Exchange-traded 97 — 97 (75) — — 22 Total $ 3,007 $ — $ 3,007 $ (2,397) $ (565) $ (5) $ 40 December 31, 2021 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 (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: December 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 2,630 $ — $ 2,630 $ (2,313) $ (38) $ (277) $ 2 OTC cleared 9 — 9 (9) — — — Exchange-traded 92 — 92 (75) — (17) — Total $ 2,731 $ — $ 2,731 $ (2,397) $ (38) $ (294) $ 2 December 31, 2021 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 Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 (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 amount of assets or liabilities presented 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. Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. See Note 18 for additional disclosures related to the Company’s derivative instruments. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 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. Certain of the Company’s freestanding derivative instruments are 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 17 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral. Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2022 December 31, 2021 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 101,302 $ 267 $ 355 $ 79,459 $ 1,252 $ 468 Equity contracts 67,416 2,693 2,366 59,763 4,238 3,711 Credit contracts 1,802 13 — 1,717 9 — Foreign exchange contracts 2,870 34 10 2,239 18 1 Total non-designated hedges 173,390 3,007 2,731 143,178 5,517 4,180 Embedded derivatives IUL N/A — 739 N/A — 905 Fixed deferred indexed annuities and deposit receivables N/A 48 47 N/A 59 61 Structured variable annuity (3) N/A — (137) N/A — 406 Total embedded derivatives N/A 48 649 N/A 59 1,372 Total derivatives $ 173,390 $ 3,055 $ 3,380 $ 143,178 $ 5,576 $ 5,552 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets Receivables (2) The fair value of freestanding derivative liabilities is included in Other liabilities Policyholder account balances, future policy benefits and claims (3) The fair value of the structured variable annuity embedded derivatives as of December 31, 2022 included $194 million of individual contracts in a liability position and $331 million of individual contracts in an asset position. The fair value of the structured variable annuity embedded derivatives as of December 31, 2021 included $409 million of individual contracts in a liability position and $3 million of individual contracts in an asset position. See Note 14 for additional information regarding the Company’s fair value measurement of derivative instruments. As of December 31, 2022 and 2021, investment securities with a fair value of $14 million and $123 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $5 million and $123 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2022 and 2021, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both December 31, 2022 and 2021, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Net Investment Income Benefits, Claims, Losses and Settlement Expenses Interest Credited to Fixed Accounts Change in Fair Value of Market Risk Benefits (in millions) Year Ended December 31, 2022 Interest rate contracts $ — $ (26) $ — $ (2,874) Equity contracts — (164) (126) 899 Credit contracts — — — 279 Foreign exchange contracts — — — 105 IUL embedded derivatives — — 217 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — — 4 — Structured variable annuity embedded derivatives — 633 — — Total gain (loss) $ — $ 443 $ 95 $ (1,591) Year Ended December 31, 2021 Interest rate contracts $ — $ — $ — $ (886) Equity contracts 1 34 91 (851) Credit contracts — — — 43 Foreign exchange contracts — — — 5 IUL embedded derivatives — — 30 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — — (8) — Structured variable annuity embedded derivatives — (393) — — Total gain (loss) $ 1 $ (359) $ 113 $ (1,689) Year Ended December 31, 2020 Interest rate contracts $ — $ 1,633 $ — $ — Equity contracts — (744) 55 — Credit contracts — (106) — — Foreign exchange contracts — (8) — — GMWB and GMAB embedded derivatives (1) — (1,553) — — IUL embedded derivatives — — 7 — Fixed deferred indexed annuities embedded derivatives — — (4) — Structured variable annuity embedded derivatives — (91) — — Total gain (loss) $ — $ (869) $ 58 $ — (1) GMWB and GMAB were accounted for as embedded derivatives prior to the adoption of ASU 2018-12. Upon adoption of ASU 2018-12, GMWB and GMAB are accounted for as market risk benefits. 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. The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options as of December 31, 2022: Premiums Premiums (in millions) 2023 $ 50 $ 43 2024 132 23 2025 121 21 2026 251 88 2027 19 — 2028-2029 59 — Total $ 632 $ 175 Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received. Structured variable annuity 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 structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity component of structured variable annuity and IUL product obligations are considered embedded derivatives, which 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 a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. Cash Flow Hedges During the years ended December 31, 2022, 2021 and 2020, the Company held no derivatives that were designated as cash flow hedges. During the years ended December 31, 2022, 2021 and 2020, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. 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 and collateral arrangements whenever practical. See Note 17 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. As of December 31, 2022 and 2021, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $234 million and $383 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2022 and 2021 was $232 million and $383 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of both December 31, 2022 and 2021 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 $2 million and nil as of December 31, 2022 and 2021, respectively. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholder's Equity | Shareholder’s Equity The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2022 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (2,784) $ 595 $ (2,189) Reclassification of net (gains) losses on securities included in net income (2) 88 (19) 69 Impact of benefit reserves and reinsurance recoverables 103 (18) 85 Net unrealized gains (losses) on securities (2,593) 558 (2,035) Effect of changes in discount rate assumptions on certain long-duration contracts 1,095 (234) 861 Effect of changes in instrument-specific credit risk on MRBs 517 (110) 407 Total other comprehensive income (loss) $ (981) $ 214 $ (767) Year Ended December 31, 2021 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (527) $ 111 $ (416) Reclassification of net (gains) losses on securities included in net income (2) (556) 117 (439) Impact of benefit reserves and reinsurance recoverables 8 (1) 7 Net unrealized gains (losses) on securities (1,075) 227 (848) Effect of changes in discount rate assumptions on certain long-duration contracts 361 (77) 284 Effect of changes in instrument-specific credit risk on MRBs 127 (27) 100 Total other comprehensive income (loss) $ (587) $ 123 $ (464) Year Ended December 31, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (3) (274) 57 (217) Net unrealized gains (losses) on securities 542 (114) 428 Total other comprehensive income (loss) $ 542 $ (114) $ 428 (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in Net realized investment gains (losses). (3) See Note 22 for a summary of the revision to the Company’s previously reported Consolidated Financial Statements. Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (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 losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as 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. Prior to the adoption of ASU 2018-12, adjustments to DAC, DSIC, and unearned revenue were also included. The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Effect of Changes in Discount Rate Assumptions Effect of Changes in Instrument-Specific Credit Risk on MRBs Other Total (in millions) Balance at January 1, 2020 $ 757 $ — $ — $ (1) $ 756 OCI before reclassifications 424 — — — 424 Amounts reclassified from AOCI 4 — — — 4 Total OCI 428 — — — 428 Balance at December 31, 2020 1,185 — — (1) 1,184 Cumulative effect of adoption of long-duration contracts guidance 707 (1,217) (527) — (1,037) OCI before reclassifications (409) 284 100 — (25) Amounts reclassified from AOCI (439) — — — (439) Total OCI (848) 284 100 — (464) Balance at December 31, 2021 1,044 (933) (427) (1) (317) OCI before reclassifications (2,104) 861 407 — (836) Amounts reclassified from AOCI 69 — — — 69 Total OCI (2,035) 861 407 — (767) Balance at December 31, 2022 $ (991) $ (72) $ (20) $ (1) $ (1,084) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax provision (benefit) were as follows: Years Ended December 31, 2022 2021 2020 (in millions) Current income tax Federal $ 57 $ 172 $ 233 State (2) 6 — Total current income tax 55 178 233 Deferred income tax Federal 150 136 (277) State 4 2 (1) Total deferred income tax 154 138 (278) Total income tax provision (benefit) $ 209 $ 316 $ (45) The principal reasons that the aggregate income tax provision (benefit) is different from that computed by using the U.S. statutory rate of 21% were as follows: Years Ended December 31, 2022 2021 2020 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (2.9) (3.3) (20.1) Dividend received deduction (2.3) (1.7) (9.7) Foreign tax credit, net of addback (1.7) (0.9) (1.9) Other, net (0.3) 0.4 (0.8) Income tax provision (benefit) 13.8 % 15.5 % (11.5) % The decrease in the Company’s effective tax rate for the year ended December 31, 2022 compared to 2021 is primarily due to the lower pretax income relative to tax preferred items. The increase in the Company’s effective tax rate for the year ended December 31, 2021 compared to 2020 is primarily due to the higher pretax income relative to tax preferred items. Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2022 and 2021. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows: December 31, 2022 2021 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 2,274 $ 2,386 Net unrealized losses on Available-for-Sale securities 244 — Other 29 14 Gross deferred income tax assets 2,547 2,400 Less: valuation allowance 30 11 Total deferred income tax assets 2,517 2,389 Deferred income tax liabilities Investment related 923 508 Deferred acquisition costs 409 438 Net unrealized gains on Available-for-Sale securities — 308 Other 52 57 Gross deferred income tax liabilities 1,384 1,311 Net deferred income tax assets $ 1,133 $ 1,078 Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $28 million, net of federal benefit, which will expire beginning December 31, 2023. Based on analysis of the Company’s tax position as of December 31, 2022, management believes it is more likely than not that the Company will not realize certain state net operating losses of $28 million and state deferred tax assets of $2 million; therefore, a valuation allowance of $30 million has been established. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2022 2021 2020 (in millions) Balance at January 1 $ 37 $ 38 $ 39 Additions based on tax positions related to the current year — — 1 Reductions based on tax positions related to the current year (1) (1) (1) Additions for tax positions of prior years 1 — — Reductions due to lapse of statute of limitations — — (1) Balance at December 31 $ 37 $ 37 $ 38 If recognized, approximately $20 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2022, 2021 and 2020, would affect the effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by approximately $34 million in the next 12 months primarily due to Internal Revenue Service (“IRS”) settlements. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil, a net increase of $1 million and nil in interest and penalties for the years ended December 31, 2022, 2021 and 2020, respectively. As of both December 31, 2022 and 2021, the Company had a payable of $3 million related to accrued interest and penalties. The Company 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 federal statute of limitations are closed on years through 2015, except for one issue for 2014 and 2015 which was claimed on amended returns. The IRS is currently auditing Ameriprise Financial’s U.S. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | Commitments, Guarantees and Contingencies Commitments The following table presents the Company’s funding commitments as of December 31: 2022 2021 (in millions) Commercial mortgage loans $ — $ 48 Affordable housing and other real estate partnerships 8 9 Total funding commitments $ 8 $ 57 Guarantee s The Company’s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2022, these guarantees range from 1% to 5%. Contingencies The Company and its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts, and employment relationships. 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. As with other insurance companies, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company and its affiliates, including AFS and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous pending matters, which include information requests, exams or inquiries regarding their business activities and practices and other subjects, including from time to time: sales and distribution of various products, including the Company’s insurance and annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors, Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates have cooperated and will continue to cooperate with the applicable regulators. These pending matters are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss that may result from such matters. The Company cannot predict with certainty if, how, or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a potential loss or range of loss can be reasonably estimated for any matter. An adverse outcome in any matter could result in an adverse judgment, a settlement, fine, penalty, or other sanction, and may lead to further claims, examinations, or adverse publicity each of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, or liquidity. In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter. Guaranty Fund Assessments RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are 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 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. As of both December 31, 2022 and 2021, the estimated liability was $12 million. As of both December 31, 2022 and 2021, the related premium tax asset was $10 million. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known. |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements The Company revised the Consolidated Financial Statements for the year ended December 31, 2020 to correct shadow unearned revenue liability balances associated with universal life insurance products for which the error began prior to the periods presented below. Shadow unearned revenue liability balances were reversed through AOCI as of January 1, 2021 upon the adoption of ASU 2018-12. See Note 1 for additional information. A summary of the revision to our previously reported Consolidated Financial Statements is presented below: Revised Consolidated Statements of Comprehensive Income Year Ended December 31, 2020 As Reported Impact of Revision As Revised (in millions) Net unrealized gains (losses) on securities $ 346 $ 82 $ 428 Total other comprehensive income (loss), net of tax 346 82 428 Total comprehensive income (loss) 784 82 866 Revised Consolidated Statements of Shareholder’s Equity As Reported As Revised Accumulated Other Comprehensive Income (Loss) Total Shareholder’s Equity Impact of Revision Accumulated Other Comprehensive Income (Loss) Total Shareholder’s Equity (in millions) Balances at January 1, 2020 $ 574 $ 3,336 $ 182 $ 756 $ 3,518 Other comprehensive income, net of tax 346 346 82 428 428 Balances at December 31, 2020 920 3,313 264 1,184 3,577 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer. A VIE is consolidated by the reporting entity that determines it has both: • the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and • the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role. In determining whether the Company has the obligation to absorb potential significant losses of the VIE or the right to receive potential significant benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis. The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement. |
Amounts Based on Estimates and Assumptions | Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, valuation of derivative instruments, litigation reserves, future policy benefits, market risk benefits and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. Prior to the adoption of ASU 2018-12, DAC and the corresponding recognition of DAC amortization was also considered among the more significant estimates. |
Investments | Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (“AOCI”), net of impacts to benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities. Prior to the Company’s adoption of ASU 2018-12, unrealized gains (losses) recorded in AOCI were also net of DAC, DSIC and unearned revenue. Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (i.e., made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings. For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments. In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for-Sale securities are generally placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income. Other Investments |
Financing Receivables | Financing Receivables Financing receivables are comprised of commercial loans, policy loans, and deposit receivables. Commercial Loans Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for loan losses. Commercial mortgage loans are recorded within Mortgage loans and syndicated loans are recorded within Other investments. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in Net investment income. Policy Loans Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses. Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income. Deposit Receivables For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made and any related embedded derivatives are included in Receivables. As amounts are received, consistent with the underlying contracts, deposit receivables are adjusted. Deposit receivables are accreted using the interest method and the accretion is reported in Other revenues. See Note 7 for additional information on financing receivables. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below. Commercial Loans The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries. Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio. Deposit receivables The allowance for credit losses is calculated on an individual reinsurer basis. Deposit receivables are collateralized by underlying trust arrangements. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses. Nonaccrual Loans Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring (“TDR”). Modifications to loan terms do not automatically result in TDRs. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Charge-off and Foreclosure Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. |
Reinsurance | Reinsurance The Company cedes insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums paid for traditional life, long term care (“LTC”), DI and life contingent immediate annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses. UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset and amortized based on estimated gross profits (“EGPs”) over the period the reinsurance policies are in-force. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges. Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include that the Company has no actual history of losses and that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured LTC business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims. See Note 9 for additional information on reinsurance. |
Land, Buildings, Equipment and Software | Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three As of both December 31, 2022 and 2021, land, buildings, equipment and software were $123 million, net of accumulated depreciation of $229 million and $216 million as of December 31, 2022 and 2021, respectively. Depreciation and amortization expense for the years ended December 31, 2022, 2021 and 2020 was $13 million, $14 million and $14 million, respectively. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in Other assets or Other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of Net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately. The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain GMAB and GMWB provisions accounted for as market risk benefits under ASU 2018-12. Prior to the adoption of ASU 2018-12, the GMAB and the non-life contingent benefits associated with GMWB provisions were also |
Market Risk Benefits | Market Risk Benefits Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Guarantees accounted for as market risk benefits include GMDB, guaranteed minimum income benefit (“GMIB”), GMWB and GMAB. If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit. Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract. Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in OCI. |
Deferred Acquisition Costs | Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to Ameriprise Financial’s advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as write-offs. These transactions are anticipated in establishing amortization periods and other valuation assumptions. The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances. Unamortized DAC is reduced for actual experience in excess of expected experience. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. DAC is amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits. DAC related to all long-duration product types (except for life contingent payout annuities) is grouped on a calendar-year annual basis for each legal entity. Further disaggregation is reported for any contracts that include an additional liability for death or other insurance benefit. DAC related to life contingent payout annuities is grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter. DAC related to annuity products (including variable deferred annuities, structured variable annuities, fixed deferred annuities, and life contingent payout annuities) is amortized based on initial premium. DAC related to life insurance products (including UL insurance, VUL insurance, IUL insurance, term life insurance, and whole life insurance) is amortized based on original specified amount (i.e., face amount). DAC related to DI insurance is amortized based on original monthly benefit. The accounting contract term for annuity products (except for life contingent payout annuities) is over the projected accumulation period. Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid. The accounting contract term for life insurance products is over the projected life of the contract. DI insurance is amortized over the projected life of the contract, including the claim paying period. Deferred Acquisition Costs (Pre-adoption of ASU 2018-12) Non-Traditional Long-Duration Products For non-traditional long-duration products (including variable, structured variable and fixed deferred annuity contracts, UL and VUL insurance products), DAC were amortized based on projections of EGPs over amortization periods equal to the approximate life of the business. EGPs varied based on persistency rates (assumptions at which contractholders and policyholders were expected to surrender, make withdrawals from and make deposits to their contracts), mortality levels, client asset value growth rates (based on equity and bond market performance), variable annuity benefit utilization and interest margins (the spread between earned rates on invested assets and rates credited to contractholder and policyholder accounts) and were management’s best estimates. Management regularly monitored financial market conditions and actual contractholder and policyholder behavior experience and compared them to its assumptions. These assumptions were updated whenever it appeared that earlier estimates should be revised. When assumptions were changed, the percentage of EGPs used to amortize DAC might have also changed. A change in the required amortization percentage was applied retrospectively; an increase in amortization percentage resulted in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage resulted in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions could have been either positive or negative in any particular period and was reflected in the period in which such changes were made. At each balance sheet date, the DAC balance was adjusted for the effect that would result from the realization of unrealized gains (losses) on securities impacting EGPs, with the related change recognized through AOCI. The client asset value growth rates were the rates at which variable annuity and VUL insurance contract values invested in separate accounts which were assumed to appreciate in the future. The rates used varied by equity and fixed income investments. Management reviewed and, where appropriate, adjusted its assumptions with respect to client asset value growth rates on a regular basis. The Company typically used a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate was reviewed quarterly to ensure consistency with management’s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceeded management’s near-term estimate were typically less than in a period when growth rates fell short of management’s near-term estimate. Traditional Long-Duration Products For traditional long-duration products (including traditional life and DI insurance products), DAC were generally amortized as a percentage of premiums over amortization periods equal to the premium paying period. The assumptions made in calculating the DAC balance and DAC amortization expense were consistent with those used in determining the liabilities. For traditional life and DI insurance products, the assumptions provided for adverse deviations in experience and were revised only if management concluded experience will be so adverse that DAC were not recoverable. If management concluded that DAC were not recoverable, DAC were reduced to the amount that was recoverable based on best estimate assumptions and a corresponding expense was recorded in the Consolidated Statements of Income. |
Deferred Sales Inducement Costs | Deferred Sales Inducement Costs Deferred sales inducements are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC on a constant-level basis. DSIC is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses. Prior to the adoption of ASU 2018-12, DSIC was amortized based on EGPs consistent with DAC and recorded in Other assets and the amortization of DSIC was recorded in Benefits, claims, losses and settlement expenses. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets represent funds held for the benefit of and Separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and Separate account liabilities are equal to the assets recognized. |
Policyholder Account Balances, Future Policy Benefits and Claims | Policyholder Account Balances, Future Policy Benefits and Claims The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI, LTC insurance products and life contingent payout annuity products. Non-Traditional Long-Duration Products The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, non-life contingent payout annuities, liabilities for guaranteed benefits associated with variable annuities (including structured variable annuities), and embedded derivatives for structured variable annuities, indexed annuities, and IUL products. Liabilities for fixed account values on variable annuities, structured variable annuities, fixed deferred annuities, and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The liability for non-life contingent payout annuities is recognized as the present value of future payments using the effective yield at inception of the contract. A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. 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 liability for these future losses is determined at the reporting date by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees. Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values, guaranteed benefits, and the fair value of embedded derivatives. See Note 12 for information regarding variable annuity guarantees. Embedded Derivatives The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is recorded in Policyholder account balances, future policy benefits and claims. See Note 14 for information regarding the fair value measurement of embedded derivatives. Traditional Long-Duration Products The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future. The claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits. A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%. Assumptions utilized in the net premium approach, including mortality, morbidity, and terminations, are reviewed as part of experience studies at least annually or more frequently if suggested by evidence. Expense assumptions and actual expenses are updated within the net premium calculation consistent with other policyholder assumptions. The updated cash flows used in the calculation are discounted using a forward rate curve. The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability. Discount rates will be locked in annually, at the end of each year for all products, except life contingent payout annuities, and calculated as the monthly average discount rate curves for the year. For life contingent payout annuities, the discount rates will be locked in quarterly, at the end of each quarter based on the average of the three months for the quarter. The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions. The revised net premiums are used to calculate an updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original locked in rate (i.e., contract issuance rate). The updated liability for future policy benefits as of the beginning of the reporting period is then compared with the carrying amount of the liability as of that date prior to updating cash flow assumptions to determine the current period remeasurement gain or loss reflected in current period earnings. The revised net premiums are then applied as of the beginning of the quarter to calculate the benefit expense for the current reporting period. The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in OCI. The interest accretion rate remains the original discount rate used at contract issue date. If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, a charge to net income is recorded for the current reporting period such that net premiums are set equal to gross premiums. In subsequent periods, the liability for future policy benefits is accrued with net premiums set equal to gross premiums. Contracts (except for life contingent payout annuities sold subsequent to December 31, 2020) are grouped into cohorts by contract type and issue year, as well as by legal entity and reportable segment. Life contingent payout annuities sold in periods beginning in 2021 are grouped into quarterly cohorts. See Note 10 for information regarding the liabilities for traditional long-duration products. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses. The DPL is amortized and recognized as premium revenue in proportion to expected future benefit payments from annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimate of cash flows from the DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to premium revenue. DPL is recorded in Policyholder account balances, future policy benefits and claims and included as a reconciling item within the disaggregated rollforwards. Policyholder Account Balances, Future Policy Benefits and Claims (Pre-adoption of ASU 2018-12) Non-traditional long-duration products included variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products included term life, whole life, DI and LTC insurance products. Guarantees accounted for as insurance liabilities included GMDB, gain gross-up (“GGU”), GMIB and the life contingent benefits associated with GMWB. In addition, UL and VUL policies with product features that result in profits followed by losses were accounted for as insurance liabilities. Guarantees accounted for as embedded derivatives included GMAB and the non-life contingent benefits associated with GMWB. In addition, the portion of structured variable annuities, indexed annuities and IUL policies allocated to the indexed account was accounted for as an embedded derivative. Changes in future policy benefits and claims were reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk were separately recorded as Reinsurance recoverables. Non-Traditional Long-Duration Products (Pre-adoption of ASU 2018-12) The liabilities for non-traditional long-duration products included fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable and structured variable annuities, indexed annuities and IUL products. Liabilities for fixed account values on variable, structured variable and fixed deferred annuities and UL and VUL policies were equal to accumulation values, which were the cumulative gross deposits and credited interest less withdrawals and various charges. These liabilities were not impacted by the adoption of ASU 2018-12. A portion of the Company’s UL and VUL policies had product features that resulted in profits followed by losses from the insurance component of the contract. These profits followed by losses could be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensured that, subject to specified conditions, the policy would not terminate and would continue to provide a death benefit even if there was insufficient policy value to cover the monthly deductions and charges. The liability for these future losses was determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). These liabilities were not impacted by the adoption of ASU 2018-12. See Note 10 for information regarding the liability for contracts with secondary guarantees. Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products were equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. These liabilities were not impacted by the adoption of ASU 2018-12. The GMDB and GGU liability was determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guaranteed a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability was determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated life based on expected assessments. The liability for the life contingent benefits associated with GMWB provisions was determined by estimating the expected value of benefits that were contingent upon survival after the account value was equal to zero and recognizing the benefits over the estimated life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). In determining the liabilities for GMDB, GGU, GMIB and the life contingent benefits associated with GMWB, the Company projected these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins and were consistent with those used for DAC valuation for the same contracts. As with DAC, unless the Company’s management identified a significant deviation over the course of quarterly monitoring, management reviewed and updated these assumptions annually in the third quarter of each year. Variable annuity guarantees are now accounted for as market risk benefits under ASU 2018-12. See Note 12 for information regarding variable annuity guarantees. Liabilities for fixed annuities in a benefit or payout status utilized assumptions established as of the date the payout phase was initiated. The liabilities were the present value of future estimated payments reduced for mortality (which was based on industry mortality tables with modifications based on the Company’s experience) and discounted with interest rates. There was no change to the accounting for non-life contingent payout annuities under ASU 2018-12. The accounting for life contingent payout annuities is described above. Embedded Derivatives (Pre-adoption of ASU 2018-12) The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions fluctuated based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which would cause these embedded derivatives to be either an asset or a liability. The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuated based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and was a liability. Variable annuity guarantees are now accounted for as market risk benefits under ASU 2018-12. See Note 14 for information regarding the fair value measurement of embedded derivatives. Traditional Long-Duration Products (Pre-adoption of ASU 2018-12) The liabilities for traditional long-duration products included liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that would become payable on term life, whole life, DI and LTC policies as claims incurred in the future. Liabilities for unpaid amounts on reported life insurance claims were equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims included any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These unpaid amounts were calculated using anticipated claim continuance rates based on established industry tables, adjusted as appropriate for the Company’s experience. The discount rates used to calculate present values were based on average interest rates earned on assets supporting the liability for unpaid amounts. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported were based on periodic analysis of the actual time lag between when a claim occurred and when it was reported. Liabilities for estimates of benefits that would become payable on future claims on term life, whole life and DI insurance policies were based on the net level premium and LTC policies were based on a gross premium valuation reflecting management’s current best estimate assumptions. Net level premium included anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Gross premium valuation included expected premium rate increases, benefit reductions, morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates were based on established industry mortality and morbidity tables, with modifications based on the Company’s experience. Anticipated premium payments and persistency rates varied by policy form, issue age, policy duration and certain other pricing factors. For term life, whole life, DI and LTC policies, the Company utilized best estimate assumptions as of the date the policy was issued with provisions for the risk of adverse deviation, as appropriate. After the liabilities were initially established, management performed premium deficiency tests using current best estimate assumptions without provisions for adverse deviation annually in the third quarter of each year unless management identified a material deviation over the course of quarterly monitoring. If the liabilities determined based on these best estimate assumptions were greater than the net reserves (i.e., GAAP reserves net of any DAC balance), the existing net reserves were adjusted by first reducing the DAC balance by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency was more than the DAC balance, then the net reserves were increased by the excess through a charge to current period earnings. If a premium deficiency was recognized, the assumptions as of the date of the loss recognition were locked in and used in subsequent periods. The assumptions for LTC insurance products were management’s best estimate as of the date of loss recognition and thus no longer provided for adverse deviations in experience. See Note 10 for information regarding the liabilities for traditional long-duration products. |
Unearned Revenue Liability | Unearned Revenue Liability The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized consistent with DAC amortization factors. |
Income Taxes | Income Taxes The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies. The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. 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. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 20 for additional information on the Company’s valuation allowance. |
Revenue Recognition | Revenue Recognition Premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature are net of reinsurance ceded and are recognized as revenue when due. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Mortality and expense risk fees are based on a percentage of the fair value of assets held in the Company’s separate accounts and recognized when assessed. Variable annuity guaranteed benefit rider charges, cost of insurance charges on UL and VUL insurance and contract charges (net of reinsurance premiums and cost of reinsurance for UL insurance products) and surrender charges on annuities and UL and VUL insurance are recognized as revenue when assessed. Realized gains and losses on the sale of securities, other than equity method investments, are recognized using the specific identification method, on a trade date basis. Fees received under marketing support and distribution services arrangements are recognized as revenue when earned. See Note 4 for further discussion of accounting policies on revenue from contracts with customers. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Adoption and Future Adoption of New Accounting Standards | Recent Accounting Pronouncements Adoption of New Accounting Standards Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the Financial Accounting Standards Board (“FASB”) updated the accounting standard related to long-duration insurance contracts (ASU 2018-12). The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis, and removing certain shadow adjustments previously recorded in AOCI. Adoption of the accounting standard will not impact overall cash flows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements. When the Company adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and AOCI and prior periods presented (i.e. 2021 and 2022) were recast. The adoption impact as of January 1, 2021 was a reduction in total equity of $1.9 billion, of which $0.9 billion and $1.0 billion were reflected in retained earnings and AOCI, respectively. The Consolidated Financial Statements were not recast for the comparative period ended December 31, 2020. The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Balance Sheets: As Filed December 31, 2022 Adjustment Post-adoption December 31, 2022 As Filed December 31, 2021 Adjustment Post-adoption December 31, 2021 (in millions) Assets Market risk benefits $ — $ 1,015 $ 1,015 $ — $ 539 $ 539 Reinsurance recoverables (allowance for credit losses: 2022, $23; 2021, $11) 4,412 (184) 4,228 4,529 927 5,456 Deferred acquisition costs 3,141 (382) 2,759 2,757 64 2,821 Other assets 4,791 (65) 4,726 7,015 296 7,311 Total assets $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 Liabilities and Shareholder’s Equity Liabilities: Policyholder account balances, future policy benefits and claims $ 36,057 $ (1,935) $ 34,122 $ 35,744 $ (727) $ 35,017 Market risk benefits — 2,118 2,118 — 3,440 3,440 Other liabilities 4,120 11 4,131 6,303 216 6,519 Total liabilities 114,236 194 114,430 137,286 2,929 140,215 Shareholder’s equity: Accumulated deficit (799) 387 (412) (912) (202) (1,114) Accumulated other comprehensive income (loss), net of tax (887) (197) (1,084) 584 (901) (317) Total shareholder’s equity 783 190 973 2,141 (1,103) 1,038 Total liabilities and shareholder’s equity $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Income: Years Ended December 31, As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021 (in millions) Revenues Policy and contract charges $ 2,091 $ (13) $ 2,078 $ 2,304 $ (54) $ 2,250 Total revenues 3,768 (13) 3,755 3,471 (54) 3,417 Benefits and expenses Benefits, claims, losses and settlement expenses 1,366 (1,130) 236 715 (872) (157) Remeasurement (gains) losses of future policy benefit reserves — 1 1 — (52) (52) Change in fair value of market risk benefits — 311 311 — (113) (113) Amortization of deferred acquisition costs 196 45 241 112 133 245 Other insurance and operating expenses 670 12 682 738 13 751 Total benefits and expenses 3,005 (761) 2,244 2,270 (891) 1,379 Pretax income (loss) 763 748 1,511 1,201 837 2,038 Income tax provision (benefit) 50 159 209 137 179 316 Net income (loss) $ 713 $ 589 $ 1,302 $ 1,064 $ 658 $ 1,722 The adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities. Future Adoption of New Accounting Standards Financial Instruments – Credit Losses – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB proposed amendments to ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. Early adoption is permitted for entities that have adopted Topic 326, including adoption in an interim period. The Company adopted the standard on January 1, 2023. The adoption of this update did not have an impact on the Company’s consolidated financial condition and results of operations. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Adoption of new accounting standard | The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Balance Sheets: As Filed December 31, 2022 Adjustment Post-adoption December 31, 2022 As Filed December 31, 2021 Adjustment Post-adoption December 31, 2021 (in millions) Assets Market risk benefits $ — $ 1,015 $ 1,015 $ — $ 539 $ 539 Reinsurance recoverables (allowance for credit losses: 2022, $23; 2021, $11) 4,412 (184) 4,228 4,529 927 5,456 Deferred acquisition costs 3,141 (382) 2,759 2,757 64 2,821 Other assets 4,791 (65) 4,726 7,015 296 7,311 Total assets $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 Liabilities and Shareholder’s Equity Liabilities: Policyholder account balances, future policy benefits and claims $ 36,057 $ (1,935) $ 34,122 $ 35,744 $ (727) $ 35,017 Market risk benefits — 2,118 2,118 — 3,440 3,440 Other liabilities 4,120 11 4,131 6,303 216 6,519 Total liabilities 114,236 194 114,430 137,286 2,929 140,215 Shareholder’s equity: Accumulated deficit (799) 387 (412) (912) (202) (1,114) Accumulated other comprehensive income (loss), net of tax (887) (197) (1,084) 584 (901) (317) Total shareholder’s equity 783 190 973 2,141 (1,103) 1,038 Total liabilities and shareholder’s equity $ 115,019 $ 384 $ 115,403 $ 139,427 $ 1,826 $ 141,253 The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Income: Years Ended December 31, As Filed 2022 Adjustment Post-adoption 2022 As Filed 2021 Adjustment Post-adoption 2021 (in millions) Revenues Policy and contract charges $ 2,091 $ (13) $ 2,078 $ 2,304 $ (54) $ 2,250 Total revenues 3,768 (13) 3,755 3,471 (54) 3,417 Benefits and expenses Benefits, claims, losses and settlement expenses 1,366 (1,130) 236 715 (872) (157) Remeasurement (gains) losses of future policy benefit reserves — 1 1 — (52) (52) Change in fair value of market risk benefits — 311 311 — (113) (113) Amortization of deferred acquisition costs 196 45 241 112 133 245 Other insurance and operating expenses 670 12 682 738 13 751 Total benefits and expenses 3,005 (761) 2,244 2,270 (891) 1,379 Pretax income (loss) 763 748 1,511 1,201 837 2,038 Income tax provision (benefit) 50 159 209 137 179 316 Net income (loss) $ 713 $ 589 $ 1,302 $ 1,064 $ 658 $ 1,722 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue from contracts with cutomers | The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income: Years Ended December 31, 2022 2021 2020 (in millions) Policy and contract charges Affiliated (from Columbia Management Investment Distributors, Inc.) $ 164 $ 193 $ 173 Unaffiliated 14 17 14 Total 178 210 187 Other revenues Administrative fees Affiliated (from Columbia Management Investment Services, Corp.) 42 49 44 Unaffiliated 18 20 18 60 69 62 Other fees Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) 334 389 351 Unaffiliated 4 5 4 338 394 355 Total 398 463 417 Total revenue from contracts with customers 576 673 604 Revenue from other sources (1) 3,179 2,744 3,172 Total revenues $ 3,755 $ 3,417 $ 3,776 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) - Consolidated investment entities | 12 Months Ended |
Dec. 31, 2022 | |
Assets and liabilities measured at fair value | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis: December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Corporate debt securities $ — $ 35 $ — $ 35 Common stocks — 3 — 3 Syndicated loans — 2,191 125 2,316 Total investments — 2,229 125 2,354 Receivables — 20 — 20 Other assets — 1 1 2 Total assets at fair value $ — $ 2,250 $ 126 $ 2,376 Liabilities Debt (1) $ — $ 2,363 $ — $ 2,363 Other liabilities — 119 — 119 Total liabilities at fair value $ — $ 2,482 $ — $ 2,482 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Common stocks $ — $ 3 $ — $ 3 Syndicated loans — 2,117 64 2,181 Total investments — 2,120 64 2,184 Receivables — 17 — 17 Other assets — — 3 3 Total assets at fair value $ — $ 2,137 $ 67 $ 2,204 Liabilities Debt (1) $ — $ 2,164 $ — $ 2,164 Other liabilities — 137 — 137 Total liabilities at fair value $ — $ 2,301 $ — $ 2,301 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.2 billion as of December 31, 2022 and 2021, respectively. |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis: Common Stocks Syndicated Loans Other Assets Balance, January 1, 2022 $ — $ 64 $ 3 Total gains (losses) included in: Net income — (11) (1) — Purchases — 69 — Sales — (4) — Settlements — (8) — Transfers into Level 3 2 218 1 Transfers out of Level 3 (2) (203) (3) Balance, December 31, 2022 $ — $ 125 $ 1 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2022 $ — $ (10) (1) $ — Syndicated Loans Other Assets (in millions) Balance, January 1, 2021 $ 92 $ 2 Total gains (losses) included in: Net income 2 (1) 1 (1) Purchases 106 — Sales (38) — Settlements (49) — Transfers into Level 3 119 2 Transfers out of Level 3 (150) (2) Deconsolidation of consolidated investment entities (18) — Balance, December 31, 2021 $ 64 $ 3 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2021 $ — $ 1 (1) Syndicated Loans Other Assets (in millions) Balance, January 1, 2020 $ — $ — Total gains (losses) included in: Purchases — 2 Sales (2) — Transfers into Level 3 15 — Transfers out of Level 3 (70) — Consolidation of consolidated investment entities 149 — Balance, December 31, 2020 $ 92 $ 2 Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2020 $ — $ — (1) Included in Net investment income. |
Schedule of fair value and unpaid principal balance of loans and debt for which fair value option has been elected | The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected: December 31, 2022 December 31, 2021 (in millions) Syndicated loans Unpaid principal balance $ 2,525 $ 2,233 Excess unpaid principal over fair value (209) (52) Fair value $ 2,316 $ 2,181 Fair value of loans more than 90 days past due $ — $ — Fair value of loans in nonaccrual status 23 13 Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both 48 10 Debt Unpaid principal balance $ 2,636 $ 2,296 Excess unpaid principal over fair value (273) (132) Carrying value (1) $ 2,363 $ 2,164 (1) The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.2 billion as of December 31, 2022 and 2021, respectively. |
Schedule of debt and stated interest rates | Debt of the consolidated investment entities and the stated interest rates were as follows: Carrying Value Weighted Average December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (in millions) Debt of consolidated CLOs due 2028-2034 $ 2,363 $ 2,164 5.3 % 1.7 % |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale securities by type | Available-for-Sale securities distributed by type were as follows: December 31, 2022 Description of Securities Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 9,349 $ 180 $ (803) $ (20) $ 8,706 Residential mortgage backed securities 3,254 8 (303) — 2,959 Commercial mortgage backed securities 2,904 2 (255) — 2,651 State and municipal obligations 761 53 (26) (2) 786 Asset backed securities 1,025 10 (38) — 997 Foreign government bonds and obligations 37 — (2) — 35 U.S. government and agency obligations 1 — — — 1 Total $ 17,331 $ 253 $ (1,427) $ (22) $ 16,135 December 31, 2021 Description of Securities Amortized Cost Gross Gross Allowance for Credit Losses Fair (in millions) Fixed maturities: Corporate debt securities $ 8,447 $ 1,238 $ (47) $ — $ 9,638 Residential mortgage backed securities 2,226 36 (12) — 2,250 Commercial mortgage backed securities 2,615 56 (15) — 2,656 State and municipal obligations 832 244 (1) (1) 1,074 Asset backed securities 517 22 (2) — 537 Foreign government bonds and obligations 80 4 (1) — 83 U.S. government and agency obligations 1 — — — 1 Total $ 14,718 $ 1,600 $ (78) $ (1) $ 16,239 |
Summary of fixed maturity securities by rating | A summary of fixed maturity securities by rating was as follows: December 31, 2022 December 31, 2021 Ratings Amortized Cost Fair Percent of Amortized Fair Percent of (in millions, except percentages) AAA $ 6,313 $ 5,754 36 % $ 5,031 $ 5,107 31 % AA 1,159 1,188 7 757 932 6 A 1,572 1,594 10 1,662 2,013 12 BBB 7,646 7,023 43 6,293 7,063 44 Below investment grade (1) 641 576 4 975 1,124 7 Total fixed maturities $ 17,331 $ 16,135 100 % $ 14,718 $ 16,239 100 % (1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both December 31, 2022 and 2021. The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million and $2 million as of December 31, 2022 and 2021, respectively. These securities are not rated but are included in below investment grade due to their risk characteristics. |
Summary of fair value and gross unrealized losses on Available-for-Sale securities in continuous unrealized loss position | The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded: Description of Securities December 31, 2022 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 405 $ 5,028 $ (443) 100 $ 1,532 $ (360) 505 $ 6,560 $ (803) Residential mortgage backed securities 189 1,643 (117) 52 826 (186) 241 2,469 (303) Commercial mortgage backed securities 176 1,746 (149) 58 666 (106) 234 2,412 (255) State and municipal obligations 40 126 (15) 26 59 (11) 66 185 (26) Asset backed securities 39 808 (28) 4 60 (10) 43 868 (38) Foreign government bonds and obligations 10 32 (1) 1 1 (1) 11 33 (2) Total 859 $ 9,383 $ (753) 241 $ 3,144 $ (674) 1,100 $ 12,527 $ (1,427) Description of Securities December 31, 2021 Less than 12 months 12 months or more Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized (in millions, except number of securities) Corporate debt securities 102 $ 2,007 $ (42) 14 $ 81 $ (5) 116 $ 2,088 $ (47) Residential mortgage backed securities 55 1,162 (12) 2 1 — 57 1,163 (12) Commercial mortgage backed securities 60 809 (15) 3 13 — 63 822 (15) State and municipal obligations 25 63 (1) — — — 25 63 (1) Asset backed securities 5 91 (2) — — — 5 91 (2) Foreign government bonds and obligations 5 6 — 6 4 (1) 11 10 (1) Total 252 $ 4,138 $ (72) 25 $ 99 $ (6) 277 $ 4,237 $ (78) |
Rollforward of allowance for credit losses on Available-for-Sale securities | The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities: Corporate Debt Securities State and Municipal Obligations Total (in millions) Balance at January 1, 2020 $ — $ — $ — Additions for which credit losses were not previously recorded 13 — 13 Additional increases (decreases) on securities that had an allowance recorded in a previous period (3) — (3) Balance at December 31, 2020 10 — 10 Additions for which credit losses were not previously recorded — 1 1 Charge-offs (10) — (10) Balance at December 31, 2021 — 1 1 Additions for which credit losses were not previously recorded 20 — 20 Additional increases (decreases) on securities that had an allowance recorded in a previous period — 1 1 Balance at December 31, 2022 $ 20 $ 2 $ 22 |
Schedule of net realized gains and losses on Available-for-Sale securities | 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: Years Ended December 31, 2022 2021 2020 (in millions) Gross realized investment gains $ 28 $ 576 $ 17 Gross realized investment losses (25) (6) (2) Credit losses (21) (1) (10) Other impairments (70) (13) — Total $ (88) $ 556 $ 5 |
Schedule of Available-for-Sale securities by contractual maturity | Available-for-Sale securities by contractual maturity as of December 31, 2022 were as follows: Amortized Cost Fair Value (in millions) Due within one year $ 317 $ 315 Due after one year through five years 1,644 1,581 Due after five years through 10 years 3,608 3,104 Due after 10 years 4,579 4,528 10,148 9,528 Residential mortgage backed securities 3,254 2,959 Commercial mortgage backed securities 2,904 2,651 Asset backed securities 1,025 997 Total $ 17,331 $ 16,135 |
Summary of net investment income | The following is a summary of Net investment income: Years Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ 615 $ 643 $ 777 Mortgage loans 73 102 115 Other investments 159 101 (3) 847 846 889 Less: investment expenses 20 19 20 Total $ 827 $ 827 $ 869 |
Summary of net realized investment gains (losses) | Net realized investment gains (losses) are summarized as follows: Years Ended December 31, 2022 2021 2020 (in millions) Fixed maturities $ (88) $ 556 $ 5 Mortgage loans (1) 57 (10) Other investments (11) (18) (5) Total $ (100) $ 595 $ (10) |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financing Receivables | |
Rollforward of allowance for loan losses | The following table presents a rollforward of the allowance for credit losses: Commercial Loans (in millions) Balance at December 31, 2019 (1) $ 20 Cumulative effect of adoption of current expected credit losses guidance 3 Balance at January 1, 2020 23 Provisions 12 Balance at December 31, 2020 35 Provisions (23) Balance at December 31, 2021 12 Provisions 1 Charge-offs (2) Balance at December 31, 2022 $ 11 (1) Prior to January 1, 2020, the allowance for credit losses was based on an incurred loss model that did not require estimating expected credit losses over the expected life of the asset. |
Schedule of concentrations of credit risk of loans by region and property type | Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: Loans Percentage December 31, December 31, 2022 2021 2022 2021 (in millions) East North Central $ 192 $ 183 11 % 10 % East South Central 51 54 3 3 Middle Atlantic 100 107 6 6 Mountain 120 111 7 6 New England 17 21 1 1 Pacific 601 589 34 33 South Atlantic 467 477 26 26 West North Central 115 136 6 8 West South Central 116 122 6 7 1,779 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,768 $ 1,788 Concentrations of credit risk of commercial mortgage loans by property type were as follows: Loans Percentage December 31, December 31, 2022 2021 2022 2021 (in millions) Apartments $ 465 $ 464 26 % 26 % Hotel 14 15 1 1 Industrial 295 293 17 16 Mixed use 55 57 3 3 Office 243 254 14 14 Retail 576 589 32 33 Other 131 128 7 7 1,779 1,800 100 % 100 % Less: allowance for credit losses 11 12 Total $ 1,768 $ 1,788 |
Commercial Loans | Commercial mortgage loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio: December 31, 2022 Loan-to-Value Ratio 2022 2021 2020 2019 2018 Prior Total (in millions) > 100% $ — $ — $ 2 $ 2 $ — $ 39 $ 43 80% - 100% 1 9 2 20 7 30 69 60% - 80% 39 85 17 52 9 104 306 40% - 60% 49 84 64 80 55 426 758 < 40% 16 8 27 42 78 432 603 Total $ 105 $ 186 $ 112 $ 196 $ 149 $ 1,031 $ 1,779 December 31, 2021 Loan-to-Value Ratio 2021 2020 2019 2018 2017 Prior Total (in millions) > 100% $ — $ — $ 20 $ 10 $ — $ 29 $ 59 80% - 100% 9 2 9 2 — 29 51 60% - 80% 141 76 59 15 58 133 482 40% - 60% 37 30 75 74 49 393 658 < 40% 6 8 46 — 47 443 550 Total $ 193 $ 116 $ 209 $ 101 $ 154 $ 1,027 $ 1,800 |
Commercial Loans | Syndicated loans | |
Financing Receivables | |
Schedule of amortized cost basis of loans and credit quality information | The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating: December 31, 2022 Internal Risk Rating 2022 2021 2020 2019 2018 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — 5 — 3 — 2 10 Risk 2 5 13 2 5 — 11 36 Risk 1 3 5 1 3 5 9 26 Total $ 8 $ 23 $ 3 $ 11 $ 5 $ 22 $ 72 December 31, 2021 Internal Risk Rating 2021 2020 2019 2018 2017 Prior Total (in millions) Risk 5 $ — $ — $ — $ — $ — $ — $ — Risk 4 — — — — — — — Risk 3 — — — — — 1 1 Risk 2 11 — 4 1 8 4 28 Risk 1 4 — — 3 3 4 14 Total $ 15 $ — $ 4 $ 4 $ 11 $ 9 $ 43 |
Deferred Acquisition Costs an_2
Deferred Acquisition Costs and Deferred Sales Inducement Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Schedule of balances of and changes in DAC | The following tables summarize the balances of and changes in DAC, including the January 1, 2021 adoption of ASU 2018-12. Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance (in millions) Pre-adoption balance at December 31, 2020 $ 1,671 $ 22 $ 43 $ 7 $ 100 $ 452 Effect of shadow reserve adjustments 42 4 18 1 31 53 Post-adoption balance at January 1, 2021 1,713 26 61 8 131 505 Capitalization of acquisition costs 110 71 — — 3 54 Amortization (145) (6) (8) (1) (9) (47) Balance at December 31, 2021 $ 1,678 $ 91 $ 53 $ 7 $ 125 $ 512 Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total, (in millions) Pre-adoption balance at December 31, 2020 $ 108 $ (3) $ — $ 19 $ 89 $ 2,508 Effect of shadow reserve adjustments 149 6 — — — 304 Post-adoption balance at January 1, 2021 257 3 — 19 89 2,812 Capitalization of acquisition costs 9 — 1 2 4 254 Amortization (18) — — (2) (9) (245) Balance at December 31, 2021 $ 248 $ 3 $ 1 $ 19 $ 84 $ 2,821 Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Universal Life Insurance Variable Universal Life Insurance (in millions) Balance at January 1, 2022 $ 1,678 $ 91 $ 53 $ 7 $ 125 $ 512 Capitalization of acquisition costs 39 73 — — 1 55 Amortization (135) (15) (8) (1) (8) (46) Balance at December 31, 2022 $ 1,582 $ 149 $ 45 $ 6 $ 118 $ 521 Indexed Universal Life Insurance Other Life Insurance Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Total, (in millions) Balance at January 1, 2022 $ 248 $ 3 $ 1 $ 19 $ 84 $ 2,821 Capitalization of acquisition costs 5 — 1 1 4 179 Amortization (17) — — (2) (9) (241) Balance at December 31, 2022 $ 236 $ 3 $ 2 $ 18 $ 79 $ 2,759 The balances of and changes in DAC prior to the adoption of ASU 2018-12 were as follows: 2020 (in millions) Balance at January 1 $ 2,673 Capitalization of acquisition costs 216 Amortization (164) Amortization, impact of valuation assumptions review (100) Impact of change in net unrealized (gains) losses on securities (117) Balance at December 31 $ 2,508 |
Schedule of balances of and changes in DSIC | The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12. DSIC are recorded in Other assets. Variable Annuities Fixed Annuities Total, (in millions) Pre-adoption balance at December 31, 2020 $ 173 $ 14 $ 187 Effect of shadow reserve adjustments 8 8 16 Post-adoption balance at January 1, 2021 181 22 203 Capitalization of sales inducement costs 1 — 1 Amortization (18) (3) (21) Balance at December 31, 2021 $ 164 $ 19 $ 183 Variable Annuities Fixed Annuities Total, (in millions) Balance at January 1, 2022 $ 164 $ 19 $ 183 Capitalization of sales inducement costs 1 — 1 Amortization (16) (3) (19) Balance at December 31, 2022 $ 149 $ 16 $ 165 The balances of and changes in DSIC prior to the adoption of ASU 2018-12 were as follows: 2020 (in millions) Balance at January 1 $ 216 Capitalization of sales inducement costs 1 Amortization (13) Amortization, impact of valuation assumptions review (16) Impact of change in net unrealized (gains) losses on securities (1) Balance at December 31 $ 187 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Schedule of effect of reinsurance on premiums | The effect of reinsurance on premiums for traditional long-duration products was as follows: Years Ended December 31, 2022 2021 2020 (in millions) Direct premiums $ 530 $ 490 $ 565 Reinsurance ceded (224) (1,361) (224) Net premiums $ 306 $ (871) $ 341 |
Policyholder Account Balances_2
Policyholder Account Balances, Future Policy Benefits and Claims (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Policyholder Account Balance [Abstract] | |
Policyholder account balances, future policy benefits and claims | Policyholder account balances, future policy benefits and claims consisted of the following: December 31, 2022 December 31, 2021 (in millions) Policyholder account balances Policyholder account balances $ 24,986 $ 23,723 Future policy benefits Reserve for future policy benefits 7,495 9,721 Deferred profit liability 62 54 Additional liabilities for insurance guarantees 1,186 1,242 Other insurance and annuity liabilities 177 66 Total future policy benefits 8,920 11,083 Policy claims and other policyholders’ funds 216 211 Total policyholder account balances, future policy benefits and claims $ 34,122 $ 35,017 |
Balances of and changes in policyholder account balances | The balances of and changes in policyholder account balances were as follows: Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2022 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Contract deposits 146 2,784 55 — 53 Policy charges (8) — — — — Surrenders and other benefits (450) (41) (744) (17) (124) Net transfer from (to) separate account liabilities (60) — — — — Other variable account adjustments — (791) — — — Interest credited 152 — 237 6 15 Balance at December 31, 2022 $ 4,752 $ 6,410 $ 6,799 $ 312 $ 471 Weighted-average crediting rate 3.2 % 1.1 % 3.5 % 1.9 % N/A Cash surrender value (1) $ 4,720 $ 5,986 $ 6,786 $ 277 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Contract deposits 134 233 218 (3) 3,620 Policy charges (178) (91) (116) — (393) Surrenders and other benefits (67) (70) (50) (56) (1,619) Net transfer from (to) separate account liabilities — (102) — — (162) Other variable account adjustments — — — — (791) Interest credited 53 57 68 20 608 Balance at December 31, 2022 $ 1,544 $ 1,520 $ 2,654 $ 524 $ 24,986 Weighted-average crediting rate 3.6 % 3.9 % 2.0 % 4.0 % Net amount at risk $ 9,187 $ 57,354 $ 15,043 $ 149 Cash surrender value (1) $ 1,382 $ 1,054 $ 2,148 $ 348 Variable Annuities Structured Variable Annuities Fixed Annuities Fixed Indexed Annuities Non-Life Contingent Payout Annuities (in millions, except percentages) Balance at January 1, 2021 $ 5,098 $ 1,377 $ 7,619 $ 318 $ 578 Contract deposits 332 2,699 59 — 69 Policy charges (11) — — — — Surrenders and other benefits (434) (15) (672) (9) (134) Net transfer from (to) separate account liabilities (168) — — — — Other variable account adjustments — 397 — — — Interest credited 155 — 245 14 14 Balance at December 31, 2021 $ 4,972 $ 4,458 $ 7,251 $ 323 $ 527 Weighted-average crediting rate 3.2 % 1.0 % 3.4 % 1.9 % N/A Cash surrender value (1) $ 4,936 $ 4,180 $ 7,232 $ 319 N/A Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,640 $ 1,476 $ 2,269 $ 605 $ 20,980 Contract deposits 157 232 242 (3) 3,787 Policy charges (181) (87) (111) — (390) Surrenders and other benefits (69) (80) (41) (61) (1,515) Net transfer from (to) separate account liabilities — (105) — — (273) Other variable account adjustments — — — — 397 Interest credited 55 57 175 22 737 Balance at December 31, 2021 $ 1,602 $ 1,493 $ 2,534 $ 563 $ 23,723 Weighted-average crediting rate 3.6 % 3.8 % 2.0 % 4.0 % Net amount at risk $ 9,619 $ 55,224 $ 15,461 $ 165 Cash surrender value (1) $ 1,424 $ 1,072 $ 2,013 $ 379 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities. |
Account values by guaranteed minimum interest rates | The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2022 and December 31, 2021 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums. December 31, 2022 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 169 $ 102 $ 18 $ — $ — $ 289 2 % – 2.99% 177 — — — — 177 3 % – 3.99% 2,611 — — 1 — 2,612 4 % – 5.00% 1,611 — — — — 1,611 Total $ 4,568 $ 102 $ 18 $ 1 $ — $ 4,689 Fixed accounts of structured variable annuities 1 % – 1.99% $ 12 $ 7 $ 3 $ 1 $ — $ 23 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 12 $ 7 $ 3 $ 1 $ — $ 23 Fixed annuities 1 % – 1.99% $ 460 $ 402 $ 132 $ 33 $ 10 $ 1,037 2 % – 2.99% 67 — — — — 67 3 % – 3.99% 3,344 — — — — 3,344 4 % – 5.00% 2,333 — — — — 2,333 Total $ 6,204 $ 402 $ 132 $ 33 $ 10 $ 6,781 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 3 $ 7 $ 14 $ — $ 25 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 3 $ 7 $ 14 $ — $ 25 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 55 — 1 — — 56 3 % – 3.99% 885 1 2 — — 888 4 % – 5.00% 569 — — — — 569 Total $ 1,509 $ 1 $ 3 $ — $ — $ 1,513 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable universal life insurance 1 % – 1.99% $ 4 $ 3 $ 2 $ — $ 9 $ 18 2 % – 2.99% 30 — 1 2 2 35 3 % – 3.99% 134 1 1 1 — 137 4 % – 5.00% 648 — — — — 648 Total $ 816 $ 4 $ 4 $ 3 $ 11 $ 838 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 126 — — — — 126 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 126 $ — $ 3 $ — $ — $ 129 Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 32 — — — — 32 4 % – 5.00% 314 — — — — 314 Total $ 346 $ — $ — $ — $ — $ 346 Total 1 % – 1.99% $ 646 $ 517 $ 165 $ 48 $ 19 $ 1,395 2 % – 2.99% 455 — 2 2 2 461 3 % – 3.99% 7,006 2 3 2 — 7,013 4 % – 5.00% 5,475 — — — — 5,475 Total $ 13,582 $ 519 $ 170 $ 52 $ 21 $ 14,344 Percentage of total account values that reset in: Next 12 months 99.8 % 96.3 % 93.8 % 100.0 % 100.0 % 99.6 % > 12 months to 24 months 0.1 3.0 5.8 — — 0.3 > 24 months 0.1 0.7 0.4 — — 0.1 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % December 31, 2021 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of variable annuities 1 % – 1.99% $ 283 $ 13 $ 8 $ — $ — $ 304 2 % – 2.99% 193 — — — — 193 3 % – 3.99% 2,729 — — 1 — 2,730 4 % – 5.00% 1,627 — — — — 1,627 Total $ 4,832 $ 13 $ 8 $ 1 $ — $ 4,854 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Fixed accounts of structured variable annuities 1 % – 1.99% $ 13 $ — $ — $ — $ — $ 13 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 13 $ — $ — $ — $ — $ 13 Fixed annuities 1 % – 1.99% $ 1,009 $ 100 $ 86 $ 36 $ 10 $ 1,241 2 % – 2.99% 79 — — — — 79 3 % – 3.99% 3,637 — — — — 3,637 4 % – 5.00% 2,274 — — — — 2,274 Total $ 6,999 $ 100 $ 86 $ 36 $ 10 $ 7,231 Non-indexed accounts of fixed indexed annuities 1 % – 1.99% $ 1 $ 4 $ 8 $ 15 $ — $ 28 2 % – 2.99% — — — — — — 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 1 $ 4 $ 8 $ 15 $ — $ 28 Universal life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% 46 — — — — 46 3 % – 3.99% 907 — — — — 907 4 % – 5.00% 617 — — — — 617 Total $ 1,570 $ — $ — $ — $ — $ 1,570 Fixed accounts of variable universal life insurance 1 % – 1.99% $ 11 $ — $ — $ — $ — $ 11 2 % – 2.99% 35 — — — — 35 3 % – 3.99% 137 — — — — 137 4 % – 5.00% 666 — — — — 666 Total $ 849 $ — $ — $ — $ — $ 849 Non-indexed accounts of indexed universal life insurance 1 % – 1.99% $ — $ — $ 3 $ — $ — $ 3 2 % – 2.99% 130 — — — — 130 3 % – 3.99% — — — — — — 4 % – 5.00% — — — — — — Total $ 130 $ — $ 3 $ — $ — $ 133 Account Values with Crediting Rates Range of Guaranteed Minimum Crediting Rates At Guaranteed Minimum 1-49 bps above Guaranteed Minimum 50-99 bps above Guaranteed Minimum 100-150 bps above Guaranteed Minimum Greater than 150 bps above Guaranteed Minimum Total (in millions, except percentages) Other life insurance 1 % – 1.99% $ — $ — $ — $ — $ — $ — 2 % – 2.99% — — — — — — 3 % – 3.99% 35 — — — — 35 4 % – 5.00% 342 — — — — 342 Total $ 377 $ — $ — $ — $ — $ 377 Total 1 % – 1.99% $ 1,317 $ 117 $ 105 $ 51 $ 10 $ 1,600 2 % – 2.99% 483 — — — — 483 3 % – 3.99% 7,445 — — 1 — 7,446 4 % – 5.00% 5,526 — — — — 5,526 Total $ 14,771 $ 117 $ 105 $ 52 $ 10 $ 15,055 Percentage of total account values that reset in: Next 12 months 98.8 % 85.1 % 79.8 % 33.8 % 1.1 % 98.2 % > 12 months to 24 months 1.0 — 10.5 66.2 98.9 1.4 > 24 months 0.2 14.9 9.7 — — 0.4 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Balances of and changes in liability for future policy benefits, and Revenue and interest recognized | The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12. Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, All Products (in millions) Pre-adoption balance at December 31, 2020 $ 1,536 $ 633 $ 530 $ 5,749 $ 8,448 Effect of shadow reserve adjustments (175) — — (566) (741) Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach 4 — — 35 39 Effect of change in deferred profit liability (43) — — — (43) Effect of remeasurement of the liability at the current single A discount rate 215 265 238 1,965 2,683 Post-adoption balance at January 1, 2021 1,537 898 768 7,183 10,386 Less: reinsurance recoverable — 601 24 3,623 4,248 Post-adoption balance at January 1, 2021, after $ 1,537 $ 297 $ 744 $ 3,560 $ 6,138 Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2021 $ — $ 702 $ 238 $ 1,831 $ 2,771 Beginning balance at original discount rate — 536 183 1,498 2,217 Effect of changes in cash flow assumptions — — — (6) (6) Effect of actual variances from expected experience — 56 (35) (61) (40) Adjusted beginning of year balance $ — $ 592 $ 148 $ 1,431 $ 2,171 Issuances 38 78 18 — 134 Interest accrual — 29 9 73 111 Net premiums collected (38) (63) (20) (184) (305) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 636 $ 155 $ 1,320 $ 2,111 Effect of changes in discount rate assumptions — 141 33 227 401 Balance at December 31, 2021 $ — $ 777 $ 188 $ 1,547 $ 2,512 Present Value of Future Policy Benefits: Balance at January 1, 2021 $ 1,537 $ 1,600 $ 1,006 $ 9,014 $ 13,157 Beginning balance at original discount rate 1,321 1,169 714 6,716 9,920 Effect of changes in cash flow assumptions — — — (8) (8) Effect of actual variances from expected experience (14) 58 (40) (124) (120) Adjusted beginning of year balance $ 1,307 $ 1,227 $ 674 $ 6,584 $ 9,792 Issuances 39 78 18 — 135 Interest accrual 53 70 39 347 509 Benefit payments (168) (120) (43) (336) (667) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,231 $ 1,255 $ 688 $ 6,595 $ 9,769 Effect of changes in discount rate assumptions 139 343 226 1,755 2,463 Balance at December 31, 2021 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Adjustment due to reserve flooring $ — $ 1 $ — $ — $ 1 Net liability for future policy benefits $ 1,370 $ 822 $ 726 $ 6,803 $ 9,721 Less: reinsurance recoverable 1,265 558 25 3,443 5,291 Net liability for future policy benefits, after reinsurance recoverable $ 105 $ 264 $ 701 $ 3,360 $ 4,430 Discounted expected future gross premiums $ — $ 2,005 $ 1,158 $ 1,623 $ 4,786 Expected future gross premiums $ — $ 2,815 $ 1,395 $ 1,905 $ 6,115 Expected future benefit payments $ 1,707 $ 2,159 $ 1,217 $ 11,568 $ 16,651 Weighted average interest accretion rate 4.2 % 6.5 % 5.9 % 5.3 % Weighted average discount rate 2.6 % 2.8 % 2.8 % 2.9 % Weighted average duration of liability (in years) 7 8 9 10 Life Contingent Payout Annuities Term and Whole Life Insurance Disability Insurance Long Term Care Insurance Total, (in millions, except percentages) Present Value of Expected Net Premiums: Balance at January 1, 2022 $ — $ 777 $ 188 $ 1,547 $ 2,512 Beginning balance at original discount rate — 636 155 1,320 2,111 Effect of changes in cash flow assumptions — 1 1 52 54 Effect of actual variances from expected experience — 47 (22) (48) (23) Adjusted beginning of year balance $ — $ 684 $ 134 $ 1,324 $ 2,142 Issuances 42 57 12 — 111 Interest accrual — 34 7 65 106 Net premiums collected (42) (67) (16) (169) (294) Derecognition (lapses) — — — — — Ending balance at original discount rate $ — $ 708 $ 137 $ 1,220 $ 2,065 Effect of changes in discount rate assumptions — (22) (3) (13) (38) Balance at December 31, 2022 $ — $ 686 $ 134 $ 1,207 $ 2,027 Present Value of Future Policy Benefits: Balance at January 1, 2022 $ 1,370 $ 1,598 $ 914 $ 8,350 $ 12,232 Beginning balance at original discount rate 1,231 1,255 688 6,595 9,769 Effect of changes in cash flow assumptions — (8) 1 42 35 Effect of actual variances from expected experience (13) 52 (28) (36) (25) Adjusted beginning of year balance $ 1,218 $ 1,299 $ 661 $ 6,601 $ 9,779 Issuances 42 57 12 — 111 Interest accrual 49 73 38 336 496 Benefit payments (154) (116) (42) (368) (680) Derecognition (lapses) — — — — — Ending balance at original discount rate $ 1,155 $ 1,313 $ 669 $ 6,569 $ 9,706 Effect of changes in discount rate assumptions (90) 6 27 (130) (187) Balance at December 31, 2022 $ 1,065 $ 1,319 $ 696 $ 6,439 $ 9,519 Adjustment due to reserve flooring $ — $ 3 $ — $ — $ 3 Net liability for future policy benefits $ 1,065 $ 636 $ 562 $ 5,232 $ 7,495 Less: reinsurance recoverable 949 443 19 2,649 4,060 Net liability for future policy benefits, after reinsurance recoverable $ 116 $ 193 $ 543 $ 2,583 $ 3,435 Discounted expected future gross premiums $ — $ 1,855 $ 926 $ 1,381 $ 4,162 Expected future gross premiums $ — $ 3,183 $ 1,331 $ 1,908 $ 6,422 Expected future benefit payments $ 1,595 $ 2,234 $ 1,169 $ 11,229 $ 16,227 Weighted average interest accretion rate 4.1 % 6.4 % 6.1 % 5.2 % Weighted average discount rate 5.2 % 5.5 % 5.4 % 5.4 % Weighted average duration of liability (in years) 6 7 8 9 The amount of revenue and interest recognized in the Statement of Income was as follows: Years Ended December 31, 2022 2021 Gross Premiums Interest Expense Gross Premiums Interest Expense (in millions) Life contingent payout annuities $ 45 $ 49 $ 39 $ 53 Term and whole life insurance 169 39 166 41 Disability insurance 127 31 131 30 Long term care insurance 189 271 192 274 Total $ 530 $ 390 $ 528 $ 398 |
Balances of and changes in additional liabilities related to insurance guarantees | The balances of and changes in additional liabilities related to insurance guarantees were as follows: Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2022 $ 1,120 $ 76 $ 46 $ 1,242 Interest accrual 32 5 1 38 Benefit accrual 108 8 — 116 Benefit payments (43) (14) (4) (61) Effect of actual variances from expected experience (19) 2 (2) (19) Impact of change in net unrealized (gains) losses on securities (98) (3) (29) (130) Balance at December 31, 2022 $ 1,100 $ 74 $ 12 $ 1,186 Weighted average interest accretion rate 2.9 % 7.0 % 4.1 % Weighted average discount rate 3.2 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 10 8 6 Universal Life Insurance Variable Universal Life Insurance Other Life Insurance Total, (in millions, except percentages) Balance at January 1, 2021 $ 1,030 $ 74 $ 58 $ 1,162 Interest accrual 29 5 1 35 Benefit accrual 129 8 3 140 Benefit payments (37) (12) (5) (54) Effect of actual variances from expected experience (10) 2 (1) (9) Impact of change in net unrealized (gains) losses on securities (21) (1) (10) (32) Balance at December 31, 2021 $ 1,120 $ 76 $ 46 $ 1,242 Weighted average interest accretion rate 2.9 % 7.0 % 4.0 % Weighted average discount rate 3.1 % 7.1 % 4.0 % Weighted average duration of reserves (in years) 12 9 7 |
Changes in unearned revenue | The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12. Universal Life Insurance Variable Universal Life Insurance Indexed Universal Life Insurance Total, (in millions) Pre-adoption balance at December 31, 2020 $ 19 $ 76 $ — $ 95 Effect of shadow reserve adjustments 5 10 153 168 Post-adoption balance at January 1, 2021 24 86 153 263 Deferral of revenue 3 34 55 92 Amortization (1) (8) (13) (22) Balance at December 31, 2021 $ 26 $ 112 $ 195 $ 333 Balance at January 1, 2022 $ 26 $ 112 $ 195 $ 333 Deferral of revenue 2 48 54 104 Amortization (1) (10) (16) (27) Balance at December 31, 2022 $ 27 $ 150 $ 233 $ 410 |
Separate Account Assets and L_2
Separate Account Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Balances of and changes in separate account liabilities | The balances of and changes in separate account liabilities were as follows: Variable Annuities Variable Universal Life Total (in millions) Balance at January 1, 2022 $ 82,862 $ 9,376 $ 92,238 Premiums and deposits 1,067 425 1,492 Policy charges (1,396) (278) (1,674) Surrenders and other benefits (4,923) (286) (5,209) Investment return (14,450) (1,654) (16,104) Net transfer from (to) general account 63 70 133 Balance at December 31, 2022 $ 63,223 $ 7,653 $ 70,876 Cash surrender value $ 61,461 $ 7,200 $ 68,661 Variable Annuities Variable Universal Life Total (in millions) Balance at January 1, 2021 $ 79,299 $ 8,257 $ 87,556 Premiums and deposits 2,590 411 3,001 Policy charges (1,520) (263) (1,783) Surrenders and other benefits (6,336) (362) (6,698) Investment return 8,660 1,249 9,909 Net transfer from (to) general account 169 84 253 Balance at December 31, 2021 $ 82,862 $ 9,376 $ 92,238 Cash surrender value $ 80,746 $ 8,939 $ 89,685 |
Market Risk Benefits_Variable_2
Market Risk Benefits/Variable Annuity and Insurance Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Balances of and changes in market risk benefits | The following tables summarize the balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12. (in millions) Pre-adoption balance at December 31, 2020 $ 3,084 Effect of shadow reserve adjustments (3) Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date 670 Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation 20 Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits 1,058 Post-adoption balance at January 1, 2021 $ 4,829 Years Ended December 31, 2022 2021 (in millions, except age) Balance at beginning of period $ 2,901 $ 4,829 Issuances 27 45 Interest accrual and time decay (237) (294) Reserve increase from attributed fees collected 810 819 Reserve release for benefit payments and derecognition (29) (8) Effect of changes in interest rates and bond markets (4,193) (1,053) Effect of changes in equity markets and subaccount performance 2,258 (1,558) Effect of changes in equity index volatility 205 73 Actual policyholder behavior different from expected behavior 17 52 Effect of changes in other future expected assumptions (139) 123 Effect of changes in the instrument-specific credit risk on market risk benefits (517) (127) Balance at end of period $ 1,103 $ 2,901 Reconciliation of the gross balances in an asset or liability position: Asset position $ 1,015 $ 539 Liability position (2,118) (3,440) Net asset (liability) position $ (1,103) $ (2,901) Guaranteed benefit amount in excess of current account balances (net amount at risk): Death benefits $ 2,781 $ 251 Living benefits $ 3,364 $ 195 Composite (greater of) $ 5,830 $ 441 Weighted average attained age of contractholders 68 68 Changes in unrealized (gains) losses in net income relating to liabilities held at end of period $ (2,044) $ (2,502) Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period $ (505) $ (102) |
Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities | The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits: December 31, 2022 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 1,103 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 11.0% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 26.6% 12.1% Nonperformance risk (4) 95 bps 95 bps Mortality rate (5) 0.0% – 41.6% 1.5% December 31, 2021 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 2,901 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 10.6% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 25.4% 11.4% Nonperformance risk (4) 65 bps 65 bps Mortality rate (5) 0.0% – 54.5% 1.5% (1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals. (2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. (4) The nonperformance risk is the spread added to the U.S. Treasury curve. (5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract. 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: December 31, 2022 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 395 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.1 % - 2.3 % 1.4 % Asset backed securities $ 545 Discounted cash flow Annual default rate 2.4% 2.4 % Loss severity 25.0% 25.0 % Yield/spread to U.S. Treasuries (2) 320 bps - 550 bps 329 bps Fixed deferred indexed annuity ceded embedded derivatives $ 48 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 44 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 95 bps 95 bps IUL embedded derivatives $ 739 Discounted cash flow Nonperformance risk (5) 95 bps 95 bps Structured variable annuity embedded derivatives $ (137) (6) Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 95 bps 95 bps December 31, 2021 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8 % - 2.4 % 1.1 % Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8 % Loss severity 25.0% 25.0 % Yield/spread to swap rates (3) 175 bps - 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 65 bps 65 bps IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (5) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 65 bps 65 bps (1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the yield/spread to U.S. Treasuries for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to U.S. Treasuries divided by the aggregate balances of the tranches. (3) The weighted average for the yield/spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its yield/spread to swap divided by the aggregate balances of the tranches. (4) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (5) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. During the third quarter of 2022, the Company changed to using a U.S. Treasury curve as its observable discount rate curve reflecting the evolution of LIBOR discontinuation as an observable reference rate used by market participants. (6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. |
Schedule of changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees prior to the adoption of ASU 2018-12 were as follows: GMDB & GMIB GMWB (1) GMAB (1) UL (in millions) Balance at January 1, 2020 $ 16 $ 7 $ 1,462 $ (39) $ 758 Incurred claims 15 — 1,587 40 209 Paid claims (7) (1) — — (51) Balance at December 31, 2020 $ 24 $ 6 $ 3,049 $ 1 $ 916 (1) The incurred claims for GMWB and GMAB include the change in the fair value of the liabilities (contra liabilities) less paid claims. |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Assets and liabilities measured at fair value | |
Summary of significant unobservable inputs used in fair value measurements of Level 3 assets and liabilities | The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits: December 31, 2022 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 1,103 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 11.0% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 26.6% 12.1% Nonperformance risk (4) 95 bps 95 bps Mortality rate (5) 0.0% – 41.6% 1.5% December 31, 2021 Fair Value Valuation Technique Significant Inputs and Assumptions Range Weighted (in millions) Market risk benefits $ 2,901 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% – 48.0% 10.6% Surrender rate (2) 0.2% – 45.6% 3.6% Market volatility (3) 0.0% – 25.4% 11.4% Nonperformance risk (4) 65 bps 65 bps Mortality rate (5) 0.0% – 54.5% 1.5% (1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals. (2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. (4) The nonperformance risk is the spread added to the U.S. Treasury curve. (5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract. 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: December 31, 2022 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 395 Discounted cash flow Yield/spread to U.S. Treasuries (1) 1.1 % - 2.3 % 1.4 % Asset backed securities $ 545 Discounted cash flow Annual default rate 2.4% 2.4 % Loss severity 25.0% 25.0 % Yield/spread to U.S. Treasuries (2) 320 bps - 550 bps 329 bps Fixed deferred indexed annuity ceded embedded derivatives $ 48 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 44 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 95 bps 95 bps IUL embedded derivatives $ 739 Discounted cash flow Nonperformance risk (5) 95 bps 95 bps Structured variable annuity embedded derivatives $ (137) (6) Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 95 bps 95 bps December 31, 2021 Fair Valuation Technique Unobservable Input Range Weighted Average (in millions) Corporate debt securities (private placements) $ 496 Discounted cash flow Yield/spread to U.S. Treasuries (1) 0.8 % - 2.4 % 1.1 % Asset backed securities $ 291 Discounted cash flow Annual default rate 5.8% 5.8 % Loss severity 25.0% 25.0 % Yield/spread to swap rates (3) 175 bps - 275 bps 182 bps Fixed deferred indexed annuity ceded embedded derivatives $ 59 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Fixed deferred indexed annuity embedded derivatives $ 56 Discounted cash flow Surrender rate (4) 0.0 % - 66.8 % 1.4 % Nonperformance risk (5) 65 bps 65 bps IUL embedded derivatives $ 905 Discounted cash flow Nonperformance risk (5) 65 bps 65 bps Structured variable annuity embedded derivatives $ 406 Discounted cash flow Surrender rate (4) 0.8 % - 40.0 % 0.9 % Nonperformance risk (5) 65 bps 65 bps (1) The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. (2) The weighted average for the yield/spread to U.S. Treasuries for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to U.S. Treasuries divided by the aggregate balances of the tranches. (3) The weighted average for the yield/spread to swap rates for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its yield/spread to swap divided by the aggregate balances of the tranches. (4) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. (5) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives. During the third quarter of 2022, the Company changed to using a U.S. Treasury curve as its observable discount rate curve reflecting the evolution of LIBOR discontinuation as an observable reference rate used by market participants. (6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. |
Schedule of carrying value and estimated fair value of financial instruments not reported at fair value | The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value: December 31, 2022 Carrying Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,768 $ — $ — $ 1,600 $ 1,600 Policy loans 847 — 847 — 847 Other investments 89 — 69 20 89 Receivables 7,372 — — 6,174 6,174 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 14,450 $ — $ — $ 12,470 $ 12,470 Short-term borrowings 201 — 201 — 201 Long-term debt 500 — 315 — 315 Other liabilities 8 — — 7 7 Separate account liabilities - investment contracts 298 — 298 — 298 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) Financial Assets Mortgage loans, net $ 1,788 $ — $ — $ 1,872 $ 1,872 Policy loans 834 — 834 — 834 Other investments 61 — 40 21 61 Receivables 7,876 — — 8,630 8,630 Financial Liabilities Policyholder account balances, future policy benefits and claims $ 12,289 $ — $ — $ 13,215 $ 13,215 Short-term borrowings 200 — 200 — 200 Long-term debt 500 — 498 — 498 Other liabilities 9 — — 9 9 Separate account liabilities - investment contracts 403 — 403 — 403 |
RiverSource Life | |
Assets and liabilities measured at fair value | |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis (See Note 5 for the balances of assets and liabilities for consolidated investment entities): December 31, 2022 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 8,311 $ 395 $ 8,706 Residential mortgage backed securities — 2,959 — 2,959 Commercial mortgage backed securities — 2,651 — 2,651 State and municipal obligations — 786 — 786 Asset backed securities — 452 545 997 Foreign government bonds and obligations — 35 — 35 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,194 940 16,135 Cash equivalents 1,063 1,529 — 2,592 Market risk benefits — — 1,015 1,015 (1) Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 48 48 Other assets: Interest rate derivative contracts 7 260 — 267 Equity derivative contracts 129 2,564 — 2,693 Foreign exchange derivative contracts — 34 — 34 Credit derivative contracts — 13 — 13 Total other assets 136 2,871 — 3,007 Separate account assets at net asset value (“NAV”) 70,876 (2) Total assets at fair value $ 1,200 $ 19,594 $ 2,003 $ 93,673 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 3 $ 44 $ 47 IUL embedded derivatives — — 739 739 Structured variable annuity embedded derivatives — — (137) (137) (3) Total policyholder account balances, future policy benefits and claims — 3 646 649 (4) Market risk benefits — — 2,118 2,118 (1) Other liabilities: Interest rate derivative contracts 4 351 — 355 Equity derivative contracts 138 2,228 — 2,366 Foreign exchange derivative contracts 6 4 — 10 Total other liabilities 148 2,583 — 2,731 Total liabilities at fair value $ 148 $ 2,586 $ 2,764 $ 5,498 December 31, 2021 Level 1 Level 2 Level 3 Total (in millions) Assets Available-for-Sale securities: Corporate debt securities $ — $ 9,142 $ 496 $ 9,638 Residential mortgage backed securities — 2,250 — 2,250 Commercial mortgage backed securities — 2,656 — 2,656 State and municipal obligations — 1,074 — 1,074 Asset backed securities — 246 291 537 Foreign government bonds and obligations — 83 — 83 U.S. government and agency obligations 1 — — 1 Total Available-for-Sale securities 1 15,451 787 16,239 Cash equivalents 1,985 1,191 — 3,176 Market risk benefits — — 539 539 (1) Receivables: Fixed deferred indexed annuity ceded embedded derivatives — — 59 59 Other assets: Interest rate derivative contracts 1 1,251 — 1,252 Equity derivative contracts 158 4,080 — 4,238 Foreign exchange derivative contracts 1 17 — 18 Credit derivative contracts — 9 — 9 Total other assets 160 5,357 — 5,517 Separate account assets at NAV 92,238 (2) Total assets at fair value $ 2,146 $ 21,999 $ 1,385 $ 117,768 Liabilities Policyholder account balances, future policy benefits and claims: Fixed deferred indexed annuity embedded derivatives $ — $ 5 $ 56 $ 61 IUL embedded derivatives — — 905 905 Structured variable annuity embedded derivatives — — 406 406 Total policyholder account balances, future policy benefits and claims — 5 1,367 1,372 (5) Market risk benefits — — 3,440 3,440 (1) Other liabilities: Interest rate derivative contracts 1 467 — 468 Equity derivative contracts 101 3,610 — 3,711 Foreign exchange derivative contracts 1 — — 1 Total other liabilities 103 4,077 — 4,180 Total liabilities at fair value $ 103 $ 4,082 $ 4,807 $ 8,992 (1) See Note 12 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits. (2) Amounts are comprised of certain financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. (3) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. (4) The Company’s adjustment for nonperformance risk resulted in a $139 million cumulative decrease to the embedded derivatives as of December 31, 2022. (5) The Company’s adjustment for nonperformance risk resulted in a $96 million cumulative decrease to the embedded derivatives as of December 31, 2021. |
Summary of changes in Level 3 assets measured at fair value on a recurring basis | 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income (1) — — (1) (1) (8) Other comprehensive income (loss) (44) — (25) (69) — Purchases 29 30 564 623 — Settlements (85) — (285) (370) (3) Transfers out of Level 3 — (30) — (30) — Balance at December 31, 2022 $ 395 $ — $ 545 $ 940 $ 48 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2022 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2022 $ (42) $ — $ (21) $ (63) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 406 $ 1,367 Total (gains) losses included in: Net income (9) (2) (105) (2) (633) (3) (747) Issues — 51 90 141 Settlements (3) (112) — (115) Balance at December 31, 2022 $ 44 $ 739 $ (137) (4) $ 646 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2022 $ — $ (105) (2) $ (633) (3) $ (738) Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 70 $ 1,054 Total (gains) losses included in: Net income 10 (2) 68 (2) 393 (3) 471 Issues — — (28) (28) Settlements (3) (98) (29) (130) Balance at December 31, 2021 $ 56 $ 905 $ 406 $ 1,367 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ — $ 68 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives (5) Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 (1) Included in Net investment income (2) Included in Interest credited to fixed accounts (3) Included in Benefits, claims, losses and settlement expenses (4) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. (5) GMWB and GMAB were accounted for as embedded derivatives prior to the adoption of ASU 2018-12. Upon adoption of ASU 2018-12, GMWB and GMAB are accounted for as market risk benefits. |
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | 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 Receivables Corporate Debt Securities Commercial Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2022 $ 496 $ — $ 291 $ 787 $ 59 Total gains (losses) included in: Net income (1) — — (1) (1) (8) Other comprehensive income (loss) (44) — (25) (69) — Purchases 29 30 564 623 — Settlements (85) — (285) (370) (3) Transfers out of Level 3 — (30) — (30) — Balance at December 31, 2022 $ 395 $ — $ 545 $ 940 $ 48 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2022 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2022 $ (42) $ — $ (21) $ (63) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2022 $ 56 $ 905 $ 406 $ 1,367 Total (gains) losses included in: Net income (9) (2) (105) (2) (633) (3) (747) Issues — 51 90 141 Settlements (3) (112) — (115) Balance at December 31, 2022 $ 44 $ 739 $ (137) (4) $ 646 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2022 $ — $ (105) (2) $ (633) (3) $ (738) Available-for-Sale Securities Receivables Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total Fixed Deferred Indexed Annuity Ceded Embedded Derivatives (in millions) Balance at January 1, 2021 $ 766 $ 9 $ 395 $ 1,170 $ — Total gains (losses) included in: Net income (1) — — (1) (1) 3 Other comprehensive income (loss) (10) — (1) (11) — Purchases 108 — — 108 — Issues — — — — 57 Settlements (119) — (81) (200) (1) Transfers into Level 3 168 — 2 170 — Transfers out of Level 3 (416) (9) (24) (449) — Balance at December 31, 2021 $ 496 $ — $ 291 $ 787 $ 59 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2021 $ (1) $ — $ — $ (1) (1) $ — Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2021 $ (8) $ — $ (1) $ (9) $ — Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2021 $ 49 $ 935 $ 70 $ 1,054 Total (gains) losses included in: Net income 10 (2) 68 (2) 393 (3) 471 Issues — — (28) (28) Settlements (3) (98) (29) (130) Balance at December 31, 2021 $ 56 $ 905 $ 406 $ 1,367 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2021 $ — $ 68 (2) $ — $ 68 Available-for-Sale Securities Corporate Debt Securities Residential Mortgage Backed Securities Asset Backed Securities Total (in millions) Balance at January 1, 2020 $ 735 $ 17 $ 389 $ 1,141 Total gains (losses) included in: Other comprehensive income (loss) 15 1 (2) 14 Purchases 62 39 — 101 Settlements (46) — (6) (52) Transfers into Level 3 — — 14 14 Transfers out of Level 3 — (48) — (48) Balance at December 31, 2020 $ 766 $ 9 $ 395 $ 1,170 Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2020 $ (1) $ — $ — $ (1) (1) Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2020 $ 15 $ 1 $ (2) $ 14 Policyholder Account Balances, Future Policy Benefits and Claims Fixed Deferred Indexed Annuity Embedded Derivatives IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives (5) Structured Variable Annuity Embedded Derivatives Total (in millions) Balance at January 1, 2020 $ 43 $ 881 $ 763 $ — $ 1,687 Total (gains) losses included in: Net income 4 (2) 76 (2) 1,152 (3) 91 (3) 1,323 Issues 3 61 362 (21) 405 Settlements (1) (83) 39 — (45) Balance at December 31, 2020 $ 49 $ 935 $ 2,316 $ 70 $ 3,370 Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2020 $ — $ 76 (2) $ 1,206 (3) $ — $ 1,282 (1) Included in Net investment income (2) Included in Interest credited to fixed accounts (3) Included in Benefits, claims, losses and settlement expenses (4) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability. (5) GMWB and GMAB were accounted for as embedded derivatives prior to the adoption of ASU 2018-12. Upon adoption of ASU 2018-12, GMWB and GMAB are accounted for as market risk benefits. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of cash dividends and return of capital or distributions paid and received | Cash dividends and return of capital or distributions paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, 2022 2021 2020 (in millions) Dividends paid to Ameriprise Financial $ 600 $ 1,900 $ 800 Dividend received from RiverSource Life of NY 63 — — Dividends received from RTA — 50 95 Return of capital received from RTA 80 — — |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Summary of statutory net gain from operations and net income | Statutory net gain from operations and net income for RiverSource Life Insurance Company are summarized as follows: Years Ended December 31, 2022 2021 2020 (in millions) Statutory net gain from operations $ 1,615 $ 1,366 $ 1,393 Statutory net income 1,769 253 1,582 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Schedule of gross and net information about assets subject to master netting arrangements | The following tables present the gross and net information about the Company’s assets subject to master netting arrangements: December 31, 2022 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 2,887 $ — $ 2,887 $ (2,313) $ (565) $ (5) $ 4 OTC cleared 23 — 23 (9) — — 14 Exchange-traded 97 — 97 (75) — — 22 Total $ 3,007 $ — $ 3,007 $ (2,397) $ (565) $ (5) $ 40 December 31, 2021 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 in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral Securities Collateral (in millions) Derivatives: OTC $ 5,330 $ — $ 5,330 $ (3,571) $ (1,623) $ (114) $ 22 OTC cleared 88 — 88 (41) — — 47 Exchange-traded 99 — 99 (91) — — 8 Total $ 5,517 $ — $ 5,517 $ (3,703) $ (1,623) $ (114) $ 77 (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 liabilities subject to master netting arrangements | The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements: December 31, 2022 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Amounts of Gross Amounts Not Offset Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 2,630 $ — $ 2,630 $ (2,313) $ (38) $ (277) $ 2 OTC cleared 9 — 9 (9) — — — Exchange-traded 92 — 92 (75) — (17) — Total $ 2,731 $ — $ 2,731 $ (2,397) $ (38) $ (294) $ 2 December 31, 2021 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 Net Amount Financial Instruments (1) Cash Securities (in millions) Derivatives: OTC $ 4,048 $ — $ 4,048 $ (3,571) $ (181) $ (293) $ 3 OTC cleared 41 — 41 (41) — — — Exchange-traded 91 — 91 (91) — — — Total $ 4,180 $ — $ 4,180 $ (3,703) $ (181) $ (293) $ 3 (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 Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value and gross fair value of derivative instruments, including embedded derivatives | The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives: December 31, 2022 December 31, 2021 Notional Gross Fair Value Notional Gross Fair Value Assets (1) Liabilities (2) Assets (1) Liabilities (2) (in millions) Derivatives not designated as hedging instruments Interest rate contracts $ 101,302 $ 267 $ 355 $ 79,459 $ 1,252 $ 468 Equity contracts 67,416 2,693 2,366 59,763 4,238 3,711 Credit contracts 1,802 13 — 1,717 9 — Foreign exchange contracts 2,870 34 10 2,239 18 1 Total non-designated hedges 173,390 3,007 2,731 143,178 5,517 4,180 Embedded derivatives IUL N/A — 739 N/A — 905 Fixed deferred indexed annuities and deposit receivables N/A 48 47 N/A 59 61 Structured variable annuity (3) N/A — (137) N/A — 406 Total embedded derivatives N/A 48 649 N/A 59 1,372 Total derivatives $ 173,390 $ 3,055 $ 3,380 $ 143,178 $ 5,576 $ 5,552 N/A Not applicable. (1) The fair value of freestanding derivative assets is included in Other assets Receivables (2) The fair value of freestanding derivative liabilities is included in Other liabilities Policyholder account balances, future policy benefits and claims (3) The fair value of the structured variable annuity embedded derivatives as of December 31, 2022 included $194 million of individual contracts in a liability position and $331 million of individual contracts in an asset position. The fair value of the structured variable annuity embedded derivatives as of December 31, 2021 included $409 million of individual contracts in a liability position and $3 million of individual contracts in an asset position. |
Summary of impact of derivatives not designated as hedging instruments, including embedded derivatives | The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income: Net Investment Income Benefits, Claims, Losses and Settlement Expenses Interest Credited to Fixed Accounts Change in Fair Value of Market Risk Benefits (in millions) Year Ended December 31, 2022 Interest rate contracts $ — $ (26) $ — $ (2,874) Equity contracts — (164) (126) 899 Credit contracts — — — 279 Foreign exchange contracts — — — 105 IUL embedded derivatives — — 217 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — — 4 — Structured variable annuity embedded derivatives — 633 — — Total gain (loss) $ — $ 443 $ 95 $ (1,591) Year Ended December 31, 2021 Interest rate contracts $ — $ — $ — $ (886) Equity contracts 1 34 91 (851) Credit contracts — — — 43 Foreign exchange contracts — — — 5 IUL embedded derivatives — — 30 — Fixed deferred indexed annuity and deposit receivables embedded derivatives — — (8) — Structured variable annuity embedded derivatives — (393) — — Total gain (loss) $ 1 $ (359) $ 113 $ (1,689) Year Ended December 31, 2020 Interest rate contracts $ — $ 1,633 $ — $ — Equity contracts — (744) 55 — Credit contracts — (106) — — Foreign exchange contracts — (8) — — GMWB and GMAB embedded derivatives (1) — (1,553) — — IUL embedded derivatives — — 7 — Fixed deferred indexed annuities embedded derivatives — — (4) — Structured variable annuity embedded derivatives — (91) — — Total gain (loss) $ — $ (869) $ 58 $ — (1) GMWB and GMAB were accounted for as embedded derivatives prior to the adoption of ASU 2018-12. Upon adoption of ASU 2018-12, GMWB and GMAB are accounted for as market risk benefits. |
Summary of payments to make and receive for options and swaptions | The following is a summary of the payments the Company is scheduled to make and receive for these options as of December 31, 2022: Premiums Premiums (in millions) 2023 $ 50 $ 43 2024 132 23 2025 121 21 2026 251 88 2027 19 — 2028-2029 59 — Total $ 632 $ 175 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of amounts related to each component of OCI | The following tables provide the amounts related to each component of OCI: Year Ended December 31, 2022 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (2,784) $ 595 $ (2,189) Reclassification of net (gains) losses on securities included in net income (2) 88 (19) 69 Impact of benefit reserves and reinsurance recoverables 103 (18) 85 Net unrealized gains (losses) on securities (2,593) 558 (2,035) Effect of changes in discount rate assumptions on certain long-duration contracts 1,095 (234) 861 Effect of changes in instrument-specific credit risk on MRBs 517 (110) 407 Total other comprehensive income (loss) $ (981) $ 214 $ (767) Year Ended December 31, 2021 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ (527) $ 111 $ (416) Reclassification of net (gains) losses on securities included in net income (2) (556) 117 (439) Impact of benefit reserves and reinsurance recoverables 8 (1) 7 Net unrealized gains (losses) on securities (1,075) 227 (848) Effect of changes in discount rate assumptions on certain long-duration contracts 361 (77) 284 Effect of changes in instrument-specific credit risk on MRBs 127 (27) 100 Total other comprehensive income (loss) $ (587) $ 123 $ (464) Year Ended December 31, 2020 Pretax Income Tax Benefit (Expense) Net of Tax (in millions) Net unrealized gains (losses) on securities: Net unrealized gains (losses) on securities arising during the period (1) $ 811 $ (170) $ 641 Reclassification of net (gains) losses on securities included in net income (2) 5 (1) 4 Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables (3) (274) 57 (217) Net unrealized gains (losses) on securities 542 (114) 428 Total other comprehensive income (loss) $ 542 $ (114) $ 428 (1) Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. (2) Reclassification amounts are recorded in Net realized investment gains (losses). (3) See Note 22 for a summary of the revision to the Company’s previously reported Consolidated Financial Statements. |
Schedule of changes in the balances of each component of AOCI | The following table presents the changes in the balances of each component of AOCI, net of tax: Net Unrealized Gains (Losses) on Securities Effect of Changes in Discount Rate Assumptions Effect of Changes in Instrument-Specific Credit Risk on MRBs Other Total (in millions) Balance at January 1, 2020 $ 757 $ — $ — $ (1) $ 756 OCI before reclassifications 424 — — — 424 Amounts reclassified from AOCI 4 — — — 4 Total OCI 428 — — — 428 Balance at December 31, 2020 1,185 — — (1) 1,184 Cumulative effect of adoption of long-duration contracts guidance 707 (1,217) (527) — (1,037) OCI before reclassifications (409) 284 100 — (25) Amounts reclassified from AOCI (439) — — — (439) Total OCI (848) 284 100 — (464) Balance at December 31, 2021 1,044 (933) (427) (1) (317) OCI before reclassifications (2,104) 861 407 — (836) Amounts reclassified from AOCI 69 — — — 69 Total OCI (2,035) 861 407 — (767) Balance at December 31, 2022 $ (991) $ (72) $ (20) $ (1) $ (1,084) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) | The components of income tax provision (benefit) were as follows: Years Ended December 31, 2022 2021 2020 (in millions) Current income tax Federal $ 57 $ 172 $ 233 State (2) 6 — Total current income tax 55 178 233 Deferred income tax Federal 150 136 (277) State 4 2 (1) Total deferred income tax 154 138 (278) Total income tax provision (benefit) $ 209 $ 316 $ (45) |
Schedule of reasons for aggregate income tax provision (benefit) differences to U.S. statutory rate | The principal reasons that the aggregate income tax provision (benefit) is different from that computed by using the U.S. statutory rate of 21% were as follows: Years Ended December 31, 2022 2021 2020 Tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Changes in taxes resulting from: Low income housing tax credits (2.9) (3.3) (20.1) Dividend received deduction (2.3) (1.7) (9.7) Foreign tax credit, net of addback (1.7) (0.9) (1.9) Other, net (0.3) 0.4 (0.8) Income tax provision (benefit) 13.8 % 15.5 % (11.5) % |
Schedule of significant components of deferred income tax assets and liabilities | The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows: December 31, 2022 2021 (in millions) Deferred income tax assets Liabilities for policyholder account balances, future policy benefits and claims $ 2,274 $ 2,386 Net unrealized losses on Available-for-Sale securities 244 — Other 29 14 Gross deferred income tax assets 2,547 2,400 Less: valuation allowance 30 11 Total deferred income tax assets 2,517 2,389 Deferred income tax liabilities Investment related 923 508 Deferred acquisition costs 409 438 Net unrealized gains on Available-for-Sale securities — 308 Other 52 57 Gross deferred income tax liabilities 1,384 1,311 Net deferred income tax assets $ 1,133 $ 1,078 |
Reconciliation rollforward of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: 2022 2021 2020 (in millions) Balance at January 1 $ 37 $ 38 $ 39 Additions based on tax positions related to the current year — — 1 Reductions based on tax positions related to the current year (1) (1) (1) Additions for tax positions of prior years 1 — — Reductions due to lapse of statute of limitations — — (1) Balance at December 31 $ 37 $ 37 $ 38 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of funding commitments | The following table presents the Company’s funding commitments as of December 31: 2022 2021 (in millions) Commercial mortgage loans $ — $ 48 Affordable housing and other real estate partnerships 8 9 Total funding commitments $ 8 $ 57 |
Revision of Prior Period Fina_2
Revision of Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of revisions to previously reported amounts | A summary of the revision to our previously reported Consolidated Financial Statements is presented below: Revised Consolidated Statements of Comprehensive Income Year Ended December 31, 2020 As Reported Impact of Revision As Revised (in millions) Net unrealized gains (losses) on securities $ 346 $ 82 $ 428 Total other comprehensive income (loss), net of tax 346 82 428 Total comprehensive income (loss) 784 82 866 Revised Consolidated Statements of Shareholder’s Equity As Reported As Revised Accumulated Other Comprehensive Income (Loss) Total Shareholder’s Equity Impact of Revision Accumulated Other Comprehensive Income (Loss) Total Shareholder’s Equity (in millions) Balances at January 1, 2020 $ 574 $ 3,336 $ 182 $ 756 $ 3,518 Other comprehensive income, net of tax 346 346 82 428 428 Balances at December 31, 2020 920 3,313 264 1,184 3,577 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Subsidiaries (Details) | Dec. 31, 2022 item |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly owned subsidiaries | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Investments and Financing Receivables (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Available-for-Sale securities: | |
Period past due for nonaccrual status | 90 days |
Commercial Loans | Commercial mortgage loans | |
Financing Receivables | |
Period past due for nonaccrual status | 90 days |
Commercial Loans | Syndicated loans | |
Financing Receivables | |
Period past due for nonaccrual status | 90 days |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies- Land, Buildings, Equipment and Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Land, buildings, equipment and software | |||
Land, buildings, equipment and software, net of accumulated depreciation | $ 123 | $ 123 | |
Accumulated depreciation | 229 | 216 | |
Depreciation and amortization expense | $ 13 | $ 14 | $ 14 |
Minimum | |||
Land, buildings, equipment and software | |||
Depreciation and amortization period | 3 years | ||
Maximum | |||
Land, buildings, equipment and software | |||
Depreciation and amortization period | 39 years |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | $ (973) | [1] | $ (1,038) | [2] | $ (3,577) | $ (3,518) |
Retained Earnings (Deficit) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | 412 | [1] | 1,114 | [1] | 76 | (293) |
Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | 1,084 | [1] | 317 | [1] | (1,184) | $ (756) |
Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | $ (190) | $ 1,103 | 1,900 | |||
Adjustment | Retained Earnings (Deficit) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | 900 | |||||
Adjustment | Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in total equity | $ 1,000 | |||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Adoption of New Accounting Standard (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Assets | |||||||
Market risk benefits | [1] | $ 1,015 | $ 539 | ||||
Reinsurance recoverables | [1] | 4,228 | 5,456 | ||||
Deferred acquisition costs | 2,759 | [1] | 2,821 | [1] | $ 2,812 | $ 2,673 | |
Total assets | [1] | 115,403 | 141,253 | ||||
Liabilities: | |||||||
Policyholder account balances, future policy benefits and claims | [1] | 34,122 | 35,017 | ||||
Market risk benefits | [1] | 2,118 | 3,440 | ||||
Liabilities | [1] | 114,430 | 140,215 | ||||
Shareholder's equity: | |||||||
Accumulated deficit | [1] | (412) | (1,114) | ||||
Accumulated other comprehensive income (loss), net of tax | [1] | (1,084) | (317) | ||||
Total shareholder’s equity | 973 | [2] | 1,038 | [1] | 3,577 | 3,518 | |
Total liabilities and shareholder's equity | [1] | 115,403 | 141,253 | ||||
Revenues | |||||||
Policy and contract charges | 2,078 | [3] | 2,250 | [3] | 2,094 | ||
Total revenues | 3,755 | [3] | 3,417 | [3] | 3,776 | ||
Benefits and expenses | |||||||
Benefits, claims, losses and settlement expenses | 236 | [3] | (157) | [3] | 1,805 | ||
Remeasurement (gains) losses of future policy benefit reserves | 1 | [3] | (52) | [3] | 0 | ||
Change in fair value of market risk benefits | 311 | [3] | (113) | [3] | 0 | ||
Amortization of deferred acquisition costs | 241 | [3] | 245 | [3] | 264 | ||
Other insurance and operating expenses | 682 | [3] | 751 | [3] | 665 | ||
Total benefits and expenses | 2,244 | [3] | 1,379 | [3] | 3,383 | ||
Pretax income (loss) | 1,511 | [3] | 2,038 | [3] | 393 | ||
Income tax provision (benefit) | 209 | [3] | 316 | [3] | (45) | ||
Net income | 1,302 | [4] | 1,722 | [4] | 438 | ||
RiverSource Life | |||||||
Assets | |||||||
Reinsurance recoverables, allowance for credit losses | [1] | 23 | 11 | ||||
Other assets | [1] | 4,726 | 7,311 | ||||
Liabilities: | |||||||
Other liabilities | [1] | 4,131 | 6,519 | ||||
Previously Reported | |||||||
Assets | |||||||
Market risk benefits | 0 | 0 | |||||
Reinsurance recoverables | 4,412 | 4,529 | |||||
Deferred acquisition costs | 3,141 | 2,757 | 2,508 | ||||
Total assets | 115,019 | 139,427 | |||||
Liabilities: | |||||||
Policyholder account balances, future policy benefits and claims | 36,057 | 35,744 | |||||
Market risk benefits | 0 | 0 | |||||
Liabilities | 114,236 | 137,286 | |||||
Shareholder's equity: | |||||||
Accumulated deficit | (799) | (912) | |||||
Accumulated other comprehensive income (loss), net of tax | (887) | 584 | |||||
Total shareholder’s equity | 783 | 2,141 | 3,313 | $ 3,336 | |||
Total liabilities and shareholder's equity | 115,019 | 139,427 | |||||
Revenues | |||||||
Policy and contract charges | 2,091 | 2,304 | |||||
Total revenues | 3,768 | 3,471 | |||||
Benefits and expenses | |||||||
Benefits, claims, losses and settlement expenses | 1,366 | 715 | |||||
Remeasurement (gains) losses of future policy benefit reserves | 0 | 0 | |||||
Change in fair value of market risk benefits | 0 | 0 | |||||
Amortization of deferred acquisition costs | 196 | 112 | |||||
Other insurance and operating expenses | 670 | 738 | |||||
Total benefits and expenses | 3,005 | 2,270 | |||||
Pretax income (loss) | 763 | 1,201 | |||||
Income tax provision (benefit) | 50 | 137 | |||||
Net income | 713 | 1,064 | |||||
Previously Reported | RiverSource Life | |||||||
Assets | |||||||
Other assets | 4,791 | 7,015 | |||||
Liabilities: | |||||||
Other liabilities | 4,120 | 6,303 | |||||
Adjustment | |||||||
Assets | |||||||
Market risk benefits | 1,015 | 539 | |||||
Reinsurance recoverables | (184) | 927 | |||||
Deferred acquisition costs | (382) | 64 | 304 | ||||
Total assets | 384 | 1,826 | |||||
Liabilities: | |||||||
Policyholder account balances, future policy benefits and claims | (1,935) | (727) | |||||
Market risk benefits | 2,118 | 3,440 | |||||
Liabilities | 194 | 2,929 | |||||
Shareholder's equity: | |||||||
Accumulated deficit | 387 | (202) | |||||
Accumulated other comprehensive income (loss), net of tax | (197) | (901) | |||||
Total shareholder’s equity | 190 | (1,103) | $ (1,900) | ||||
Total liabilities and shareholder's equity | 384 | 1,826 | |||||
Revenues | |||||||
Policy and contract charges | (13) | (54) | |||||
Total revenues | (13) | (54) | |||||
Benefits and expenses | |||||||
Benefits, claims, losses and settlement expenses | (1,130) | (872) | |||||
Remeasurement (gains) losses of future policy benefit reserves | 1 | (52) | |||||
Change in fair value of market risk benefits | 311 | (113) | |||||
Amortization of deferred acquisition costs | 45 | 133 | |||||
Other insurance and operating expenses | 12 | 13 | |||||
Total benefits and expenses | (761) | (891) | |||||
Pretax income (loss) | 748 | 837 | |||||
Income tax provision (benefit) | 159 | 179 | |||||
Net income | 589 | 658 | |||||
Adjustment | RiverSource Life | |||||||
Assets | |||||||
Other assets | (65) | 296 | |||||
Liabilities: | |||||||
Other liabilities | $ 11 | $ 216 | |||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Revenues | |||||
Revenue from contracts with customers | $ 576 | $ 673 | $ 604 | ||
Revenue from other sources | 3,179 | 2,744 | 3,172 | ||
Total revenues | 3,755 | [1] | 3,417 | [1] | 3,776 |
Receivables related to revenues from contracts with customers | 48 | 62 | |||
Policy and contract charges | |||||
Revenues | |||||
Revenue from contracts with customers | 178 | 210 | 187 | ||
Policy and contract charges | Affiliated | |||||
Revenues | |||||
Revenue from contracts with customers | 164 | 193 | 173 | ||
Policy and contract charges | Unaffiliated | |||||
Revenues | |||||
Revenue from contracts with customers | 14 | 17 | 14 | ||
Total Other revenues | |||||
Revenues | |||||
Revenue from contracts with customers | 398 | 463 | 417 | ||
Other revenues: Administrative fees | |||||
Revenues | |||||
Revenue from contracts with customers | 60 | 69 | 62 | ||
Other revenues: Administrative fees | Affiliated | |||||
Revenues | |||||
Revenue from contracts with customers | 42 | 49 | 44 | ||
Other revenues: Administrative fees | Unaffiliated | |||||
Revenues | |||||
Revenue from contracts with customers | 18 | 20 | 18 | ||
Other revenues: Other fees | |||||
Revenues | |||||
Revenue from contracts with customers | 338 | 394 | 355 | ||
Other revenues: Other fees | Affiliated | |||||
Revenues | |||||
Revenue from contracts with customers | 334 | 389 | 351 | ||
Other revenues: Other fees | Unaffiliated | |||||
Revenues | |||||
Revenue from contracts with customers | $ 4 | $ 5 | $ 4 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Variable Interest Entities - In
Variable Interest Entities - Investment Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
VIEs, not primary beneficiary | ||
Variable interest entities | ||
Obligation to provide financial or other support to VIEs | $ 0 | |
VIEs, not primary beneficiary | Affordable Housing Partnerships and Other Real Estate Partnerships | ||
Variable interest entities | ||
Maximum loss exposure | 92 | $ 138 |
Other investments | 92 | 138 |
Liability related to original purchase commitments not yet remitted | 7 | 8 |
VIEs, not primary beneficiary | CLOs | ||
Variable interest entities | ||
Amortized cost | 1 | 1 |
Maximum loss exposure | 1 | 1 |
Consolidated investment entities | Unfunded commitments | ||
Variable interest entities | ||
Loans | $ 30 | $ 27 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value of Assets and Liabilities (Details) - Consolidated investment entities - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities | ||
Debt | $ 2,363 | $ 2,164 |
Recurring basis | ||
Assets | ||
Investments | 2,354 | 2,184 |
Receivables | 20 | 17 |
Other assets | 2 | 3 |
Total assets at fair value | 2,376 | 2,204 |
Liabilities | ||
Debt | 2,363 | 2,164 |
Other liabilities | 119 | 137 |
Total liabilities at fair value | 2,482 | 2,301 |
Recurring basis | Corporate debt securities | ||
Assets | ||
Investments | 35 | |
Recurring basis | Common Stocks | ||
Assets | ||
Investments | 3 | 3 |
Recurring basis | Syndicated loans | ||
Assets | ||
Investments | 2,316 | 2,181 |
Recurring basis | Level 1 | ||
Assets | ||
Investments | 0 | 0 |
Receivables | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Debt | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring basis | Level 1 | Corporate debt securities | ||
Assets | ||
Investments | 0 | |
Recurring basis | Level 1 | Common Stocks | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 1 | Syndicated loans | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 2 | ||
Assets | ||
Investments | 2,229 | 2,120 |
Receivables | 20 | 17 |
Other assets | 1 | 0 |
Total assets at fair value | 2,250 | 2,137 |
Liabilities | ||
Debt | 2,363 | 2,164 |
Other liabilities | 119 | 137 |
Total liabilities at fair value | 2,482 | 2,301 |
Recurring basis | Level 2 | Corporate debt securities | ||
Assets | ||
Investments | 35 | |
Recurring basis | Level 2 | Common Stocks | ||
Assets | ||
Investments | 3 | 3 |
Recurring basis | Level 2 | Syndicated loans | ||
Assets | ||
Investments | 2,191 | 2,117 |
Recurring basis | Level 3 | ||
Assets | ||
Investments | 125 | 64 |
Receivables | 0 | 0 |
Other assets | 1 | 3 |
Total assets at fair value | 126 | 67 |
Liabilities | ||
Debt | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Recurring basis | Level 3 | Corporate debt securities | ||
Assets | ||
Investments | 0 | |
Recurring basis | Level 3 | Common Stocks | ||
Assets | ||
Investments | 0 | 0 |
Recurring basis | Level 3 | Syndicated loans | ||
Assets | ||
Investments | 125 | 64 |
CLOs | ||
Liabilities | ||
Debt | $ 2,400 | $ 2,200 |
Variable Interest Entities - Ch
Variable Interest Entities - Changes in Level 3 Assets (Details) - Consolidated investment entities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stocks | |||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | $ 0 | ||
Total gains (losses) included in Net income | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers into Level 3 | 2 | ||
Transfers out of Level 3 | (2) | ||
Balance, ending | 0 | $ 0 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | 0 | ||
Syndicated loans | |||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 64 | 92 | $ 0 |
Total gains (losses) included in Net income | (11) | 2 | |
Purchases | 69 | 106 | 0 |
Sales | (4) | (38) | (2) |
Settlements | (8) | (49) | |
Transfers into Level 3 | 218 | 119 | 15 |
Transfers out of Level 3 | (203) | (150) | (70) |
Deconsolidation of consolidated investment entities | (18) | ||
Consolidation of consolidated investment entities | 149 | ||
Balance, ending | 125 | 64 | 92 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | (10) | 0 | 0 |
Other assets | |||
Summary of changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 3 | 2 | 0 |
Total gains (losses) included in Net income | 0 | 1 | |
Purchases | 0 | 0 | 2 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | |
Transfers into Level 3 | 1 | 2 | 0 |
Transfers out of Level 3 | (3) | (2) | 0 |
Deconsolidation of consolidated investment entities | 0 | ||
Consolidation of consolidated investment entities | 0 | ||
Balance, ending | 1 | 3 | 2 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | $ 0 | $ 1 | $ 0 |
Variable Interest Entities - _2
Variable Interest Entities - Fair Value Option (Details) $ in Millions | 3 Months Ended | ||
Sep. 30, 2022 USD ($) cLO | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt | |||
Number of new CLOs | cLO | 1 | ||
Consolidated investment entities | |||
Loans | |||
Unpaid principal balance | $ 2,525 | $ 2,233 | |
Excess unpaid principal over fair value | (209) | (52) | |
Fair Value | 2,316 | 2,181 | |
Fair value of loans more than 90 days past due | 0 | 0 | |
Fair value of loans in nonaccrual status | 23 | 13 | |
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | 48 | 10 | |
Debt | |||
Unpaid principal balance | 2,636 | 2,296 | |
Excess unpaid principal over fair value | (273) | (132) | |
Carrying value | 2,363 | 2,164 | |
Proceeds from Issuance of Debt | $ 352 | ||
Consolidated investment entities | CLOs | |||
Debt | |||
Carrying value | $ 2,400 | $ 2,200 |
Variable Interest Entities - De
Variable Interest Entities - Debt and Stated Interest Rates (Details) - Consolidated investment entities - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt and stated interest rates | |||
Carrying value | [1] | $ 2,363 | $ 2,164 |
Weighted Average Interest Rate | 5.30% | 1.70% | |
Minimum | |||
Debt and stated interest rates | |||
Interest rates | 0% | ||
Maximum | |||
Debt and stated interest rates | |||
Interest rates | 13.60% | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities by Type (Details) - USD ($) $ in Millions | 1 Months Ended | |||||||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Investments | ||||||||
Accrued interest excluded from amortized cost basis, location | Accrued investment income | Accrued investment income | ||||||
Purchase of investments | Ameriprise Financial | ||||||||
Investments | ||||||||
Purchases from related party | $ 368 | |||||||
RiverSource Life | ||||||||
Investments | ||||||||
Amortized Cost | [1] | $ 17,331 | $ 14,718 | |||||
Gross Unrealized Gains | 253 | 1,600 | ||||||
Gross Unrealized Losses | (1,427) | (78) | ||||||
Allowance for Credit Losses | (22) | [1] | (1) | [1] | $ (10) | $ 0 | ||
Fair Value | [1] | 16,135 | 16,239 | |||||
Accrued interest excluded from amortized cost basis | 139 | 118 | ||||||
RiverSource Life | Assets pledged to meet contractual obligations | ||||||||
Investments | ||||||||
Fair Value | 2,600 | 2,400 | ||||||
RiverSource Life | Assets pledged to meet contractual obligations, which may be sold, pledged or rehypothecated by the counterparty | ||||||||
Investments | ||||||||
Fair Value | 302 | 314 | ||||||
RiverSource Life | Corporate debt securities | ||||||||
Investments | ||||||||
Amortized Cost | 9,349 | 8,447 | ||||||
Gross Unrealized Gains | 180 | 1,238 | ||||||
Gross Unrealized Losses | (803) | (47) | ||||||
Allowance for Credit Losses | (20) | 0 | (10) | 0 | ||||
Fair Value | 8,706 | 9,638 | ||||||
RiverSource Life | Residential mortgage backed securities | ||||||||
Investments | ||||||||
Amortized Cost | 3,254 | 2,226 | ||||||
Gross Unrealized Gains | 8 | 36 | ||||||
Gross Unrealized Losses | (303) | (12) | ||||||
Allowance for Credit Losses | 0 | 0 | ||||||
Fair Value | 2,959 | 2,250 | ||||||
RiverSource Life | Commercial mortgage backed securities | ||||||||
Investments | ||||||||
Amortized Cost | 2,904 | 2,615 | ||||||
Gross Unrealized Gains | 2 | 56 | ||||||
Gross Unrealized Losses | (255) | (15) | ||||||
Allowance for Credit Losses | 0 | 0 | ||||||
Fair Value | 2,651 | 2,656 | ||||||
RiverSource Life | State and municipal obligations | ||||||||
Investments | ||||||||
Amortized Cost | 761 | 832 | ||||||
Gross Unrealized Gains | 53 | 244 | ||||||
Gross Unrealized Losses | (26) | (1) | ||||||
Allowance for Credit Losses | (2) | (1) | $ 0 | $ 0 | ||||
Fair Value | 786 | 1,074 | ||||||
RiverSource Life | Asset backed securities | ||||||||
Investments | ||||||||
Amortized Cost | 1,025 | 517 | ||||||
Gross Unrealized Gains | 10 | 22 | ||||||
Gross Unrealized Losses | (38) | (2) | ||||||
Allowance for Credit Losses | 0 | 0 | ||||||
Fair Value | 997 | 537 | ||||||
RiverSource Life | Foreign government bonds and obligations | ||||||||
Investments | ||||||||
Amortized Cost | 37 | 80 | ||||||
Gross Unrealized Gains | 0 | 4 | ||||||
Gross Unrealized Losses | (2) | (1) | ||||||
Allowance for Credit Losses | 0 | 0 | ||||||
Fair Value | 35 | 83 | ||||||
RiverSource Life | U.S. government and agency obligations | ||||||||
Investments | ||||||||
Amortized Cost | 1 | 1 | ||||||
Gross Unrealized Gains | 0 | 0 | ||||||
Gross Unrealized Losses | 0 | 0 | ||||||
Allowance for Credit Losses | 0 | 0 | ||||||
Fair Value | $ 1 | $ 1 | ||||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities by Rating (Details) - RiverSource Life $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) issuer | Dec. 31, 2021 USD ($) issuer | ||
Investments | |||
Fixed maturity securities rated internally | $ 257 | $ 359 | |
Amortized Cost | [1] | 17,331 | 14,718 |
Fair Value | [1] | 16,135 | 16,239 |
Ameriprise Advisor Financing, LLC ("AAF") | |||
Investments | |||
Issuers greater than 10% of equity | 544 | 289 | |
AAA | |||
Investments | |||
Amortized Cost | 6,313 | 5,031 | |
Fair Value | 5,754 | 5,107 | |
AA | |||
Investments | |||
Amortized Cost | 1,159 | 757 | |
Fair Value | 1,188 | 932 | |
A | |||
Investments | |||
Amortized Cost | 1,572 | 1,662 | |
Fair Value | 1,594 | 2,013 | |
BBB | |||
Investments | |||
Amortized Cost | 7,646 | 6,293 | |
Fair Value | 7,023 | 7,063 | |
Below investment grade | |||
Investments | |||
Amortized Cost | 641 | 975 | |
Fair Value | 576 | 1,124 | |
Below investment grade | CLOs | |||
Investments | |||
Amortized Cost | 1 | 1 | |
Fair Value | $ 1 | $ 2 | |
Total investments | Credit concentration risk | Fixed maturity securities | |||
Investments | |||
Percentage of total | 85% | 85% | |
Fixed maturity securities | Credit concentration risk | |||
Investments | |||
Percentage of total | 100% | 100% | |
Fixed maturity securities | Credit concentration risk | AAA | |||
Investments | |||
Percentage of total | 36% | 31% | |
Fixed maturity securities | Credit concentration risk | AA | |||
Investments | |||
Percentage of total | 7% | 6% | |
Fixed maturity securities | Credit concentration risk | A | |||
Investments | |||
Percentage of total | 10% | 12% | |
Fixed maturity securities | Credit concentration risk | BBB | |||
Investments | |||
Percentage of total | 43% | 44% | |
Fixed maturity securities | Credit concentration risk | Below investment grade | |||
Investments | |||
Percentage of total | 4% | 7% | |
Fixed maturity securities | Credit concentration risk | GNMA, FNMA and FHLMC mortgage backed securities. | AAA | |||
Investments | |||
Percentage of total | 36% | 40% | |
Stockholders' Equity, Total | Investment Concentration Risk | |||
Investments | |||
Number of issuers greater than 10% of equity | issuer | 30 | 35 | |
Issuers greater than 10% of equity | $ 4,400 | $ 4,900 | |
Stockholders' Equity, Total | Investment Concentration Risk | Ameriprise Advisor Financing, LLC ("AAF") | |||
Investments | |||
Percentage of total | 56% | 28% | |
Stockholders' Equity, Total | Investment Concentration Risk | Minimum | |||
Investments | |||
Percentage of total | 10% | 10% | |
Stockholders' Equity, Total | Investment Concentration Risk | Maximum | |||
Investments | |||
Percentage of total | 22% | 24% | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Available-for Sal
Investments - Available-for Sale Securities in Continuous Unrealized Loss Position (Details) - RiverSource Life $ in Millions | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Number of Securities | ||
Less than 12 months | security | 859 | 252 |
12 months or more | security | 241 | 25 |
Total | security | 1,100 | 277 |
Fair Value | ||
Less than 12 months | $ 9,383 | $ 4,138 |
12 months or more | 3,144 | 99 |
Total | 12,527 | 4,237 |
Unrealized Losses | ||
Less than 12 months | (753) | (72) |
12 months or more | (674) | (6) |
Total | $ (1,427) | $ (78) |
Available -for-Sale Securities with gross unrealized losses considered investment grade (as a percent) | 93% | 92% |
Corporate debt securities | ||
Number of Securities | ||
Less than 12 months | security | 405 | 102 |
12 months or more | security | 100 | 14 |
Total | security | 505 | 116 |
Fair Value | ||
Less than 12 months | $ 5,028 | $ 2,007 |
12 months or more | 1,532 | 81 |
Total | 6,560 | 2,088 |
Unrealized Losses | ||
Less than 12 months | (443) | (42) |
12 months or more | (360) | (5) |
Total | $ (803) | $ (47) |
Residential mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | security | 189 | 55 |
12 months or more | security | 52 | 2 |
Total | security | 241 | 57 |
Fair Value | ||
Less than 12 months | $ 1,643 | $ 1,162 |
12 months or more | 826 | 1 |
Total | 2,469 | 1,163 |
Unrealized Losses | ||
Less than 12 months | (117) | (12) |
12 months or more | (186) | 0 |
Total | $ (303) | $ (12) |
Commercial mortgage backed securities | ||
Number of Securities | ||
Less than 12 months | security | 176 | 60 |
12 months or more | security | 58 | 3 |
Total | security | 234 | 63 |
Fair Value | ||
Less than 12 months | $ 1,746 | $ 809 |
12 months or more | 666 | 13 |
Total | 2,412 | 822 |
Unrealized Losses | ||
Less than 12 months | (149) | (15) |
12 months or more | (106) | 0 |
Total | $ (255) | $ (15) |
State and municipal obligations | ||
Number of Securities | ||
Less than 12 months | security | 40 | 25 |
12 months or more | security | 26 | 0 |
Total | security | 66 | 25 |
Fair Value | ||
Less than 12 months | $ 126 | $ 63 |
12 months or more | 59 | 0 |
Total | 185 | 63 |
Unrealized Losses | ||
Less than 12 months | (15) | (1) |
12 months or more | (11) | 0 |
Total | $ (26) | $ (1) |
Asset backed securities | ||
Number of Securities | ||
Less than 12 months | security | 39 | 5 |
12 months or more | security | 4 | 0 |
Total | security | 43 | 5 |
Fair Value | ||
Less than 12 months | $ 808 | $ 91 |
12 months or more | 60 | 0 |
Total | 868 | 91 |
Unrealized Losses | ||
Less than 12 months | (28) | (2) |
12 months or more | (10) | 0 |
Total | $ (38) | $ (2) |
Foreign government bonds and obligations | ||
Number of Securities | ||
Less than 12 months | security | 10 | 5 |
12 months or more | security | 1 | 6 |
Total | security | 11 | 11 |
Fair Value | ||
Less than 12 months | $ 32 | $ 6 |
12 months or more | 1 | 4 |
Total | 33 | 10 |
Unrealized Losses | ||
Less than 12 months | (1) | 0 |
12 months or more | (1) | (1) |
Total | $ (2) | $ (1) |
Investments - Rollforward of Al
Investments - Rollforward of Allowance for Credit Losses (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Rollforward of available-for-Sale securities allowance for credit losses | |||||
Beginning balance | $ 1 | [1] | $ 10 | $ 0 | |
Additions for which credit losses were not previously recognized | 20 | 1 | 13 | ||
Additional increases (decreases) on securities that had an allowance recorded in a previous period | 1 | (3) | |||
Charge-offs | (10) | ||||
Ending balance | 22 | [1] | 1 | [1] | 10 |
Corporate debt securities | |||||
Rollforward of available-for-Sale securities allowance for credit losses | |||||
Beginning balance | 0 | 10 | 0 | ||
Additions for which credit losses were not previously recognized | 20 | 0 | 13 | ||
Additional increases (decreases) on securities that had an allowance recorded in a previous period | 0 | (3) | |||
Charge-offs | (10) | ||||
Ending balance | 20 | 0 | 10 | ||
State and municipal obligations | |||||
Rollforward of available-for-Sale securities allowance for credit losses | |||||
Beginning balance | 1 | 0 | 0 | ||
Additions for which credit losses were not previously recognized | 0 | 1 | 0 | ||
Additional increases (decreases) on securities that had an allowance recorded in a previous period | 1 | 0 | |||
Charge-offs | 0 | ||||
Ending balance | $ 2 | $ 1 | $ 0 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Net Realized Gain
Investments - Net Realized Gains and Losses on Available-for-Sale Securities (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net realized gains and losses on Available-for-Sale securities | |||
Gross realized investment gains | $ 28 | $ 576 | $ 17 |
Gross realized investment losses | (25) | (6) | (2) |
Credit losses | (21) | (1) | (10) |
Other impairments | (70) | (13) | 0 |
Total | $ (88) | $ 556 | $ 5 |
Investments - Available-for-S_2
Investments - Available-for-Sale Securities by Contractual Maturity (Details) - RiverSource Life - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortized Cost | |||
Due within one year | $ 317 | ||
Due after one year through five years | 1,644 | ||
Due after five years through 10 years | 3,608 | ||
Due after 10 years | 4,579 | ||
Total having single maturity dates | 10,148 | ||
Amortized Cost | [1] | 17,331 | $ 14,718 |
Fair Value | |||
Due within one year | 315 | ||
Due after one year through five years | 1,581 | ||
Due after five years through 10 years | 3,104 | ||
Due after 10 years | 4,528 | ||
Total having single maturity dates | 9,528 | ||
Fair Value | [1] | 16,135 | 16,239 |
Residential mortgage backed securities | |||
Amortized Cost | |||
Without single maturity dates | 3,254 | ||
Amortized Cost | 3,254 | 2,226 | |
Fair Value | |||
Without single maturity dates | 2,959 | ||
Fair Value | 2,959 | 2,250 | |
Commercial mortgage backed securities | |||
Amortized Cost | |||
Without single maturity dates | 2,904 | ||
Amortized Cost | 2,904 | 2,615 | |
Fair Value | |||
Without single maturity dates | 2,651 | ||
Fair Value | 2,651 | 2,656 | |
Asset backed securities | |||
Amortized Cost | |||
Without single maturity dates | 1,025 | ||
Amortized Cost | 1,025 | 517 | |
Fair Value | |||
Without single maturity dates | 997 | ||
Fair Value | $ 997 | $ 537 | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Net investment income | |||||
Fixed maturities | $ 615 | $ 643 | $ 777 | ||
Mortgage loans | 73 | 102 | 115 | ||
Other investments | 159 | 101 | (3) | ||
Gross investment income | 847 | 846 | 889 | ||
Less: investment expenses | 20 | 19 | 20 | ||
Total | $ 827 | [1] | $ 827 | [1] | $ 869 |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Investments - Net Realized Inve
Investments - Net Realized Investment Gains (Losses) Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Net realized investment gains (losses) summary | |||||
Net realized investment gains (losses) | $ (100) | [1] | $ 595 | [1] | $ (10) |
Fixed maturities | |||||
Net realized investment gains (losses) summary | |||||
Net realized investment gains (losses) | (88) | 556 | 5 | ||
Mortgage loans | |||||
Net realized investment gains (losses) summary | |||||
Net realized investment gains (losses) | (1) | 57 | (10) | ||
Other investments | |||||
Net realized investment gains (losses) summary | |||||
Net realized investment gains (losses) | $ (11) | $ (18) | $ (5) | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Financing Receivables - Allowan
Financing Receivables - Allowance for Credit Losses (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Rollforward of allowance for credit losses | |||
Beginning balance | $ 12 | $ 35 | $ 20 |
Provisions | 1 | (23) | 12 |
Charge-offs | (2) | ||
Ending balance | 11 | 12 | 35 |
Accrued investment income | |||
Financing receivables | |||
Accrued interest on loans | $ 14 | $ 11 | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Rollforward of allowance for credit losses | |||
Beginning balance | 3 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Rollforward of allowance for credit losses | |||
Beginning balance | $ 23 |
Financing Receivables - Purchas
Financing Receivables - Purchases, Sales and Nonperforming (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivables | |||
Loans sold | $ 0 | $ 0 | |
Nonperforming | |||
Financing Receivables | |||
Loans | 0 | $ 0 | |
Deteriorated credit quality | |||
Financing Receivables | |||
Loans purchased | 0 | ||
Commercial Loans | Commercial mortgage loans | |||
Financing Receivables | |||
Loans | 1,779 | 1,800 | |
Commercial Loans | Syndicated loans | |||
Financing Receivables | |||
Loans purchased | 42 | 26 | 140 |
Loans sold | 0 | 340 | $ 13 |
Loans | $ 72 | 43 | |
Commercial Loans | Commercial Loan | |||
Financing Receivables | |||
Loans sold | $ 746 |
Financing Receivables - General
Financing Receivables - General Credit Quality Information - Commercial Mortgage Loans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Loans | $ 1,779 | $ 1,800 |
Commercial Loans | Commercial mortgage loans | Past due | ||
Financing Receivables | ||
Loans | $ 0 | $ 0 |
Total commercial mortgage loans | Credit concentration risk | Commercial Loans | Commercial mortgage loans | ||
Financing Receivables | ||
Percentage of total | 100% | 100% |
Total commercial mortgage loans | Credit concentration risk | Highest credit risk rating | ||
Financing Receivables | ||
Percentage of total | 1% | 1% |
Financing Receivables - Credit
Financing Receivables - Credit Quality - Commercial Mortgage Loans by LTV Ratio and Year of Origination (Details) - Commercial Loans - Commercial mortgage loans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | $ 105 | $ 193 |
Originated in fiscal year before latest fiscal year | 186 | 116 |
Originated two years before latest fiscal year | 112 | 209 |
Originated three years before latest fiscal year | 196 | 101 |
Originated four years before latest fiscal year | 149 | 154 |
Prior | 1,031 | 1,027 |
Total amortized cost basis | 1,779 | 1,800 |
Greater than 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 0 | 0 |
Originated in fiscal year before latest fiscal year | 0 | 0 |
Originated two years before latest fiscal year | 2 | 20 |
Originated three years before latest fiscal year | 2 | 10 |
Originated four years before latest fiscal year | 0 | 0 |
Prior | 39 | 29 |
Total amortized cost basis | 43 | 59 |
80 to 100 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 1 | 9 |
Originated in fiscal year before latest fiscal year | 9 | 2 |
Originated two years before latest fiscal year | 2 | 9 |
Originated three years before latest fiscal year | 20 | 2 |
Originated four years before latest fiscal year | 7 | 0 |
Prior | 30 | 29 |
Total amortized cost basis | 69 | 51 |
60 to 80 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 39 | 141 |
Originated in fiscal year before latest fiscal year | 85 | 76 |
Originated two years before latest fiscal year | 17 | 59 |
Originated three years before latest fiscal year | 52 | 15 |
Originated four years before latest fiscal year | 9 | 58 |
Prior | 104 | 133 |
Total amortized cost basis | 306 | 482 |
40 to 60 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 49 | 37 |
Originated in fiscal year before latest fiscal year | 84 | 30 |
Originated two years before latest fiscal year | 64 | 75 |
Originated three years before latest fiscal year | 80 | 74 |
Originated four years before latest fiscal year | 55 | 49 |
Prior | 426 | 393 |
Total amortized cost basis | 758 | 658 |
Less than 40 Percent | ||
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 16 | 6 |
Originated in fiscal year before latest fiscal year | 8 | 8 |
Originated two years before latest fiscal year | 27 | 46 |
Originated three years before latest fiscal year | 42 | 0 |
Originated four years before latest fiscal year | 78 | 47 |
Prior | 432 | 443 |
Total amortized cost basis | $ 603 | $ 550 |
Financing Receivables - Credi_2
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Region (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing receivables - credit quality information | ||||
Allowance for credit losses | $ 11 | $ 12 | $ 35 | $ 20 |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,779 | 1,800 | ||
Allowance for credit losses | 11 | 12 | ||
Total loans | 1,768 | 1,788 | ||
Originated in current fiscal year | 105 | 193 | ||
Originated in fiscal year before latest fiscal year | 186 | 116 | ||
Originated two years before latest fiscal year | 112 | 209 | ||
Originated three years before latest fiscal year | 196 | 101 | ||
Originated four years before latest fiscal year | 149 | 154 | ||
Prior | 1,031 | 1,027 | ||
Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Loans | 465 | 464 | ||
Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Loans | 14 | 15 | ||
Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Loans | 295 | 293 | ||
Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Loans | 55 | 57 | ||
Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Loans | 243 | 254 | ||
Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Loans | 576 | 589 | ||
Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Loans | 131 | 128 | ||
Commercial mortgage loans | Greater than 100 Percent | ||||
Financing receivables - credit quality information | ||||
Loans | 43 | 59 | ||
Originated in current fiscal year | 0 | 0 | ||
Originated in fiscal year before latest fiscal year | 0 | 0 | ||
Originated two years before latest fiscal year | 2 | 20 | ||
Originated three years before latest fiscal year | 2 | 10 | ||
Originated four years before latest fiscal year | 0 | 0 | ||
Prior | 39 | 29 | ||
Commercial mortgage loans | 80 to 100 Percent | ||||
Financing receivables - credit quality information | ||||
Loans | 69 | 51 | ||
Originated in current fiscal year | 1 | 9 | ||
Originated in fiscal year before latest fiscal year | 9 | 2 | ||
Originated two years before latest fiscal year | 2 | 9 | ||
Originated three years before latest fiscal year | 20 | 2 | ||
Originated four years before latest fiscal year | 7 | 0 | ||
Prior | 30 | 29 | ||
Commercial mortgage loans | 60 to 80 Percent | ||||
Financing receivables - credit quality information | ||||
Loans | 306 | 482 | ||
Originated in current fiscal year | 39 | 141 | ||
Originated in fiscal year before latest fiscal year | 85 | 76 | ||
Originated two years before latest fiscal year | 17 | 59 | ||
Originated three years before latest fiscal year | 52 | 15 | ||
Originated four years before latest fiscal year | 9 | 58 | ||
Prior | 104 | 133 | ||
Commercial mortgage loans | 40 to 60 Percent | ||||
Financing receivables - credit quality information | ||||
Loans | 758 | 658 | ||
Originated in current fiscal year | 49 | 37 | ||
Originated in fiscal year before latest fiscal year | 84 | 30 | ||
Originated two years before latest fiscal year | 64 | 75 | ||
Originated three years before latest fiscal year | 80 | 74 | ||
Originated four years before latest fiscal year | 55 | 49 | ||
Prior | 426 | 393 | ||
Commercial mortgage loans | Less than 40 Percent | ||||
Financing receivables - credit quality information | ||||
Loans | 603 | 550 | ||
Originated in current fiscal year | 16 | 6 | ||
Originated in fiscal year before latest fiscal year | 8 | 8 | ||
Originated two years before latest fiscal year | 27 | 46 | ||
Originated three years before latest fiscal year | 42 | 0 | ||
Originated four years before latest fiscal year | 78 | 47 | ||
Prior | 432 | 443 | ||
Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 192 | 183 | ||
Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Loans | 51 | 54 | ||
Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 100 | 107 | ||
Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Loans | 120 | 111 | ||
Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Loans | 17 | 21 | ||
Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Loans | 601 | 589 | ||
Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Loans | 467 | 477 | ||
Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Loans | 115 | 136 | ||
Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Loans | 116 | 122 | ||
Syndicated loans | ||||
Financing receivables - credit quality information | ||||
Loans | 72 | 43 | ||
Originated in current fiscal year | 8 | 15 | ||
Originated in fiscal year before latest fiscal year | 23 | 0 | ||
Originated two years before latest fiscal year | 3 | 4 | ||
Originated three years before latest fiscal year | 11 | 4 | ||
Originated four years before latest fiscal year | 5 | 11 | ||
Prior | 22 | 9 | ||
Syndicated loans | Risk 5 | ||||
Financing receivables - credit quality information | ||||
Loans | 0 | 0 | ||
Originated in current fiscal year | 0 | 0 | ||
Originated in fiscal year before latest fiscal year | 0 | 0 | ||
Originated two years before latest fiscal year | 0 | 0 | ||
Originated three years before latest fiscal year | 0 | 0 | ||
Originated four years before latest fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Syndicated loans | Risk 4 | ||||
Financing receivables - credit quality information | ||||
Loans | 0 | 0 | ||
Originated in current fiscal year | 0 | 0 | ||
Originated in fiscal year before latest fiscal year | 0 | 0 | ||
Originated two years before latest fiscal year | 0 | 0 | ||
Originated three years before latest fiscal year | 0 | 0 | ||
Originated four years before latest fiscal year | 0 | 0 | ||
Prior | 0 | 0 | ||
Syndicated loans | Risk 3 | ||||
Financing receivables - credit quality information | ||||
Loans | 10 | 1 | ||
Originated in current fiscal year | 0 | 0 | ||
Originated in fiscal year before latest fiscal year | 5 | 0 | ||
Originated two years before latest fiscal year | 0 | 0 | ||
Originated three years before latest fiscal year | 3 | 0 | ||
Originated four years before latest fiscal year | 0 | 0 | ||
Prior | 2 | 1 | ||
Syndicated loans | Risk 2 | ||||
Financing receivables - credit quality information | ||||
Loans | 36 | 28 | ||
Originated in current fiscal year | 5 | 11 | ||
Originated in fiscal year before latest fiscal year | 13 | 0 | ||
Originated two years before latest fiscal year | 2 | 4 | ||
Originated three years before latest fiscal year | 5 | 1 | ||
Originated four years before latest fiscal year | 0 | 8 | ||
Prior | 11 | 4 | ||
Syndicated loans | Risk 1 | ||||
Financing receivables - credit quality information | ||||
Loans | 26 | 14 | ||
Originated in current fiscal year | 3 | 4 | ||
Originated in fiscal year before latest fiscal year | 5 | 0 | ||
Originated two years before latest fiscal year | 1 | 0 | ||
Originated three years before latest fiscal year | 3 | 3 | ||
Originated four years before latest fiscal year | 5 | 3 | ||
Prior | $ 9 | $ 4 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100% | 100% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26% | 26% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1% | 1% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 17% | 16% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3% | 3% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 14% | 14% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 32% | 33% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7% | 7% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 11% | 10% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | East South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3% | 3% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Middle Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6% | 6% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mountain | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7% | 6% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | New England | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1% | 1% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Pacific | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 34% | 33% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | South Atlantic | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26% | 26% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West North Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6% | 8% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | West South Central | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 6% | 7% |
Financing Receivables - Credi_3
Financing Receivables - Credit Quality - Commercial Mortgage Loans by Property Type (Details) - Commercial Loans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing receivables - credit quality information | ||||
Allowance for credit losses | $ 11 | $ 12 | $ 35 | $ 20 |
Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Loans | 1,779 | 1,800 | ||
Allowance for credit losses | 11 | 12 | ||
Total loans | 1,768 | 1,788 | ||
Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Loans | 465 | 464 | ||
Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Loans | 14 | 15 | ||
Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Loans | 295 | 293 | ||
Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Loans | 55 | 57 | ||
Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Loans | 243 | 254 | ||
Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Loans | 576 | 589 | ||
Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Loans | $ 131 | $ 128 | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 100% | 100% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Apartments | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 26% | 26% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Hotel | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 1% | 1% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Industrial | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 17% | 16% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Mixed use | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 3% | 3% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Office | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 14% | 14% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Retail | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 32% | 33% | ||
Total commercial mortgage loans | Credit concentration risk | Commercial mortgage loans | Other | ||||
Financing receivables - credit quality information | ||||
Percentage of total | 7% | 7% |
Financing Receivables - Credi_4
Financing Receivables - Credit Quality Information - Syndicated Loans (Details) - Commercial Loans - Syndicated loans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Financing receivables - credit quality information | ||
Recorded investment | $ 72 | $ 43 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 8 | 15 |
Originated in fiscal year before latest fiscal year | 23 | 0 |
Originated two years before latest fiscal year | 3 | 4 |
Originated three years before latest fiscal year | 11 | 4 |
Originated four years before latest fiscal year | 5 | 11 |
Prior | 22 | 9 |
Total amortized cost basis | 72 | 43 |
Risk 5 | ||
Financing receivables - credit quality information | ||
Recorded investment | 0 | 0 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 0 | 0 |
Originated in fiscal year before latest fiscal year | 0 | 0 |
Originated two years before latest fiscal year | 0 | 0 |
Originated three years before latest fiscal year | 0 | 0 |
Originated four years before latest fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total amortized cost basis | 0 | 0 |
Risk 4 | ||
Financing receivables - credit quality information | ||
Recorded investment | 0 | 0 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 0 | 0 |
Originated in fiscal year before latest fiscal year | 0 | 0 |
Originated two years before latest fiscal year | 0 | 0 |
Originated three years before latest fiscal year | 0 | 0 |
Originated four years before latest fiscal year | 0 | 0 |
Prior | 0 | 0 |
Total amortized cost basis | 0 | 0 |
Risk 3 | ||
Financing receivables - credit quality information | ||
Recorded investment | 10 | 1 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 0 | 0 |
Originated in fiscal year before latest fiscal year | 5 | 0 |
Originated two years before latest fiscal year | 0 | 0 |
Originated three years before latest fiscal year | 3 | 0 |
Originated four years before latest fiscal year | 0 | 0 |
Prior | 2 | 1 |
Total amortized cost basis | 10 | 1 |
Risk 2 | ||
Financing receivables - credit quality information | ||
Recorded investment | 36 | 28 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 5 | 11 |
Originated in fiscal year before latest fiscal year | 13 | 0 |
Originated two years before latest fiscal year | 2 | 4 |
Originated three years before latest fiscal year | 5 | 1 |
Originated four years before latest fiscal year | 0 | 8 |
Prior | 11 | 4 |
Total amortized cost basis | 36 | 28 |
Risk 1 | ||
Financing receivables - credit quality information | ||
Recorded investment | 26 | 14 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Originated in current fiscal year | 3 | 4 |
Originated in fiscal year before latest fiscal year | 5 | 0 |
Originated two years before latest fiscal year | 1 | 0 |
Originated three years before latest fiscal year | 3 | 3 |
Originated four years before latest fiscal year | 5 | 3 |
Prior | 9 | 4 |
Total amortized cost basis | 26 | 14 |
Past due | ||
Financing receivables - credit quality information | ||
Recorded investment | 0 | 0 |
Amortized cost basis by year of origination and loan-to-value ratio | ||
Total amortized cost basis | $ 0 | $ 0 |
Financing Receivables -Credit Q
Financing Receivables -Credit Quality Information - Policy Loans and Deposit Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Receivable | ||
Reinsurance deposit receivable | $ 7,400 | $ 7,900 |
Consumer | Policy Loans | ||
Financing Receivables | ||
Allowance for credit losses | $ 0 | $ 0 |
Financing Receivables - Trouble
Financing Receivables - Troubled Debt Restructurings (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 loan | Dec. 31, 2020 loan | |
Troubled Debt Restructurings | |||
Loans accounted for as troubled debt restructuring | loan | 0 | 0 | 0 |
Commitments to lend additional funds to borrowers whose loans have been restructured | $ | $ 0 |
Deferred Acquisition Costs an_3
Deferred Acquisition Costs and Deferred Sales Inducement Costs - Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Balances of and changes in DAC | |||||
Beginning balance | $ 2,821 | [1] | $ 2,812 | $ 2,673 | |
Capitalization of acquisition costs | 179 | 254 | 216 | ||
Amortization | (241) | [2] | (245) | [2] | (264) |
Amortization, excluding the impact of valuation assumptions review | (164) | ||||
Amortization, impact of valuation assumptions review | (100) | ||||
Impact of change in net unrealized (gains) losses on securities | (117) | ||||
Ending balance | 2,759 | [1] | 2,821 | [1] | 2,812 |
Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 1,678 | 1,713 | |||
Capitalization of acquisition costs | 39 | 110 | |||
Amortization | (135) | (145) | |||
Ending balance | 1,582 | 1,678 | 1,713 | ||
Structured Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 91 | 26 | |||
Capitalization of acquisition costs | 73 | 71 | |||
Amortization | (15) | (6) | |||
Ending balance | 149 | 91 | 26 | ||
Fixed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 53 | 61 | |||
Capitalization of acquisition costs | 0 | 0 | |||
Amortization | (8) | (8) | |||
Ending balance | 45 | 53 | 61 | ||
Fixed Indexed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 7 | 8 | |||
Capitalization of acquisition costs | 0 | 0 | |||
Amortization | (1) | (1) | |||
Ending balance | 6 | 7 | 8 | ||
Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 125 | 131 | |||
Capitalization of acquisition costs | 1 | 3 | |||
Amortization | (8) | (9) | |||
Ending balance | 118 | 125 | 131 | ||
Variable Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 512 | 505 | |||
Capitalization of acquisition costs | 55 | 54 | |||
Amortization | (46) | (47) | |||
Ending balance | 521 | 512 | 505 | ||
Indexed Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 248 | 257 | |||
Capitalization of acquisition costs | 5 | 9 | |||
Amortization | (17) | (18) | |||
Ending balance | 236 | 248 | 257 | ||
Other life insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 3 | 3 | |||
Capitalization of acquisition costs | 0 | 0 | |||
Amortization | 0 | 0 | |||
Ending balance | 3 | 3 | 3 | ||
Life Contingent Payout Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 1 | 0 | |||
Capitalization of acquisition costs | 1 | 1 | |||
Amortization | 0 | 0 | |||
Ending balance | 2 | 1 | 0 | ||
Term and Whole Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 19 | 19 | |||
Capitalization of acquisition costs | 1 | 2 | |||
Amortization | (2) | (2) | |||
Ending balance | 18 | 19 | 19 | ||
Disability Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 84 | 89 | |||
Capitalization of acquisition costs | 4 | 4 | |||
Amortization | (9) | (9) | |||
Ending balance | 79 | 84 | 89 | ||
Previously Reported | |||||
Balances of and changes in DAC | |||||
Beginning balance | 2,757 | 2,508 | |||
Amortization | (196) | (112) | |||
Ending balance | 3,141 | 2,757 | 2,508 | ||
Previously Reported | Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 1,671 | ||||
Ending balance | 1,671 | ||||
Previously Reported | Structured Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 22 | ||||
Ending balance | 22 | ||||
Previously Reported | Fixed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 43 | ||||
Ending balance | 43 | ||||
Previously Reported | Fixed Indexed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 7 | ||||
Ending balance | 7 | ||||
Previously Reported | Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 100 | ||||
Ending balance | 100 | ||||
Previously Reported | Variable Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 452 | ||||
Ending balance | 452 | ||||
Previously Reported | Indexed Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 108 | ||||
Ending balance | 108 | ||||
Previously Reported | Other life insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | (3) | ||||
Ending balance | (3) | ||||
Previously Reported | Life Contingent Payout Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Previously Reported | Term and Whole Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 19 | ||||
Ending balance | 19 | ||||
Previously Reported | Disability Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 89 | ||||
Ending balance | 89 | ||||
Effect of shadow reserve adjustments | |||||
Balances of and changes in DAC | |||||
Beginning balance | 64 | 304 | |||
Amortization | (45) | (133) | |||
Ending balance | $ (382) | 64 | 304 | ||
Effect of shadow reserve adjustments | Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 42 | ||||
Ending balance | 42 | ||||
Effect of shadow reserve adjustments | Structured Variable Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 4 | ||||
Ending balance | 4 | ||||
Effect of shadow reserve adjustments | Fixed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 18 | ||||
Ending balance | 18 | ||||
Effect of shadow reserve adjustments | Fixed Indexed Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 1 | ||||
Ending balance | 1 | ||||
Effect of shadow reserve adjustments | Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 31 | ||||
Ending balance | 31 | ||||
Effect of shadow reserve adjustments | Variable Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 53 | ||||
Ending balance | 53 | ||||
Effect of shadow reserve adjustments | Indexed Universal Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 149 | ||||
Ending balance | 149 | ||||
Effect of shadow reserve adjustments | Other life insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 6 | ||||
Ending balance | 6 | ||||
Effect of shadow reserve adjustments | Life Contingent Payout Annuities | |||||
Balances of and changes in DAC | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Effect of shadow reserve adjustments | Term and Whole Life Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | ||||
Effect of shadow reserve adjustments | Disability Insurance | |||||
Balances of and changes in DAC | |||||
Beginning balance | $ 0 | ||||
Ending balance | $ 0 | ||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Deferred Acquisition Costs an_4
Deferred Acquisition Costs and Deferred Sales Inducement Costs - Deferred Sales Inducement Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balances of and changes in DSIC | |||
Beginning balance | $ 183 | $ 203 | $ 216 |
Capitalization of sales inducement costs | 1 | 1 | 1 |
Amortization | (19) | (21) | (13) |
Amortization, impact of valuation assumptions review | (16) | ||
Impact of change in net unrealized (gains) losses on securities | (1) | ||
Ending balance | 165 | 183 | 203 |
Variable Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | 164 | 181 | |
Capitalization of sales inducement costs | 1 | 1 | |
Amortization | (16) | (18) | |
Ending balance | 149 | 164 | 181 |
Fixed Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | 19 | 22 | |
Capitalization of sales inducement costs | 0 | 0 | |
Amortization | (3) | (3) | |
Ending balance | $ 16 | 19 | 22 |
Previously Reported | |||
Balances of and changes in DSIC | |||
Beginning balance | 187 | ||
Ending balance | 187 | ||
Previously Reported | Variable Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | 173 | ||
Ending balance | 173 | ||
Previously Reported | Fixed Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | 14 | ||
Ending balance | 14 | ||
Effect of shadow reserve adjustments | |||
Balances of and changes in DSIC | |||
Beginning balance | 16 | ||
Ending balance | 16 | ||
Effect of shadow reserve adjustments | Variable Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | 8 | ||
Ending balance | 8 | ||
Effect of shadow reserve adjustments | Fixed Annuities | |||
Balances of and changes in DSIC | |||
Beginning balance | $ 8 | ||
Ending balance | $ 8 |
Reinsurance - Products and Risk
Reinsurance - Products and Risks Reinsured (Details) - USD ($) | 12 Months Ended | 108 Months Ended | 112 Months Ended | 144 Months Ended | 252 Months Ended | 264 Months Ended | |
Jul. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2013 | Dec. 31, 2022 | Dec. 31, 2022 | |
Term life insurance policies | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 90% | ||||||
Indexed Universal Life Insurance | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 50% | ||||||
Universal Life Insurance | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 50% | 90% | |||||
Single life insurance policy | |||||||
Reinsured risk | |||||||
Amount retained per policy | $ 10,000,000 | ||||||
Flexible premium survivorship life policy | |||||||
Reinsured risk | |||||||
Amount retained per policy | 10,000,000 | ||||||
Single life or flexible premium survivorship life policy | |||||||
Reinsured risk | |||||||
Amount retained per policy | $ 1,500,000 | ||||||
Long term care insurance | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 50% | ||||||
Disability Insurance | |||||||
Reinsured risk | |||||||
Amount retained per policy | $ 5,000 | ||||||
Variable Universal Life Insurance | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 50% | 90% | |||||
Subsidiary | RiverSource Life Insurance Company | Fixed annuity life contingent liabilities | |||||||
Reinsured risk | |||||||
Percentage of risk reinsured | 100% |
Reinsurance - Effect of Reinsur
Reinsurance - Effect of Reinsurance - Traditional Long Duration Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Earned premiums | |||||
Net premiums | $ 306 | [1] | $ (871) | [1] | $ 341 |
Traditional and universal life insurance policies | |||||
Life insurance policies In force | |||||
Insurance policies in force, gross | 198,900 | 198,600 | |||
Insurance policies in force, reinsured | 146,200 | 145,100 | |||
Traditional long-duration contracts | |||||
Earned premiums | |||||
Direct premiums | 530 | 490 | 565 | ||
Reinsurance ceded | (224) | (1,361) | (224) | ||
Net premiums | $ 306 | $ (871) | $ 341 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Reinsurance - Non-Traditional L
Reinsurance - Non-Traditional Long-Duration Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-traditional long-duration products | |||
Reinsurance | |||
Reinsurance ceded | $ 165 | $ 152 | $ 140 |
Reinsurance - Recoverables and
Reinsurance - Recoverables and Claims (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance | |||
Claims recovered through reinsurance | $ 435 | $ 404 | $ 400 |
Liability for assumed reinsurance arrangements | 388 | 413 | |
Long term care insurance | |||
Reinsurance | |||
Reinsurance recoverable related to LTC risk ceded to Genworth | $ 2,700 | $ 3,500 |
Policyholder Account Balances_3
Policyholder Account Balances, Future Policy Benefits and Claims - Composition (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Policyholder account balances | |||
Policyholder account balances | $ 24,986 | $ 23,723 | $ 20,980 |
Future policy benefits | |||
Reserve for future policy benefits | 7,495 | 9,721 | |
Deferred profit liability | 62 | 54 | |
Additional liabilities for insurance guarantees | 1,186 | 1,242 | |
Other insurance and annuity liabilities | 177 | 66 | |
Total future policy benefits | 8,920 | 11,083 | $ 10,386 |
Policy claims and other policyholders’ funds | 216 | 211 | |
Total policyholder account balances, future policy benefits and claims | $ 34,122 | $ 35,017 |
Policyholder Account Balances_4
Policyholder Account Balances, Future Policy Benefits and Claims - Balance of and Changes in Policyholder Account Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | $ 23,723 | $ 20,980 |
Contract deposits | 3,620 | 3,787 |
Policy charges | (393) | (390) |
Surrenders and other benefits | (1,619) | (1,515) |
Net transfer from (to) separate account liabilities | (162) | (273) |
Other variable account adjustments | (791) | 397 |
Interest credited | 608 | 737 |
Ending balance | 24,986 | 23,723 |
Variable Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 4,972 | 5,098 |
Contract deposits | 146 | 332 |
Policy charges | (8) | (11) |
Surrenders and other benefits | (450) | (434) |
Net transfer from (to) separate account liabilities | (60) | (168) |
Other variable account adjustments | 0 | 0 |
Interest credited | 152 | 155 |
Ending balance | $ 4,752 | $ 4,972 |
Weighted-average crediting rate | 3.20% | 3.20% |
Cash surrender value | $ 4,720 | $ 4,936 |
Structured Variable Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 4,458 | 1,377 |
Contract deposits | 2,784 | 2,699 |
Policy charges | 0 | 0 |
Surrenders and other benefits | (41) | (15) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | (791) | 397 |
Interest credited | 0 | 0 |
Ending balance | $ 6,410 | $ 4,458 |
Weighted-average crediting rate | 1.10% | 1% |
Cash surrender value | $ 5,986 | $ 4,180 |
Fixed Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 7,251 | 7,619 |
Contract deposits | 55 | 59 |
Policy charges | 0 | 0 |
Surrenders and other benefits | (744) | (672) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 237 | 245 |
Ending balance | $ 6,799 | $ 7,251 |
Weighted-average crediting rate | 3.50% | 3.40% |
Cash surrender value | $ 6,786 | $ 7,232 |
Fixed Indexed Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 323 | 318 |
Contract deposits | 0 | 0 |
Policy charges | 0 | 0 |
Surrenders and other benefits | (17) | (9) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 6 | 14 |
Ending balance | $ 312 | $ 323 |
Weighted-average crediting rate | 1.90% | 1.90% |
Cash surrender value | $ 277 | $ 319 |
Non-Life Contingent Payout Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 527 | 578 |
Contract deposits | 53 | 69 |
Policy charges | 0 | 0 |
Surrenders and other benefits | (124) | (134) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 15 | 14 |
Ending balance | 471 | 527 |
Universal Life Insurance | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 1,602 | 1,640 |
Contract deposits | 134 | 157 |
Policy charges | (178) | (181) |
Surrenders and other benefits | (67) | (69) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 53 | 55 |
Ending balance | $ 1,544 | $ 1,602 |
Weighted-average crediting rate | 3.60% | 3.60% |
Net amount at risk | $ 9,187 | $ 9,619 |
Cash surrender value | 1,382 | 1,424 |
Variable Universal Life Insurance | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 1,493 | 1,476 |
Contract deposits | 233 | 232 |
Policy charges | (91) | (87) |
Surrenders and other benefits | (70) | (80) |
Net transfer from (to) separate account liabilities | (102) | (105) |
Other variable account adjustments | 0 | 0 |
Interest credited | 57 | 57 |
Ending balance | $ 1,520 | $ 1,493 |
Weighted-average crediting rate | 3.90% | 3.80% |
Net amount at risk | $ 57,354 | $ 55,224 |
Cash surrender value | 1,054 | 1,072 |
Indexed Universal Life Insurance | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 2,534 | 2,269 |
Contract deposits | 218 | 242 |
Policy charges | (116) | (111) |
Surrenders and other benefits | (50) | (41) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 68 | 175 |
Ending balance | $ 2,654 | $ 2,534 |
Weighted-average crediting rate | 2% | 2% |
Net amount at risk | $ 15,043 | $ 15,461 |
Cash surrender value | 2,148 | 2,013 |
Other life insurance | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning balance | 563 | 605 |
Contract deposits | (3) | (3) |
Policy charges | 0 | 0 |
Surrenders and other benefits | (56) | (61) |
Net transfer from (to) separate account liabilities | 0 | 0 |
Other variable account adjustments | 0 | 0 |
Interest credited | 20 | 22 |
Ending balance | $ 524 | $ 563 |
Weighted-average crediting rate | 4% | 4% |
Net amount at risk | $ 149 | $ 165 |
Cash surrender value | $ 348 | $ 379 |
Policyholder Account Balances_5
Policyholder Account Balances, Future Policy Benefits and Claims - Account Balances by Guaranteed Minimum Interest Rates (Details) $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 24,986 | $ 23,723 | $ 20,980 |
Percentage of total account values that reset in: | |||
Next 12 months | 99.60% | 98.20% | |
Greater than 12 months to 24 months | 0.30% | 1.40% | |
Greater than 24 months | 0.10% | 0.40% | |
Total | 100% | 100% | |
At Guaranteed Minimum | |||
Percentage of total account values that reset in: | |||
Next 12 months | 99.80% | 98.80% | |
Greater than 12 months to 24 months | 0.10% | 1% | |
Greater than 24 months | 0.10% | 0.20% | |
Total | 100% | 100% | |
1-49 bps above Guaranteed Minimum | |||
Percentage of total account values that reset in: | |||
Next 12 months | 96.30% | 85.10% | |
Greater than 12 months to 24 months | 3% | 0% | |
Greater than 24 months | 0.70% | 14.90% | |
Total | 100% | 100% | |
1-49 bps above Guaranteed Minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0001 | 0.0001 | |
1-49 bps above Guaranteed Minimum | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0049 | 0.0049 | |
50-99 bps above Guaranteed Minimum | |||
Percentage of total account values that reset in: | |||
Next 12 months | 93.80% | 79.80% | |
Greater than 12 months to 24 months | 5.80% | 10.50% | |
Greater than 24 months | 0.40% | 9.70% | |
Total | 100% | 100% | |
50-99 bps above Guaranteed Minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0050 | 0.0050 | |
50-99 bps above Guaranteed Minimum | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0099 | 0.0099 | |
100-150 bps above Guaranteed Minimum | |||
Percentage of total account values that reset in: | |||
Next 12 months | 100% | 33.80% | |
Greater than 12 months to 24 months | 0% | 66.20% | |
Greater than 24 months | 0% | 0% | |
Total | 100% | 100% | |
100-150 bps above Guaranteed Minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0100 | 0.0100 | |
100-150 bps above Guaranteed Minimum | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Greater than 150 bps above Guaranteed Minimum | |||
Percentage of total account values that reset in: | |||
Next 12 months | 100% | 1.10% | |
Greater than 12 months to 24 months | 0% | 98.90% | |
Greater than 24 months | 0% | 0% | |
Total | 100% | 100% | |
Greater than 150 bps above Guaranteed Minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 0.0150 | 0.0150 | |
Total | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 14,344 | $ 15,055 | |
Total | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 13,582 | 14,771 | |
Total | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 519 | 117 | |
Total | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 170 | 105 | |
Total | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 52 | 52 | |
Total | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 21 | 10 | |
Fixed accounts of variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 4,689 | 4,854 | |
Fixed accounts of variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 4,568 | 4,832 | |
Fixed accounts of variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 102 | 13 | |
Fixed accounts of variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 18 | 8 | |
Fixed accounts of variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 1 | |
Fixed accounts of variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Fixed accounts of structured variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 23 | 13 | |
Fixed accounts of structured variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 12 | 13 | |
Fixed accounts of structured variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 7 | 0 | |
Fixed accounts of structured variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
Fixed accounts of structured variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
Fixed accounts of structured variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Fixed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 6,781 | 7,231 | |
Fixed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 6,204 | 6,999 | |
Fixed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 402 | 100 | |
Fixed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 132 | 86 | |
Fixed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 33 | 36 | |
Fixed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 10 | 10 | |
Non-indexed accounts of fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 25 | 28 | |
Non-indexed accounts of fixed indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 1 | |
Non-indexed accounts of fixed indexed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 4 | |
Non-indexed accounts of fixed indexed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 7 | 8 | |
Non-indexed accounts of fixed indexed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 14 | 15 | |
Non-indexed accounts of fixed indexed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1,513 | 1,570 | |
Universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1,509 | 1,570 | |
Universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
Universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
Universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Fixed accounts of variable universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 838 | 849 | |
Fixed accounts of variable universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 816 | 849 | |
Fixed accounts of variable universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 4 | 0 | |
Fixed accounts of variable universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 4 | 0 | |
Fixed accounts of variable universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
Fixed accounts of variable universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 11 | 0 | |
Non-indexed accounts of indexed universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 129 | 133 | |
Non-indexed accounts of indexed universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 126 | 130 | |
Non-indexed accounts of indexed universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Non-indexed accounts of indexed universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 3 | |
Non-indexed accounts of indexed universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Non-indexed accounts of indexed universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Other life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 346 | 377 | |
Other life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 346 | 377 | |
Other life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Other life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Other life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Other life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Total | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,395 | $ 1,600 | |
1% - 1.99% | Total | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Total | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Total | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 646 | $ 1,317 | |
1% - 1.99% | Total | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 517 | 117 | |
1% - 1.99% | Total | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 165 | 105 | |
1% - 1.99% | Total | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 48 | 51 | |
1% - 1.99% | Total | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 19 | 10 | |
1% - 1.99% | Fixed accounts of variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 289 | $ 304 | |
1% - 1.99% | Fixed accounts of variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Fixed accounts of variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Fixed accounts of variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 169 | $ 283 | |
1% - 1.99% | Fixed accounts of variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 102 | 13 | |
1% - 1.99% | Fixed accounts of variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 18 | 8 | |
1% - 1.99% | Fixed accounts of variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Fixed accounts of variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Fixed accounts of structured variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 23 | $ 13 | |
1% - 1.99% | Fixed accounts of structured variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Fixed accounts of structured variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Fixed accounts of structured variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 12 | $ 13 | |
1% - 1.99% | Fixed accounts of structured variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 7 | 0 | |
1% - 1.99% | Fixed accounts of structured variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
1% - 1.99% | Fixed accounts of structured variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
1% - 1.99% | Fixed accounts of structured variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Fixed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,037 | $ 1,241 | |
1% - 1.99% | Fixed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Fixed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Fixed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 460 | $ 1,009 | |
1% - 1.99% | Fixed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 402 | 100 | |
1% - 1.99% | Fixed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 132 | 86 | |
1% - 1.99% | Fixed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 33 | 36 | |
1% - 1.99% | Fixed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 10 | 10 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 25 | $ 28 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1 | $ 1 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 4 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 7 | 8 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 14 | 15 | |
1% - 1.99% | Non-indexed accounts of fixed indexed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
1% - 1.99% | Universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
1% - 1.99% | Universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 18 | $ 11 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Fixed accounts of variable universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Fixed accounts of variable universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 4 | $ 11 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Fixed accounts of variable universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 9 | 0 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 3 | $ 3 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 3 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Non-indexed accounts of indexed universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Other life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
1% - 1.99% | Other life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1% - 1.99% | Other life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1% - 1.99% | Other life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
1% - 1.99% | Other life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Other life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Other life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1% - 1.99% | Other life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Total | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 461 | $ 483 | |
2% - 2.99% | Total | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Total | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Total | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 455 | $ 483 | |
2% - 2.99% | Total | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Total | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
2% - 2.99% | Total | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
2% - 2.99% | Total | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
2% - 2.99% | Fixed accounts of variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 177 | $ 193 | |
2% - 2.99% | Fixed accounts of variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Fixed accounts of variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Fixed accounts of variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 177 | $ 193 | |
2% - 2.99% | Fixed accounts of variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Fixed accounts of structured variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Fixed accounts of structured variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of structured variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 67 | $ 79 | |
2% - 2.99% | Fixed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Fixed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Fixed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 67 | $ 79 | |
2% - 2.99% | Fixed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of fixed indexed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 56 | $ 46 | |
2% - 2.99% | Universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 55 | $ 46 | |
2% - 2.99% | Universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
2% - 2.99% | Universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 35 | $ 35 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Fixed accounts of variable universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Fixed accounts of variable universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 30 | $ 35 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
2% - 2.99% | Fixed accounts of variable universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 126 | $ 130 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 126 | $ 130 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Non-indexed accounts of indexed universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Other life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Other life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2% - 2.99% | Other life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2% - 2.99% | Other life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
2% - 2.99% | Other life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Other life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Other life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2% - 2.99% | Other life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Total | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 7,013 | $ 7,446 | |
3% - 3.99% | Total | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Total | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Total | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 7,006 | $ 7,445 | |
3% - 3.99% | Total | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
3% - 3.99% | Total | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 3 | 0 | |
3% - 3.99% | Total | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 1 | |
3% - 3.99% | Total | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 2,612 | $ 2,730 | |
3% - 3.99% | Fixed accounts of variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Fixed accounts of variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Fixed accounts of variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 2,611 | $ 2,729 | |
3% - 3.99% | Fixed accounts of variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 1 | |
3% - 3.99% | Fixed accounts of variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Fixed accounts of structured variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Fixed accounts of structured variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of structured variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 3,344 | $ 3,637 | |
3% - 3.99% | Fixed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Fixed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Fixed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 3,344 | $ 3,637 | |
3% - 3.99% | Fixed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of fixed indexed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 888 | $ 907 | |
3% - 3.99% | Universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 885 | $ 907 | |
3% - 3.99% | Universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
3% - 3.99% | Universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2 | 0 | |
3% - 3.99% | Universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 137 | $ 137 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Fixed accounts of variable universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Fixed accounts of variable universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 134 | $ 137 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1 | 0 | |
3% - 3.99% | Fixed accounts of variable universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Non-indexed accounts of indexed universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Other life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 32 | $ 35 | |
3% - 3.99% | Other life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3% - 3.99% | Other life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3.99% | 3.99% | |
3% - 3.99% | Other life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 32 | $ 35 | |
3% - 3.99% | Other life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Other life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Other life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3% - 3.99% | Other life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Total | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 5,475 | $ 5,526 | |
4% - 5.00% | Total | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Total | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Total | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 5,475 | $ 5,526 | |
4% - 5.00% | Total | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Total | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Total | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Total | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,611 | $ 1,627 | |
4% - 5.00% | Fixed accounts of variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Fixed accounts of variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Fixed accounts of variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,611 | $ 1,627 | |
4% - 5.00% | Fixed accounts of variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Fixed accounts of structured variable annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Fixed accounts of structured variable annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of structured variable annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 2,333 | $ 2,274 | |
4% - 5.00% | Fixed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Fixed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Fixed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 2,333 | $ 2,274 | |
4% - 5.00% | Fixed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of fixed indexed annuities | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 569 | $ 617 | |
4% - 5.00% | Universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 569 | $ 617 | |
4% - 5.00% | Universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 648 | $ 666 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Fixed accounts of variable universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Fixed accounts of variable universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 648 | $ 666 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Fixed accounts of variable universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Non-indexed accounts of indexed universal life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Other life insurance | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 314 | $ 342 | |
4% - 5.00% | Other life insurance | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
4% - 5.00% | Other life insurance | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 5% | 5% | |
4% - 5.00% | Other life insurance | At Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 314 | $ 342 | |
4% - 5.00% | Other life insurance | 1-49 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Other life insurance | 50-99 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Other life insurance | 100-150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
4% - 5.00% | Other life insurance | Greater than 150 bps above Guaranteed Minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 |
Policyholder Account Balances_6
Policyholder Account Balances, Future Policy Benefits and Claims - Balances of and Changes in Liability for Future Policy Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | $ 8,920 | $ 11,083 | $ 10,386 |
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Beginning balance | 2,512 | 2,771 | |
Beginning balance at original discount rate | 2,111 | 2,217 | |
Effect of changes in cash flow assumptions | 54 | (6) | |
Effect of actual variances from expected experience | (23) | (40) | |
Adjusted beginning of year balance | 2,142 | 2,171 | |
Issuances | 111 | 134 | |
Interest accrual | 106 | 111 | |
Net premiums collected | (294) | (305) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 2,065 | 2,111 | |
Effect of changes in discount rate assumptions | (38) | 401 | |
Ending balance | 2,027 | 2,512 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance | 12,232 | 13,157 | |
Beginning balance at original discount rate | 9,769 | 9,920 | |
Effect of changes in cash flow assumptions | 35 | (8) | |
Effect of actual variances from expected experience | (25) | (120) | |
Adjusted beginning of year balance | 9,779 | 9,792 | |
Issuances | 111 | 135 | |
Interest accrual | 496 | 509 | |
Benefit payments | (680) | (667) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 9,706 | 9,769 | |
Effect of changes in discount rate assumptions | (187) | 2,463 | |
Ending balance | 9,519 | 12,232 | |
Adjustment due to reserve flooring | 3 | 1 | |
Net liability for future policy benefits | 7,495 | 9,721 | |
Less: reinsurance recoverable | 4,060 | 5,291 | 4,248 |
Net liability for future policy benefits, after reinsurance recoverable | 3,435 | 4,430 | 6,138 |
Discounted expected future gross premiums | 4,162 | 4,786 | |
Expected future gross premiums | 6,422 | 6,115 | |
Expected future benefit payments | 16,227 | 16,651 | |
Previously Reported | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 8,448 | ||
Effect of shadow reserve adjustments | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | (741) | ||
Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 39 | ||
Effect of change in deferred profit liability | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | (43) | ||
Effect of remeasurement of the liability at the current single A discount rate | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 2,683 | ||
Life Contingent Payout Annuities | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 1,537 | ||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Beginning balance at original discount rate | 0 | 0 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | 0 | 0 | |
Adjusted beginning of year balance | 0 | 0 | |
Issuances | 42 | 38 | |
Interest accrual | 0 | 0 | |
Net premiums collected | (42) | (38) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 0 | 0 | |
Effect of changes in discount rate assumptions | 0 | 0 | |
Ending balance | 0 | 0 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance | 1,370 | 1,537 | |
Beginning balance at original discount rate | 1,231 | 1,321 | |
Effect of changes in cash flow assumptions | 0 | 0 | |
Effect of actual variances from expected experience | (13) | (14) | |
Adjusted beginning of year balance | 1,218 | 1,307 | |
Issuances | 42 | 39 | |
Interest accrual | 49 | 53 | |
Benefit payments | (154) | (168) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 1,155 | 1,231 | |
Effect of changes in discount rate assumptions | (90) | 139 | |
Ending balance | 1,065 | 1,370 | |
Adjustment due to reserve flooring | 0 | 0 | |
Net liability for future policy benefits | 1,065 | 1,370 | |
Less: reinsurance recoverable | 949 | 1,265 | 0 |
Net liability for future policy benefits, after reinsurance recoverable | 116 | 105 | 1,537 |
Discounted expected future gross premiums | 0 | 0 | |
Expected future gross premiums | 0 | 0 | |
Expected future benefit payments | $ 1,595 | $ 1,707 | |
Weighted average interest accretion rate | 4.10% | 4.20% | |
Weighted average discount rate | 5.20% | 2.60% | |
Weighted average duration of liability (in years) | 6 years | 7 years | |
Life Contingent Payout Annuities | Previously Reported | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 1,536 | ||
Life Contingent Payout Annuities | Effect of shadow reserve adjustments | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | (175) | ||
Life Contingent Payout Annuities | Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 4 | ||
Life Contingent Payout Annuities | Effect of change in deferred profit liability | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | (43) | ||
Life Contingent Payout Annuities | Effect of remeasurement of the liability at the current single A discount rate | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 215 | ||
Term and Whole Life Insurance | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 898 | ||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Beginning balance | $ 777 | $ 702 | |
Beginning balance at original discount rate | 636 | 536 | |
Effect of changes in cash flow assumptions | 1 | 0 | |
Effect of actual variances from expected experience | 47 | 56 | |
Adjusted beginning of year balance | 684 | 592 | |
Issuances | 57 | 78 | |
Interest accrual | 34 | 29 | |
Net premiums collected | (67) | (63) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 708 | 636 | |
Effect of changes in discount rate assumptions | (22) | 141 | |
Ending balance | 686 | 777 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance | 1,598 | 1,600 | |
Beginning balance at original discount rate | 1,255 | 1,169 | |
Effect of changes in cash flow assumptions | (8) | 0 | |
Effect of actual variances from expected experience | 52 | 58 | |
Adjusted beginning of year balance | 1,299 | 1,227 | |
Issuances | 57 | 78 | |
Interest accrual | 73 | 70 | |
Benefit payments | (116) | (120) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 1,313 | 1,255 | |
Effect of changes in discount rate assumptions | 6 | 343 | |
Ending balance | 1,319 | 1,598 | |
Adjustment due to reserve flooring | 3 | 1 | |
Net liability for future policy benefits | 636 | 822 | |
Less: reinsurance recoverable | 443 | 558 | 601 |
Net liability for future policy benefits, after reinsurance recoverable | 193 | 264 | 297 |
Discounted expected future gross premiums | 1,855 | 2,005 | |
Expected future gross premiums | 3,183 | 2,815 | |
Expected future benefit payments | $ 2,234 | $ 2,159 | |
Weighted average interest accretion rate | 6.40% | 6.50% | |
Weighted average discount rate | 5.50% | 2.80% | |
Weighted average duration of liability (in years) | 7 years | 8 years | |
Term and Whole Life Insurance | Previously Reported | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 633 | ||
Term and Whole Life Insurance | Effect of shadow reserve adjustments | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Term and Whole Life Insurance | Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Term and Whole Life Insurance | Effect of change in deferred profit liability | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Term and Whole Life Insurance | Effect of remeasurement of the liability at the current single A discount rate | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 265 | ||
Disability Insurance | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 768 | ||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Beginning balance | $ 188 | $ 238 | |
Beginning balance at original discount rate | 155 | 183 | |
Effect of changes in cash flow assumptions | 1 | 0 | |
Effect of actual variances from expected experience | (22) | (35) | |
Adjusted beginning of year balance | 134 | 148 | |
Issuances | 12 | 18 | |
Interest accrual | 7 | 9 | |
Net premiums collected | (16) | (20) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 137 | 155 | |
Effect of changes in discount rate assumptions | (3) | 33 | |
Ending balance | 134 | 188 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance | 914 | 1,006 | |
Beginning balance at original discount rate | 688 | 714 | |
Effect of changes in cash flow assumptions | 1 | 0 | |
Effect of actual variances from expected experience | (28) | (40) | |
Adjusted beginning of year balance | 661 | 674 | |
Issuances | 12 | 18 | |
Interest accrual | 38 | 39 | |
Benefit payments | (42) | (43) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 669 | 688 | |
Effect of changes in discount rate assumptions | 27 | 226 | |
Ending balance | 696 | 914 | |
Adjustment due to reserve flooring | 0 | 0 | |
Net liability for future policy benefits | 562 | 726 | |
Less: reinsurance recoverable | 19 | 25 | 24 |
Net liability for future policy benefits, after reinsurance recoverable | 543 | 701 | 744 |
Discounted expected future gross premiums | 926 | 1,158 | |
Expected future gross premiums | 1,331 | 1,395 | |
Expected future benefit payments | $ 1,169 | $ 1,217 | |
Weighted average interest accretion rate | 6.10% | 5.90% | |
Weighted average discount rate | 5.40% | 2.80% | |
Weighted average duration of liability (in years) | 8 years | 9 years | |
Disability Insurance | Previously Reported | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 530 | ||
Disability Insurance | Effect of shadow reserve adjustments | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Disability Insurance | Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Disability Insurance | Effect of change in deferred profit liability | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Disability Insurance | Effect of remeasurement of the liability at the current single A discount rate | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 238 | ||
Long Term Care Insurance | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 7,183 | ||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Beginning balance | $ 1,547 | $ 1,831 | |
Beginning balance at original discount rate | 1,320 | 1,498 | |
Effect of changes in cash flow assumptions | 52 | (6) | |
Effect of actual variances from expected experience | (48) | (61) | |
Adjusted beginning of year balance | 1,324 | 1,431 | |
Issuances | 0 | 0 | |
Interest accrual | 65 | 73 | |
Net premiums collected | (169) | (184) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 1,220 | 1,320 | |
Effect of changes in discount rate assumptions | (13) | 227 | |
Ending balance | 1,207 | 1,547 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance | 8,350 | 9,014 | |
Beginning balance at original discount rate | 6,595 | 6,716 | |
Effect of changes in cash flow assumptions | 42 | (8) | |
Effect of actual variances from expected experience | (36) | (124) | |
Adjusted beginning of year balance | 6,601 | 6,584 | |
Issuances | 0 | 0 | |
Interest accrual | 336 | 347 | |
Benefit payments | (368) | (336) | |
Derecognition (lapses) | 0 | 0 | |
Ending balance at original discount rate | 6,569 | 6,595 | |
Effect of changes in discount rate assumptions | (130) | 1,755 | |
Ending balance | 6,439 | 8,350 | |
Adjustment due to reserve flooring | 0 | 0 | |
Net liability for future policy benefits | 5,232 | 6,803 | |
Less: reinsurance recoverable | 2,649 | 3,443 | 3,623 |
Net liability for future policy benefits, after reinsurance recoverable | 2,583 | 3,360 | 3,560 |
Discounted expected future gross premiums | 1,381 | 1,623 | |
Expected future gross premiums | 1,908 | 1,905 | |
Expected future benefit payments | $ 11,229 | $ 11,568 | |
Weighted average interest accretion rate | 5.20% | 5.30% | |
Weighted average discount rate | 5.40% | 2.90% | |
Weighted average duration of liability (in years) | 9 years | 10 years | |
Long Term Care Insurance | Previously Reported | |||
Liability for Future Policy Benefit, Activity [Line Items] | |||
Balance | 5,749 | ||
Long Term Care Insurance | Effect of shadow reserve adjustments | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | (566) | ||
Long Term Care Insurance | Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 35 | ||
Long Term Care Insurance | Effect of change in deferred profit liability | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | 0 | ||
Long Term Care Insurance | Effect of remeasurement of the liability at the current single A discount rate | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Effect of changes in cash flow assumptions | $ 1,965 |
Policyholder Account Balances_7
Policyholder Account Balances, Future Policy Benefits and Claims - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Decrease in net liability for future policy benefits for assumption changes | $ 2 | |
Decrease to reinsurance recoverable for assumption changes | $ 1 | |
Long term care insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Decrease in net liability for future policy benefits for assumption changes | $ 10 | |
Decrease to reinsurance recoverable for assumption changes | 4 | |
Term and whole life insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Decrease in net liability for future policy benefits for assumption changes | 9 | |
Decrease to reinsurance recoverable for assumption changes | $ 16 |
Policyholder Account Balances_8
Policyholder Account Balances, Future Policy Benefits and Claims - Additional Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Beginning balance | $ 1,242 | $ 1,162 | |
Interest accrual | 38 | 35 | |
Benefit accrual | 116 | 140 | |
Benefit payments | (61) | (54) | |
Effect of actual variances from expected experience | (19) | $ (9) | |
Impact of change in net unrealized (gains) losses on securities | (130) | (32) | |
Ending balance | 1,186 | 1,242 | |
Universal Life Insurance | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Beginning balance | 1,120 | 1,030 | |
Interest accrual | 32 | 29 | |
Benefit accrual | 108 | 129 | |
Benefit payments | (43) | (37) | |
Effect of actual variances from expected experience | (19) | (10) | |
Impact of change in net unrealized (gains) losses on securities | (98) | (21) | |
Ending balance | $ 1,100 | $ 1,120 | |
Weighed average interest accretion rate | 2.90% | 2.90% | |
Weighted average discount rate | 3.20% | 3.10% | |
Weighted average duration of reserves (in years) | 10 years | 12 years | |
Variable Universal Life Insurance | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Beginning balance | $ 76 | $ 74 | |
Interest accrual | 5 | 5 | |
Benefit accrual | 8 | 8 | |
Benefit payments | (14) | (12) | |
Effect of actual variances from expected experience | 2 | 2 | |
Impact of change in net unrealized (gains) losses on securities | (3) | (1) | |
Ending balance | $ 74 | $ 76 | |
Weighed average interest accretion rate | 7% | 7% | |
Weighted average discount rate | 7.10% | 7.10% | |
Weighted average duration of reserves (in years) | 8 years | 9 years | |
Other life insurance | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Beginning balance | $ 46 | $ 58 | |
Interest accrual | 1 | 1 | |
Benefit accrual | 0 | 3 | |
Benefit payments | (4) | (5) | |
Effect of actual variances from expected experience | (2) | $ (1) | |
Impact of change in net unrealized (gains) losses on securities | (29) | (10) | |
Ending balance | $ 12 | $ 46 | |
Weighed average interest accretion rate | 4.10% | 4% | |
Weighted average discount rate | 4% | 4% | |
Weighted average duration of reserves (in years) | 6 years | 7 years |
Policyholder Account Balances_9
Policyholder Account Balances, Future Policy Benefits and Claims - Amounts Recognized in Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | $ 530 | $ 528 |
Interest Expense | 390 | 398 |
Life contingent payout annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 45 | 39 |
Interest Expense | 49 | 53 |
Term and whole life insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 169 | 166 |
Interest Expense | 39 | 41 |
Disability insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 127 | 131 |
Interest Expense | 31 | 30 |
Long term care insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 189 | 192 |
Interest Expense | $ 271 | $ 274 |
Policyholder Account Balance_10
Policyholder Account Balances, Future Policy Benefits and Claims - Change in Unearned Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Income [Roll Forward] | ||
Beginning balance | $ 333 | $ 263 |
Deferral of revenue | 104 | 92 |
Amortization | (27) | (22) |
Ending balance | 410 | 333 |
Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 26 | 24 |
Deferral of revenue | 2 | 3 |
Amortization | (1) | (1) |
Ending balance | 27 | 26 |
Variable Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 112 | 86 |
Deferral of revenue | 48 | 34 |
Amortization | (10) | (8) |
Ending balance | 150 | 112 |
Indexed Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 195 | 153 |
Deferral of revenue | 54 | 55 |
Amortization | (16) | (13) |
Ending balance | $ 233 | 195 |
Previously Reported | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 95 | |
Previously Reported | Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 19 | |
Previously Reported | Variable Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 76 | |
Previously Reported | Indexed Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 0 | |
Effect of shadow reserve adjustments | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 168 | |
Effect of shadow reserve adjustments | Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 5 | |
Effect of shadow reserve adjustments | Variable Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | 10 | |
Effect of shadow reserve adjustments | Indexed Universal Life Insurance | ||
Deferred Income [Roll Forward] | ||
Beginning balance | $ 153 |
Separate Account Assets and L_3
Separate Account Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
Gains (losses) recognized on assets transferred to separate accounts | $ 0 | $ 0 | $ 0 |
Separate Account Assets and L_4
Separate Account Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Separate Account, Liability [Roll Forward] | ||||
Beginning balance | $ 92,238 | [1] | $ 87,556 | |
Premiums and deposits | 1,492 | 3,001 | ||
Policy charges | (1,674) | (1,783) | ||
Surrenders and other benefits | (5,209) | (6,698) | ||
Investment return | (16,104) | 9,909 | ||
Net transfer from (to) general account | 133 | 253 | ||
Ending balance | [1] | 70,876 | 92,238 | |
Cash surrender value | 68,661 | 89,685 | ||
Variable Annuities | ||||
Separate Account, Liability [Roll Forward] | ||||
Beginning balance | 82,862 | 79,299 | ||
Premiums and deposits | 1,067 | 2,590 | ||
Policy charges | (1,396) | (1,520) | ||
Surrenders and other benefits | (4,923) | (6,336) | ||
Investment return | (14,450) | 8,660 | ||
Net transfer from (to) general account | 63 | 169 | ||
Ending balance | 63,223 | 82,862 | ||
Cash surrender value | 61,461 | 80,746 | ||
Variable Universal Life | ||||
Separate Account, Liability [Roll Forward] | ||||
Beginning balance | 9,376 | 8,257 | ||
Premiums and deposits | 425 | 411 | ||
Policy charges | (278) | (263) | ||
Surrenders and other benefits | (286) | (362) | ||
Investment return | (1,654) | 1,249 | ||
Net transfer from (to) general account | 70 | 84 | ||
Ending balance | 7,653 | 9,376 | ||
Cash surrender value | $ 7,200 | $ 8,939 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Market Risk Benefits_Variable_3
Market Risk Benefits/Variable Annuity and Insurance Guarantees - Balances of and Changes in Market Risk Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | $ 2,901 | $ 4,829 | |
Issuances | 27 | 45 | |
Interest accrual and time decay | (237) | (294) | |
Reserve increase from attributed fees collected | 810 | 819 | |
Reserve release for benefit payments and derecognition | (29) | (8) | |
Effect of changes in interest rates and bond markets | (4,193) | (1,053) | |
Effect of changes in equity markets and subaccount performance | 2,258 | (1,558) | |
Effect of changes in equity index volatility | 205 | 73 | |
Actual policyholder behavior different from expected behavior | 17 | 52 | |
Effect of changes in other future expected assumptions | (139) | 123 | |
Effect of changes in the instrument-specific credit risk on market risk benefits | (517) | (127) | |
Ending balance | 1,103 | 2,901 | |
Reconciliation of the gross balances in an asset or liability position: | |||
Asset position | [1] | 1,015 | 539 |
Liability position | [1] | (2,118) | (3,440) |
Net asset (liability) position | $ (1,103) | $ (2,901) | |
Weighted average attained age of contractholders | 68 years | 68 years | |
Changes in unrealized (gains) losses in net income relating to liabilities held at end of period | $ (2,044) | $ (2,502) | |
Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period | (505) | (102) | |
Death benefits | |||
Reconciliation of the gross balances in an asset or liability position: | |||
Guaranteed benefit amount in excess of current account balances (net amount at risk) | 2,781 | 251 | |
Living benefits | |||
Reconciliation of the gross balances in an asset or liability position: | |||
Guaranteed benefit amount in excess of current account balances (net amount at risk) | 3,364 | 195 | |
Composite (greater of) | |||
Reconciliation of the gross balances in an asset or liability position: | |||
Guaranteed benefit amount in excess of current account balances (net amount at risk) | 5,830 | 441 | |
Previously Reported | |||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | 3,084 | ||
Reconciliation of the gross balances in an asset or liability position: | |||
Asset position | 0 | 0 | |
Liability position | $ 0 | 0 | |
Net asset (liability) position | |||
Effect of shadow reserve adjustments | |||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | (3) | ||
Reconciliation of the gross balances in an asset or liability position: | |||
Net asset (liability) position | |||
Adjustments for the cumulative effect of the changes in instrument-specific credit risk between the original contract issuance date and the transition date | |||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | 670 | ||
Reconciliation of the gross balances in an asset or liability position: | |||
Net asset (liability) position | |||
Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation | |||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | 20 | ||
Reconciliation of the gross balances in an asset or liability position: | |||
Net asset (liability) position | |||
Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits | |||
Market Risk Benefit [Roll Forward] | |||
Beginning balance | $ 1,058 | ||
Reconciliation of the gross balances in an asset or liability position: | |||
Net asset (liability) position | |||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Market Risk Benefits_Variable_4
Market Risk Benefits/Variable Annuity and Insurance Guarantees - Significant Inputs and Assumptions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Market Risk Benefit [Line Items] | |||
Market risk benefits | $ 1,103 | $ 2,901 | $ 4,829 |
Utilization of guaranteed withdrawals | |||
Market Risk Benefit [Line Items] | |||
Market Risk Benefit, Increase (Decrease) in Net Income From Assumption | 39 | ||
Surrender rate | |||
Market Risk Benefit [Line Items] | |||
Market Risk Benefit, Increase (Decrease) in Net Income From Assumption | 200 | $ 185 | |
Mortality rate | |||
Market Risk Benefit [Line Items] | |||
Market Risk Benefit, Increase (Decrease) in Net Income From Assumption | $ 49 | ||
Discounted cash flow | Nonperformance risk | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.0095 | 0.0065 | |
Minimum | Discounted cash flow | Utilization of guaranteed withdrawals | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0 | 0 | |
Minimum | Discounted cash flow | Surrender rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.002 | 0.002 | |
Minimum | Discounted cash flow | Market volatility | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0 | 0 | |
Minimum | Discounted cash flow | Mortality rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0 | 0 | |
Maximum | Discounted cash flow | Utilization of guaranteed withdrawals | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.480 | 0.480 | |
Maximum | Discounted cash flow | Surrender rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.456 | 0.456 | |
Maximum | Discounted cash flow | Market volatility | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.266 | 0.254 | |
Maximum | Discounted cash flow | Mortality rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.416 | 0.545 | |
Weighted average | Discounted cash flow | Utilization of guaranteed withdrawals | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.110 | 0.106 | |
Weighted average | Discounted cash flow | Surrender rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.036 | 0.036 | |
Weighted average | Discounted cash flow | Market volatility | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.121 | 0.114 | |
Weighted average | Discounted cash flow | Nonperformance risk | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.0095 | 0.0065 | |
Weighted average | Discounted cash flow | Mortality rate | |||
Market Risk Benefit [Line Items] | |||
Market risk benefits, measurement input | 0.015 | 0.015 |
Market Risk Benefits_Variable_5
Market Risk Benefits/Variable Annuity and Insurance Guarantees - Liability Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
GMDB and GGU | |
Changes in additional liabilities for variable annuity and insurance guarantees | |
Beginning Balance | $ 16 |
Incurred claims | 15 |
Paid claims | (7) |
Ending Balance | 24 |
GMIB | |
Changes in additional liabilities for variable annuity and insurance guarantees | |
Beginning Balance | 7 |
Incurred claims | 0 |
Paid claims | (1) |
Ending Balance | 6 |
GMWB | |
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | |
Beginning balance | 1,462 |
Incurred claims | 1,587 |
Paid claims | 0 |
Ending balance | 3,049 |
GMAB | |
Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees | |
Beginning balance | (39) |
Incurred claims | 40 |
Paid claims | 0 |
Ending balance | 1 |
UL | |
Changes in additional liabilities for variable annuity and insurance guarantees | |
Beginning Balance | 758 |
Incurred claims | 209 |
Paid claims | (51) |
Ending Balance | $ 916 |
Debt - Short-term Borrowings (D
Debt - Short-term Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Short-term borrowings | |||
Amount of FHLB liability | [1] | $ 201 | $ 200 |
RiverSource Life | |||
Short-term borrowings | |||
Amount of FHLB liability | $ 201 | $ 200 | |
RiverSource Life | Weighted average | |||
Short-term borrowings | |||
Interest rate on FHLB borrowings (as a percent) | 4.60% | 0.30% | |
RiverSource Life | Commercial mortgage backed securities | |||
Short-term borrowings | |||
Securities pledged as collateral for FHLB borrowings | $ 962 | $ 1,000 | |
RiverSource Life | Federal Home Loan Bank borrowings | Maximum | |||
Short-term borrowings | |||
Term | 3 months | 3 months | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Debt - Lines of Credit (Details
Debt - Lines of Credit (Details) - Ameriprise Financial - Revolving line of credit borrowing arrangement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RiverSource Life Insurance Company | ||
Debt | ||
Outstanding borrowings, maximum percentage of statutory admitted assets | 3% | |
Prepayment penalty | $ 0 | |
Amounts outstanding, line of credit | $ 0 | $ 0 |
Subsidiaries | RiverSource Life of NY | ||
Debt | ||
Outstanding borrowings, maximum percentage of statutory admitted assets | 3% | |
Maximum borrowing capacity | $ 25 | |
Prepayment penalty | 0 | |
Amounts outstanding, line of credit | 0 | 0 |
Subsidiaries | RTA | ||
Debt | ||
Maximum borrowing capacity | 100 | |
Prepayment penalty | 0 | |
Amounts outstanding, line of credit | $ 0 | $ 0 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - Ameriprise Financial - Unsecured surplus note due December 31, 2050 - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Long-term debt | $ 500 | $ 500 |
Interest rate | 3.50% |
Fair Values of Assets and Lia_3
Fair Values of Assets and Liabilities - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Market risk benefits | [1] | $ 1,015 | $ 539 |
Other assets: derivative contracts | 3,007 | 5,517 | |
Separate account assets at NAV | [1] | 70,876 | 92,238 |
Liabilities | |||
Market risk benefits | [1] | 2,118 | 3,440 |
Other liabilities: derivative contracts | 2,731 | 4,180 | |
RiverSource Life | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | [1] | 16,135 | 16,239 |
RiverSource Life | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 8,706 | 9,638 | |
RiverSource Life | Residential mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,959 | 2,250 | |
RiverSource Life | Commercial mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,651 | 2,656 | |
RiverSource Life | State and municipal obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 786 | 1,074 | |
RiverSource Life | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 997 | 537 | |
RiverSource Life | Foreign government bonds and obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 35 | 83 | |
RiverSource Life | U.S. government and agency obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 1 | 1 | |
RiverSource Life | Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Liabilities | |||
Cumulative increase (decrease) in embedded derivatives due to nonperformance risk adjustment | (139) | (96) | |
RiverSource Life | Level 3 | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 395 | 496 | |
RiverSource Life | Level 3 | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 545 | 291 | |
RiverSource Life | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Assets | |||
Receivables: embedded derivatives | 48 | 59 | |
RiverSource Life | Level 3 | Fixed deferred indexed annuities embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 44 | 56 | |
RiverSource Life | Level 3 | IUL embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 739 | 905 | |
RiverSource Life | Level 3 | Structured variable annuity embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | (137) | 406 | |
RiverSource Life | Recurring basis | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 16,135 | 16,239 | |
Cash equivalents | 2,592 | 3,176 | |
Market risk benefits | 1,015 | 539 | |
Other assets: derivative contracts | 3,007 | 5,517 | |
Separate account assets at NAV | 70,876 | 92,238 | |
Total assets at fair value | 93,673 | 117,768 | |
Liabilities | |||
Market risk benefits | 3,440 | ||
Other liabilities: derivative contracts | 2,731 | 4,180 | |
Total liabilities at fair value | 5,498 | 8,992 | |
RiverSource Life | Recurring basis | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 8,706 | 9,638 | |
RiverSource Life | Recurring basis | Residential mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,959 | 2,250 | |
RiverSource Life | Recurring basis | Commercial mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,651 | 2,656 | |
RiverSource Life | Recurring basis | State and municipal obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 786 | 1,074 | |
RiverSource Life | Recurring basis | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 997 | 537 | |
RiverSource Life | Recurring basis | Foreign government bonds and obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 35 | 83 | |
RiverSource Life | Recurring basis | U.S. government and agency obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 1 | 1 | |
RiverSource Life | Recurring basis | Fixed deferred indexed annuities ceded embedded derivatives | |||
Assets | |||
Receivables: embedded derivatives | 48 | 59 | |
RiverSource Life | Recurring basis | Interest rate derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 267 | 1,252 | |
Liabilities | |||
Other liabilities: derivative contracts | 355 | 468 | |
RiverSource Life | Recurring basis | Equity derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 2,693 | 4,238 | |
Liabilities | |||
Other liabilities: derivative contracts | 2,366 | 3,711 | |
RiverSource Life | Recurring basis | Foreign exchange derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 34 | 18 | |
Liabilities | |||
Other liabilities: derivative contracts | 10 | 1 | |
RiverSource Life | Recurring basis | Credit derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 13 | 9 | |
RiverSource Life | Recurring basis | Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 649 | 1,372 | |
Market risk benefits | 2,118 | ||
RiverSource Life | Recurring basis | Fixed deferred indexed annuities embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 47 | 61 | |
RiverSource Life | Recurring basis | IUL embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 739 | 905 | |
RiverSource Life | Recurring basis | Structured variable annuity embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | (137) | 406 | |
RiverSource Life | Recurring basis | Level 1 | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 1 | 1 | |
Cash equivalents | 1,063 | 1,985 | |
Market risk benefits | 0 | 0 | |
Other assets: derivative contracts | 136 | 160 | |
Total assets at fair value | 1,200 | 2,146 | |
Liabilities | |||
Market risk benefits | 0 | ||
Other liabilities: derivative contracts | 148 | 103 | |
Total liabilities at fair value | 148 | 103 | |
RiverSource Life | Recurring basis | Level 1 | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Residential mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Commercial mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | State and municipal obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Foreign government bonds and obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | U.S. government and agency obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 1 | 1 | |
RiverSource Life | Recurring basis | Level 1 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Assets | |||
Receivables: embedded derivatives | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Interest rate derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 7 | 1 | |
Liabilities | |||
Other liabilities: derivative contracts | 4 | 1 | |
RiverSource Life | Recurring basis | Level 1 | Equity derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 129 | 158 | |
Liabilities | |||
Other liabilities: derivative contracts | 138 | 101 | |
RiverSource Life | Recurring basis | Level 1 | Foreign exchange derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 1 | |
Liabilities | |||
Other liabilities: derivative contracts | 6 | 1 | |
RiverSource Life | Recurring basis | Level 1 | Credit derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 0 | 0 | |
Market risk benefits | 0 | ||
RiverSource Life | Recurring basis | Level 1 | Fixed deferred indexed annuities embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | IUL embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 0 | 0 | |
RiverSource Life | Recurring basis | Level 1 | Structured variable annuity embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 0 | 0 | |
RiverSource Life | Recurring basis | Level 2 | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 15,194 | 15,451 | |
Cash equivalents | 1,529 | 1,191 | |
Market risk benefits | 0 | 0 | |
Other assets: derivative contracts | 2,871 | 5,357 | |
Total assets at fair value | 19,594 | 21,999 | |
Liabilities | |||
Market risk benefits | 0 | ||
Other liabilities: derivative contracts | 2,583 | 4,077 | |
Total liabilities at fair value | 2,586 | 4,082 | |
RiverSource Life | Recurring basis | Level 2 | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 8,311 | 9,142 | |
RiverSource Life | Recurring basis | Level 2 | Residential mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,959 | 2,250 | |
RiverSource Life | Recurring basis | Level 2 | Commercial mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 2,651 | 2,656 | |
RiverSource Life | Recurring basis | Level 2 | State and municipal obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 786 | 1,074 | |
RiverSource Life | Recurring basis | Level 2 | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 452 | 246 | |
RiverSource Life | Recurring basis | Level 2 | Foreign government bonds and obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 35 | 83 | |
RiverSource Life | Recurring basis | Level 2 | U.S. government and agency obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 2 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Assets | |||
Receivables: embedded derivatives | 0 | 0 | |
RiverSource Life | Recurring basis | Level 2 | Interest rate derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 260 | 1,251 | |
Liabilities | |||
Other liabilities: derivative contracts | 351 | 467 | |
RiverSource Life | Recurring basis | Level 2 | Equity derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 2,564 | 4,080 | |
Liabilities | |||
Other liabilities: derivative contracts | 2,228 | 3,610 | |
RiverSource Life | Recurring basis | Level 2 | Foreign exchange derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 34 | 17 | |
Liabilities | |||
Other liabilities: derivative contracts | 4 | 0 | |
RiverSource Life | Recurring basis | Level 2 | Credit derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 13 | 9 | |
RiverSource Life | Recurring basis | Level 2 | Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 3 | 5 | |
Market risk benefits | 0 | ||
RiverSource Life | Recurring basis | Level 2 | Fixed deferred indexed annuities embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 3 | 5 | |
RiverSource Life | Recurring basis | Level 2 | IUL embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 0 | 0 | |
RiverSource Life | Recurring basis | Level 2 | Structured variable annuity embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 940 | 787 | |
Cash equivalents | 0 | 0 | |
Market risk benefits | 1,015 | 539 | |
Other assets: derivative contracts | 0 | 0 | |
Total assets at fair value | 2,003 | 1,385 | |
Liabilities | |||
Market risk benefits | 3,440 | ||
Other liabilities: derivative contracts | 0 | 0 | |
Total liabilities at fair value | 2,764 | 4,807 | |
RiverSource Life | Recurring basis | Level 3 | Corporate debt securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 395 | 496 | |
RiverSource Life | Recurring basis | Level 3 | Residential mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Commercial mortgage backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | State and municipal obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Asset backed securities | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 545 | 291 | |
RiverSource Life | Recurring basis | Level 3 | Foreign government bonds and obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | U.S. government and agency obligations | |||
Assets | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Assets | |||
Receivables: embedded derivatives | 48 | 59 | |
RiverSource Life | Recurring basis | Level 3 | Interest rate derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 0 | |
Liabilities | |||
Other liabilities: derivative contracts | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Equity derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 0 | |
Liabilities | |||
Other liabilities: derivative contracts | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Foreign exchange derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 0 | |
Liabilities | |||
Other liabilities: derivative contracts | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Credit derivative contracts | |||
Assets | |||
Other assets: derivative contracts | 0 | 0 | |
RiverSource Life | Recurring basis | Level 3 | Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | 646 | 1,367 | |
Market risk benefits | 2,118 | ||
RiverSource Life | Recurring basis | Level 3 | Fixed deferred indexed annuities embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 44 | 56 | |
RiverSource Life | Recurring basis | Level 3 | IUL embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives | 739 | 905 | |
RiverSource Life | Recurring basis | Level 3 | Structured variable annuity embedded derivatives | |||
Liabilities | |||
Liabilities embedded derivatives, net | $ (137) | $ 406 | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities - Changes in Level 3 Assets (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Changes in unrealized gains (losses) in net income relating to assets held at end of period, location | Net investment income | Net investment income | Net investment income |
Available-for-sale securities | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | $ 787 | $ 1,170 | $ 1,141 |
Total gains (losses) included in Net income | (1) | (1) | |
Total gains (losses) included in Other comprehensive income (loss) | (69) | (11) | 14 |
Purchases | 623 | 108 | 101 |
Issues | 0 | ||
Settlements | (370) | (200) | (52) |
Transfers into Level 3 | 170 | 14 | |
Transfers out of Level 3 | (30) | (449) | (48) |
Balance, ending | 940 | 787 | 1,170 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | (1) | (1) | (1) |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (63) | (9) | 14 |
Corporate debt securities | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 496 | 766 | 735 |
Total gains (losses) included in Net income | (1) | (1) | |
Total gains (losses) included in Other comprehensive income (loss) | (44) | (10) | 15 |
Purchases | 29 | 108 | 62 |
Issues | 0 | ||
Settlements | (85) | (119) | (46) |
Transfers into Level 3 | 168 | 0 | |
Transfers out of Level 3 | 0 | (416) | 0 |
Balance, ending | 395 | 496 | 766 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | (1) | (1) | (1) |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (42) | (8) | 15 |
Residential mortgage backed securities | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 0 | 9 | 17 |
Total gains (losses) included in Net income | 0 | ||
Total gains (losses) included in Other comprehensive income (loss) | 0 | 1 | |
Purchases | 0 | 39 | |
Issues | 0 | ||
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (9) | (48) | |
Balance, ending | 0 | 9 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | 0 | 0 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | 0 | 1 | |
Commercial mortgage backed securities | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 0 | ||
Total gains (losses) included in Net income | 0 | ||
Total gains (losses) included in Other comprehensive income (loss) | 0 | ||
Purchases | 30 | ||
Settlements | 0 | ||
Transfers out of Level 3 | (30) | ||
Balance, ending | 0 | 0 | |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | 0 | ||
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | 0 | ||
Asset backed securities | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 291 | 395 | 389 |
Total gains (losses) included in Net income | 0 | 0 | |
Total gains (losses) included in Other comprehensive income (loss) | (25) | (1) | (2) |
Purchases | 564 | 0 | 0 |
Issues | 0 | ||
Settlements | (285) | (81) | (6) |
Transfers into Level 3 | 2 | 14 | |
Transfers out of Level 3 | 0 | (24) | 0 |
Balance, ending | 545 | 291 | 395 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | 0 | 0 | 0 |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | (21) | (1) | (2) |
Fixed deferred indexed annuities ceded embedded derivatives | |||
Changes in Level 3 assets measured at fair value on a recurring basis | |||
Balance, beginning | 59 | 0 | |
Total gains (losses) included in Net income | (8) | 3 | |
Total gains (losses) included in Other comprehensive income (loss) | 0 | 0 | |
Purchases | 0 | 0 | |
Issues | 57 | ||
Settlements | (3) | (1) | |
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | 0 | |
Balance, ending | 48 | 59 | $ 0 |
Changes in unrealized gains (losses) in net income relating to assets held at end of period | 0 | 0 | |
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at end of period | $ 0 | $ 0 |
Fair Values of Assets and Lia_5
Fair Values of Assets and Liabilities - Changes in Level 3 Liabilities (Details) - RiverSource Life - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Net increase (decrease) to pretax income from adjustment for nonperformance risk on fair value of embedded derivatives | $ 45 | $ (23) | $ 196 |
Policyholder account balances, future policy benefits and claims embedded derivatives | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | 1,367 | 3,370 | 1,687 |
Total (gains) losses included in Net income | (747) | 471 | 1,323 |
Issues | 141 | (28) | 405 |
Settlements | (115) | (130) | (45) |
Balance, ending | 646 | 1,367 | 3,370 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | (738) | 68 | 1,282 |
Policyholder account balances, future policy benefits and claims embedded derivatives | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | 1,054 | ||
Balance, ending | 1,054 | ||
Fixed deferred indexed annuities embedded derivatives | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | 56 | 49 | 43 |
Total (gains) losses included in Net income | (9) | 10 | 4 |
Issues | 0 | 0 | 3 |
Settlements | (3) | (3) | (1) |
Balance, ending | 44 | 56 | 49 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | $ 0 | $ 0 | $ 0 |
Total gains and losses including in net income, location | Interest credited to fixed accounts | Interest credited to fixed accounts | Interest credited to fixed accounts |
Fixed deferred indexed annuities embedded derivatives | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 49 | ||
Balance, ending | $ 49 | ||
IUL embedded derivatives | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 905 | 935 | 881 |
Total (gains) losses included in Net income | (105) | 68 | 76 |
Issues | 51 | 0 | 61 |
Settlements | (112) | (98) | (83) |
Balance, ending | 739 | 905 | 935 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | $ (105) | $ 68 | $ 76 |
Total gains and losses including in net income, location | Interest credited to fixed accounts | Interest credited to fixed accounts | Interest credited to fixed accounts |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period, location | Interest credited to fixed accounts | Interest credited to fixed accounts | Interest credited to fixed accounts |
IUL embedded derivatives | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 935 | ||
Balance, ending | $ 935 | ||
Structured variable annuity embedded derivatives | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 406 | 70 | 0 |
Total (gains) losses included in Net income | (633) | 393 | 91 |
Issues | 90 | (28) | (21) |
Settlements | 0 | (29) | 0 |
Balance, ending | (137) | 406 | 70 |
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | $ (633) | $ 0 | $ 0 |
Total gains and losses including in net income, location | Benefits, claims, losses and settlement expenses | Benefits, claims, losses and settlement expenses | Benefits, claims, losses and settlement expenses |
Structured variable annuity embedded derivatives | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 70 | ||
Balance, ending | $ 70 | ||
GMWB and GMAB embedded derivatives | |||
Changes in Level 3 liabilities measured at fair value on a recurring basis | |||
Balance, beginning | $ 2,316 | 763 | |
Total (gains) losses included in Net income | 1,152 | ||
Issues | 362 | ||
Settlements | 39 | ||
Balance, ending | 2,316 | ||
Changes in unrealized (gains) losses in net income relating to liabilities held at the end of the period | $ 1,206 | ||
Total gains and losses including in net income, location | Benefits, claims, losses and settlement expenses | Benefits, claims, losses and settlement expenses | Benefits, claims, losses and settlement expenses |
Fair Values of Assets and Lia_6
Fair Values of Assets and Liabilities - Significant Unobservable inputs (Details) - RiverSource Life $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | [1] | $ 16,135 | $ 16,239 |
Corporate debt securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 8,706 | 9,638 | |
Asset backed securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 997 | 537 | |
Level 3 | Corporate debt securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 395 | 496 | |
Level 3 | Asset backed securities | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2022, $17,331; 2021, $14,718; allowance for credit losses: 2022, $22; 2021, $1) | 545 | 291 | |
Level 3 | Fixed deferred indexed annuities ceded embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Receivables: embedded derivatives | 48 | 59 | |
Level 3 | Fixed deferred indexed annuities embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives | 44 | 56 | |
Level 3 | IUL embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives | 739 | 905 | |
Level 3 | Structured variable annuity embedded derivatives | |||
Significant unobservable inputs used in fair value measurements | |||
Liabilities embedded derivatives, net | $ (137) | $ 406 | |
Level 3 | Discounted cash flow | Corporate debt securities | Minimum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.011 | 0.008 | |
Level 3 | Discounted cash flow | Corporate debt securities | Maximum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.023 | 0.024 | |
Level 3 | Discounted cash flow | Corporate debt securities | Weighted average | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.014 | 0.011 | |
Level 3 | Discounted cash flow | Asset backed securities | Annual default rate | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.024 | 0.058 | |
Level 3 | Discounted cash flow | Asset backed securities | Loss severity | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.250 | 0.250 | |
Level 3 | Discounted cash flow | Asset backed securities | Minimum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0320 | ||
Level 3 | Discounted cash flow | Asset backed securities | Minimum | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0175 | ||
Level 3 | Discounted cash flow | Asset backed securities | Maximum | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0550 | ||
Level 3 | Discounted cash flow | Asset backed securities | Maximum | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0275 | ||
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Yield/spread to U.S. Treasuries | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0329 | ||
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Annual default rate | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.024 | 0.058 | |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Loss severity | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.250 | 0.250 | |
Level 3 | Discounted cash flow | Asset backed securities | Weighted average | Yield/spread to swap rates | |||
Significant unobservable inputs used in fair value measurements | |||
Available-for-Sale securities, measurement inputs | 0.0182 | ||
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | 0 | 0 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | 0.668 | 0.668 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities ceded embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative asset, measurement input | 0.014 | 0.014 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.0095 | 0.0065 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0 | 0 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.668 | 0.668 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.014 | 0.014 | |
Level 3 | Discounted cash flow | Fixed deferred indexed annuities embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.0095 | 0.0065 | |
Level 3 | Discounted cash flow | IUL embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.0095 | 0.0065 | |
Level 3 | Discounted cash flow | IUL embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, measurement input | 0.0095 | 0.0065 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.0095 | 0.0065 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Minimum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.008 | 0.008 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Maximum | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.400 | 0.400 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Surrender rate | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.009 | 0.009 | |
Level 3 | Discounted cash flow | Structured variable annuity embedded derivatives | Weighted average | Nonperformance risk | |||
Significant unobservable inputs used in fair value measurements | |||
Embedded derivative liability, net, measurement input | 0.0095 | 0.0065 | |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Fair Values of Assets and Lia_7
Fair Values of Assets and Liabilities - Non-Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
VIEs, not primary beneficiary | Affordable housing partnerships | Nonrecurring basis | Level 3 | ||
Assets and liabilities measured at fair value | ||
Investment balance | $ 58 | $ 93 |
Fair Values of Assets and Lia_8
Fair Values of Assets and Liabilities - Financial Instruments Not Reported at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Financial Liabilities | |||||
Separate account liabilities - investment contracts | $ 70,876 | [1] | $ 92,238 | [1] | $ 87,556 |
Carrying Value | |||||
Financial Assets | |||||
Mortgage loans, net | 1,768 | 1,788 | |||
Policy loans | 847 | 834 | |||
Other investments | 89 | 61 | |||
Receivables | 7,372 | 7,876 | |||
Financial Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 14,450 | 12,289 | |||
Short-term borrowings | 201 | 200 | |||
Long-term debt | 500 | 500 | |||
Other liabilities | 8 | 9 | |||
Separate account liabilities - investment contracts | 298 | 403 | |||
Fair Value | |||||
Financial Assets | |||||
Mortgage loans, net | 1,600 | 1,872 | |||
Policy loans | 847 | 834 | |||
Other investments | 89 | 61 | |||
Receivables | 6,174 | 8,630 | |||
Financial Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 12,470 | 13,215 | |||
Short-term borrowings | 201 | 200 | |||
Long-term debt | 315 | 498 | |||
Other liabilities | 7 | 9 | |||
Separate account liabilities - investment contracts | 298 | 403 | |||
Fair Value | Level 1 | |||||
Financial Assets | |||||
Mortgage loans, net | 0 | 0 | |||
Policy loans | 0 | 0 | |||
Other investments | 0 | 0 | |||
Receivables | 0 | 0 | |||
Financial Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 0 | 0 | |||
Short-term borrowings | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Other liabilities | 0 | 0 | |||
Separate account liabilities - investment contracts | 0 | 0 | |||
Fair Value | Level 2 | |||||
Financial Assets | |||||
Mortgage loans, net | 0 | 0 | |||
Policy loans | 847 | 834 | |||
Other investments | 69 | 40 | |||
Receivables | 0 | 0 | |||
Financial Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 0 | 0 | |||
Short-term borrowings | 201 | 200 | |||
Long-term debt | 315 | 498 | |||
Other liabilities | 0 | 0 | |||
Separate account liabilities - investment contracts | 298 | 403 | |||
Fair Value | Level 3 | |||||
Financial Assets | |||||
Mortgage loans, net | 1,600 | 1,872 | |||
Policy loans | 0 | 0 | |||
Other investments | 20 | 21 | |||
Receivables | 6,174 | 8,630 | |||
Financial Liabilities | |||||
Policyholder account balances, future policy benefits and claims | 12,470 | 13,215 | |||
Short-term borrowings | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Other liabilities | 7 | 9 | |||
Separate account liabilities - investment contracts | $ 0 | $ 0 | |||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Related Party Transactions - Re
Related Party Transactions - Revenues, Expenses, Income Taxes and Investments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Ameriprise Financial | Related party lessor operating lease | ||||
Related Party Transactions | ||||
Number of real estate properties | Property | 1 | |||
Rental income to be received from related party in each year of next five year period | $ 5 | |||
Rental income to be received from related party thereafter | 9 | |||
Ameriprise Financial | Related party lessor operating lease | Other Income | ||||
Related Party Transactions | ||||
Rental income | 5 | $ 5 | $ 5 | |
Ameriprise Financial | Related party Federal income tax sharing agreement | Other assets | ||||
Related Party Transactions | ||||
Due from related party for Federal income taxes | 18 | |||
Ameriprise Financial | Related party Federal income tax sharing agreement | Other liabilities | ||||
Related Party Transactions | ||||
Due to related party for Federal income taxes | (56) | |||
Ameriprise Financial and affiliated companies | Related party services agreements | ||||
Related Party Transactions | ||||
Expenses | 320 | 345 | 358 | |
Ameriprise Financial and affiliated companies | Investments in securities issued by related party | ||||
Related Party Transactions | ||||
Investment | $ 564 | |||
Ameriprise Financial and affiliated companies | Investments in securities issued by related party | Net Investment Income | ||||
Related Party Transactions | ||||
Interest income | 17 | 12 | $ 14 | |
Ameriprise Financial and affiliated companies | Investments in securities issued by related party | Investments | ||||
Related Party Transactions | ||||
Fair value of Available-for-Sale Fixed Maturities of related party | $ 544 | $ 289 |
Related Party Transactions - Li
Related Party Transactions - Lines of Credit (Details) - Ameriprise Financial - Revolving line of credit lending arrangement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions | ||
Maximum percentage of lender's statutory admitted assets | 3% | |
Percentage of additional interest to be accrued in the event of default | 1% | |
Amounts outstanding | $ 0 | $ 0 |
Related Party Transactions - Di
Related Party Transactions - Dividends or Distributions (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Feb. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Related Party Transactions | ||||||
Cash dividends or distributions paid by RiverSource Life Insurance Company to Ameriprise Financial | $ 600 | [1] | $ 1,900 | [1] | $ 800 | |
Cash dividend declared | 600 | 1,900 | 800 | |||
RiverSource Life Insurance Company | ||||||
Related Party Transactions | ||||||
Cash dividends or distributions paid by RiverSource Life Insurance Company to Ameriprise Financial | 600 | 1,900 | 800 | |||
Cash dividend declared | $ 200 | |||||
Subsidiaries | RiverSource Life of NY | ||||||
Related Party Transactions | ||||||
Cash dividends and return of capital or distributions received by RiverSource Life Insurance Company from subsidiaries | 63 | 0 | 0 | |||
Subsidiaries | RTA | ||||||
Related Party Transactions | ||||||
Cash dividends and return of capital or distributions received by RiverSource Life Insurance Company from subsidiaries | 0 | 50 | 95 | |||
Subsidiaries | RTA | Return of capital | ||||||
Related Party Transactions | ||||||
Cash dividends and return of capital or distributions received by RiverSource Life Insurance Company from subsidiaries | $ 80 | $ 0 | $ 0 | |||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Regulatory Requirements - Gener
Regulatory Requirements - General Insurance Company Information (Details) - RiverSource Life Insurance Company - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Regulatory Requirements | ||
Statutory unassigned surplus (deficit) | $ (679) | $ 175 |
Percentage of previous year-end statutory capital and surplus | 10% | |
Statutory capital and surplus | $ 3,100 | $ 3,400 |
Regulatory Requirements - Insur
Regulatory Requirements - Insurance Company Statutory Financial Information and Securities on Deposit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Regulatory Requirements | |||
Government debt securities on deposit with states as required by law | $ 4 | $ 5 | |
RiverSource Life Insurance Company | |||
Regulatory Requirements | |||
Statutory net gain from operations | 1,615 | 1,366 | $ 1,393 |
Statutory net income | $ 1,769 | $ 253 | $ 1,582 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives: | ||
Gross Amounts of Recognized Assets | $ 3,007 | $ 5,517 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 3,007 | 5,517 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (2,397) | (3,703) |
Cash Collateral | (565) | (1,623) |
Securities Collateral | (5) | (114) |
Net amount | 40 | 77 |
OTC | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 2,887 | 5,330 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 2,887 | 5,330 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (2,313) | (3,571) |
Cash Collateral | (565) | (1,623) |
Securities Collateral | (5) | (114) |
Net amount | 4 | 22 |
OTC cleared | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 23 | 88 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 23 | 88 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (9) | (41) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | 14 | 47 |
Exchange-traded | ||
Derivatives: | ||
Gross Amounts of Recognized Assets | 97 | 99 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Assets Presented in the Consolidated Balance Sheets | 97 | 99 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (75) | (91) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | $ 22 | $ 8 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Gross Amounts of Recognized Liabilities | $ 2,731 | $ 4,180 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 2,731 | 4,180 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (2,397) | (3,703) |
Cash Collateral | (38) | (181) |
Securities Collateral | (294) | (293) |
Net amount | 2 | 3 |
OTC | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 2,630 | 4,048 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 2,630 | 4,048 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (2,313) | (3,571) |
Cash Collateral | (38) | (181) |
Securities Collateral | (277) | (293) |
Net amount | 2 | 3 |
OTC cleared | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 9 | 41 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 9 | 41 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (9) | (41) |
Cash Collateral | 0 | 0 |
Securities Collateral | 0 | 0 |
Net amount | 0 | 0 |
Exchange-traded | ||
Derivatives | ||
Gross Amounts of Recognized Liabilities | 92 | 91 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Amounts of Liabilities Presented in the Consolidated Balance Sheets | 92 | 91 |
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||
Financial Instruments | (75) | (91) |
Cash Collateral | 0 | 0 |
Securities Collateral | (17) | 0 |
Net amount | $ 0 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Notional Value and Gross Fair Value and Collateral Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives and Hedging Activities | ||
Notional | $ 173,390 | $ 143,178 |
Gross Fair Value Assets, freestanding derivatives | 3,007 | 5,517 |
Gross Fair Value Liabilities, freestanding derivatives | 2,731 | 4,180 |
Total Gross Fair Value, derivative assets | 3,055 | 5,576 |
Total Gross Fair Value, derivative liabilities | 3,380 | 5,552 |
Fair value of investment securities received as collateral | 14 | 123 |
Fair value of investment securities received as collateral that can be repledged | 5 | 123 |
Fair value of investment securities received as collateral that were repledged | 0 | 0 |
Receivables | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 48 | 59 |
Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Fair Value, embedded derivatives, net | 649 | 1,372 |
IUL embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, embedded derivatives | $ 739 | $ 905 |
Fixed deferred indexed annuities ceded embedded derivatives | ||
Derivatives and Hedging Activities | ||
Derivative assets, location | Receivables | Receivables |
Fixed deferred indexed annuities ceded embedded derivatives | Receivables | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | $ 48 | $ 59 |
Fixed deferred indexed annuities embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, embedded derivatives | 47 | 61 |
Structured variable annuity embedded derivatives | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, embedded derivatives | 331 | 3 |
Gross Fair Value Liabilities, embedded derivatives | 194 | 409 |
Structured variable annuity embedded derivatives | Policyholder account balances, future policy benefits and claims | ||
Derivatives and Hedging Activities | ||
Fair Value, embedded derivatives, net | $ (137) | $ 406 |
Instruments excluding ceded embedded derivatives | ||
Derivatives and Hedging Activities | ||
Derivative assets, location | Other assets | Other assets |
Derivative liabilities, location | Other liabilities | Other liabilities |
IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives | ||
Derivatives and Hedging Activities | ||
Derivative liabilities, location | Policyholder account balances, future policy benefits and claims | Policyholder account balances, future policy benefits and claims |
Not designated as hedging instruments | ||
Derivatives and Hedging Activities | ||
Notional | $ 173,390 | $ 143,178 |
Not designated as hedging instruments | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 3,007 | 5,517 |
Not designated as hedging instruments | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 2,731 | 4,180 |
Not designated as hedging instruments | Interest rate contracts | ||
Derivatives and Hedging Activities | ||
Notional | 101,302 | 79,459 |
Not designated as hedging instruments | Interest rate contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 267 | 1,252 |
Not designated as hedging instruments | Interest rate contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 355 | 468 |
Not designated as hedging instruments | Equity contracts | ||
Derivatives and Hedging Activities | ||
Notional | 67,416 | 59,763 |
Not designated as hedging instruments | Equity contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 2,693 | 4,238 |
Not designated as hedging instruments | Equity contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 2,366 | 3,711 |
Not designated as hedging instruments | Credit contracts | ||
Derivatives and Hedging Activities | ||
Notional | 1,802 | 1,717 |
Not designated as hedging instruments | Credit contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 13 | 9 |
Not designated as hedging instruments | Credit contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | 0 | 0 |
Not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives and Hedging Activities | ||
Notional | 2,870 | 2,239 |
Not designated as hedging instruments | Foreign exchange contracts | Other assets | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Assets, freestanding derivatives | 34 | 18 |
Not designated as hedging instruments | Foreign exchange contracts | Other liabilities | ||
Derivatives and Hedging Activities | ||
Gross Fair Value Liabilities, freestanding derivatives | $ 10 | $ 1 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivatives Not Designated as Hedges Impact (Details) - Not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | $ 0 | $ 1 | $ 0 |
Net Investment Income | Interest rate contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Net Investment Income | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 1 | 0 |
Net Investment Income | Credit contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Net Investment Income | Foreign exchange contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Net Investment Income | GMWB and GMAB embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | ||
Net Investment Income | IUL embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Net Investment Income | Fixed deferred indexed annuity and deposit receivables embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | |
Net Investment Income | Fixed deferred indexed annuities embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | ||
Net Investment Income | Structured variable annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Benefits, Claims, Losses and Settlement Expenses | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 443 | (359) | (869) |
Benefits, Claims, Losses and Settlement Expenses | Interest rate contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (26) | 0 | 1,633 |
Benefits, Claims, Losses and Settlement Expenses | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (164) | 34 | (744) |
Benefits, Claims, Losses and Settlement Expenses | Credit contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | (106) |
Benefits, Claims, Losses and Settlement Expenses | Foreign exchange contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | (8) |
Benefits, Claims, Losses and Settlement Expenses | GMWB and GMAB embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (1,553) | ||
Benefits, Claims, Losses and Settlement Expenses | IUL embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Benefits, Claims, Losses and Settlement Expenses | Fixed deferred indexed annuity and deposit receivables embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | |
Benefits, Claims, Losses and Settlement Expenses | Fixed deferred indexed annuities embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | ||
Benefits, Claims, Losses and Settlement Expenses | Structured variable annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 633 | (393) | (91) |
Interest Credited to Fixed Accounts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 95 | 113 | 58 |
Interest Credited to Fixed Accounts | Interest rate contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Interest Credited to Fixed Accounts | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (126) | 91 | 55 |
Interest Credited to Fixed Accounts | Credit contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Interest Credited to Fixed Accounts | Foreign exchange contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | 0 |
Interest Credited to Fixed Accounts | GMWB and GMAB embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | ||
Interest Credited to Fixed Accounts | IUL embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 217 | 30 | 7 |
Interest Credited to Fixed Accounts | Fixed deferred indexed annuity and deposit receivables embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 4 | (8) | |
Interest Credited to Fixed Accounts | Fixed deferred indexed annuities embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (4) | ||
Interest Credited to Fixed Accounts | Structured variable annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | $ 0 |
Change in Fair Value of Market Risk Benefits | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (1,591) | (1,689) | |
Change in Fair Value of Market Risk Benefits | Interest rate contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | (2,874) | (886) | |
Change in Fair Value of Market Risk Benefits | Equity contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 899 | (851) | |
Change in Fair Value of Market Risk Benefits | Credit contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 279 | 43 | |
Change in Fair Value of Market Risk Benefits | Foreign exchange contracts | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 105 | 5 | |
Change in Fair Value of Market Risk Benefits | IUL embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | |
Change in Fair Value of Market Risk Benefits | Fixed deferred indexed annuity and deposit receivables embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | 0 | 0 | |
Change in Fair Value of Market Risk Benefits | Structured variable annuity embedded derivatives | |||
Impact of derivatives on the Consolidated Statements of Income | |||
Total gain (loss) | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Deferred Premium, Options (Details) - Options $ in Millions | Dec. 31, 2022 USD ($) |
Premiums Payable | |
2023 | $ 50 |
2024 | 132 |
2025 | 121 |
2026 | 251 |
2027 | 19 |
2028-2029 | 59 |
Total | 632 |
Premiums Receivable | |
2023 | 43 |
2024 | 23 |
2025 | 21 |
2026 | 88 |
2027 | 0 |
2028-2029 | 0 |
Total | $ 175 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Cash Flow Hedges and Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flow Hedges | |||
Derivatives designated as cash flow hedges | $ 0 | $ 0 | $ 0 |
Hedge relationships discontinued due to forecasted transactions no longer being expected to occur according to original hedge strategy | 0 | 0 | $ 0 |
Credit Risk | |||
Aggregate fair value of derivative contracts in net liability position containing credit contingent provisions | 234 | 383 | |
Aggregate fair value of assets posted as collateral | 232 | 383 | |
Aggregate fair value of additional assets required to be posted or needed to settle | $ 2 | $ 0 |
Shareholder's Equity - OCI Comp
Shareholder's Equity - OCI Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Pretax | |||||
Total other comprehensive income (loss) | $ (981) | $ (587) | $ 542 | ||
Income Tax Benefit (Expense) | |||||
Total other comprehensive income (loss) | 214 | 123 | (114) | ||
Net of Tax | |||||
Arising during the period | (836) | (25) | 424 | ||
Reclassification to net income | 69 | (439) | 4 | ||
Total other comprehensive income (loss), net of tax | (767) | [1] | (464) | [1] | 428 |
Net unrealized gains (losses) on securities | |||||
Pretax | |||||
Total other comprehensive income (loss) | (2,593) | (1,075) | 542 | ||
Income Tax Benefit (Expense) | |||||
Total other comprehensive income (loss) | 558 | 227 | (114) | ||
Net of Tax | |||||
Arising during the period | (2,104) | (409) | 424 | ||
Reclassification to net income | 69 | (439) | 4 | ||
Total other comprehensive income (loss), net of tax | (2,035) | (848) | 428 | ||
Net unrealized gains (losses) on securities, excluding insurance related impact | |||||
Pretax | |||||
Arising during the period | (2,784) | (527) | 811 | ||
Income Tax Benefit (Expense) | |||||
Arising during the period | 595 | 111 | (170) | ||
Net of Tax | |||||
Arising during the period | (2,189) | (416) | 641 | ||
Reclassification of net (gains) losses on securities included in net income | |||||
Pretax | |||||
Reclassification to net income | 88 | (556) | 5 | ||
Income Tax Benefit (Expense) | |||||
Reclassification to net income | (19) | 117 | (1) | ||
Net of Tax | |||||
Reclassification to net income | 69 | (439) | 4 | ||
Impact of DAC, DSIC, unearned revenue, benefit reserves and reinsurance recoverables | |||||
Pretax | |||||
Arising during the period | 103 | 8 | (274) | ||
Income Tax Benefit (Expense) | |||||
Arising during the period | (18) | (1) | 57 | ||
Net of Tax | |||||
Arising during the period | 85 | 7 | (217) | ||
Effect of changes in discount rate assumptions on certain long-duration contracts | |||||
Pretax | |||||
Total other comprehensive income (loss) | 1,095 | 361 | |||
Income Tax Benefit (Expense) | |||||
Total other comprehensive income (loss) | (234) | (77) | |||
Net of Tax | |||||
Arising during the period | 861 | 284 | 0 | ||
Reclassification to net income | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 861 | 284 | 0 | ||
Effect of changes in instrument-specific credit risk on MRBs | |||||
Pretax | |||||
Total other comprehensive income (loss) | 517 | 127 | |||
Income Tax Benefit (Expense) | |||||
Total other comprehensive income (loss) | (110) | (27) | |||
Net of Tax | |||||
Arising during the period | 407 | 100 | 0 | ||
Reclassification to net income | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | $ 407 | $ 100 | $ 0 | ||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Shareholder's Equity - Changes
Shareholder's Equity - Changes in AOCI Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | $ 1,038 | [1] | $ 3,577 | $ 3,518 | |
OCI before reclassifications | (836) | (25) | 424 | ||
Amounts reclassified from AOCI | 69 | (439) | 4 | ||
Total other comprehensive income (loss), net of tax | (767) | [2] | (464) | [2] | 428 |
Ending balance | 973 | [3] | 1,038 | [1] | 3,577 |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (1,897) | (7) | |||
Ending balance | (1,897) | ||||
Accumulated Other Comprehensive Income (Loss) | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (317) | [3] | 1,184 | 756 | |
Total other comprehensive income (loss), net of tax | (767) | (464) | 428 | ||
Ending balance | (1,084) | [3] | (317) | [3] | 1,184 |
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (1,037) | ||||
Ending balance | (1,037) | ||||
Net Unrealized Gains (Losses) on Securities | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | 1,044 | 1,185 | 757 | ||
OCI before reclassifications | (2,104) | (409) | 424 | ||
Amounts reclassified from AOCI | 69 | (439) | 4 | ||
Total other comprehensive income (loss), net of tax | (2,035) | (848) | 428 | ||
Ending balance | (991) | 1,044 | 1,185 | ||
Net Unrealized Gains (Losses) on Securities | Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | 707 | ||||
Ending balance | 707 | ||||
Effect of changes in discount rate assumptions on certain long-duration contracts | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (933) | 0 | 0 | ||
OCI before reclassifications | 861 | 284 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 861 | 284 | 0 | ||
Ending balance | (72) | (933) | 0 | ||
Effect of changes in discount rate assumptions on certain long-duration contracts | Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (1,217) | ||||
Ending balance | (1,217) | ||||
Effect of changes in instrument-specific credit risk on MRBs | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (427) | 0 | 0 | ||
OCI before reclassifications | 407 | 100 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 407 | 100 | 0 | ||
Ending balance | (20) | (427) | 0 | ||
Effect of changes in instrument-specific credit risk on MRBs | Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (527) | ||||
Ending balance | (527) | ||||
Other | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | (1) | (1) | (1) | ||
OCI before reclassifications | 0 | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||
Ending balance | $ (1) | (1) | (1) | ||
Other | Cumulative Effect, Period of Adoption, Adjustment | |||||
Changes in balances of each component of AOCI, net of tax | |||||
Beginning balance | $ 0 | ||||
Ending balance | $ 0 | ||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Current income tax: | |||||
Federal | $ 57 | $ 172 | $ 233 | ||
State | (2) | 6 | 0 | ||
Total current income tax | 55 | 178 | 233 | ||
Deferred income tax: | |||||
Federal | 150 | 136 | (277) | ||
State | 4 | 2 | (1) | ||
Total deferred income tax | 154 | [1] | 138 | [1] | (278) |
Total income tax provision (benefit) | $ 209 | [2] | $ 316 | [2] | $ (45) |
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |
Income Taxes - Reasons for Inco
Income Taxes - Reasons for Income Tax Provision Differences to Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | 21% | 21% | 21% |
Changes in taxes resulting from: | |||
Low income housing tax credits | (2.90%) | (3.30%) | (20.10%) |
Dividend received deduction | (2.30%) | (1.70%) | (9.70%) |
Foreign tax credit, net of addback | (1.70%) | (0.90%) | (1.90%) |
Other, net | (0.30%) | 0.40% | (0.80%) |
Income tax provision (benefit) | 13.80% | 15.50% | (11.50%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred income tax assets and liabilities | |||
Statutory rate (as a percent) | 21% | 21% | 21% |
Deferred income tax assets | |||
Liabilities for policyholder account balances, future policy benefits and claims | $ 2,274 | $ 2,386 | |
Net unrealized losses on Available-for-Sale securities | 244 | 0 | |
Other | 29 | 14 | |
Gross deferred income tax assets | 2,547 | 2,400 | |
Valuation allowance | 30 | 11 | |
Total deferred income tax assets | 2,517 | 2,389 | |
Deferred income tax liabilities | |||
Investment related | 923 | 508 | |
Deferred acquisition costs | 409 | 438 | |
Net unrealized gains on Available-for-Sale securities | 0 | 308 | |
Other | 52 | 57 | |
Gross deferred income tax liabilities | 1,384 | 1,311 | |
Net deferred income tax assets | $ 1,133 | $ 1,078 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses and Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating loss carryforwards | ||
Valuation allowance | $ 30 | $ 11 |
State deferred tax assets | ||
Operating loss carryforwards | ||
Valuation allowance | 2 | |
State | ||
Operating loss carryforwards | ||
Deferred tax assets, loss carryforwards | 28 | |
Valuation allowance, net operating losses | $ 28 |
Income Taxes - Reconciliation R
Income Taxes - Reconciliation Rollforward of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of gross unrecognized tax benefits | |||
Beginning balance | $ 37 | $ 38 | $ 39 |
Additions based on tax positions related to current year | 0 | 0 | 1 |
Reductions based on tax positions related to current year | (1) | (1) | (1) |
Additions for tax positions of prior years | 1 | 0 | 0 |
Reductions due to lapse of statute of limitations | 0 | 0 | (1) |
Ending balance | 37 | 37 | 38 |
Unrecognized tax benefits, net of federal tax benefits, that would affect the effective tax rate if recognized | 20 | 20 | 20 |
Estimated decrease in gross amount of unrecognized tax benefits reasonably possible in next 12 months | (34) | ||
Interest and penalties related to unrecognized tax benefits | |||
Interest and penalties | 0 | 1 | $ 0 |
Payable related to accrued interest and penalties | $ 3 | $ 3 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies - Funding Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments | ||
Funding commitments | $ 8 | $ 57 |
Commercial mortgage loans | ||
Commitments | ||
Funding commitments | 0 | 48 |
Affordable housing and other real estate partnerships | ||
Commitments | ||
Funding commitments | $ 8 | $ 9 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies - Guarantees and Guaranty Fund Assessments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Guaranty Fund Assessments | |||
Liability related to guaranty fund assessments | $ 12 | $ 12 | |
Related premium tax asset | $ 10 | $ 10 | $ 10 |
Minimum | |||
Loss contingencies | |||
Minimum interest rate guarantees in fixed accounts | 1% | ||
Maximum | |||
Loss contingencies | |||
Minimum interest rate guarantees in fixed accounts | 5% |
Revision of Prior Period Fina_3
Revision of Prior Period Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Revised Consolidated Statements Of Comprehensive Income | |||||
Net unrealized gains (losses) on securities | $ (2,035) | [1] | $ (848) | [1] | $ 428 |
Total other comprehensive income (loss), net of tax | (767) | [1] | (464) | [1] | 428 |
Total comprehensive income (loss) | 535 | [1] | 1,258 | [1] | 866 |
Revised Consolidated Statements Of Equity | |||||
Beginning balance | 1,038 | [2] | 3,577 | 3,518 | |
Other comprehensive income (loss), net of tax | (767) | [1] | (464) | [1] | 428 |
Ending balance | 973 | [3] | 1,038 | [2] | 3,577 |
Accumulated Other Comprehensive Income (Loss) | |||||
Revised Consolidated Statements Of Comprehensive Income | |||||
Total other comprehensive income (loss), net of tax | (767) | (464) | 428 | ||
Revised Consolidated Statements Of Equity | |||||
Beginning balance | (317) | [3] | 1,184 | 756 | |
Other comprehensive income (loss), net of tax | (767) | (464) | 428 | ||
Ending balance | (1,084) | [3] | (317) | [3] | 1,184 |
Previously Reported | |||||
Revised Consolidated Statements Of Comprehensive Income | |||||
Net unrealized gains (losses) on securities | 346 | ||||
Total other comprehensive income (loss), net of tax | 346 | ||||
Total comprehensive income (loss) | 784 | ||||
Revised Consolidated Statements Of Equity | |||||
Beginning balance | 2,141 | 3,313 | 3,336 | ||
Other comprehensive income (loss), net of tax | 346 | ||||
Ending balance | $ 783 | 2,141 | 3,313 | ||
Previously Reported | Accumulated Other Comprehensive Income (Loss) | |||||
Revised Consolidated Statements Of Comprehensive Income | |||||
Total other comprehensive income (loss), net of tax | 346 | ||||
Revised Consolidated Statements Of Equity | |||||
Beginning balance | 920 | 574 | |||
Other comprehensive income (loss), net of tax | 346 | ||||
Ending balance | 920 | ||||
Impact of Revisions | |||||
Revised Consolidated Statements Of Comprehensive Income | |||||
Net unrealized gains (losses) on securities | 82 | ||||
Total other comprehensive income (loss), net of tax | 82 | ||||
Total comprehensive income (loss) | 82 | ||||
Revised Consolidated Statements Of Equity | |||||
Beginning balance | $ 264 | 182 | |||
Other comprehensive income (loss), net of tax | 82 | ||||
Ending balance | $ 264 | ||||
[1] Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. Recast for the adoption of accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts . See Note 3 for more information. |