DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 11, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 | ||
Amendment Flag | false | ||
Entity Registrant Name | AXA EQUITABLE LIFE INSURANCE CO | ||
Entity Central Index Key | 727,920 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 2,000,000 | ||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments: | |||
Fixed maturities available for sale, at fair value (amortized cost of $34,831 and $32,123) | $ 36,358 | $ 32,570 | |
Mortgage loans on real estate (net of valuation allowances of $8 and $8) | 10,935 | 9,757 | |
Real estate held for production of income | [1] | 390 | 56 |
Policy loans | 3,315 | 3,361 | |
Other equity investments | [1] | 1,351 | 1,323 |
Trading securities, at fair value | 12,628 | 9,134 | |
Other invested assets | [1] | 3,121 | 2,226 |
Total investments | 68,098 | 58,427 | |
Cash and cash equivalents | [1] | 3,409 | 2,950 |
Cash and securities segregated, at fair value | 825 | 946 | |
Broker-dealer related receivables | 2,158 | 2,100 | |
Deferred policy acquisition costs | 4,547 | 5,058 | |
Goodwill and other intangible assets, net | 3,709 | 3,741 | |
Amounts due from reinsurers | 5,079 | 4,654 | |
Loans to affiliates | 703 | 703 | |
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,488 | 10,314 | |
Other assets | [1] | 4,432 | 4,260 |
Separate Accounts’ assets | 122,537 | 111,403 | |
Total Assets | 225,985 | 204,556 | |
LIABILITIES | |||
Policyholders' account balances | 43,805 | 38,825 | |
Future policy benefits and other policyholders liabilities | 29,034 | 28,901 | |
Broker-dealer related payables | 764 | 484 | |
Securities sold under agreements to repurchase | 1,887 | 1,996 | |
Customers related payables | 2,229 | 2,360 | |
Amounts due to reinsurers | 134 | 125 | |
Short-term and Long-term debt | [1] | 769 | 513 |
Current and deferred income taxes | 1,973 | 2,834 | |
Other liabilities | [1] | 2,663 | 2,108 |
Separate Accounts’ liabilities | 122,537 | 111,403 | |
Total liabilities | 205,795 | 189,549 | |
Redeemable Noncontrolling Interest | [1] | 626 | 403 |
AXA Equitable’s equity: | |||
Common stock, $1.25 par value, 2 million shares authorized, issued and outstanding | 2 | 2 | |
Capital in excess of par value | 6,859 | 5,339 | |
Retained earnings | 9,010 | 6,150 | |
Accumulated other comprehensive income (loss) | 598 | 17 | |
Total AXA Equitable’s equity | 16,469 | 11,508 | |
Noncontrolling interest | 3,095 | 3,096 | |
Total equity | 19,564 | 14,604 | |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 225,985 | $ 204,556 | |
[1] | See Note 2 for details of balances with variable interest entities. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities available for sale, amortized cost | $ 34,988 | $ 32,236 |
Mortgage loans on real estate, valuation allowances | $ 8 | $ 8 |
Common stock par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock issued (in shares) | 2,000,000 | 2,000,000 |
Common stock outstanding (in shares) | 2,000,000 | 2,000,000 |
Fixed maturities | ||
Fixed maturities available for sale, amortized cost | $ 34,831 | $ 32,123 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||
Policy charges and fee income | $ 3,334 | $ 3,344 | $ 3,291 |
Premiums | 904 | 880 | 852 |
Net derivative gains (losses) | 890 | (1,211) | (1,161) |
Net investment income (loss) | 2,583 | 2,318 | 2,057 |
Investment gains (losses), net: | |||
Total other-than-temporary impairment losses | (13) | (65) | (41) |
Other investment gains (losses), net | (112) | 81 | 21 |
Total investment gains (losses), net | (125) | 16 | (20) |
Investment management and service fees | 4,106 | 3,755 | 3,902 |
Other income | 41 | 36 | 40 |
Total revenues | 11,733 | 9,138 | 8,961 |
BENEFITS AND OTHER DEDUCTIONS | |||
Policyholders’ benefits | 3,462 | 2,771 | 2,474 |
Interest credited to policyholders’ account balances | 1,040 | 1,029 | 887 |
Compensation and benefits | 1,762 | 1,723 | 1,783 |
Commissions and distribution related payments | 1,486 | 1,467 | 1,505 |
Interest expense | 29 | 16 | 20 |
Amortization of deferred policy acquisition costs, net | 268 | 52 | (243) |
Other operating costs and expenses | 1,431 | 1,458 | 1,497 |
Total benefits and other deductions | 9,478 | 8,516 | 7,923 |
Income (loss) from operations, before income taxes | 2,255 | 622 | 1,038 |
Income tax (expense) benefit | 1,139 | 84 | 22 |
Net income (loss) | 3,394 | 706 | 1,060 |
Less: Net (income) loss attributable to the noncontrolling interest | (534) | (496) | (398) |
Net Income (Loss) attributable to AXA Equitable | $ 2,860 | $ 210 | $ 662 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 3,394 | $ 706 | $ 1,060 |
Other comprehensive income (loss) net of income taxes: | |||
Foreign currency translation adjustment | 41 | (18) | (25) |
Change in unrealized gains (losses), net of reclassification adjustment | 563 | (194) | (832) |
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | (5) | (3) | (4) |
Total other comprehensive income (loss), net of income taxes | 599 | (215) | (861) |
Comprehensive income (loss) | 3,993 | 491 | 199 |
Less: Comprehensive (income) loss attributable to noncontrolling interest | (552) | (479) | (383) |
Comprehensive income (loss) attributable to AXA Equitable | $ 3,441 | $ 12 | $ (184) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Parent | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | Noncontrolling Interest |
Equity balance, beginning of year at Dec. 31, 2014 | $ 2 | $ 5,957 | $ 7,240 | $ 289 | $ 2,967 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Deferred tax on dividend of AB Units | (35) | ||||||
Non cash capital contribution from AXA Financial (See Note 12) | 137 | ||||||
Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 12) | (772) | 772 | |||||
Capital contribution from Parent | $ 0 | 0 | |||||
Repurchase of AB Holding units | (154) | ||||||
Net income (loss) | 662 | 662 | |||||
Net income (loss) attributable to noncontrolling interest | 1,060 | 398 | |||||
Dividends paid to noncontrolling interest | (414) | ||||||
Shareholder dividends | (912) | ||||||
Other comprehensive income (loss) | (861) | (846) | (15) | ||||
Dividend of AB Units by AXA Equitable to AXA Financial | 145 | ||||||
Other | 34 | 132 | |||||
Equity balance, end of year at Dec. 31, 2015 | 15,587 | $ 12,528 | 5,321 | 6,990 | 215 | 3,059 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Deferred tax on dividend of AB Units | 0 | ||||||
Non cash capital contribution from AXA Financial (See Note 12) | 0 | ||||||
Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 12) | 0 | 0 | |||||
Capital contribution from Parent | 0 | 0 | |||||
Repurchase of AB Holding units | (168) | ||||||
Net income (loss) | 210 | 210 | |||||
Net income (loss) attributable to noncontrolling interest | 706 | 491 | |||||
Dividends paid to noncontrolling interest | (384) | ||||||
Shareholder dividends | (1,050) | ||||||
Other comprehensive income (loss) | (215) | (198) | (17) | ||||
Dividend of AB Units by AXA Equitable to AXA Financial | 0 | ||||||
Other | 18 | 115 | |||||
Equity balance, end of year at Dec. 31, 2016 | 14,604 | 11,508 | 2 | 5,339 | 6,150 | 17 | 3,096 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (172) | (172) | |||||
Net income (loss) attributable to noncontrolling interest | (54) | ||||||
Other comprehensive income (loss) | 127 | 120 | |||||
Equity balance, end of year at Mar. 31, 2017 | 14,505 | 11,459 | 5,978 | 137 | 3,046 | ||
Equity balance, beginning of year at Dec. 31, 2016 | 14,604 | 11,508 | 2 | 5,339 | 6,150 | 17 | 3,096 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,328 | 1,328 | |||||
Net income (loss) attributable to noncontrolling interest | 1,559 | ||||||
Other comprehensive income (loss) | 401 | 414 | |||||
Equity balance, end of year at Jun. 30, 2017 | 16,257 | 13,273 | 7,479 | 431 | 2,984 | ||
Equity balance, beginning of year at Dec. 31, 2016 | 14,604 | 11,508 | 2 | 5,339 | 6,150 | 17 | 3,096 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,326 | 1,326 | |||||
Net income (loss) attributable to noncontrolling interest | 1,679 | ||||||
Other comprehensive income (loss) | 333 | 314 | |||||
Equity balance, end of year at Sep. 30, 2017 | 16,139 | 13,170 | 7,476 | 331 | |||
Equity balance, beginning of year at Dec. 31, 2016 | 14,604 | 11,508 | 2 | 5,339 | 6,150 | 17 | 3,096 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Deferred tax on dividend of AB Units | 0 | ||||||
Non cash capital contribution from AXA Financial (See Note 12) | 0 | ||||||
Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 12) | 0 | 0 | |||||
Capital contribution from Parent | (1,500) | 1,500 | |||||
Repurchase of AB Holding units | (158) | ||||||
Net income (loss) | 2,860 | 2,860 | |||||
Net income (loss) attributable to noncontrolling interest | 3,394 | 485 | |||||
Dividends paid to noncontrolling interest | (457) | ||||||
Shareholder dividends | 0 | ||||||
Other comprehensive income (loss) | 599 | 581 | 18 | ||||
Dividend of AB Units by AXA Equitable to AXA Financial | 0 | ||||||
Other | 20 | 111 | |||||
Equity balance, end of year at Dec. 31, 2017 | 19,564 | 16,469 | 2 | 6,859 | 9,010 | 598 | 3,095 |
Equity balance, beginning of year at Mar. 31, 2017 | 14,505 | 11,459 | 5,978 | 137 | 3,046 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,502 | ||||||
Net income (loss) attributable to noncontrolling interest | 1,615 | ||||||
Other comprehensive income (loss) | 273 | ||||||
Equity balance, end of year at Jun. 30, 2017 | 16,257 | 13,273 | 7,479 | 431 | 2,984 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (1) | ||||||
Net income (loss) attributable to noncontrolling interest | 121 | ||||||
Other comprehensive income (loss) | (76) | ||||||
Equity balance, end of year at Sep. 30, 2017 | 16,139 | 13,170 | 7,476 | 331 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) attributable to noncontrolling interest | 1,712 | ||||||
Equity balance, end of year at Dec. 31, 2017 | $ 19,564 | $ 16,469 | $ 2 | $ 6,859 | $ 9,010 | $ 598 | $ 3,095 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Statement of Cash Flows [Abstract] | |||||
Net income (loss) | $ 3,394 | $ 706 | $ 1,060 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Interest credited to policyholders’ account balances | 1,040 | 1,029 | 887 | ||
Policy charges and fee income | (3,334) | (3,344) | (3,291) | ||
Net derivative (gains) losses | (890) | 1,211 | 1,161 | ||
Investment (gains) losses, net | 125 | (16) | 20 | ||
Realized and unrealized (gains) losses on trading securities | (166) | 41 | 43 | ||
Non-cash long term incentive compensation expense | 185 | 152 | 172 | ||
Amortization of deferred sales commission | 32 | 41 | 49 | ||
Other depreciation and amortization | (136) | (98) | (18) | ||
Amortization of deferred cost of reinsurance asset | (84) | 159 | 121 | ||
Amortization of other intangibles | 31 | 29 | 28 | ||
Return of real estate joint venture and limited partnerships | 140 | 126 | 161 | ||
Changes in: | |||||
Net broker-dealer and customer related receivables/payables | (278) | 608 | (38) | ||
Reinsurance recoverable | (416) | (304) | (929) | ||
Segregated cash and securities, net | 130 | (381) | (89) | ||
Deferred policy acquisition costs | 268 | 52 | (243) | ||
Future policy benefits | 1,511 | 431 | 631 | ||
Current and deferred income taxes | (664) | (742) | 50 | ||
Other, net | 189 | (161) | (99) | ||
Net cash provided by (used in) operating activities | 1,077 | (461) | (324) | ||
Cash flows from investing activities: | |||||
Fixed maturities, available for sale | 9,738 | 7,154 | 4,368 | ||
Mortgage loans on real estate | 934 | 676 | 609 | ||
Trading account securities | 9,125 | 6,271 | 10,768 | ||
Other | 228 | 32 | 134 | ||
Fixed maturities, available for sale | (12,465) | (7,873) | (4,701) | ||
Mortgage loans on real estate | (2,108) | (3,261) | (1,311) | ||
Trading account securities | (12,667) | (8,691) | (12,501) | ||
Other | (280) | (250) | (132) | ||
Cash settlements related to derivative instruments | (1,259) | 102 | 529 | ||
Decrease in loans to affiliates | 0 | 384 | 0 | ||
Change in short-term investments | (264) | (205) | (363) | ||
Investment in capitalized software, leasehold improvements and EDP equipment | (100) | (85) | (71) | ||
Purchase of business, net of cash acquired | (130) | (21) | 0 | ||
Other, net | 238 | 409 | 203 | ||
Net cash provided by (used in) investing activities | (9,010) | (5,358) | (2,468) | ||
Cash flows from financing activities: | |||||
Deposits | 9,882 | 9,746 | 5,757 | ||
Withdrawals | (5,926) | (2,874) | (2,861) | ||
Transfer (to) from Separate Accounts | 1,656 | 1,202 | 1,045 | ||
Change in short-term financings | 53 | (69) | 95 | ||
Change in collateralized pledged assets | 710 | (677) | (2) | ||
Change in collateralized pledged liabilities | 1,108 | 125 | (270) | ||
(Decrease) increase in overdrafts payable | 63 | (85) | 80 | ||
Repayment of long term debt | 0 | 0 | (200) | ||
Shareholder dividends paid | 0 | (1,050) | (767) | ||
Repurchase of AB Holding units | (220) | (236) | (214) | ||
Redemptions (purchases) of non-controlling interests of consolidated company-sponsored investment funds | 120 | (137) | 0 | ||
Distribution to noncontrolling interest in consolidated subsidiaries | (457) | (385) | (414) | ||
Increase (decrease) in Securities sold under agreement to repurchase | (109) | 104 | 939 | ||
(Increase) decrease in securities purchased under agreement to resell | 0 | 79 | (79) | ||
Capital Contribution from Parent | 1,500 | 0 | 0 | ||
Other, net | (10) | 8 | 5 | ||
Net cash provided by (used in) financing activities | 8,370 | 5,751 | 3,114 | ||
Effect of exchange rate changes on cash and cash equivalents | 22 | (10) | (10) | ||
Change in cash and cash equivalents | 459 | (78) | 312 | ||
Cash and cash equivalents, beginning of year | 2,950 | [1] | 3,028 | 2,716 | |
Cash and cash equivalents, end of year | 3,409 | [1] | 2,950 | [1] | 3,028 |
Supplemental cash flow information: | |||||
Interest paid | (8) | (11) | 19 | ||
Income taxes (refunded) paid | $ 33 | $ 613 | $ (80) | ||
[1] | See Note 2 for details of balances with variable interest entities. |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2017 | |
Organization [Abstract] | |
Organization | ORGANIZATION AXA Equitable Life Insurance Company (“AXA Equitable” and, collectively with its consolidated subsidiaries, the “Company”) is a diversified financial services company. The Company is a direct, wholly-owned subsidiary of AXA Equitable Financial Services, LLC (“AEFS”). AEFS is a direct, wholly-owned subsidiary of AXA Financial, Inc. (“AXA Financial,” and collectively with its consolidated subsidiaries, “AXA Financial Group”). AXA Financial is a direct wholly-owned subsidiary of AXA Equitable Holdings, Inc. ("Holdings"). Holdings is an indirect wholly-owned subsidiary of AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management. In the fourth quarter of 2017, the Company completed the reorganization of its segment results into an expanded segment structure to enhance transparency and accountability. The Company believe that the additional segments will enhance the transparency of our financial results. The Company has modified the presentation of its business segment results to reflect its new operating structure and prior periods’ presentation has been revised to conform to the new structure. On May 10, 2017, AXA announced its intention to pursue the sale of a minority stake in our indirect parent, Holdings, through a proposed initial public offering (the "Holdings IPO") in the first half of 2018. On November 13, 2017, Holdings filed a Form S-1 registration statement with the Securities and Exchange Commission (the "SEC"). The completion of the proposed Holdings IPO will depend on, among other things, the SEC filing and review process and customary regulatory approvals, as well as market conditions. There can be no assurance that the proposed Holdings IPO will occur on the anticipated timeline or at all. The Company now conducts operations in four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Company’s management evaluates the performance of each of these segments independently. • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels—Institutional, Retail and Private Wealth Management—and distributes its institutional research products and solutions through Bernstein Research Services. The Investment Management and Research segment reflects the business of AllianceBernstein Holding L.P. (“AB Holding”), AllianceBernstein L.P. (“ABLP”) and their subsidiaries (collectively, “AB”). • The Protection Solutions segment includes the Company's life insurance and group employee benefits businesses. The life insurance business offers a variety of variable universal life, indexed universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of life, short- and long-term disability, dental and vision insurance products to small and medium-size businesses across the United States. Corporate and Other includes certain of the Company's financing and investment expenses. It also includes: the closed block of life insurance (the "Closed Block"), run-off group pension business, run-off health business, certain strategic investments and certain unallocated items, including capital and related investments, interest expense and corporate expense. AB’s results of operations are reflected in the Investment Management and Research segment. Accordingly, Corporate and Other does not include any items applicable to AB. At December 31, 2017 and 2016 , the Company’s economic interest in AB was 29.0% and 29.0% , respectively. At December 31, 2017 and 2016 , respectively, AXA and its subsidiaries’ economic interest in AB (including AXA Financial Group) was approximately 64.7% and 63.7% . AXA Equitable is the parent of AllianceBernstein Corporation, the general partner (“General Partner”) of both AB Holding and ABLP; as a result it consolidates AB in the Company’s consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements reflect all adjustments necessary in the opinion of management for a fair presentation of the consolidated financial position of the Company and its consolidated results of operations and cash flows for the periods presented. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “ 2017 ”, “ 2016 ” and “ 2015 ” refer to the years ended December 31, 2017 , 2016 and 2015 , respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. Adoption of New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance that amends the definition of a business to provide a more robust framework for determining when a set of assets and activities is a business. The definition primarily adds clarity for evaluating whether certain transactions should be accounted for as acquisitions/dispositions of assets or businesses, the latter subject to guidance on business combinations, but also may interact with other areas of accounting where the defined term is used, such as in the application of guidance on consolidation and goodwill impairment. The new guidance is effective for fiscal years ending December 31, 2018. The Company elected to early adopt the new guidance for the year ending December 31, 2016. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued updated guidance to simplify the accounting for goodwill impairment on a prospective basis in years beginning after December 15, 2019, with early adoption permitted for impairment testing performed after January 1, 2017. The revised guidance removes Step 2 from the goodwill impairment testing model that currently requires a hypothetical purchase price allocation to assess goodwill recoverability when Step 1 testing demonstrates a reporting unit’s carrying value exceeds its fair value. Existing guidance that limits the measure of goodwill impairment to the carrying amount of the reporting unit’s goodwill remains unchanged by elimination of the requirement to perform Step 2 testing. The Company elected to early adopt the guidance effective January 1, 2017 for its first quarter 2017 interim goodwill recoverability assessments. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued updated guidance on consolidation of interests held through related parties that are under common control, which alters how a decision maker needs to consider indirect interests in a VIE held through an entity under common control. The new guidance amends the recently adopted consolidation guidance analysis. Under the new guidance, if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance simplifying the transition to the equity method of accounting. The amendment eliminates the requirement for an investor to retroactively adjust the basis of a previously held interest in an investment that subsequently qualifies for use of the equity method. Additionally, the amendment requires any unrealized holding gain or loss recognized in accumulated other comprehensive income (loss) (“AOCI “) to be realized in earnings at the date an available-for-sale (“AFS”) security qualifies for use of the equity method. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance on improvements to employee share-based payment accounting. The amendment includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements including: income tax effects of share-based payments, minimum statutory tax withholding requirements and forfeitures. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to the analysis of fee arrangements and related party relationships, modifies the guidance for the evaluation of limited partnerships and similar entities for consolidation to eliminate the presumption of general partner control, and ends the deferral that had been granted to certain investment companies for applying previous VIE guidance. The Company adopted this guidance beginning January 1, 2016 using a modified retrospective approach, thereby not requiring a restatement of prior year periods. At initial adoption, the Company’s reevaluation of all legal entities under the new standard resulted in identification of additional VIEs and consolidation of certain investment products of the Investment Management and Research segment that were not consolidated in accordance with previous guidance. The analysis performed under this guidance requires the exercise of judgment and is updated continuously as circumstances change or new entities are formed. In August 2014, the FASB issued new guidance which requires management to evaluate whether there is “substantial doubt” about the reporting entity’s ability to continue as a going concern and provide related footnote disclosures about those uncertainties, if they exist. The new guidance is effective for annual periods ending after December 15, 2016 and interim periods thereafter. The Company implemented this guidance in its reporting on the year ended December 31, 2016. The effect of implementing this guidance was not material to the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including in the period the Act was signed into law (i.e., the reporting period including December 22, 2017). Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017, requires prospective application to awards modified on or after the date of adoption, and permits early adoption. This amendment did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component will be presented with other employee compensation costs in “income from operations,” and the remaining components will be reported separately outside of income from operations. While this standard does not change the rules for how benefits costs are measured, it limits the amount eligible for capitalization to the service cost component and, therefore, may require insurers and other entities that establish deferred assets related to the acquisition of new contracts to align its capitalization policies/practices with that limitation. The new guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted and is to be applied retrospectively for changes in the income statement presentation of net benefit cost and prospectively for changes in capitalization eligibility. The guidance permits the use of amounts previously disclosed for the various components of net benefits cost as the basis for the retrospective change in the income statement presentation, and use of that approach must be disclosed as a “practical expedient” to determining how much of the various components of net benefits costs actually was reflected in historical income statements a result of capitalization and subsequent amortization. For purpose of segment reporting, net periodic benefits costs should continue to be presented based on how management reports those costs internally for evaluation, regardless of these new requirements. The Company expects to utilize the practical expedient for adopting the retrospective change in its income statement presentation of net benefits costs. Based on the assessments performed to-date, adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied using a retrospective transition method. Adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company’s financial condition or results of operations. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The transition provisions require application on a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (that is, January 1, 2017). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing lease contracts and arrangements. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance will require equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in AOCI. Adoption of this new guidance is required in interim and annual periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. At December 31, 2017, the Company’s equity investments include approximately $157 million common stock securities designated as AFS for which a cumulative effect adjustment to opening retained earnings will be made at January 1, 2018 to reclassify from AOCI the related net unrealized investment gains/(losses), net of income tax. The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and will not be impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. Adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company’s financial condition or results of operations. In May 2014, the FASB issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance contracts, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new standard’s core principle is that revenue should be recognized when “control” of promised goods or services is transferred to customers and in an amount that reflects the consideration to which it expects to be entitled in exchange. Applying the new revenue recognition criteria generally will require more judgments and estimates than under current guidance in order to identify contractual performance obligations to customers, assess the roles of intermediaries in fulfilling those obligations, determine the amount of variable consideration to include in the transaction price, and allocate the transaction price to distinct performance obligations in bundled contracts. The new guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Transition to the new standard requires a retrospective approach but application is permitted either on a full or modified basis, the latter by recognition of a cumulative-effect adjustment to opening equity in the period of initial adoption. On January 1, 2018, the Company will adopt the new revenue recognition guidance on a modified retrospective basis and provide in its first quarter 2018 reporting the additional disclosures required by the new standard. Revenues within the scope of this standard and subject to the Company’s analysis largely emerge from its investment in AllianceBernstein, as reported in the Company’s Investment Management and Research segment, but also result from the Company’s direct wholly-owned subsidiary, FMG as well as broker-dealer operations. Based on the assessments performed to-date, the Company does not expect any changes in the amounts or timing of revenue recognition, including base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, performance-based fees, that currently are recognized at the end of the applicable measurement period when no risk of reversal remains, and carried-interest distributions received (considered performance-based fees), that currently are recorded as deferred revenues until no risk of reversal remains, in certain instances may be recognized earlier under the new standard if it is probable that significant reversal will not occur. As a result, the Company currently expects its initial adoption of the new revenue recognition standard at January 1, 2018 will result in a pre-tax cumulative effect adjustment to increase opening equity by approximately $35 million , representing carried-interest distributions previously received, net of revenue sharing payments to investment team members, with respect to which it is probable that significant reversal will not occur. The Company’s future financial statements will include additional disclosures as required by the new revenue recognition guidance. Closed Block As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and income of the Closed Block are specifically identified to support its participating policyholders. Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s general account (the “General Account”), any of its separate accounts (the “Separate Accounts”) or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax income from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s income. If the actual cumulative income from the Closed Block are greater than the expected cumulative income, only the expected income will be recognized in net income. Actual cumulative income in excess of expected cumulative income at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block income in a subsequent period are less than the expected income for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative income of the Closed Block are less than the expected cumulative income, only actual income would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of deferred policy acquisition costs (“DAC”), are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Investments The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in other comprehensive income (“OCI”). The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock, and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity, and continued viability of the issuer and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage- and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Real estate held for the production of income is stated at depreciated cost less valuation allowances. Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Equity securities, which include common stock, and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in other equity investments with changes in fair value reported in OCI. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the statements of Net income (loss). Corporate owned life insurance (“COLI”) has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2017 and 2016 , the carrying value of COLI was $ 911 million and $892 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. The Company classifies as short-term securities purchased with a maturity of twelve months or less. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. All securities owned, including U.S. government and agency securities, mortgage-backed securities, futures and forwards transactions, are reported in the consolidated financial statements on a trade date basis. Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options and may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related Credit Support Annex (“CSA”) have been executed. The Company uses derivatives to manage asset/liability risk and has designated some of those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payment |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following table provides information relating to fixed maturities and equity securities classified as AFS: Available-for-Sale Securities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (3) (in millions) December 31, 2017 Fixed Maturity Securities: Public corporate $ 13,645 $ 725 $ 25 $ 14,345 $ — Private corporate 6,951 217 31 7,137 — U.S. Treasury, government and agency 12,644 676 185 13,135 — States and political subdivisions 414 67 — 481 — Foreign governments 387 27 5 409 — Commercial mortgage-backed — — — — — Residential mortgage-backed (1) 236 15 — 251 — Asset-backed (2) 93 3 — 96 2 Redeemable preferred stock 461 44 1 504 — Total Fixed Maturities 34,831 1,774 247 36,358 2 Equity securities 157 — — 157 — Total at December 31, 2017 $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2 December 31, 2016: Fixed Maturity Securities: Public corporate $ 12,418 $ 675 $ 81 $ 13,012 $ — Private corporate 6,880 215 55 7,040 — U.S. Treasury, government and agency 10,739 221 624 10,336 — States and political subdivisions 432 63 2 493 — Foreign governments 375 29 14 390 — Commercial mortgage-backed 415 28 72 371 7 Residential mortgage-backed (1) 294 20 — 314 — Asset-backed (2) 51 10 1 60 3 Redeemable preferred stock 519 45 10 554 — Total Fixed Maturities 32,123 1,306 859 32,570 10 Equity securities 113 — — 113 — Total at December 31, 2016 $ 32,236 $ 1,306 $ 859 $ 32,683 $ 10 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. The contractual maturities of AFS fixed maturities at December 31, 2017 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at December 31, 2017 Amortized Cost Fair Value (in millions) Due in one year or less $ 1,339 $ 1,352 Due in years two through five 7,773 8,035 Due in years six through ten 9,889 10,136 Due after ten years 15,040 15,984 Subtotal 34,041 35,507 Commercial mortgage-backed securities — — Residential mortgage-backed securities 236 251 Asset-backed securities 93 96 Redeemable preferred stocks 461 504 Total $ 34,831 $ 36,358 The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during 2017 , 2016 and 2015 : December 31, 2017 2016 2015 (in millions) Proceeds from sales $ 7,232 $ 4,324 $ 979 Gross gains on sales $ 98 $ 111 $ 33 Gross losses on sales $ (211 ) $ (58 ) $ (8 ) Total OTTI $ (13 ) $ (65 ) $ (41 ) Non-credit losses recognized in OCI — — — Credit losses recognized in net income (loss) $ (13 ) $ (65 ) $ (41 ) The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts: Fixed Maturities - Credit Loss Impairments 2017 2016 (in millions) Balances at January 1, $ (190 ) $ (198 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 193 73 Recognized impairments on securities impaired to fair value this period (1) — (17 ) Impairments recognized this period on securities not previously impaired (13 ) (46 ) Additional impairments this period on securities previously impaired — (2 ) Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at December 31, $ (10 ) $ (190 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: December 31, 2017 2016 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ 1 $ 19 All other 1,526 428 Equity securities — — Net Unrealized Gains (Losses) $ 1,527 $ 447 Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net income (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other: Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net Unrealized Gain (Losses) on Investments DAC Policyholders Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2017 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 Net investment gains (losses) arising during the period (18 ) — — — (18 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) — — — — — Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 2 — — 2 Deferred income taxes — — — (2 ) (2 ) Policyholders liabilities — — 9 — 9 Balance, December 31, 2017 $ 1 $ 1 $ (1 ) $ (5 ) $ (4 ) Balance, January 1, 2016 $ 16 $ — $ (4 ) $ (5 ) $ 7 Net investment gains (losses) arising during the period (6 ) — — — (6 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) 9 — — — 9 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — 2 2 Policyholders liabilities — — (6 ) — (6 ) Balance, December 31, 2016 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments DAC Policyholders Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2017 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 Net investment gains (losses) arising during the period 1,085 — — — 1,085 Reclassification adjustment for OTTI losses: Included in Net income (loss) 13 — — — 13 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (245 ) — — (245 ) Deferred income taxes — — — (240 ) (240 ) Policyholders liabilities — — (44 ) — (44 ) Balance, December 31, 2017 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Balance, January 1, 2016 $ 674 $ (93 ) $ (221 ) $ (126 ) $ 234 Net investment gains (losses) arising during the period (240 ) — — — (240 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) (6 ) — — — (6 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 23 — — 23 Deferred income taxes — — — 66 66 Policyholders liabilities — — 33 — 33 Balance, December 31, 2016 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. The following tables disclose the fair values and gross unrealized losses of the 620 issues at December 31, 2017 and the 794 issues at December 31, 2016 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Gross (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 1,384 $ 9 $ 548 $ 16 $ 1,932 $ 25 Private corporate 718 8 615 23 1,333 31 U.S. Treasury, government and agency 2,150 6 3,005 179 5,155 185 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Commercial mortgage-backed — — — — — — Residential mortgage-backed 18 — — — 18 — Asset-backed 7 — 2 — 9 — Redeemable preferred stock 7 — 12 1 19 1 Total $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247 December 31, 2016: Fixed Maturity Securities: Public corporate $ 2,455 $ 75 $ 113 $ 6 $ 2,568 $ 81 Private corporate 1,483 38 277 17 1,760 55 U.S. Treasury, government and agency 5,356 624 — — 5,356 624 States and political subdivisions — — 18 2 18 2 Foreign governments 73 3 49 11 122 14 Commercial mortgage-backed 66 5 171 67 237 72 Residential mortgage-backed 47 — 4 — 51 — Asset-backed 4 — 8 1 12 1 Redeemable preferred stock 218 9 12 1 230 10 Total $ 9,702 $ 754 $ 652 $ 105 $ 10,354 $ 859 The Company’s investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.8 % of total investments. The largest exposures to a single issuer of corporate securities held at December 31, 2017 and 2016 were $ 182 million and $169 million , respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa 3 /BBB- or the National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At December 31, 2017 and 2016 , respectively, approximately $ 1,309 million and $1,574 million , or 3.8 % and 4.9% , of the $ 34,831 million and $32,123 million aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had net unrealized losses of $ 5 million and $28 million at December 31, 2017 and 2016 , respectively. At December 31, 2017 and 2016 , respectively, the $ 224 million and $105 million of gross unrealized losses of twelve months or more were concentrated in U.S. Treasury, corporate and commercial mortgage-backed securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to income for OTTI for these securities was not warranted at either December 31, 2017 or 2016 . As of December 31, 2017 , the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis. The Company does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. At December 31, 2017 , the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $ 3 million. At December 31, 2017 and 2016 , respectively, the fair value of the Company’s trading account securities was $ 12,628 million and $9,134 million . Also at December 31, 2017 and 2016 , respectively, Trading account securities included the General Account’s investment in Separate Accounts which had carrying values of $ 49 million and $63 million . Mortgage Loans The payment terms of mortgage loans may from time to time be restructured or modified. Troubled Debt Restructuring The investment in troubled debt restructured mortgage loans, based on amortized cost, amounted to $ 0 million and $15 million at December 31, 2017 and 2016 , respectively. Gross interest income on these loans included in net investment income (loss) totaled $ 0 million, $0 million and $1 million in 2017 , 2016 and 2015 , respectively. Valuation Allowances for Mortgage Loans: Allowance for credit losses for mortgage loans for 2017 , 2016 and 2015 are as follows: Commercial Mortgage Loans 2017 2016 2015 Allowance for credit losses: (in millions) Beginning Balance, January 1, $ 8 $ 6 $ 37 Charge-offs — — (32 ) Recoveries — (2 ) (1 ) Provision — 4 2 Ending Balance, December 31, $ 8 $ 8 $ 6 Individually Evaluated for Impairment $ 8 $ 8 $ 6 There were no allowances for credit losses for agricultural mortgage loans in 2017 , 2016 and 2015 . The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at December 31, 2017 and 2016 , respectively. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2017 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 742 $ — $ 320 $ 74 $ — $ — $ 1,136 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,369 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2016 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 738 $ 95 $ 59 $ 56 $ — $ — $ 948 50% - 70% 3,217 430 673 1,100 76 — 5,496 70% - 90% 282 65 229 127 28 46 777 90% plus — — 28 15 — — 43 Total Commercial Mortgage Loans $ 4,237 $ 590 $ 989 $ 1,298 $ 104 $ 46 $ 7,264 Agricultural Mortgage Loans (1) 0% - 50% $ 254 $ 138 $ 296 $ 468 $ 286 $ 49 $ 1,491 50% - 70% 141 57 209 333 219 45 1,004 70% - 90% — — 2 4 — — 6 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 395 $ 195 $ 507 $ 805 $ 505 $ 94 $ 2,501 Total Mortgage Loans (1) 0% - 50% $ 992 $ 233 $ 355 $ 524 $ 286 $ 49 $ 2,439 50% - 70% 3,358 487 882 1,433 295 45 6,500 70% - 90% 282 65 231 131 28 46 783 90% plus — — 28 15 — — 43 Total Mortgage Loans $ 4,632 $ 785 $ 1,496 $ 2,103 $ 609 $ 140 $ 9,765 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. The following table provides information relating to the aging analysis of past due mortgage loans at December 31, 2017 and 2016 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days Or > Total Current Total Financing Receivables Recorded Investment 90 Days Or > and Accruing (in millions) December 31, 2017: Commercial $ 27 $ — $ — $ 27 $ 8,342 $ 8,369 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22 December 31, 2016: Commercial $ — $ — $ — $ — $ 7,264 $ 7,264 $ — Agricultural 9 2 6 17 2,484 2,501 6 Total Mortgage Loans $ 9 $ 2 $ 6 $ 17 $ 9,748 $ 9,765 $ 6 The following table provides information relating to impaired mortgage loans at December 31, 2017 and 2016 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 December 31, 2016: With no related allowance recorded: Commercial mortgage loans - other $ 15 $ 15 $ — $ 22 $ — Agricultural mortgage loans — — — — — Total $ 15 $ 15 $ — $ 22 $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 48 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 48 $ 2 (1) Represents a five-quarter average of recorded amortized cost. Equity Method Investments Included in other equity investments are limited partnership interests accounted for under the equity method with a total carrying value of $ 1,106 million and $ 1,123 million , respectively, at December 31, 2017 and 2016 . The Company’s total equity in net income (loss) for these limited partnership interests was $ 156 million, $50 million and $67 million , respectively, for 2017 , 2016 and 2015 . Derivatives and Offsetting Assets and Liabilities The Company uses derivatives as part of its overall asset/liability risk management primarily to reduce exposures to equity market and interest rate risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by applicable states’ insurance law. Derivatives are generally not accounted for using hedge accounting, with the exception of Treasury Inflation-Protected Securities (“TIPS”), which is discussed further below. Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, fund performance, market volatility and interest rates. A wide range of derivative contracts are used in these hedging programs, including exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, bond and bond-index total return swaps, swaptions, variance swaps and equity options, credit and foreign exchange derivatives, as well as bond and repo transactions to support the hedging. The derivative contracts are collectively managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in capital markets. Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer variable annuity products with GMxB features. The risk associated with the GMDB feature is that under-performance of the financial markets could result in GMDB benefits, in the event of death, being higher than what accumulated policyholders’ account balances would support. The risk associated with the GMIB feature is that under-performance of the financial markets could result in the present value of GMIB, in the event of annuitization, being higher than what accumulated policyholders’ account balances would support, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with products that have a GMxB derivative features liability is that under-performance of the financial markets could result in the GMxB derivative features' benefits being higher than what accumulated policyholders’ account balances would support. For GMxB features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected actuarial assumptions for mortality, lapse and surrender, withdrawal and policyholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMxB features that result from financial markets movements. A portion of exposure to realized equity volatility is hedged using equity options and variance swaps and a portion of exposure to credit risk is hedged using total return swaps on fixed income indices. Additionally, the Company is party to total return swaps for which the reference U.S. Treasury securities are contemporaneously purchased from the market and sold to the swap counterparty. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. The Company has also purchased reinsurance contracts to mitigate the risks associated with GMDB features and the impact of potential market fluctuations on future policyholder elections of GMIB features contained in certain annuity contracts issued by the Company. The Company implemented an overlay hedge program to ensure a target asset level for all variable annuities at a CTE98 level under most scenarios, and at a CTE95 level in extreme scenarios. Derivatives utilized to hedge crediting rate exposure on SCS, SIO, MSO and IUL products/investment options The Company hedges crediting rates in the Structured Capital Strategies (“SCS”) variable annuity, Structured Investment Option in the EQUI-VEST variable annuity series (“SIO”), Market Stabilizer Option (“MSO”) in the variable life insurance products and Indexed Universal Life (“IUL”) insurance products. These products permit the contract owner to participate in the performance of an index, ETF or commodity price movement up to a cap for a set period of time. They also contain a protection feature, in which the Company will absorb, up to a certain percentage, the loss of value in an index, ETF or commodity price, which varies by product segment. In order to support the returns associated with these features, the Company enters into derivative contracts whose payouts, in combination with fixed income investments, emulate those of the index, ETF or commodity price, subject to caps and buffers without any basis risk due to market exposures, thereby substantially reducing any exposure to market-related earnings volatility. Derivatives utilized for General Account Investment Portfolio The Company maintains a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible for investment under its investment guidelines through the sale of credit default swaps ("CDSs"). Under the terms of these swaps, the Company receives quarterly fixed premiums that, together with any initial amount paid or received at trade inception, replicate the credit spread otherwise currently obtainable by purchasing the referenced entity’s bonds of similar maturity. These credit derivatives generally have remaining terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net investment income (loss). The Company manages its credit exposure taking into consideration both cash and derivatives based positions and selects the reference entities in its replicated credit exposures in a manner consistent with its selection of fixed maturities. In addition, the Company generally transacts the sale of CDSs in single name reference entities of investment grade credit quality and with counterparties subject to collateral posting requirements. If there is an event of default by the reference entity or other such credit event as defined under the terms of the swap contract, the Company is obligated to perform under the credit derivative and, at the counterparty’s option, either pay the referenced amount of the contract less an auction-determined recovery amount or pay the referenced amount of the contract and receive in return the defaulted or similar security of the reference entity for recovery by sale at the contract settlement auction. To date, there have been no events of default or circumstances indicative of a deterioration in the credit quality of the named referenced entities to require or suggest that the Company will have to perform under these CDSs. The maximum potential amount of future payments the Company could be required to make under these credit derivatives is limited to the par value of the referenced securities which is the dollar or euro-equivalent of the derivative notional amount. The Standard North American CDS Contract (“SNAC”) or Standard European Corporate Contract (“STEC”) under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. The Company purchased 30-year TIPS and other sovereign bonds, both inflation linked and non-inflation linked, as General Account investments and enters into asset or cross-currency basis swaps, to result in payment of the given bond’s coupons and principal at maturity in the bond’s specified currency to the swap counterparty in return for fixed dollar amounts. These swaps, when considered in combination with the bonds, together result in a net position that is intended to replicate a dollar-denominated fixed-coupon cash bond with a yield higher than a term-equivalent U.S. Treasury bond. At December 31, 2017 and 2016, respectively, the Company’s unrealized gains (losses) related to this program were $ 86 million and $ (97) million and reported in AOCI. The Company implemented a strategy to hedge a portion of the credit exposure in its General Account investment portfolio by buying protection through a swap. These are swaps on the “super senior tranche” of the investment grade CDX index. Under the terms of these swaps, the Company pays quarterly fixed premiums that, together with any initial amount paid or received at trade inception, serve as premiums paid to hedge the risk arising from multiple defaults of bonds referenced in the CDX index. These credit derivatives have terms of five years or less and are recorded at fair value with changes in fair value, including the yield component that emerges from initial amounts paid or received, reported in Net derivative gains (losses). In 2016, the Company implemented a program to mitigate its duration gap using total return swaps for which the reference U.S. Treasury securities are sold to the swap counterparty under arrangements economically similar to repurchase agreements. As these transactions result in a transfer of control of the U.S. Treasury securities to the swap counterparty, the Company derecognizes these securities with consequent gain or loss from the sale. Under this program, the Company derecognized approximately $ 3,905 million of U.S. Treasury securities for which the Company received proceeds of approximately $ 3,905 million at inception of the total return swap contract. Under the terms of these swaps, the Company retains ongoing exposure to the total returns of the underlying U.S. Treasury securities in exchange for a financing cost. At December 31, 2017, the aggregate fair value of U.S. Treasury securities derecognized under this program was approximately $ 3,796 million. Reported in Other invested assets in the Company's balance sheet at December 31, 2017 is approximately $ (23) million, representing the fair value of the total return swap contracts. The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments: Derivative Instruments by Category At or For the Year Ended December 31, 2017 Fair Value Notional Asset Liability Gains (Losses) (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 3,113 $ 1 $ 3 $ (670 ) Swaps 4,655 3 126 (848 ) Options 20,630 3,334 1,426 1,203 Interest rate contracts: (1) Floors — — — — Swaps 19,032 320 191 655 Futures 11,032 — — 125 Swaptions — — — — Credit contracts: (1) Credit default swaps 2,131 35 3 19 Other freestanding contracts: (1) Foreign currency contracts 1,423 19 10 (39 ) Margin — 24 — — Collateral — 4 1,855 — Embedded derivatives: GMIB reinsurance contracts (4) — 10,488 — 69 GMxB derivative features’ liability (2,4) — — 4,164 1,494 SCS, SIO, MSO and IUL indexed features (3,4) — — 1,698 (1,118 ) Balances, December 31, 2017 $ 62,016 $ 14,228 $ 9,476 $ 890 (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). Derivative Instruments by Category At or For the Year Ended December 31, 2016 Fair Value Notional Amount Asset Derivatives Liability Derivatives Gains (Losses) (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 5,086 $ 1 $ 1 $ (826 ) Swaps 3,529 13 67 (290 ) Options 11,465 2,114 1,154 727 Interest rate contracts: (1) Floors 1,500 11 — 4 Swaps 18,933 246 1,163 (224 ) Futures 6,926 — — — Swaptions — — — 87 Credit contracts: (1) Credit default swaps 2,757 20 15 15 Other freestanding contracts: (1) Foreign currency contracts 730 52 6 45 Margin — 113 6 — Collateral — 713 748 — Embedded derivatives: GMIB reinsurance contracts (4) — 10,314 — (261 ) GMxB derivative features’ liability (2,4) — — 5,319 140 SCS, SIO, MSO and IUL indexed features (3,4) — — 887 (628 ) Balances, December 31, 2016 $ 50,926 $ 13,597 $ 9,366 $ (1,211 ) (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). For 2017 , 2016 and 2015 , respectively, Net derivative gain (losses) from derivatives included $ (1,156) million, $(4) million and $474 million of realized gains (losses) on contracts closed during those periods and $ 1,601 million, $(458) million and $(555) million of unrealized gains (losses) on derivative positions at each respective year end. Equity-Based and Treasury Futures Contracts Margin All outstanding equity-based and treasury futures contracts at December 31, 2017 are exchange-traded and net settled daily in cash. At December 31, 2017 , the Company had open exchange-traded futures positions on: (i) the S&P 500, Russell 2000 and Emerging Market indices, having initial margin requirements of $ 97 million, (ii) the 2-year, 5-year and 10-year U.S. Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial margin requirements of $ 10 million and (iii) the Euro Stoxx, FTSE 100, Topix, ASX 200 and European, Australasia, and Far East (“EAFE”) indices as well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S. dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial margin requirements of $ 13 million. Credit Risk Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measu |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of purchase price over the estimated fair value of identifiable net assets acquired in a business combination. The Company tests goodwill for recoverability each annual reporting period at December 31 and at interim periods if facts or circumstances are indicative of potential impairment. Effective January 1, 2017, the Company early adopted new goodwill guidance that eliminates Step 2 from the impairment model and continues to limit the measure of goodwill impairment to the carrying amount of the reporting unit’s goodwill. There was no resulting impact on the carrying amount of the Company’s goodwill from adoption of this new guidance. The carrying value of the Company’s goodwill was $ 3,584 million and $3,584 million at December 31, 2017 and 2016 , respectively, resulting from its investment in AB as well as direct strategic acquisitions of AB, including its purchase of Sanford C. Bernstein, Inc. For purpose of testing this goodwill for impairment, the Company applied a discounted cash flow valuation technique to measure the fair value of the reporting unit, sourcing the underlying cash flows and assumptions from AB’s current business plan projections and adjusting the result to reflect the noncontrolling interest in AB as well as incremental taxes at the Company level as related to the form and structure of its investment in AB. At December 31, 2017 and 2016 , the Company’s annual testing resulted in no impairment of this goodwill as the fair value of the reporting unit exceeded its carrying amount at each respective date. Similarly, no impairments resulted from the Company’s interim assessments of goodwill during the periods then ended. In the fourth quarter of 2017 and as further described in Note 18, Business Segment Information, the Company recast its operating segments to align with the reorganization of its reporting structure, resulting in multiple operating segments for its previously defined Financial Advisory/Insurance segment and to which no goodwill was ascribed. Accordingly, all of the Company’s goodwill was reassigned to the Company’s Investment Management and Research segment, also deemed a reporting unit for purpose of assessing goodwill recoverability. The gross carrying amount of AB related intangible assets was $ 623 million and $625 million at December 31, 2017 and 2016 , respectively and the accumulated amortization of these intangible assets was $ 498 million and $468 million at December 31, 2017 and 2016 , respectively. Amortization expense related to the AB intangible assets totaled $31 million, $29 million and $28 million for 2017 , 2016 and 2015 , respectively. Estimated annual amortization expense for each of the next two years is approximately $ 30 million, then approximately $ 23 million in year three and $ 7 million in years four and five. At December 31, 2017 and 2016 , respectively, net deferred sales commissions from AB totaled $ 30 million and $64 million and are included within other assets. Based on the December 31, 2017 net asset balance, the estimated amortization expense of deferred sales commissions for each of the next five years is $ 21 million, $ 6 million, $ 3 million, $ 0 million and $ 0 million. The Company tests the deferred sales commission asset for impairment quarterly by comparing undiscounted future cash flows to the recorded value, net of accumulated amortization. Each quarter, significant assumptions used to estimate the future cash flows are updated to reflect management’s consideration of current market conditions and expectations made with respect to future market levels and redemption rates. As of December 31, 2017 and 2016 , the Company determined the deferred sales commission asset was not impaired. On September 23, 2016, AB acquired a 100% ownership interest in Ramius Alternative Solutions LLC (“RASL”), a global alternative investment management business that, as of the acquisition date, had approximately $2.5 billion in AUM. RASL offers a range of customized alternative investment and advisory solutions to a global institutional client base. On the acquisition date, AB made a cash payment of $21 million and recorded a contingent consideration payable of $12 million based on projected fee revenues over a five -year measurement period. Goodwill in the amount of $22 million and finite-lived intangible assets of $10 million related to investment management contracts also were recognized at the date of acquisition. On June 20, 2014, AB acquired an 82% ownership interest in CPH Capital Fondsmaeglerselskab A/S (“CPH”), a Danish asset management firm that managed approximately $3,000 million in global core equity assets for institutional investors, for a cash payment of $64 million and a contingent consideration payable of $9 million based on projected assets under management levels over a three -year measurement period. Also recognized on the date of acquisition were $58 million of goodwill, $24 million of finite-lived intangible assets related to separately-managed account relationships and $4 million of indefinite-lived intangible assets related to an acquired fund’s investment contract. Redeemable noncontrolling interest of $17 million was recorded as related to the fair value of CPH purchased by AB. During 2016 and 2015, AB purchased additional shares of CPH, bringing its ownership interest to 90.0% as of December 31, 2016. The acquisitions described above did not have a significant impact on the Company’s consolidated revenues or net income. As a result, supplemental pro forma information has not been provided. Additional information regarding the contingent payment obligations associated with these and other acquisitions made by AB is included in Note 7, Fair Value Disclosures. Capitalized Software Capitalized software, net of accumulated amortization, amounted to $ 162 million and $170 million at December 31, 2017 and 2016 , respectively, and is recorded in other assets. Amortization of capitalized software in 2017 , 2016 and 2015 was $ 47 million, $52 million and $55 million , respectively, recorded in other operating costs and expenses in the Consolidated Statements of Income (loss). |
CLOSED BLOCK
CLOSED BLOCK | 12 Months Ended |
Dec. 31, 2017 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK Summarized financial information for the Company's Closed Block is as follows: December 31, 2017 2016 (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,945 $ 7,179 Policyholder dividend obligation 32 52 Other liabilities 271 43 Total Closed Block liabilities 7,248 7,274 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,923 and $3,884) 4,070 4,025 Mortgage loans on real estate 1,720 1,623 Policy loans 781 839 Cash and other invested assets 351 444 Other assets 219 213 Total assets designated to the Closed Block 7,141 7,144 Excess of Closed Block liabilities over assets designated to the Closed Block 107 130 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $32 and $52 138 100 Maximum Future Income To Be Recognized From Closed Block Assets and Liabilities $ 245 $ 230 The Company’s Closed Block revenues and expenses follow: 2017 2016 2015 (in millions) REVENUES: Premiums and other income $ 224 $ 212 $ 236 Investment income (loss) 314 349 368 Net investment gains (losses) (20 ) (1 ) 2 Total revenues 518 560 606 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 537 522 550 Other operating costs and expenses 2 4 4 Total benefits and other deductions 539 526 554 Net revenues, before income taxes (21 ) 34 52 Income tax (expense) benefit 6 (12 ) (18 ) Net Revenues (Losses) $ (15 ) $ 22 $ 34 A reconciliation of the Company’s policyholder dividend obligation follows: December 31, 2017 2016 (in millions) Balances, beginning of year $ 52 $ 81 Unrealized investment gains (losses) (20 ) (29 ) Balances, End of year $ 32 $ 52 |
DAC AND POLICYHOLDER BONUS INTE
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | 12 Months Ended |
Dec. 31, 2017 | |
Contractholder Bonus Interest Credits [Abstract] | |
DAC AND POLICYHOLDER BONUS INTEREST CREDITS | DAC AND POLICYHOLDER BONUS INTEREST CREDITS Changes in the deferred asset for policyholder bonus interest credits are as follows: December 31, 2017 2016 As Restated (in millions) Balance, beginning of year $ 504 $ 534 Policyholder bonus interest credits deferred 6 13 Amortization charged to income (37 ) (43 ) Balance, End of Year $ 473 $ 504 Changes in deferred acquisition costs at December 31, 2017 and 2016 were as follows: December 31, 2017 2016 As Restated (in millions) Balance, beginning of year $ 5,058 $ 5,088 Capitalization of commissions, sales and issue expenses 578 594 Amortization (846 ) (646 ) Change in unrealized investment gains (losses) (243 ) 22 Balance, End of Year $ 4,547 $ 5,058 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES Assets and liabilities measured at fair value on a recurring basis are summarized below. At December 31, 2017 and 2016 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they are classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,298 $ 47 $ 14,345 Private Corporate — 6,045 1,092 7,137 U.S. Treasury, government and agency — 13,135 — 13,135 States and political subdivisions — 441 40 481 Foreign governments — 409 — 409 Commercial mortgage-backed — — — — Residential mortgage-backed (1) — 251 — 251 Asset-backed (2) — 88 8 96 Redeemable preferred stock 180 324 — 504 Subtotal 180 34,991 1,187 36,358 Other equity investments 13 — 1 14 Trading securities 467 12,161 — 12,628 Other invested assets: Short-term investments — 768 — 768 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 15 — 15 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Options — 1,907 — 1,907 Floors — — — — Subtotal 1,058 2,938 27 4,023 Cash equivalents 2,360 — — 2,360 Segregated securities — 825 — 825 GMIB reinsurance contracts asset — — 10,488 10,488 Separate Accounts’ assets 118,983 2,983 349 122,315 Total Assets $ 123,061 $ 53,898 $ 12,052 $ 189,011 Liabilities GMxB derivative features’ liability $ — $ — $ 4,164 $ 4,164 SCS, SIO, MSO and IUL indexed features’ liability — 1,698 — 1,698 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 11 11 Total Liabilities $ 670 $ 1,720 $ 4,175 $ 6,565 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 12,984 $ 28 $ 13,012 Private Corporate — 6,223 817 7,040 U.S. Treasury, government and agency — 10,336 — 10,336 States and political subdivisions — 451 42 493 Foreign governments — 390 — 390 Commercial mortgage-backed — 22 349 371 Residential mortgage-backed (1) — 314 — 314 Asset-backed (2) — 36 24 60 Redeemable preferred stock 218 335 1 554 Subtotal 218 31,091 1,261 32,570 Other equity investments 3 — 5 8 Trading securities 478 8,656 — 9,134 Other invested assets: Short-term investments — 574 — 574 Assets of consolidated VIEs/VOEs 342 205 46 593 Swaps — (925 ) — (925 ) Credit Default Swaps — 5 — 5 Futures — — — — Options — 960 — 960 Floors — 11 — 11 Subtotal 342 830 46 1,218 Cash equivalents 1,529 — — 1,529 Segregated securities — 946 — 946 GMIB reinsurance contracts asset — — 10,314 10,314 Separate Accounts’ assets 108,085 2,818 313 111,216 Total Assets $ 110,655 $ 44,341 $ 11,939 $ 166,935 Liabilities GMxB derivative features’ liability $ — $ — $ 5,319 $ 5,319 SCS, SIO, MSO and IUL indexed features’ liability — 887 — 887 Liabilities of consolidated VIEs/VOEs 248 2 — 250 Contingent payment arrangements — — 18 18 Total Liabilities $ 248 $ 889 $ 5,337 $ 6,474 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. At December 31, 2017 and 2016 , respectively, the fair value of public fixed maturities is approximately $ 28,826 million and $24,918 million or approximately 16.2 % and 16.0% of the Company’s total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts and segregated securities measured at fair value on a recurring basis). The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent valuation service providers and for which the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, the Company ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturity securities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the security in a manner agreed as more consistent with current market observations, the security remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At December 31, 2017 and 2016 , respectively, the fair value of private fixed maturities is approximately $ 7,532 million and $7,652 million or approximately 4.2 % and 4.9% of the Company’s total assets measured at fair value on a recurring basis. The fair values of the Company’s private fixed maturities are determined from prices obtained from independent valuation service providers. Prices not obtained from an independent valuation service provider are determined by using a discounted cash flow model or a market comparable company valuation technique. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model or a market comparable company valuation technique may also incorporate unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. As disclosed in Note 3, at December 31, 2017 and 2016 , respectively, the net fair value of freestanding derivative positions is approximately $ 1,953 million and $51 million or approximately 48.5 % and 8.2% of Other invested assets measured at fair value on a recurring basis. The fair values of the Company’s derivative positions are generally based on prices obtained either from independent valuation service providers or derived by applying market inputs from recognized vendors into industry standard pricing models. The majority of these derivative contracts are traded in the OTC derivative market and are classified in Level 2. The fair values of derivative assets and liabilities traded in the OTC market are determined using quantitative models that require use of the contractual terms of the derivative instruments and multiple market inputs, including interest rates, prices, and indices to generate continuous yield or pricing curves, including overnight index swap (“OIS”) curves, and volatility factors, which then are applied to value the positions. The predominance of market inputs is actively quoted and can be validated through external sources or reliably interpolated if less observable. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the derivative instrument in a manner agreed as more consistent with current market observations, the position remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which the Company’s own assumptions about market-participant inputs would be used in pricing the security. At December 31, 2017 and 2016 , respectively, investments classified as Level 1 comprise approximately 69.2 % and 71.1% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Account assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and derivative contracts, and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less, and are carried at cost as a proxy for fair value measurement due to their short-term nature. At December 31, 2017 and 2016 , respectively, investments classified as Level 2 comprise approximately 29.9 % and 27.9% of assets measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Segregated securities classified as Level 2 are U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange Act and for which fair values are based on quoted yields in secondary markets. Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. At December 31, 2017 and 2016 , respectively, approximately $ 257 million and $340 million of AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. The Company’s SCS and EQUI-VEST variable annuity products, the IUL product, and in the MSO fund available in some life contracts offer investment options which permit the contract owner to participate in the performance of an index, ETF or commodity price. These investment options, which depending on the product and on the index selected can currently have 1 , 3 , 5 , or 6 year terms, provide for participation in the performance of specified indices, ETF or commodity price movement up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g. holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices, ETF or commodity prices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on data obtained from independent valuation service providers. At December 31, 2017 and 2016 , respectively, investments classified as Level 3 comprise approximately 0.9 % and 1.0% of assets measured at fair value on a recurring basis and primarily include commercial mortgage-backed securities (“CMBS”) and corporate debt securities, such as private fixed maturities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification at December 31, 2017 and 2016 , respectively, were approximately $ 97 million and $111 million of fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. The Company applies various due-diligence procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, based on its understanding of the markets, including use of internally-developed assumptions about inputs a market participant would use to price the security. In addition, approximately $ 8 million and $373 million of mortgage- and asset-backed securities, including CMBS, are classified as Level 3 at December 31, 2017 and 2016 , respectively. The Company utilizes prices obtained from an independent valuation service vendor to measure fair value of CMBS securities. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. The GMIBNLG feature allows the policyholder to receive guaranteed minimum lifetime annuity payments based on predetermined annuity purchase rates applied to the contract’s benefit base if and when the contract account value is depleted and the NLG feature is activated. The GMWB feature allows the policyholder to withdraw at minimum, over the life of the contract, an amount based on the contract’s benefit base. The GWBL feature allows the policyholder to withdraw, each year for the life of the contract, a specified annual percentage of an amount based on the contract’s benefit base. The GMAB feature increases the contract account value at the end of a specified period to a GMAB base. The GIB feature provides a lifetime annuity based on predetermined annuity purchase rates if and when the contract account value is depleted. This lifetime annuity is based on predetermined annuity purchase rates applied to a GIB base. Level 3 also includes the GMIB reinsurance contract asset and liabilities which are accounted for as derivative contracts. The GMIB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while GMxB derivative features liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins and nonperformance risk, attributable to GMxB derivative features’ liability over a range of market-consistent economic scenarios. The valuations of the GMIB reinsurance contract asset and GMxB derivative features liability incorporate significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity separate account funds. The credit risks of the counterparty and of the Company are considered in determining the fair values of its GMIB reinsurance contract asset and GMxB derivative features liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve, adjusted for non-performance risk, is made to the resulting fair values of the GMIB reinsurance contract asset and liabilities to reflect change in the claims-paying ratings of counterparties and the Company an adjustment to the swap curve for non-performance risk to reflect the claims-paying rating of the Company. Equity and fixed income volatilities were modeled to reflect current market volatilities. Due to the unique, long duration of the GMIBNLG feature, adjustments were made to the equity volatilities to remove the illiquidity bias associated with the longer tenors and risk margins were applied to the non-capital markets inputs to the GMIBNLG valuations. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $ 69 million and $139 million at December 31, 2017 and 2016 , respectively, to recognize incremental counterparty nonperformance risk. Lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, which include other factors such as considering surrender charges. Generally, lapse rates are assumed to be lower in periods when a surrender charge applies. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. For valuing the embedded derivative, lapse rates vary throughout the period over which cash flows are projected. The Company’s Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2013 and 2014 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. As of December 31, 2017, the Company’s consolidated VIEs/VOEs hold $ 2 million of investments that are classified as Level 3. They primarily consist of corporate bonds that are vendor priced with no ratings available, bank loans, non-agency collateralized mortgage obligations and asset-backed securities. In 2017, AFS fixed maturities with fair values of $ 6 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $ 7 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.1% of total equity at December 31, 2017 . In 2016, AFS fixed maturities with fair values of $ 62 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $ 25 million were transferred from Level 2 into the Level 3 classification. During 2016, one of AB’s private securities went public and, due to a trading restriction period, $ 56 million was transferred from a Level 3 to a Level 2 classification. These transfers in the aggregate represent approximately 0.9% of total equity at December 31, 2016 . In 2015, AFS fixed maturities with fair values of $ 125 million were transferred out of Level 3 and into Level 2 principally due to the availability of trading activity and/or market observable inputs to measure and validate their fair values. In addition, AFS fixed maturities with fair value of $ 99 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.3% of total equity at December 31, 2015. The table below presents a reconciliation for all Level 3 assets and liabilities at December 31, 2017 , 2016 and 2015 respectively: Level 3 Instruments Fair Value Measurements Corporate State and Political Sub-divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (in millions) Balance, January 1, 2017 $ 845 $ 42 $ — $ 349 $ — $ 24 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 5 — — (2 ) — — Investment gains (losses), net 2 — — (63 ) — 15 Subtotal 7 — — (65 ) — 15 Other comprehensive income (loss) 4 (1 ) — 45 — (9 ) Purchases 612 — — — — — Sales (331 ) (1 ) — (329 ) — (21 ) Transfers into Level 3 (1) 7 — — — — — Transfers out of Level 3 (1) (5 ) — — — — (1 ) Balance, December 31, 2017 $ 1,139 $ 40 $ — $ — $ — $ 8 Balance, January 1, 2016 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net 1 — — (67 ) — — Subtotal 1 — — (67 ) — — Other comprehensive income (loss) 7 (2 ) — 14 — 1 Purchases 572 — — — — — Sales (142 ) (1 ) — (87 ) — (8 ) Transfers into Level 3 (1) 25 — — — — — Transfers out of Level 3 (1) (38 ) — (1 ) (14 ) — (9 ) Balance, December 31, 2016 $ 845 $ 42 $ — $ 349 $ — $ 24 Level 3 Instruments Fair Value Measurements Corporate State and Political Sub-divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In millions) Balance, January 1, 2015 $ 380 $ 47 $ — $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — — 1 — — Investment gains (losses), net 2 — — (38 ) — — Subtotal 5 — — (37 ) — — Other comprehensive income (loss) (25 ) (1 ) — 64 — (4 ) Purchases 60 — 1 — — — Sales (38 ) (1 ) — (175 ) (2 ) (9 ) Transfers into Level 3 (1) 99 — — — — — Transfers out of Level 3 (1) (61 ) — — (64 ) — — Balance, December 31, 2015 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Redeem Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GMxB derivative features' liability Contingent Payment Arrangement (in millions) Balance, January 1, 2017 $ 1 $ 51 $ 10,314 $ 313 $ (5,319 ) 18 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 29 — — Net derivative gains (losses) — — 69 — 1,494 — Subtotal — — 69 29 1,494 — Other comprehensive income (loss) (1 ) (4 ) — — — — Purchases (2) — 6 221 13 (344 ) — Sales (3) — (3 ) (116 ) (2 ) 5 — Settlements (4) — — — (4 ) — (7 ) Activities related to VIEs/VOEs — (22 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — — — — Balance, December 31, 2017 $ — $ 28 $ 10,488 $ 349 $ (4,164 ) $ 11 Balance, January 1, 2016 $ — $ 49 $ 10,582 $ 313 $ (5,146 ) 31 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 19 — — Net derivative gains (losses) — — (261 ) — 140 — Subtotal — — (261 ) 19 140 — Other comprehensive income(loss) — (2 ) — — — Purchases (2) 1 — 223 10 (317 ) 11 Sales (3) — — (230 ) — 4 — Settlements (4) — — — (7 ) — (24 ) Activities related to VIEs/VOEs — 60 — — — — Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — (56 ) — (23 ) — — Balance, December 31, 2016 $ 1 $ 51 $ 10,314 $ 313 $ (5,319 ) $ 18 Redeem Other (2) GMIB Separate GMxB derivative features' liability Contingent Payment Arrangement (in millions) Balance, January 1, 2015 $ — $ 61 $ 10,723 $ 260 $ (4,130 ) $ 42 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — 5 — 36 — — Net derivative gains (losses) — — (316 ) — (743 ) — Subtotal — 5 (316 ) 36 (743 ) — Other comprehensive income (loss) — 2 — — — — Purchases (2) — 1 228 26 (274 ) — Sales (3) — (20 ) (53 ) (2 ) 1 (11 ) Settlements (4) — — — (5 ) — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — (2 ) — — Balance, December 31, 2015 $ — $ 49 $ 10,582 $ 313 $ (5,146 ) $ 31 (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features’ liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. The table below details changes in unrealized gains (losses) for 2017 and 2016 by category for Level 3 assets and liabilities still held at December 31, 2017 and 2016 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments Full Year 2017 Still Held at December 31, 2017 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 4 State and political subdivisions — — — Commercial mortgage-backed — — 45 Asset-backed — — (9 ) Subtotal $ — $ — $ 40 GMIB reinsurance contracts — 69 — Separate Accounts’ assets (1) 29 — — GMxB derivative features' liability — 1,494 — Total $ 29 $ 1,563 $ 40 Level 3 Instruments Full Year 2016 Still Held at December 31, 2016 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 11 State and political subdivisions — — (1 ) Commercial mortgage-backed — — 9 Asset-backed — — 1 Subtotal $ — $ — $ 20 GMIB reinsurance contracts — (262 ) — Separate Accounts’ assets (1) 20 — — GMxB derivative features' liability — 140 — Total $ 20 $ (122 ) $ 20 (1) There is an investment expense that offsets this investment gain (loss). The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2017 and 2016 , respectively. Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Assets: (in millions) Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 - 565 bps 125 bps 789 Market comparable companies EBITDA multiples Discount rate Cash flow Multiples 5.3x - 27.9x 7.2% - 17.0% 9.0x - 17.7x 12.9x 11.1% 13.1x Separate Accounts’ assets 326 Third party appraisal Capitalization rate Exit capitalization rate Discount rate 4.6% 5.6% 6.6% 1 Discounted cash flow Spread over U.S. Treasury curve Discount factor 243 bps 4.4% GMIB reinsurance contract asset 10,488 Discounted cash flow Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates—Equity 1.0% - 6.3% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance risk 1.0% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Assets: (in millions) Investments: Fixed maturities, available-for-sale: Corporate $ 55 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 bps - 565 bps 151 bps 636 Market comparable companies EBITDA multiples 4.3x - 25.6x 11.7x Asset-backed 2 Matrix pricing model Spread over U.S. Treasury curve 25 bps - 687 bps 38 bps Separate Accounts’ assets 295 Third party appraisal Capitalization rate Exit capitalization rate Discount rate 4.8% 3 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product rate Discount factor 273 bps-512 bps 283 bps GMIB reinsurance contract asset 10,314 Discounted cash flow Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity 1.5% - 5.7% Liabilities: GMIBNLG 5,155 Discounted cash flow Non-performance risk 1.1% GWBL/GMWB 114 Discounted cash flow Lapse Rates 1.0% - 5.7% GIB 30 Discounted cash flow Withdrawal Rates 1.0% - 5.7% GMAB 20 Discounted cash flow Lapse Rates 1.0% - 11.0% Excluded from the tables above at December 31, 2017 and 2016 , respectively, are approximately $ 370 million and $594 million Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. The fair value measurements of these Level 3 investments comprise approximately 24.0 % and 37.5% of total assets classified as Level 3 and represent only 0.2 % and 0.4% of total assets measured at fair value on a recurring basis at December 31, 2017 and 2016 , respectively. These investments primarily consist of certain privately placed debt securities with limited trading activity, including commercial mortgage, residential mortgage and asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in the Company’s reporting significantly higher or lower fair value measurements for these Level 3 investments. Included in the tables above at December 31, 2017 and 2016 , respectively, are approximately $ 842 million and $691 million fair value of privately placed, available-for-sale corporate debt securities classified as Level 3. The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique, representing approximately 73.9 % and 81.8% of the total fair value of Level 3 securities in the corporate fixed maturities asset class. The significant unobservable input to the matrix pricing model valuation technique is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. The significant unobservable input to the market comparable company valuation technique is the discount rate. Generally, a significant increase (decrease) in the discount rate would result in significantly lower (higher) fair value measurements of these securities. Residential mortgage-backed securities classified as Level 3 primarily consist of non-agency paper with low trading activity. Included in the tables above at December 31, 2017 and 2016 , there were no Level 3 securities that were determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Generally, a change in spreads would lead to directionally inverse movement in the fair value measurements of these securities. Asset-backed securities classified as Level 3 primarily consist of non-agency mortgage loan trust certificates, including subprime and Alt-A paper, credit tenant loans, and equipment financings. Included in the tables above at December 31, 2017 and 2016 , are approximately 4.5 % and 8.3% , respectively, of the total fair value of these Level 3 securities that is determined by application of a matrix pricing model and for which the spread over the U.S. Treasury curve is the most significant unobservable input to the pricing result. Significant increases (decreases) in spreads would result in significantly lower (higher) fair value measurements. Included in other equity investments classified as Level 3 are reporting entities’ venture capital securities in the Technology, Media and Telecommunications industries. The fair value measurements of these securities include significant unobservable inputs including an enterprise value to revenue multiples and a discount rate to acco |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance Liabilities | INSURANCE LIABILITIES A) Variable Annuity Contracts – GMDB, GMIB, GIB and GWBL and Other Features The Company has certain variable annuity contracts with GMDB, GMIB, GIB and GWBL and other features in-force that guarantee one of the following: • Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); • Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); • Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; • Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit, which may include either a five year or an annual reset; or • Withdrawal: the withdrawal is guaranteed up to a maximum amount per year for life. The following table summarizes the direct GMDB and GMIB with no NLG features liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2015 $ 1,725 $ 4,702 $ 6,427 Paid guarantee benefits (313 ) (89 ) (402 ) Other changes in reserve 1,579 (727 ) 852 Balance at December 31, 2015 2,991 3,886 6,877 Paid guarantee benefits (357 ) (281 ) (638 ) Other changes in reserve 531 265 796 Balance at December 31, 2016 3,165 3,870 7,035 Paid guarantee benefits (354 ) (151 ) (505 ) Other changes in reserve 1,269 1,083 2,352 Balance at December 31, 2017 $ 4,080 $ 4,802 $ 8,882 The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in amounts due from reinsurers: GMDB (in millions) Balance at January 1, 2015 $ 833 Paid guarantee benefits (148 ) Other changes in reserve 745 Balance at December 31, 2015 1,430 Paid guarantee benefits (174 ) Other changes in reserve 302 Balance at December 31, 2016 1,558 Paid guarantee benefits (171 ) Other changes in reserve 643 Balance at December 31, 2017 $ 2,030 The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at December 31, 2017 and 2016 : December 31, 2017 2016 (In millions) GMIBNLG (1) $ 4,056 $ 5,155 SCS, MSO, IUL features (2) 1,698 887 GWBL/GMWB (1) 130 114 GIB (1) (27 ) 30 GMAB (1) 5 20 Total Embedded and Freestanding derivative liability $ 5,862 $ 6,206 GMIB reinsurance contract asset (3) $ 10,488 $ 10,314 (1) Reported in future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. (2) Reported in policyholders' account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. The December 31, 2017 values for direct variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of utilization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Return of Premium Ratchet Roll-Up Combo Total (Dollars In millions) GMDB: Account values invested in: General Account $ 13,820 $ 109 $ 65 $ 200 $ 14,194 Separate Accounts $ 45,816 $ 9,556 $ 3,516 $ 35,784 $ 94,672 Net amount at risk, gross $ 169 $ 57 $ 1,961 $ 15,340 $ 17,527 Net amount at risk, net of amounts reinsured $ 169 $ 39 $ 1,344 $ 6,294 $ 7,846 Average attained age of contractholders’ 51.3 66.3 72.9 68.2 55.1 Percentage of contractholders’ over age 70 9.6 % 40.2 % 63.1 % 46.5 % 18.1 % Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% GMIB: Account values invested in: General Account N.A. N.A. $ 23 $ 293 $ 316 Separate Accounts N.A. N.A. $ 21,195 $ 41,091 $ 62,286 Net amount at risk, gross N.A. N.A. $ 917 $ 6,337 $ 7,254 Net amount at risk, net of amounts reinsured N.A. N.A. $ 287 $ 1,561 $ 1,848 Weighted average years remaining until utilization N.A. N.A. 1.6 0.7 0.8 Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% For more information about the reinsurance programs of the Company’s GMDB and GMIB exposure, see “Reinsurance Agreements” in Note 9. • Variable Annuity In-force management. The Company proactively manages its variable annuity in-force business. Since in 2012, the Company has initiated several programs to purchase from certain policyholders the GMDB and GMIB riders contained in their Accumulator contracts. In March 2016, a program to give policyholders an option to elect a full buyout of their rider or a new partial (50)% buyout of their rider expired. The Company believes that buyout programs are mutually beneficial to both the Company and policyholders who no longer need or want all or part of the GMDB or GMIB rider. To reflect the actual payments from the buyout program that expired in March 2016 the Company recognized a $ 4 million increase to Net income in 2016. B) Separate Account Investments by Investment Category Underlying GMDB and GMIB Features The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Because variable annuity contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not mutually exclusive: Investment in Variable Insurance Trust Mutual Funds December 31, 2017 2016 (in millions) GMDB: Equity $ 78,069 $ 69,625 Fixed income 2,234 2,483 Balanced 14,084 14,434 Other 285 348 Total $ 94,672 $ 86,890 GMIB: Equity $ 50,429 $ 45,931 Fixed income 1,568 1,671 Balanced 10,165 10,097 Other 124 149 Total $ 62,286 $ 57,848 C) Hedging Programs for GMDB, GMIB, GIB and Other Features Beginning in 2003, the Company established a program intended to hedge certain risks associated first with the GMDB feature and, beginning in 2004, with the GMIB feature of the Accumulator series of variable annuity products. The program has also been extended to cover other guaranteed benefits as they have been made available. This program utilizes derivative contracts, such as exchange-traded equity, currency and interest rate futures contracts, total return and/or equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits’ exposures attributable to movements in the capital markets. At the present time, this program hedges certain economic risks on products sold from 2001 forward, to the extent such risks are not externally reinsured. At December 31, 2017 , the total account value and net amount at risk of the hedged variable annuity contracts were $ 55,771 million and $ 6,893 million, respectively, with the GMDB feature and $ 42,077 million and $ 2,613 million, respectively, with the GMIB and GIB feature. These programs do not qualify for hedge accounting treatment. Therefore, gains (losses) on the derivatives contracts used in these programs, including current period changes in fair value, are recognized in net derivative gains (loss) in the period in which they occur, and may contribute to income (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - NLG The NLG feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The NLG remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. The following table summarizes the NLG liabilities, reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability Reinsurance Ceded Net (in millions) Balance at January 1, 2015 $ 979 $ (526 ) $ 453 Other changes in reserves 165 16 181 Balance at December 31, 2015 1,144 (510 ) 634 Other changes in reserves 53 (99 ) (46 ) Balance at December 31, 2016 1,197 (609 ) 588 Paid Guaranteed Benefits (24 ) — (24 ) Other changes in reserves (487 ) (55 ) (542 ) Balance at December 31, 2017 $ 686 $ (664 ) $ 22 |
REINSURANCE AGREEMENTS
REINSURANCE AGREEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Agreements | REINSURANCE AGREEMENTS The Company assumes and cedes reinsurance with unaffiliated insurance companies. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Ceded reinsurance does not relieve the originating insurer of liability. The following table summarizes the effect of reinsurance: 2017 2016 2015 (in millions) Direct premiums $ 880 $ 850 $ 818 Reinsurance assumed 195 206 207 Reinsurance ceded (171 ) (176 ) (173 ) Premiums $ 904 $ 880 $ 852 Policy charges and fee income ceded $ 718 $ 640 $ 645 Policyholders’ Benefits Ceded $ 694 $ 942 $ 527 Ceded Reinsurance The Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains on a per life basis up to $25 million for single lives and $30 million for joint lives with the excess 100% reinsured. The Company also reinsures risk on certain substandard underwriting risks and in certain other cases. At December 31, 2017 , the Company had reinsured with non-affiliates in the aggregate approximately 3.5 % of its current exposure to the GMDB obligation on annuity contracts in-force and, subject to certain maximum amounts or caps in any one period, approximately 16.8 % of its current liability exposure resulting from the GMIB feature. For additional information, see Note 8 “Insurance Liabilities.” Based on management’s estimates of future contract cash flows and experience, the estimated net fair values of the ceded GMIB reinsurance contracts, considered derivatives at December 31, 2017 and 2016 were $ 10,488 million and $10,314 million , respectively. The increases (decreases) in estimated fair value were $174 million , $(268) million and $(141) million for 2017 , 2016 and 2015 , respectively. At December 31, 2017 and 2016 , third-party reinsurance recoverables related to insurance contracts amounted to $ 2,420 million and $2,458 million , respectively. Additionally, $ 1,904 million and $ 2,381 million of the amounts due to reinsurers related to three specific reinsurers, which were Zurich Insurance Company Ltd. (AA - rating), Connecticut General Life Insurance Company (AA- rating) and Paul Revere Life Insurance Company (A-rating). A contingent liability exists with respect to reinsurance should the reinsurers be unable to meet their obligations, the Company continues to have the direct obligation. Reinsurance payables related to insurance contracts were $ 134 million and $125 million , at December 31, 2017 and 2016 , respectively. The Company cedes substantially all of its run-off health business to a third party insurer. Insurance liabilities ceded totaled $ 71 million and $82 million at December 31, 2017 and 2016 , respectively. The Company also cedes a portion of its extended term insurance and paid-up life insurance and substantially all of its individual disability income business through various coinsurance agreements. Assumed Reinsurance In addition to the sale of insurance products, the Company currently acts as a professional retrocessionaire by assuming risk from professional reinsurers. The Company assumes accident, life, health, aviation, special risk and space risks by participating in or reinsuring various reinsurance pools and arrangements. Reinsurance assumed reserves were $ 716 million and $734 million at December 31, 2017 and 2016 , respectively. For affiliated reinsurance agreements see “Related Party Transactions” in Note 11. |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term and long-term debt consists of the following: December 31, 2017 2016 (in millions) Short-term debt: AB revolving credit facility (with interest rate of 2.4%) $ 75 $ — AB commercial paper (with interest rates of 1.6% and 0.9%) 491 513 Total short-term debt $ 566 $ 513 Long-term debt: AXA Equitable non-recourse mortgage debt (with interest rate of 4.1%) 82 — AXA Equitable non-recourse mortgage debt (with interest rate of 3.9%) 121 — Total Short-term and Long-term debt $ 769 $ 513 Short-term Debt On December 1, 2016, AB entered into a $ 200 million, unsecured 364 -day senior revolving credit facility (the “AB Revolver”) with a leading international bank and the other lending institutions that may be party thereto. On November 29, 2017, as part of an amendment and restatement, the maturity date of the AB Revolver was extended from November 29, 2017 to November 28, 2018. There were no other significant changes included in the amendment. The AB Revolver is available for AB’s and SCB LLC’s business purposes, including the provision of additional liquidity to meet funding requirements primarily related to SCB LLC’s operations. Both AB and SCB LLC can draw directly under the AB Revolver and management expects to draw on the AB Revolver from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Revolver. The AB Revolver contains affirmative, negative and financial covenants which are identical to those of the AB Credit Facility described below. As of December 31, 2017 , AB had $ 75 million outstanding under the AB Revolver with an interest rate of 2.4% . As of December 31, 2017 and 2016, AB had $ 491 million and $ 513 million, respectively, in commercial paper outstanding with weighted average interest rates of approximately 1.6% and 0.9% , respectively. Long-term Debt As of December 31, 2017, AXA Equitable had $ 121 million and $ 82 million in mortgage debt outstanding related to two consolidated real estate joint ventures due August 2027 and September 2022, respectively, with weighted average interest rates of approximately 3.9% and 4.1% , respectively. Credit Facilities Credit facilities available to the Company consist of following: Date Available to Company Facilities Start Maturity Total Facility Revolver Swingline (in millions) Syndicated Facilities: AB Revolver 11/29/2017 11/28/2018 $ 200 $ 200 $ — AB Credit Facility 10/22/2014 10/22/2019 $ 1,000 $ 1,000 $ 240 Additional Credit Facilities Available AB has a $ 1,000 million committed, unsecured senior revolving credit facility (“AB Credit Facility”) with a group of commercial banks and other lenders, which matures on October 22, 2019. The AB Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $ 250 million; any such increase is subject to the consent of the affected lenders. The AB Credit Facility is available for AB and SCB LLC’s business purposes, including the support of AB’s $ 1,000 million commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2017 , AB and SCB LLC were in compliance with these covenants. The AB Credit Facility also includes customary events of default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender’s commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility automatically would become immediately due and payable, and the lender’s commitments automatically would terminate. Amounts under the AB Credit Facility may be borrowed, repaid and re-borrowed by AB and SBC LLC from time to time until the maturity of the facility. Voluntary prepayments and commitment reductions requested by AB and SBC LLC are permitted at any time without fee (other than customary breakage costs relating to the prepayment of any drawn loans) upon proper notice and subject to a minimum dollar requirement. Borrowings under the AB Credit Facility bear interest at a rate per annum, which will be, at AB and SBC LLC'S option, a rate equal to an applicable margin, which is subject to adjustment based on the credit ratings of AB, plus one of the following indexes: London Interbank Offered Rate; a floating base rate; or the Federal Funds rate. As of December 31, 2017 , AB and SCB LLC had no amounts outstanding under the AB Credit Facility and did not draw upon the AB Credit Facility in 2017. SCB LLC has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit SCB LLC to borrow up to an aggregate of approximately $ 175 million, with AB named as an additional borrower, while line one has no stated limit. As of December 31, 2017 , SCB LLC had no bank loans outstanding. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Loans to Affiliates. In September 2007, AXA issued a $650 million 5.4% Senior Unsecured Note to AXA Equitable. The note pays interest semi-annually and was scheduled to mature on September 30, 2012. In March 2011, the maturity date of the note was extended to December 30, 2020 and the interest rate was increased to 5.7% . In June 2009, AXA Equitable sold real estate property valued at $1,100 million to a non-insurance subsidiary of AXA Financial in exchange for $700 million in cash and $400 million in 8.0% ten year term mortgage notes on the property reported in Loans to affiliates in the consolidated balance sheets. In November 2014, this loan was refinanced and a new $382 million , seven year term loan with an interest rate of 4.0% was issued. In January 2016, the property was sold and a portion of the proceeds was used to repay the $382 million term loan outstanding and a $65 million prepayment penalty. In third quarter 2013, AXA Equitable purchased AXA RE Arizona Company’s (“AXA RE Arizona”) $50 million note receivable from AXA. AXA RE Arizona is a wholly-owned subsidiary of AXA Financial. This note pays interest semi-annually at an interest rate of 5.4% and matures on December 15, 2020. Loans from Affiliates. In 2005, AXA Equitable issued a surplus note to AXA Financial in the amount of $325 million with an interest rate of 6.0% which was scheduled to mature on December 1, 2035. In December 2014, AXA Equitable repaid this note at par value plus interest accrued of $1 million to AXA Financial. In December 2008, AXA Equitable issued a $500 million callable 7.1% surplus note to AXA Financial. The note paid interest semi-annually and was scheduled to mature on December 1, 2018. In June 2014, AXA Equitable repaid this note at par value plus interest accrued of $3 million to AXA Financial. Cost sharing and service agreements. The Company provides personnel services, employee benefits, facilities, supplies and equipment under service agreements with AXA Financial, certain AXA Financial subsidiaries and affiliates to conduct their business. In addition, the Company participates in certain cost sharing and service agreements with AXA and other nonconsolidated affiliates (collectively, "AXA Affiliates"), including technology and professional development arrangements. The costs related to the cost sharing and service agreements are allocated based on methods that management believes are reasonable, including a review of the nature of such costs and activities performed to support each company. Affiliated distribution expense. AXA Equitable pays commissions and fees to AXA Distribution Holding and its subsidiaries (“AXA Distribution”) for sales of insurance products. The commissions and fees paid to AXA Distribution are based on various selling agreements. Affiliated distribution revenue. AXA Distributors, a subsidiary of AXA Equitable, receives commissions and fee revenue from MONY America for sales of its insurance products. The commissions and fees earned from MONY America are based on the various selling agreements. Investment management and service fees . AXA Equitable FMG, a subsidiary of AXA Equitable, provides investment management and administrative services to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts, all of which are considered related parties. Investment management and service fees earned are calculated as a percentage of assets under management and are recorded as revenue as the related services are performed. Investment management and service expenses . AXA Investment Managers Inc. (“AXA IM”) and AXA Rosenberg Investment Management LLC ("AXA Rosenberg") provide sub-advisory services with respect to certain portfolios of EQAT, VIP Trust and the Other AXA Trusts. Also, AXA IM and AXA Real Estate Investment Managers ("AXA REIM") manage certain General Account investments. Fees paid to these affiliates are based on investment advisory service agreements with each affiliate. The table below summarizes the expenses reimbursed to/from the Company and fees received/paid by the Company in connection with agreements with AXA Affiliates described above for 2017 , 2016 and 2015 . 2017 2016 2015 (in millions) Expenses paid or accrued for by the Company: General services provided by AXA Affiliates $ 186 $ 188 $ 164 Paid or accrued commission and fee expenses for sale of insurance products by AXA Distribution 608 587 603 Investment management services provided by AXA IM, AXA REIM and AXA Rosenberg 5 2 1 Total 799 777 768 Revenue received or accrued for by the Company: General services provided to AXA Affiliates 456 531 491 Amounts received or accrued for commissions and fees earned for sale of MONY America's insurance products 43 43 57 Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts 720 674 707 Total $ 1,219 $ 1,248 $ 1,255 Insurance Related Transactions. The Company has implemented capital management actions to mitigate statutory reserve strain for certain level term and UL policies with secondary guarantees and GMDB and GMIB riders on the Accumulator ® products through reinsurance transactions with AXA RE Arizona. The Company currently reinsures to AXA RE Arizona, a 100% quota share of all liabilities for variable annuities with enhanced GMDB and GMIB riders issued on or after January 1, 2006 and in-force on September 30, 2008. AXA RE Arizona also reinsures a 90% quota share of level premium term insurance issued by AXA Equitable on or after March 1, 2003 through December 31, 2008 and lapse protection riders under UL insurance policies issued by AXA Equitable on or after June 1, 2003 through June 30, 2007. The reinsurance arrangements with AXA RE Arizona provide important capital management benefits to AXA Equitable. At December 31, 2017 and 2016 , the Company’s GMIB reinsurance asset with AXA RE Arizona had carrying values of $ 8,594 million and $8,578 million , respectively, and is reported in Guaranteed minimum income benefit reinsurance asset, at fair value in the consolidated balance sheets. Ceded premiums and policy fee income in 2017 , 2016 and 2015 totaled approximately $ 454 million, $447 million and $453 million , respectively. Ceded claims paid in 2017 , 2016 and 2015 were $ 213 million, $65 million and $54 million , respectively. AXA Equitable receives statutory reserve credits for reinsurance treaties with AXA RE Arizona to the extent that AXA RE Arizona holds assets in an irrevocable trust (the “Trust”) ($ 9,786 million at December 31, 2017 ) and/or letters of credit ($ 3,990 million at December 31, 2017 ), out of which $250 million letters of credit are guaranteed by AXA Financial while the rest of the letters of credit are guaranteed by AXA. Under the reinsurance transactions, AXA RE Arizona is permitted to transfer assets from the Trust under certain circumstances. The level of statutory reserves held by AXA RE Arizona fluctuate based on market movements, mortality experience and policyholder behavior. Increasing reserve requirements may necessitate that additional assets be placed in trust and/or securing additional letters of credit, which could adversely impact AXA RE Arizona’s liquidity. Various AXA affiliates, including AXA Equitable, cede a portion of their life, health and catastrophe insurance business through reinsurance agreements to AXA Global Life, an affiliate. AXA Global Life, in turn, retrocedes a quota share portion of these risks prior to 2008 to AXA Equitable on a one -year term basis. AXA Life Insurance Company Ltd (Japan), an AXA subsidiary, cedes a portion of their annuity business to AXA Equitable. Various AXA Financial affiliates cede a portion of their life business through excess of retention treaties to AXA Equitable on a yearly renewal term basis. Premiums earned in 2017 , 2016 and 2015 were $ 20 million, $20 million and $21 million , respectively. Claims and expenses paid in 2017 , 2016 and 2015 were $ 5 million, $6 million and $5 million , respectively. At December 31, 2017 and 2016 , affiliated reinsurance recoverables related to insurance contracts amounted to $ 2,659 million and $2,177 million , respectively. In April 2015, AXA entered into a mortality catastrophe bond based on general population mortality in each of France, Japan and the U.S. The purpose of the bond is to protect AXA against a severe worldwide pandemic. AXA Equitable entered into a stop loss reinsurance agreement with AXA Global Life to protect AXA Equitable with respect to a deterioration in its claim experience following the occurrence of an extreme mortality event. Premiums and expenses associated with the reinsurance agreement were $ 4 million and $4 million in 2017 and 2016 , respectively. Investment management and service fees includes certain revenues for services provided by AB to mutual funds sponsored by AB. These revenues are described below: 2017 2016 2015 (in millions) Investment management and services fees $ 1,148 $ 999 $ 1,056 Distribution revenues 398 372 415 Other revenues - shareholder servicing fees 73 76 85 Other revenues - other 7 6 5 Other Transactions . Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable Qualified Pension Plan (“AXA Equitable QP”) was transferred from AXA Equitable to AXA Financial under terms of an Assumption Agreement. For additional information regarding this transaction see “Employee Benefit Plans” in Note 12. In 2016, AXA Equitable sold artwork to AXA Financial and recognized a $20 million gain on the sale. AXA Equitable used the proceeds received from this sale to make a $21 million donation to AXA Foundation, Inc. (the “Foundation”). The Foundation was organized for the purpose of distributing grants to various tax-exempt charitable organizations and administering various matching gift programs for AXA Equitable, its subsidiaries and affiliates. In 2016, AXA Equitable and Saum Sing LLC (“Saum Sing”), an affiliate, formed Broad Vista Partners LLC (“Broad Vista”), of which AXA Equitable owns 70% and Saum Sing owns 30% . On June 30, 2016, Broad Vista entered into a real estate joint venture with a third party and AXA Equitable invested approximately $25 million , reported in Other equity investments in the consolidated balance sheets. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS AXA Equitable Retirement Plans AXA Equitable sponsors the AXA Equitable 401(k) Plan, a qualified defined contribution plan for eligible employees and financial professionals. The plan provides for both a company contribution and a discretionary profit-sharing contribution. Expenses associated with this 401(k) Plan were $ 15 million, $16 million and $18 million in 2017 , 2016 and 2015 , respectively. AXA Equitable also sponsors the AXA Equitable Retirement Plan (the “AXA Equitable QP”), a frozen qualified defined benefit pension plan covering its eligible employees and financial professionals. This pension plan is non-contributory and its benefits are generally based on a cash balance formula and/or, for certain participants, years of service and average income over a specified period in the plan. Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable QP was transferred from AXA Equitable to AXA Financial under the terms of an Assumption Agreement (the “Assumption Transaction”). Immediately preceding the Assumption Transaction, the AXA Equitable QP had plan assets (held in a trust for the exclusive benefit of plan participants) with market value of approximately $2,236 million and liabilities of approximately $2,447 million . The assumption by AXA Financial and resulting extinguishment of AXA Equitable’s primary liability for its obligations under the AXA Equitable QP was recognized by AXA Equitable as a capital contribution in the amount of $211 million ( $137 million , net of tax), reflecting the non-cash settlement of its net unfunded liability for the AXA Equitable QP at December 31, 2015. In addition, approximately $1,193 million ( $772 million , net of tax) unrecognized net actuarial losses related to the AXA Equitable QP and accumulated in AOCI were also transferred to AXA Financial due to the Assumption Transaction. AXA Equitable remains secondarily liable for its obligations under the AXA Equitable QP and would recognize such liability in the event AXA Financial does not perform under the terms of the Assumption Agreement. AB Retirement Plans AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000 (the “AB Plan”). Benefits under the AB Plan are based on years of credited service and average final base salary. AB uses a December 31 measurement date for the AB Plan. Funding Policy The funding policy of the Company for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended by the Pension Protection Act of 2006 (the “Pension Act”), and not greater than the maximum the Company can deduct for federal income tax purposes . Based on the funded status of the plans at December 31, 2016, AB contributed $4 million to the AB Plan during 2017. AB currently estimates that it will contribute $ 5 million to the AB Plan during 2018. No minimum funding contributions under ERISA are required to be made to the AXA Equitable plans, and management does not expect to make any discretionary contribution to those plans during 2018. Net Periodic Pension Expense Components of net periodic pension expense for the Company’s qualified plans were as follows: 2017 2016 2015 (in millions) Service cost $ — $ — $ 8 Interest cost 6 6 93 Expected return on assets (5 ) (5 ) (159 ) Actuarial (gain) loss 1 1 1 Net amortization — — 110 Net Periodic Pension Expense $ 2 $ 2 $ 53 Changes in PBO Changes in the PBO of the Company’s qualified plans were comprised of: December 31, 2017 2016 (in millions) Projected benefit obligation, beginning of year $ 132 $ 129 Interest cost 6 6 Actuarial (gains) losses 14 2 Benefits paid (6 ) (5 ) Projected Benefit Obligation 146 132 Transfer to AXA Financial — — Projected Benefit Obligation, End of Year $ 146 $ 132 Changes in Plan Assets/Funded Status The following table discloses the changes in plan assets and the funded status of the Company’s qualified pension plans. The fair value of plan assets supporting the AXA Equitable QP liability was not impacted by the Assumption Transaction and the payment of plan benefits will continue to be made from the plan assets held in trust for the exclusive benefit of plan participants. December 31, 2017 2016 (in millions) Pension plan assets at fair value, beginning of year $ 87 $ 86 Actual return on plan assets 14 4 Contributions 4 — Benefits paid and fees (4 ) (3 ) Pension plan assets at fair value, end of year 101 87 PBO 146 132 Excess of PBO Over Pension Plan Assets (45 ) (45 ) Transfer to AXA Financial $ — $ — Excess of PBO Over Pension Plan Assets, end of year $ (45 ) $ (45 ) Accrued pension costs of $ (45) million and $ (45) million at December 31, 2017 and 2016 , respectively, were recognized in the accompanying consolidated balance sheets to reflect the funded status of these plans. The aggregate PBO/accumulated benefit obligation (“ABO”) and fair value of pension plan assets for plans with PBOs/ABOs in excess of their assets were $ 146 million and $ 101 million, respectively, at December 31, 2017 and $132 million and $87 million, respectively, at December 31, 2016 . Unrecognized Net Actuarial (Gain) Loss The following table discloses the amounts included in AOCI at December 31, 2017 and 2016 that have not yet been recognized as components of net periodic pension cost. December 31, 2017 2016 (in millions) Unrecognized net actuarial (gain) loss $ 55 $ 51 Unrecognized prior service cost (credit) 1 1 Total $ 56 $ 52 The estimated net actuarial (gain) loss and prior service cost (credit) expected to be reclassified from AOCI and recognized as components of net periodic pension cost over the next year are approximately $ 1.6 million and $ 23,959 , respectively. Pension Plan Assets The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the fair values of the Company’s invested assets that are measured at fair value on a recurring basis. See Note 2 for a description of the fair value hierarchy. At December 31, 2017 and 2016 , the total fair value of plan assets for the qualified pension plans was approximately $ 101 million and $87 million , respectively, all supporting the AB qualified retirement plan. December 31, 2017 2016 Fixed Maturities 15.0 % 18.0 % Equity Securities 66.0 61.0 Other 19.0 21.0 Total 100.0 % 100.0 % December 31, 2017: Level 1 Level 2 Level 3 Total Asset Categories (in millions) Common and preferred equity $ 24 $ — $ — $ 24 Mutual funds 55 — — 55 Total assets in the fair value hierarchy 79 — — 79 Investments measured at net assets value — — — 22 Investments at fair value $ 79 $ — $ — $ 101 December 31, 2016: Asset Categories Common and preferred equity $ 21 $ — $ — $ 21 Mutual funds 47 — — 47 Total assets in the fair value hierarchy 68 — — 68 Investments measured at net assets value — — — 19 Investments at fair value $ 68 $ — $ — $ 87 Plan asset guidelines for the AB qualified retirement plan specify an allocation weighting of 30% to 60% for return seeking investments (target of 40% ), 10% to 30% for risk mitigating investments (target of 15% ), 0% to 25% for diversifying investments (target of 17% ) and 18% to 38% for dynamic asset allocation (target of 28% ). Investments in mutual funds, hedge funds (and other alternative investments), and other commingled investment vehicles are permitted under the guidelines. Investments are permitted in overlay portfolios (regulated mutual funds) to complement the long-term strategic asset allocation. This portfolio overlay strategy is designed to manage short-term portfolio risk and mitigate the effect of extreme outcomes. Assumptions Discount Rate The benefits obligations and related net periodic costs of the Company’s qualified and non-qualified pension plans are measured using discount rate assumptions that reflect the rates at which the plans’ benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under each of the plans are discounted using a published high-quality bond yield curve as a practical expedient for a matching bond approach. Beginning in 2014, AXA Equitable uses the Citigroup Pension Above-Median-AA Curve (the “Citigroup Curve”) for this purpose. The Company has concluded that an adjustment to the Citigroup Curve is not required after comparing the projected benefit streams of the plans to the cash flows and duration of the reference bonds. At December 31, 2015, AXA Equitable refined its calculation of the discount rate to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient. Use of the discrete approach at December 31, 2015 produced a discount rate for the AXA Equitable Life QP of 3.98% as compared to a 4.00% aggregate rate, thereby increasing the net unfunded PBO of the AXA Equitable Life QP by approximately $4 million in 2015. Mortality At December 31, 2015, AXA Equitable concluded to change the mortality projection scale used to measure and report the Company’s defined benefit plan obligations from 125% Scale AA to Scale BB, representing a reasonable “fit” to the results of the AXA Equitable QP mortality experience study and a closer alignment to current thinking with respect to projections of mortality improvements. In October 2016, the Society of Actuaries (“SOA”) released MP-2016, its second annual update to the “gold standard” mortality projection scale issued by the SOA in 2014, reflecting three additional years of historical U.S. population historical mortality data (2012 through 2014). Similar to its predecessor (MP-2015), MP-2016 indicated that, while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested both by MP-2015 and MP-2014. The Company considered this new data as well as observations made from current practice regarding how to best estimate improved trends in life expectancies and concluded to continue using the RP-2000 base mortality table projected on a full generational basis with Scale BB mortality improvements for purposes of measuring and reporting its consolidated defined benefit plan obligations at December 31, 2017. Actuarial computations used to determine net periodic costs were made utilizing the following weighted-average assumptions: Year ended December31, 2017 2016 2015 Discount rate on benefit obligations 4.55 % 4.75 % 4.30 % Expected long-term rate of return on plan assets 6.0 % 6.5 % 7.0 % In developing the expected long-term rate of return on plan assets of 6.0 %, management considered the historical returns and future expectations for returns for each asset category, as well as the target asset allocation of the portfolio. The expected long-term rate of return on assets is based on weighted average expected returns for each asset class. As of December 31, 2017 , the mortality projection assumption has been updated to use the generational MP-2017 improvement scale. Previously, mortality was projected generationally using the MP-2016 improvements scale. The base mortality assumption remains at the RP-2014 white-collar mortality table for males and females adjusted back to 2006 using the MP-2014 improvement scale. The Internal Revenue Service (“IRS”) recently updated the mortality tables used to determine lump sums. For fiscal year-end 2017, we reflected the actual IRS table for 2018 with assumed annual updates for years 2019 and later on the base table (RP-2014 backed off to 2006) with the assumed projection scale of MP-2017. The following table discloses assumptions used to measure the Company’s pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2017 and 2016 . As described above, AXA Equitable refined its calculation of the discount rate for the year ended December 31, 2015 valuation of its defined benefits plans to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient. December 31, 2017 2016 Discount rates: Other AXA Equitable defined benefit plans 3.17 % 3.48 % AB Qualified Retirement Plan 4.55 % 4.75 % Periodic cost 3.48 % 3.7 % Expected long-term rates of return on pension plan assets (periodic cost) 6.0 % 6.5 % The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Future Benefits The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2018, and in the aggregate for the five years thereafter. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2017 and include benefits attributable to estimated future employee service. Pension Benefits (in millions) 2018 $ 7 2019 7 2020 5 2021 6 2022 8 Years 2023-2027 40 AXA Financial Assumptions In addition to the Assumption Transaction, since December 31, 1999, AXA Financial has legally assumed primary liability from AXA Equitable for all current and future liabilities of AXA Equitable under certain employee benefit plans that provide participants with medical, life insurance, and deferred compensation benefits; AXA Equitable remains secondarily liable. AXA Equitable reimburses AXA Financial, Inc. for costs associated with all of these plans, as described in Note 12. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PROGRAMS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based and Other Compensation Programs | SHARE-BASED AND OTHER COMPENSATION PROGRAMS AXA and AXA Financial sponsor various share-based compensation plans for eligible employees, financial professionals and non-officer directors of AXA Financial and its subsidiaries, including the Company. AB also sponsors its own unit option plans for certain of its employees. Compensation costs for 2017 , 2016 and 2015 for share-based payment arrangements as further described herein are as follows: 2017 2016 2015 (in millions) Performance Shares $ 18 $ 17 $ 18 Stock Options (Other than AB stock options) 1 1 1 AXA Shareplan 9 14 16 Restricted Awards 185 154 174 Other Compensation plans (1) 2 1 2 Total Compensation Expenses $ 215 $ 187 $ 211 (1) Other compensation plans include Stock Appreciation Rights, Restricted Stock and AXA Miles. U.S. employees are granted AXA ordinary share options under the Stock Option Plan for AXA Financial Employees and Associates (the “Stock Option Plan”) and are granted AXA performance shares under the AXA International Performance Shares Plan (the “Performance Share Plan”). Prior to 2013, they were granted performance units under AXA's Performance Unit Plan. Non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) are granted restricted AXA ordinary shares (prior to 2011, AXA ADRs) and unrestricted AXA ordinary shares (prior to March 15, 2010, AXA ADRs) annually under The Equity Plan for Directors. They also were granted ADR stock options in years prior to 2014. Performance Units and Performance Shares 2017 Grant. On June 21, 2017, under the terms of the Performance Share Plan, AXA awarded approximately 1.7 million unearned performance shares to employees of the Company. For employees in our retirement and protection businesses, the extent to which 2017-2019 cumulative performance targets measuring the performance of AXA and the retirement and protection businesses are achieved will determine the number of performance shares earned, which may vary between 0 % and 130 % of the number of performance shares at stake. The performance shares earned during this performance period will vest and be settled on the fourth anniversary of the award date. The plan will settle in AXA ordinary shares to all participants. In 2017, the expense associated with the June 21, 2017 grant of performance shares was approximately $ 9 million. Settlement of 2014 Grant in 2017 . On March 24, 2017, share distributions totaling of approximately $ 21 million were made to active and former AXA Equitable employees in settlement of 2.3 million performance shares earned under the terms of the AXA Performance Share Plan 2014. 2016 Grant . On June 6, 2016, under the terms of the Performance Share Plan, AXA awarded approximately 1.9 million unearned performance shares to employees of AXA Equitable. For employees in our retirement and protection businesses, the extent to which 2017-2019 cumulative performance targets measuring the performance of AXA and the retirement and protection businesses are achieved will determine the number of performance shares earned, which may vary between 0% and 130% of the number of performance shares at stake. The performance shares earned during this performance period will vest and be settled on the fourth anniversary of the award date. The plan will settle in AXA ordinary shares to all participants. In 2017 and 2016, the expense associated with the June 6, 2016 grant of performance shares was approximately $ 4 million and $10 million , respectively. Settlement of 2013 Grant in 2016 . On March 22, 2016, cash distributions of approximately $55 million were made to active and former AXA Equitable employees in settlement of 2.3 million performance units earned under the terms of the 2013 Performance Share Plan. 2015 Grant . On June 19, 2015, under the terms of the Performance Share Plan, AXA awarded approximately 1.7 million unearned performance shares to employees of AXA Equitable. For employees in our retirement and protection businesses, the extent to which 2016-2018 cumulative performance targets measuring the performance of AXA and the retirement and protection businesses are achieved will determine the number of performance shares earned, which may vary between 0% and 130% of the number of performance shares at stake. The performance shares earned during this performance period will vest and be settled on the fourth anniversary of the award date. The plan will settle in AXA ordinary shares to all participants. In 2017 , 2016 and 2015, the expense associated with the June 19, 2015 grant of performance shares was $ 3 million, $4 million and $8 million , respectively. Settlement of 2012 Grant in 2015. On April 2, 2015, cash distributions of approximately $53 million were made to active and former AXA Equitable employees in settlement of approximately 2.3 million performance units earned under the terms of the AXA Performance Unit Plan 2012. The fair values of awards made under these programs are measured at the grant date by reference to the closing price of the AXA ordinary share, and the result, as adjusted for achievement of performance targets and pre-vesting forfeitures, generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards as they are settled in cash. The fair value of performance units earned and reported in Other liabilities in the consolidated balance sheets at December 31, 2017 and 2016 was $ 45 million and $ 31 million, respectively. Approximately 2 million outstanding performance shares are at risk to achievement of 2017 performance criteria, primarily representing all of the performance shares granted June 19, 2015 and the second tranche of performance shares granted March 24, 2014, for which cumulative average 2016-2018 and 2015-2017 performance targets will determine the number of performance units and shares earned under those awards, respectively. Stock Options 2017 Grant. On June 21, 2017, 0.5 million options to purchase AXA ordinary shares were granted to employees of the Company under the terms of the Stock Option Plan at an exercise price of €23.92 . All of those options have a five -year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 21, 2017, 0.3 million are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 21, 2017 have a ten -year term. The weighted average grant date fair value per option award was estimated at €1.78 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 25.05% , a weighted average expected term of 8.8 years, an expected dividend yield of 6.53% and a risk-free interest rate of 0.59% . The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2017, the Company recognized expenses associated with the June 21, 2017 grant of options of approximately $ 0.5 million. 2016 Grant. On June 6, 2016, 0.6 million options to purchase AXA ordinary shares were granted to employees of the Company under the terms of the Stock Option Plan at an exercise price of €21.52 . All of those options have a five -year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 6, 2016, 0.3 million are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 6, 2016 have a ten -year term. The weighted average grant date fair value per option award was estimated at €1.85 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 26.6% , a weighted average expected term of 8.1 years, an expected dividend yield of 6.49% and a risk-free interest rate of 0.33% . The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2017 and 2016, the Company recognized expenses associated with the June 6, 2015 grant of options of approximately $ 0.1 million and $0.6 million , respectively. 2015 Grant . On June 19, 2015, 0.4 million options to purchase AXA ordinary shares were granted to employees of the Company under the terms of the Stock Option Plan at an exercise price of €22.90 . All of those options have a five -year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 19, 2015, 0.2 million are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 19, 2015 have a ten -year term. The weighted average grant date fair value per option award was estimated at €1.58 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 23.68% , a weighted average expected term of 8.2 years, an expected dividend yield of 6.29% and a risk-free interest rate of 0.92% . The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2017, 2016 and 2015, the Company recognized expenses associated with the June 19, 2015 grant of options of approximately $ 0.1 million, $0.1 million and $0.3 million , respectively. Shares Authorized There is no limitation in the Stock Option Plan or the Equity Plan for Directors on the number of shares that may be issued pursuant to option or other grants. A summary of the activity in the AXA and the Company's option plans during 2017 follows: Options Outstanding AXA Ordinary Shares AXA ADRs (2) AB Holding Units Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Options Outstanding at January 1, 2017 9,536 € 21.02 45 $ 24.90 5,085 $ 49.45 Options granted 488 € 23.92 — $ — — $ — Options exercised (1,996 ) € 18.02 (2 ) $ 21.35 (1,180 ) $ 17.04 Options forfeited, net — € — — $ — — $ — Options expired (2,626 ) 33.77 (8 ) 42.62 (823 ) $ 84.96 Options Outstanding at December 31, 2017 5,402 € 17.36 35 $ 20.98 3,082 $ 52.37 Aggregate Intrinsic Value of Options Outstanding (1) € 39,861 (2) $ 303 — Weighted Average Remaining Contractual Term (in years) 4.2 1.2 1.2 Options Exercisable at December 31, 2017 3,406 € 14.68 35 $ 42.62 3,018 $ 52.97 Aggregate Intrinsic Value of Options Exercisable & Expected to Vest (1) € 34,275 $ 303 — Weighted Average Remaining Contractual Term (in years) 2.8 1.2 1.1 (1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2017 of the respective underlying shares over the strike prices of the option awards. (2) AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. No stock options were exercised in 2017 and 2016 . The intrinsic value related to exercises of stock options during 2015 was approximately $0.2 million , resulting in amounts currently deductible for tax purposes of approximately $0.1 million for the period then ended. In 2015 , windfall tax benefits of approximately $0.1 million resulted from exercises of stock option awards. At December 31, 2017 , AXA Financial held 22,974 AXA ordinary shares in treasury at a weighted average cost of $ 23.14 per share, which were designated to fund future exercises of outstanding stock options. For the purpose of estimating the fair value of stock option awards, the Company applies the Black-Scholes model and attributes the result over the requisite service period using the graded-vesting method. A Monte-Carlo simulation approach was used to model the fair value of the conditional vesting feature of the awards of options to purchase AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2017 , 2016 and 2015 , respectively. AXA Ordinary Shares AB Holding Units (1) 2017 2016 2015 2017 2016 2015 Dividend yield 6.53 % 6.49 % 6.29 % N/A 7.10 % 7.10 % Expected volatility 25.05 % 26.60 % 23.68 % N/A 31.00 % 32.10 % Risk-free interest rates 0.59 % 0.33 % 0.92 % N/A 1.30 % 1.50 % Expected life in years 8.83 8.1 8.2 N/A 6.0 6.0 Weighted average fair value per option at grant date $ 2.01 $ 2.06 $ 1.73 N/A $ 2.75 $ 4.13 (1) There were no options to buy AB Holding Units awarded during 2017. As such, the input assumptions for 2017 are not applicable. As of December 31, 2017 , approximately $ 1 million of unrecognized compensation cost related to unvested stock option awards, net of estimated pre-vesting forfeitures, is expected to be recognized by the Company over a weighted average period of 2.8 years. AXA Options Valuation. The fair value of AXA stock options is calculated using the Black-Scholes option pricing model. The expected AXA dividend yield is based on market consensus. AXA share price volatility is estimated on the basis of implied volatility, which is checked against an analysis of historical volatility to ensure consistency. The risk-free interest rate is based on the Euro Swap Rate curve for the appropriate term. The effect of expected early exercise is taken into account through the use of an expected life assumption based on historical data. AB Holding Unit Options Valuation. The fair value of units representing assignments of beneficial ownership of limited partnership interests in AB Holding (“AB Holding Units”) options is calculated using the Black-Scholes option pricing model. The expected cash distribution yield is based on the average of our distribution yield over the past four quarters. The volatility factor represents historical AB Holding Units price volatility over the same period as the expected term. The risk-free interest rate is based on the U.S. Treasury bond yield for the appropriate expected term. The expected term was calculated using the simplified method, due to the lack of sufficient historical data. Restricted Awards Under The Equity Plan for Directors, AXA Financial grants non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) restricted AXA ordinary shares. Likewise, AB awards restricted AB Holding units to independent members of its General Partner. three The Company has also granted restricted AXA ordinary share units (“RSUs”) to certain executives. The RSUs are phantom AXA ordinary shares that, once vested, entitle the recipient to a cash payment based on the average closing price of the AXA ordinary share over the twenty trading days immediately preceding the vesting date. For 2017 , 2016 and 2015 , respectively, the Company recognized compensation costs of $ 185 million, $154 million and $174 million for outstanding restricted stock and RSUs. The fair values of awards made under these programs are measured at the grant date by reference to the closing price of the unrestricted shares, and the result generally is attributed over the shorter of the requisite service period, the performance period, if any, or to the date at which retirement eligibility is achieved and subsequent service no longer is required for continued vesting of the award. Remeasurements of fair value for subsequent price changes are made until settlement and only for RSUs. At December 31, 2017 , approximately 19.1 million restricted AXA ordinary shares and AB Holding unit awards remain unvested. At December 31, 2017 , approximately $ 57 million of unrecognized compensation cost related to these unvested awards, net of estimated pre-vesting forfeitures, is expected to be recognized over a weighted average period of 3.0 years. The following table summarizes restricted AXA ordinary share activity for 2017 . In addition, approximately 11,069 RSUs were granted during 2017 with graded vesting over a weighted average service period of 2.06 years. 4 Shares of Restricted Stock Weighted Average Grant Date Fair Value Unvested as of January 1, 2017 36,306 $ 24.46 Granted 12,929 $ 27.49 Vested 11,819 $ 24.30 Unvested as of December 31, 2017 37,416 $ 24.04 Unrestricted Awards Under the Equity Plan for Directors, AXA Financial provides a stock retainer to non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable). Pursuant to the terms of the retainer, the non-officer directors receive AXA ordinary shares valued at $55,000 each year, paid on a semi-annual basis. These shares are not subject to any vesting requirement or other restriction. AXA Shareplan In 2017, eligible employees of participating AXA Financial subsidiaries (including AXA Equitable) were offered the opportunity to purchase newly issued AXA ordinary shares, subject to plan limits, under the terms of AXA Shareplan 2017. Eligible employees could have reserved a share purchase during the reservation period from August 28, 2017 through September 8, 2017 and could have canceled their reservation or elected to make a purchase for the first time during the retraction/subscription period from October 13, 2017 through October 17, 2017. The U.S. dollar purchase price was determined by applying the U.S. dollar/Euro forward exchange rate on October 11, 2017 to the discounted formula subscription price in Euros. “Investment Option A” permitted participants to purchase AXA ordinary shares at a 20% formula discounted price of €20.19 per share. “Investment Option B” permitted participants to purchase AXA ordinary shares at an 8.98% formula discounted price of €22.96 per share on a leveraged basis with a guaranteed return of initial investment plus a portion of any appreciation in the undiscounted value of the total shares purchased. For purposes of determining the amount of any appreciation, the AXA ordinary share price will be measured over a fifty-two week period preceding the scheduled end date of AXA Shareplan 2017, which is July 1, 2022. All subscriptions became binding and irrevocable on October 17, 2017. The Company recognized compensation expense of $ 9 million , $ 14 million and $ 16 million in 2017 , 2016 and 2015 in connection with each respective year’s offering of AXA stock under the AXA Shareplan, representing the aggregate discount provided to AXA Equitable participants for their purchase of AXA stock under each of those plans, as adjusted for the post-vesting, five -year holding period. AXA Equitable participants in AXA Shareplan 2017 , 2016 and 2015 primarily invested under Investment Option B for the purchase of approximately $ 4 million, $6 million and $5 million AXA ordinary shares, respectively. AXA Miles Program 2012 On March 16, 2012, under the terms of the AXA Miles Program 2012, AXA granted 50 AXA Miles to every employee and eligible financial professional of AXA Group for the purpose of enhancing long-term employee-shareholder engagement. Each AXA Mile represents a phantom share of AXA stock that will convert to an actual AXA ordinary share at the end of a four -year vesting period provided the employee or financial professional remains in the employ of the company or has retired from service. Half of each AXA Miles grant, or 25 AXA Miles, were subject to an additional vesting condition that required improvement in at least one of two AXA performance metrics in 2012 as compared to 2011. This vesting condition has been satisfied. On March 16, 2016, AXA ordinary share distributions totaling approximately $4 million were made to active and former employees of the Company in settlement of approximately 0.2 million AXA Miles earned under the terms of the AXA Miles Program 2012. AB Long-term Incentive Compensation Plans AB maintains several unfunded long-term incentive compensation plans for the benefit of certain eligible employees and executives. The AB Capital Accumulation Plan was frozen on December 31, 1987 and no additional awards have been made, however, ACMC, LLC (“ACMC”), an indirect, wholly-owned subsidiary of the Company, is obligated to make capital contributions to AB in amounts equal to benefits paid under this plan as well as other assumed contractual unfunded deferred compensation arrangements covering certain executives. Prior to changes implemented by AB in fourth quarter 2011, as further described below, compensation expense for the remaining active plans was recognized on a straight-line basis over the applicable vesting period. Prior to 2009, participants in these plans designated the percentages of their awards to be allocated among notional investments in AB Holding Units or certain investment products (primarily mutual funds) sponsored by AB. Beginning in 2009, annual awards granted under the Amended and Restated AB Incentive Compensation Award Program were in the form of restricted AB Holding Units. AB engages in open-market purchases of AB Holding Units to help fund anticipated obligations under its incentive compensation award program, for purchases of AB Holding Units from employees and other corporate purposes. During 2017 and 2016 , AB purchased 9 million and 11 million Holding units for $ 220 million and $237 million respectively. These amounts reflect open-market purchases of 5 million and 8 million AB Holding units for $ 117 million and $176 million , respectively, with the remainder relating to purchases of AB Holding units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by AB Holding units purchased by employees as part of a distribution reinvestment election. During 2017 , AB granted to employees and eligible directors 8.3 million restricted AB Holding unit awards (including 6.1 million granted in December for 2017 year-end awards). During 2016 , AB granted to employees and eligible directors 7.0 million restricted AB Holding awards (including 6.1 million granted in December 2016 for year-end awards). The cost of awards made in the form of restricted AB Holding Units was measured, recognized, and disclosed as a share-based compensation program. During 2017 and 2016, AB Holding issued 1.2 million and 0.4 million AB Holding units, respectively, upon exercise of options to buy AB Holding units. AB Holding used the proceeds of $ 20 million and $6 million , respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued AB Holding Units. Effective as of September 30, 2017, AB established the AB 2017 Long Term Incentive Plan (“2017 Plan”), which was adopted at a special meeting of AB Holding Unitholders held on September 29, 2017. The following forms of awards may be granted to employees and Eligible Directors under the 2017 Plan: (i) restricted AB Holding Units or phantom restricted AB Holding Units (a “phantom” award is a contractual right to receive AB Holding Units at a later date or upon a specified event); (ii) options to buy AB Holding Units; and (iii) other AB Holding Unit-based awards (including, without limitation, AB Holding Unit appreciation rights and performance awards). The purpose of the 2017 Plan is to promote the interest of AB by: (i) attracting and retaining talented officers, employees and directors, (ii) motivating such officers, employees and directors by means of performance-related incentives to achieve longer-range business and operational goals, (iii) enabling such officers, employees and directors to participate in the long-term growth and financial success of AB, and (iv) aligning the interests of such officers, employees and directors with those of AB Holding Unitholders. The 2017 Plan will expire on September 30, 2027, and no awards under the 2017 Plan will be made after that date. Under the 2017 Plan, the aggregate number of AB Holding Units with respect to which awards may be granted is 60 million , including no more than 30 million newly-issued AB Holding units. As of December 31, 2017 , no options to buy AB Holding units had been granted and 6.1 million AB Holding units, net of withholding tax requirements, were subject to other AB Holding Unit awards made under the 2017 Plan or an equity compensation plan with similar terms that was canceled in 2017. AB Holding Unit-based awards (including options) in respect of 53.9 million AB Holding units were available for grant as of December 31, 2017 . The AllianceBernstein 2010 Long Term Incentive Plan, as amended, was canceled on September 30, 2017. The awards and terms under the 2010 Long Term Incentive Plan were substantially similar to the 2017 Plan. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) from continuing operations before income taxes included income from domestic operations of $2,115 million , $505 million and $924 million for the years ended December 31, 2017, 2016 and 2015, and income (losses) from foreign operations of $140 million , $117 million and $114 million for the years ended December 31, 2017, 2016 and 2015. Approximately $29 million , $31 million , and $28 million of the company's income tax expense is attributed to foreign jurisdictions for the years ended December 31, 2017, 2016 and 2015. A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: 2017 2016 2015 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (6 ) $ (274 ) $ (19 ) Deferred (expense) benefit 1,145 358 41 Total $ 1,139 $ 84 $ 22 The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the income before income taxes and noncontrolling interest by the expected Federal income tax rate of 35.0% . The sources of the difference and their tax effects are as follows: 2017 2016 2015 (in millions) Expected income tax (expense) benefit $ (789 ) $ (218 ) $ (363 ) Noncontrolling interest 175 162 118 Non-taxable investment income (loss) 250 175 189 Tax audit interest (6 ) (22 ) 1 State income taxes (3 ) (8 ) 1 Tax settlements/Uncertain Tax Position Release 221 — 77 Change in Tax Law 1,308 — — Other (17 ) (5 ) (1 ) Income tax (expense) benefit $ 1,139 $ 84 $ 22 During the second quarter of 2017, the Company agreed to the Internal Revenue Service’s Revenue Agent’s Report for its consolidated 2008 and 2009 Federal corporate income tax returns. The impact on the Company’s financial statements and unrecognized tax benefits was a tax benefit of $221 million . In second quarter 2015, the Company recognized a tax benefit of $ 77 million related to settlement with the IRS on the appeal of proposed adjustments to the Company’s 2004 and 2005 Federal corporate income tax returns. The Tax Cuts and Jobs Act (the “Tax Reform Act”) was enacted on December 22, 2017. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations where a company does not have the necessary information available to complete its accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, the Company determined reasonable estimates for certain effects of the Tax Reform Act and recorded those estimates as provisional amounts in the 2017 financial statements due to the need for further analysis, collection and preparation of the relevant data necessary to complete the accounting. These amounts are subject to change as the information necessary to complete the calculations is obtained and as tax authorities issue further guidance. The following provisional amounts related to the impact of the Tax Reform Act are included in the Company’s financial statements: • An income tax benefit of $1,331 million from the reduction of deferred tax liabilities due to lower corporate tax rates. The Company will recognize changes to this estimate as the calculation of cumulative temporary differences is refined. • An income tax expense of $23 million to account for the deemed repatriation of foreign earnings. The determination of this tax requires further analysis regarding the amount and composition of historical foreign earnings. The components of the net deferred income taxes are as follows: December 31, 2017 December 31, 2016 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 47 $ — $ 88 $ — Net operating loss — — — — Reserves and reinsurance — 83 — 534 DAC — 821 — 1,463 Unrealized investment gains (losses) — 298 — 23 Investments — 997 — 1,062 Alternative minimum tax credits 387 — 394 — Other 67 — 5 — Total $ 501 $ 2,199 $ 487 $ 3,082 As of December 31, 2017 , the Company had $ 387 million of AMT credits which do not expire. While the Tax Reform Act repealed the corporate AMT and allows for the refund of a portion of accumulated minimum tax credits, the refundable credits may be subject to a sequestration fee. Included in the deferred tax revaluation is a $20 million charge related to the sequestration of refundable AMT credits. In accordance with the recently enacted Tax Reform Act, the Company provided a $23 million provisional charge on the deemed repatriation of earnings associated with non-U.S. corporate subsidiaries. Therefore, the Company is no longer asserting permanent reinvestment of earnings overseas. Per SAB 118, the Company continues to evaluate the remaining income tax effects on the reversal of the indefinite reinvestment assertion as a result of the Tax Reform Act. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2017 2016 2015 (in millions) Balance at January 1, $ 457 $ 418 $ 475 Additions for tax positions of prior years 28 39 44 Reductions for tax positions of prior years (245 ) — (101 ) Additions for tax positions of current year — — — Settlements with Tax Authorities (33 ) — — Balance at December 31, $ 207 $ 457 $ 418 Unrecognized tax benefits that, if recognized, would impact the effective rate 172 329 293 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. Interest and penalties included in the amounts of unrecognized tax benefits at December 31, 2017 and 2016 were $ 23 million and $ 67 million, respectively. For 2017 , 2016 and 2015 , respectively, there were $ (44) million, $ 15 million and $ (25) million in interest expense related to unrecognized tax benefits. It is reasonably possible that the total amount of unrecognized tax benefits will change within the next 12 months due to the conclusion of IRS proceedings and the addition of new issues for open tax years. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time. As of December 31, 2017 , tax years 2010 and subsequent remain subject to examination by the IRS. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances for the past three years follow: December 31, 2017 2016 2015 (in millions) Unrealized gains (losses) on investments $ 617 $ 54 $ 248 Foreign currency translation adjustments (36 ) (77 ) (59 ) Defined benefit pension plans (51 ) (46 ) (43 ) Total accumulated other comprehensive income (loss) 530 (69 ) 146 Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 68 86 69 Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 598 $ 17 $ 215 The components of OCI for the past three years, net of tax, follow: 2017 2016 2015 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ 41 $ (18 ) $ (25 ) (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment 41 (18 ) (25 ) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the year 741 (160 ) (1,020 ) (Gains) losses reclassified into net income (loss) during the year (1) 8 2 12 Net unrealized gains (losses) on investments 749 (158 ) (1,008 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (186 ) (36 ) 176 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(244) million, $(97) million, and $(454) million) 563 (194 ) (832 ) Change in defined benefit plans: Net gain (loss) arising during the year — — — Prior service cost arising during the year — — — Less: reclassification adjustments to net income (loss) for: (2) Amortization of net (gains) losses included in net periodic cost (5 ) (3 ) (4 ) Amortization of net prior service credit included in net periodic cost — — — Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(2) and $(2)) (5 ) (3 ) (4 ) Total other comprehensive income (loss), net of income taxes 599 (215 ) (861 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest (18 ) 17 15 Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 581 $ (198 ) $ (846 ) (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $ (5) million, $(1) million and $(6) million for 2017 , 2016 and 2015 , respectively. (2) These AOCI components are included in the computation of net periodic costs (see “Employee Benefit Plans” in Note 12). Reclassification amounts presented net of income tax expense (benefit) of $ 2 million, $2 million and $2 million for 2017 , 2016 and 2015 , respectively. Investment gains and losses reclassified from AOCI to net income (loss) primarily consist of realized gains (losses) on sales and OTTI of AFS securities and are included in Total investment gains (losses), net on the consolidated statements of income (loss). Amounts reclassified from AOCI to net income (loss) as related to defined benefit plans primarily consist of amortizations of net (gains) losses and net prior service cost (credit) recognized as a component of net periodic cost and reported in Compensation and benefit expenses in the consolidated statements of income (loss). Amounts presented in the table above are net of tax. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Litigation Litigation, regulatory and other loss contingencies arise in the ordinary course of the Company’s activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court’s jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including, among other things, insurers’ sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration, product design, features and accompanying disclosure, cost of insurance increases, the use of captive reinsurers, payments of death benefits and the reporting and escheatment of unclaimed property, alleged breach of fiduciary duties, alleged mismanagement of client funds and other matters. As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company’s financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company’s litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company’s results of operations or cash flows in a particular quarterly or annual period. For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of December 31, 2017, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $ 90 million. For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company’s accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews. In July 2011, a derivative action was filed in the United States District Court for the District of New Jersey entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC (“Sivolella Litigation”) and a substantially similar action was filed in January 2013 entitled Sanford et al. v. AXA Equitable FMG (“Sanford Litigation”). These lawsuits were filed on behalf of a total of twelve mutual funds and, among other things, seek recovery under (i) Section 36(b) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), for alleged excessive fees paid to AXA Equitable and AXA Equitable FMG for investment management services and administrative services and (ii) a variety of other theories including unjust enrichment. The Sivolella Litigation and the Sanford Litigation were consolidated and a 25-day trial commenced in January 2016 and concluded in February 2016. In August 2016, the District Court issued its decision in favor of AXA Equitable and AXA Equitable FMG, finding that the plaintiffs had failed to meet their burden to demonstrate that AXA Equitable and AXA Equitable FMG breached their fiduciary duty in violation of Section 36(b) of the Investment Company Act or show any actual damages. In September 2016, the plaintiffs filed a motion to amend the District Court’s trial opinion and to amend or make new findings of fact and/or conclusions of law. In December 2016, the District Court issued an order denying the motion to amend and plaintiffs filed a notice to appeal the District Court’s decision to the U.S. Court of Appeals for the Third Circuit. We are vigorously defending this matter. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, now entitled Ross v. AXA Equitable Life Insurance Company . The lawsuit is a putative class action on behalf of all persons and entities that, between 2011 and March 11, 2014, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by AXA Equitable (the “Policies”). The complaint alleges that AXA Equitable did not disclose in its New York statutory annual statements or elsewhere that the collateral for certain reinsurance transactions with affiliated reinsurance companies was supported by parental guarantees, an omission that allegedly caused AXA Equitable to misrepresent its “financial condition” and “legal reserve system.” The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of all premiums paid by the class for the Policies during the relevant period. In July 2015, the Court granted AXA Equitable’s motion to dismiss for lack of subject matter jurisdiction. In April 2015, a second action in the United States District Court for the Southern District of New York was filed on behalf of a putative class of variable annuity holders with “Guaranteed Benefits Insurance Riders,” entitled Calvin W. Yarbrough, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company . The new action covers the same class period, makes substantially the same allegations, and seeks the same relief as the Ross action. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as the Ross litigation. In December 2015, the Second Circuit denied the plaintiffs motion to consolidate their appeals but ordered that the appeals be heard together before a single panel of judges. In February 2017, the Second Circuit affirmed the decisions of the district court in favor of AXA Equitable, and that decision is now final because the plaintiffs failed to file a further appeal. In November 2014, a lawsuit was filed in the Superior Court of New Jersey, Camden County entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company . This lawsuit is a putative class action on behalf of all AXA Equitable variable life insurance policyholders who allocated funds from their policy accounts to investments in AXA Equitable’s Separate Accounts, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. The action asserts that AXA Equitable breached its variable life insurance contracts by implementing the volatility management strategy. In February 2016, the Court dismissed the complaint. In March 2016, the plaintiff filed a notice of appeal. In August 2015, another lawsuit was filed in Connecticut Superior Court, Judicial Division of New Haven entitled Richard T. O’Donnell, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company . This lawsuit is a putative class action on behalf of all persons who purchased variable annuities from AXA Equitable, which were subsequently subjected to the volatility management strategy and who suffered injury as a result thereof. Plaintiff asserts a claim for breach of contract alleging that AXA Equitable implemented the volatility management strategy in violation of applicable law. In November 2015, the Connecticut Federal District Court transferred this action to the United States District Court for the Southern District of New York. In March 2017, the Southern District of New York granted AXA Equitable’s motion to dismiss the complaint. In April 2017, the plaintiff filed a notice of appeal. In April 2018, the appellate court reversed the trial court’s decision and remanded the case back to Connecticut state court. We are vigorously defending these matters. In February 2016, a lawsuit was filed in the United States District Court for the Southern District of New York entitled Brach Family Foundation, Inc. v. AXA Equitable Life Insurance Company . This lawsuit is a putative class action brought on behalf of all owners of universal life ("UL") policies subject to AXA Equitable’s COI increase. In early 2016, AXA Equitable raised COI rates for certain UL policies issued between 2004 and 2007, which had both issue ages 70 and above and a current face value amount of $ 1 million and above. The current complaint alleges a claim for breach of contract and a claim that AXA Equitable made misrepresentations in violation of Section 4226 of the New York Insurance Law (“Section 4226”). Plaintiff seeks (a) with respect to its breach of contract claim, compensatory damages, costs, and, pre- and post-judgment interest, and (b) with respect to its claim concerning Section 4226, a penalty in the amount of premiums paid by the plaintiff and the putative class. AXA Equitable’s response to the complaint was filed in February 2017. Additionally, a separate putative class action and seven individual actions challenging the COI increase have been filed against AXA Equitable in Federal or State courts. Within that group, all of the outstanding Federal actions (the second putative class action and three individual actions) have been transferred to the Federal court where the Brach Family Foundation, Inc. litigation is pending. In October 2017, the Brach court entered an order consolidating the Brach class action and the other putative class action for all purposes and has also ordered that the three individual actions be consolidated with the Brach litigation for the purposes of coordinating pre-trial activities. We are in various stages of motion practice in each of these matters and are vigorously defending them. Leases The Company has entered into operating leases for office space and certain other assets, principally information technology equipment and office furniture and equipment. Future minimum payments under non-cancelable operating leases for 2018 and the four successive years are $ 214 million, $ 207 million, $ 177 million, $ 169 million, $ 156 million and $ 334 million thereafter. Minimum future sublease rental income on these non-cancelable operating leases for 2018 and the four successive years is $ 56 million, $ 58 million, $ 41 million, $ 40 million, $ 37 million and $ 60 million thereafter. Rent expense, which is amortized on a straight-line basis over the life of the lease, was $142.9 million , $140.2 million , $137.7 million , respectively, for the years ended December 31, 2017 , 2016 and 2015 , net of sublease income of $16.4 million , $15.8 million , $5.2 million , respectively, for the years ended December 31, 2017 , 2016 and 2015 . Obligations under Funding Agreements Entering into FHLBNY membership, borrowings and funding agreements requires the ownership of FHLBNY stock and the pledge of assets as collateral, AXA Equitable has purchased FHLBNY stock of $ 144 million and pledged collateral with a carrying value of $ 4,510 million, as of December 31, 2017. AXA Equitable issues short-term funding agreements to the FHLBNY and uses the funds for asset liability and cash management purposes. AXA Equitable issues long term funding agreements to the FHLBNY and uses the funds for spread lending purposes. Funding agreements are reported in Policyholders' account balances in the consolidated balance sheets. For other instruments used for asset/liability and cash management purposes, see “Derivative and offsetting assets and liabilities” included in Note 3. The table below summarizes AXA Equitable's activity of funding agreements with the FHLBNY. Outstanding balance at end of year Maturity of Outstanding balance Issued during the Year Repaid during the year (in millions) December 31, 2017: Short-term FHLBNY funding agreements 500 less than one month 6,000 6,000 Long-term FHLBNY funding agreements 1,244 less than 4 years 324 377 Less than 5 years 303 879 great than five years 135 Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 (1) 3,000 6,762 6,000 December 31, 2016: Short-term FHLBNY funding agreements $ 500 less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements $ 58 less than 4 years $ 58 $ — $ 862 Less than 5 years $ 862 $ — $ 818 great than five years $ 818 $ — Total long-term funding agreements $ 1,738 $ 1,738 $ — Total FHLBNY funding agreements at December 31, 2016 $ 2,238 $ 7,738 $ 6,000 (1) The $14 million difference between the funding agreements carrying value shown in fair value table for 2017 reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. Restructuring As part of the Company’s on-going efforts to reduce costs and operate more efficiently, from time to time, management has approved and initiated plans to reduce headcount and relocate certain operations. In 2017 , 2016 and 2015 , respectively, AXA Equitable recorded $ 29 million, $21 million and $3 million pre-tax charges related to severance and lease costs. The amounts recorded in 2015 included pre-tax charges of $25 million , respectively, related to the reduction in office space in the Company’s 1290 Avenue of the Americas, New York, NY headquarters. The restructuring costs and liabilities associated with the Company’s initiatives were as follows: December 31, 2017 2016 (in millions) Severance Balance, beginning of year $ 22 $ 11 Additions 17 20 Cash payments (14 ) (9 ) Other reductions (2 ) — Balance, end of Year $ 23 $ 22 December 31, 2017 2016 (in millions) Leases Balance, beginning of year $ 170 $ 190 Expense incurred 29 12 Deferred rent 10 5 Payments made (48 ) (42 ) Interest accretion 4 5 Balance, end of year $ 165 $ 170 Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. At December 31, 2017 , these arrangements include commitments by the Company to provide equity financing of $ 715 million (including $ 193 million with affiliates and $22 million on consolidated VIEs) to certain limited partnerships and real estate joint ventures under certain conditions. Management believes the Company will not incur material losses as a result of these commitments. AXA Equitable is the obligor under certain structured settlement agreements it had entered into with unaffiliated insurance companies and beneficiaries. To satisfy its obligations under these agreements, AXA Equitable owns single premium annuities issued by previously wholly owned life insurance subsidiaries. AXA Equitable has directed payment under these annuities to be made directly to the beneficiaries under the structured settlement agreements. A contingent liability exists with respect to these agreements should the previously wholly owned subsidiaries be unable to meet their obligations. Management believes the need for AXA Equitable to satisfy those obligations is remote. The Company had $ 18 million of undrawn letters of credit related to reinsurance at December 31, 2017 . The Company had $ 636 million of commitments under existing mortgage loan agreements at December 31, 2017 . AB maintains a guarantee in connection with the AB Credit Facility. If SCB LLC is unable to meet its obligations, AB will pay the obligations when due or on demand. In addition, AB maintains guarantees totaling $ 375 million for the three of SCB LLC’s four uncommitted lines of credit. AB maintains a guarantee with a commercial bank, under which it guarantees the obligations in the ordinary course of business of SCB LLC, Sanford C. Bernstein Limited (“SCBL”) and AllianceBernstein Holdings (Cayman) Ltd. (“AB Cayman”). AB also maintains three additional guarantees with other commercial banks under which it guarantees approximately $ 410 million of obligations for SCBL. In the event that SCB LLC, SCBL or AB Cayman is unable to meet its obligations, AB will pay the obligations when due or on demand. During 2010, as general partner of the AB U.S. Real Estate L.P. (the “Real Estate Fund”), AB committed to invest $ 25 million in the Real Estate Fund. As of December 31, 2017 , AB had funded $ 22 million of this commitment. As general partner of the AB U.S. Real Estate II L.P. ("Real Estate Fund II"), AB committed to invest $ 28 million in Real Estate Fund II. As of December 31, 2017 , AB funded $ 10 million of this commitment During 2012, AB entered into an investment agreement under which it committed to invest up to $ 8 million in an oil and gas fund over a three -year period. As of December 31, 2017 , AB had funded $ 6 million of this commitment. AB has not been required to perform under any of the above agreements and currently have no liability in connection with these agreements. |
INSURANCE GROUP STATUTORY FINAN
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Group Statutory Financial Information [Abstract] | |
Insurance Group Statutory Financial Information | INSURANCE GROUP STATUTORY FINANCIAL INFORMATION AXA Equitable is restricted as to the amounts it may pay as dividends to AXA Financial. Under New York Insurance law, a domestic life insurer may not, without prior approval of the NYDFS, pay a dividend to its shareholders exceeding an amount calculated based on a statutory formula. This formula would permit AXA Equitable to pay shareholder dividends not greater than approximately $ 1,242 million during 2018. Payment of dividends exceeding this amount requires the insurer to file a notice of its intent to declare such dividends with the NYDFS who then has 30 days to disapprove the distribution. For 2017 , 2016 and 2015 , respectively, AXA Equitable’s statutory net income (loss) totaled $ 894 million, $679 million and $2,038 million . Statutory surplus, capital stock and Asset Valuation Reserve (“AVR”) totaled $ 7,988 million and $5,278 million at December 31, 2017 and 2016 , respectively. In 2017 , AXA Equitable did not pay shareholder dividends and in 2016 , AXA Equitable paid $1,050 million in shareholder dividends. In 2015 , AXA Equitable paid $767 million in shareholder dividends and transferred approximately 10.0 million in Units of AB (fair value of $ 245 million) in the form of a dividend to AEFS. At December 31, 2017 , AXA Equitable, in accordance with various government and state regulations, had $ 61 million of securities on deposit with such government or state agencies. In 2015, AXA Equitable repaid $200 million of third party surplus notes at maturity. At December 31, 2017 and for the year then ended, there were no differences in net income (loss) and capital and surplus resulting from practices prescribed and permitted by NYDFS and those prescribed by NAIC Accounting Practices and Procedures effective at December 31, 2017 . The Company cedes a portion of their statutory reserves to AXA RE Arizona, a captive reinsurer, as part of the Company’s capital management strategy. AXA RE Arizona prepares financial statements in a special purpose framework for statutory reporting. Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from GAAP. The differences between statutory surplus and capital stock determined in accordance with Statutory Accounting Principles (“SAP”) and total equity under GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders’ account balances under SAP differ from GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in AB and AB Holding under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under GAAP; (g) reporting the surplus notes as a component of surplus in SAP but as a liability in GAAP; (h) computer software development costs are capitalized under GAAP but expensed under SAP; (i) certain assets, primarily prepaid assets, are not admissible under SAP but are admissible under GAAP, (j) the fair valuing of all acquired assets and liabilities including intangible assets are required for GAAP purchase accounting and (k) cost of reinsurance which is recognized as expense under SAP and amortized over the life of the underlying reinsured policies under GAAP. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company has four reportable segments: Individual Retirement, Group Retirement, Investment Management and Research and Protection Solutions. The Company changed its segment presentation in the fourth quarter 2017. The segment disclosures are based on the intention to provide the users of the financial statements with a view of the business from the Company’s perspective. As a result, the Company determined that it is more useful for a user of the financial statements to assess the historical performance on the basis which management currently evaluates the business. The reportable segments are based on the nature of the business activities, as they exist as of the initial filing date. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows: • The Individual Retirement segment offers a diverse suite of variable annuity products which are primarily sold to affluent and high net worth individuals saving for retirement or seeking retirement income. • The Group Retirement segment offers tax-deferred investment and retirement plans to be sponsored by educational entities, municipalities and not-for-profit entities as well as small and medium-sized businesses. • The Investment Management and Research segment provides diversified investment management, research and related solutions globally to a broad range of clients through three main client channels- Institutional, Retail and Private Wealth Management-and distributes its institutional research products and solutions through Bernstein Research Services. • The Protection Solutions segment includes our life insurance and group employee benefits businesses. Our life insurance business offers a variety of variable universal life, universal life and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners, with their wealth protection, wealth transfer and corporate needs. Our group employee benefits business offers a suite of dental, vision, life, and short- and long-term disability and other insurance products to small and medium-size businesses across the United States. Measurement Operating earnings (loss) is the financial measure which primarily focuses on the Company’s segments’ results of operations as well as the underlying profitability of the Company’s core business. By excluding items that can be distortive and unpredictable such as investment gains (losses) and investment income (loss) from derivative instruments, the Company believes operating earnings (loss) by segment enhances the understanding of the Company’s underlying drivers of profitability and trends in the Company’s segments. Operating earnings is calculated by adjusting each segment’s Net income (loss) attributable to AXA Equitable for the following items: • Adjustments related to GMxB features include changes in the fair value of the derivatives we use to hedge our GMxB features within our variable annuity products, the effect of benefit ratio unlock adjustments and changes in the fair value of the embedded derivatives of our GMxB riders reflected within variable annuity products net derivative result; • Investment (gains) losses, which includes other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses, and valuation allowances; • Derivative (gains) losses from certain derivative instruments, which includes net derivative (gains) losses, excluding derivative instruments used to hedge risks associated with interest margins on interest sensitive life and annuity contracts, replicate credit exposure of fixed maturity securities, replicate a dollar-denominated fixed-coupon cash bonds, Separate Account fee hedges, and freestanding and embedded derivatives associated with products with GMxB features; • Net actuarial (gains) losses, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period related to pension and other postretirement benefit obligations; • Other adjustments including restructuring costs related to severance, lease write-offs related to non-recurring restructuring activities and write-downs of goodwill; and • Income tax expense (benefit) related to above adjustments and non-recurring tax items. All of the Company’s premiums, UL and investment-type product policy fees and other revenues originated in the United States. Income (loss) from operations, before income taxes included $ 139 million, $ 109 million and $ 111 million generated outside of the United States in 2017 , 2016 and 2015 , respectively, primarily attributable to our Investment Management and Research Segment. Revenues derived from any customer did not exceed 10% of revenues for the years ended December 31, 2017 , 2016 and 2015 . The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to AXA Equitable for the years ended December 31, 2017 , 2016 and 2015 , respectively: Year Ended December 31, 2017 2016 2015 (in millions) Net income (loss) attributable to AXA Equitable $ 2,860 $ 210 $ 662 Adjustments related to: GMxB features 282 1,511 818 Investment (gains) losses 125 (16 ) 20 Investment income (loss) from certain derivative instruments 18 6 (104 ) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 132 135 137 Other adjustments 49 15 (11 ) Income tax expense (benefit) related to above adjustments (183 ) (566 ) (279 ) Non-recurring tax items (1,538 ) 22 (78 ) Non-GAAP Operating Earnings $ 1,745 $ 1,317 $ 1,165 Operating earnings (loss) by segment: Individual Retirement $ 1,230 $ 1,026 $ 911 Group Retirement 287 173 166 Investment Management and Research 139 108 136 Protection Solutions 210 105 108 Corporate and Other (1) (121 ) (95 ) (156 ) (1) Includes interest expense of $ 23 million , $ 13 million and $ 19 million , in 2017 , 2016 and 2015 , respectively. Segment revenues is a measure of the Company's revenue by segment as adjusted to exclude certain items. The following table reconciles segment revenues to Total revenues by excluding the following items: • Adjustment related to our GMxB business which includes: changes in the fair value of the derivatives we use to hedge our GMxB riders within our variable annuities, and changes in the fair value of the embedded derivatives of our GMxB riders reflected within variable annuity net derivative result; • Investment gains (losses), which include other-than-temporary impairments of securities, sales or disposals of securities/investments, realized capital gains/losses, and valuation allowances; and • Investment income (loss) from certain derivative instruments, which includes net derivative gains (losses), excluding derivative instruments used to hedge risks associated with interest margins on interest sensitive life and annuity contracts, separate account fee hedges, and freestanding and embedded derivatives associated with products with GMxB features. The table below presents Segment revenues for the years ended December 31, 2017, 2016 and 2015. Year Ended December 31, 2017 2016 2015 (in millions) Segment revenues: Individual Retirement (1) $ 3,788 $ 3,239 $ 2,548 Group Retirement (1) 972 822 806 Investment Management and Research (2) 3,214 2,931 3,015 Protection Solutions (1) 2,417 2,544 2,451 Corporate and Other (1) 907 935 913 Adjustments related to: GMxB features 381 (1,500 ) (818 ) Investment gains (losses) (125 ) 16 (20 ) Investment income (loss) from certain derivative instruments (18 ) (6 ) 104 Other adjustments to segment revenues 197 157 (38 ) Total revenues $ 11,733 $ 9,138 $ 8,961 (1) Includes investment expenses charged by AB of approximately $ 52 million , $ 50 million , and $ 45 million for 2017 , 2016 and 2015 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $ 81 million , $ 77 million , and $ 73 million for 2017 , 2016 and 2015 , respectively, are included in segment revenues of the Investment Management and Research segment. The table below presents Total assets by segment as of December 31, 2017 and 2016 : December 31, 2017 2016 (in millions) Total assets by segment: Individual Retirement $ 120,612 $ 106,249 Group Retirement 40,472 33,300 Investment Management and Research 10,079 9,533 Protection Solutions 34,328 32,310 Corporate and Other 20,494 23,164 Total assets $ 225,985 $ 204,556 |
QUARTERLY INTERIM FINANCIAL INF
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) Management identified errors in its previously issued financial statements. These errors primarily relate to errors in the calculation of policyholders’ benefit reserves for the Company’s life products and the calculation of DAC amortization for certain variable and interest sensitive life products. Based upon quantitative and qualitative factors, management determined that the impact of the errors was not material to the consolidated financial statements as of and for the three months ended September 30, 2017, June 30, 2017, March 31, 2017, September 30, 2016, June 30, 2016, and March 31, 2016. In order to improve the consistency and comparability of the financial statements, management voluntarily revised the consolidated statements of income (loss) for the quarters ended 2017 and 2016. The impacts of the revisions and change in accounting principle to the quarterly results of operations for 2017 and 2016 are summarized in the tables below. Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2017 Total Revenues $ 2,314 $ 4,548 $ 2,429 $ 2,442 Total benefits and other deductions $ 2,489 $ 2,514 $ 2,409 $ 2,066 Net income (loss) $ (54 ) $ 1,615 $ 121 $ 1,712 2016 Total Revenues $ 3,901 $ 3,297 $ 2,153 $ (213 ) Total benefits and other deductions $ 2,441 $ 2,424 $ 2,013 $ 1,638 Net income (loss) $ 1,075 $ 600 $ 175 $ (1,144 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended September 30, 2017 Total Revenues $ 2,520 $ (91 ) $ 2,429 $ — $ 2,429 Total benefits and other deductions $ 2,581 $ (172 ) $ 2,409 $ — $ 2,409 Net income (loss) $ 66 $ 55 $ 121 $ — $ 121 Three Months Ended June 30, 2017 Total Revenues $ 4,488 $ (138 ) $ 4,350 $ 198 $ 4,548 Total benefits and other deductions $ 2,691 $ (45 ) $ 2,646 $ (132 ) $ 2,514 Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Three Months Ended March 31, 2017 Total Revenues $ 1,989 $ (67 ) $ 1,922 $ 392 $ 2,314 Total benefits and other deductions $ 2,562 $ (143 ) $ 2,419 $ 70 $ 2,489 Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Three Months Ended December 31, 2016 Total Revenues $ (1,942 ) $ 75 $ (1,867 ) $ 1,654 $ (213 ) Total benefits and other deductions $ 1,627 $ 73 $ 1,700 $ (62 ) $ 1,638 Net income (loss) $ (2,259 ) $ — $ (2,259 ) $ 1,115 $ (1,144 ) Three Months Ended September 30, 2016 Total Revenues $ 2,006 $ (8 ) $ 1,998 $ 155 $ 2,153 Total benefits and other deductions $ 2,036 $ (22 ) $ 2,014 $ (1 ) $ 2,013 Net income (loss) $ 22 $ 51 $ 73 $ 102 $ 175 Three Months Ended June 30, 2016 Total Revenues $ 4,157 $ 12 $ 4,169 $ (872 ) $ 3,297 Total benefits and other deductions $ 2,581 $ (5 ) $ 2,576 $ (152 ) $ 2,424 Net income (loss) $ 1,061 $ 7 $ 1,068 $ (468 ) $ 600 Three Months Ended March 31, 2016 Total Revenues $ 4,927 $ 110 $ 5,037 $ (1,136 ) $ 3,901 Total benefits and other deductions $ 2,473 $ 67 $ 2,540 $ (99 ) $ 2,441 Net income (loss) $ 1,720 $ 29 $ 1,749 $ (674 ) $ 1,075 The impact of these errors to the consolidated financial statements for the three and nine months ended September 30, 2017, the three and six months ended June 30, 2017 and the three months ended March 31, 2017 was not considered to be material, either individually or in the aggregate. In order to improve the consistency and comparability of the financial statements, management has voluntarily revised the consolidated statements of income (loss), statements of comprehensive income (loss), statements of equity and statements of cash flow for each of these periods. The effects of the adjustments on the Company’s financial statements are summarized in the tables that follow. The following tables present line items for September 30, 2017 financial information that has been affected by the revisions. This information has been corrected from the information previously presented in the Q3 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the revisions and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised (In millions) As of September 30, 2017 Assets: DAC 4,550 353 4,903 Amounts due from reinsurers 5,016 (12 ) 5,004 Guaranteed minimum income benefit reinsurance asset, at fair value 10,933 (33 ) 10,900 Other Assets 4,258 18 4,276 Total Assets $ 219,069 $ 326 $ 219,395 Liabilities: Future policyholders' benefits and other policyholders' liabilities 29,423 29 29,452 Current and deferred taxes 3,148 117 3,265 Total Liabilities 202,669 146 202,815 Equity: Retained Earnings 7,265 211 7,476 Accumulated other comprehensive income (loss) 362 (31 ) 331 AXA Equitable Equity 12,990 180 13,170 Equity 15,959 180 16,139 Total Liabilities and Equity $ 219,069 $ 326 $ 219,395 As Previously Reported Impact of Revisions As Revised (In millions) Three Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 914 $ (7 ) $ 907 Premiums 204 4 208 Net derivative gains (losses) (318 ) (88 ) (406 ) Total revenues 2,520 (91 ) 2,429 Benefits and other deductions: Policyholders' benefits 995 (88 ) 907 Interest credited to policyholders' account balances 350 (105 ) 245 Amortization of deferred policy acquisition costs, net (33 ) 21 (12 ) Total benefits and other deductions 2,581 (172 ) 2,409 Income (loss) from operations, before income taxes (61 ) 81 20 Income tax (expense) benefit 127 (26 ) 101 Net income (loss) 66 55 121 Net income (loss) attributable to AXA Equitable $ (56 ) $ 55 $ (1 ) Statements of Comprehensive Income (Loss): Net income (loss) $ 66 $ 55 $ 121 Change in unrealized gains (losses), net of reclassification adjustment (55 ) (24 ) (79 ) Other comprehensive income (52 ) (24 ) (76 ) Comprehensive income (loss) 14 31 45 Comprehensive income (loss) attributable to AXA Equitable $ (140 ) $ 31 $ (109 ) As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 2,626 $ (21 ) $ 2,605 Premiums 645 20 665 Net derivative gains (losses) 1,376 (384 ) 992 Total revenues 9,673 (385 ) 9,288 Benefits and other deductions: Policyholders' benefits 3,308 (62 ) 3,246 Interest credited to policyholders' account balances 1,008 (279 ) 729 Amortization of deferred policy acquisition costs, net 15 (47 ) (32 ) Total benefits and other deductions 7,800 (388 ) 7,412 Income (loss) from operations, before income taxes 1,873 3 1,876 Income tax (expense) benefit (196 ) (1 ) (197 ) Net income (loss) 1,677 2 1,679 Net income (loss) attributable to AXA Equitable $ 1,324 $ 2 $ 1,326 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,677 $ 2 $ 1,679 Change in unrealized gains (losses), net of reclassification adjustment 362 (47 ) 315 Other comprehensive income 380 (47 ) 333 Comprehensive income (loss) 2,057 (45 ) 2,012 Comprehensive income (loss) attributable to AXA Equitable $ 1,685 $ (45 ) $ 1,640 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 5,941 $ 209 $ 6,150 Net income (loss) 1,324 2 1,326 Retained earnings, end of period 7,265 211 7,476 Accumulated other comprehensive income, beginning of year 1 16 17 Other comprehensive income (loss) 361 (47 ) 314 Accumulated other comprehensive income, end of period 362 (31 ) 331 Total AXA Equitable’s equity, end of period 12,990 180 13,170 Total Equity, End of Period $ 15,959 $ 180 $ 16,139 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,677 $ 2 $ 1,679 Policy charges and fee income (2,626 ) 21 (2,605 ) Interest credited to policyholders’ account balances 1,008 (279 ) 729 Net derivative (gains) loss (1,376 ) 384 (992 ) Changes in: Deferred Policy Acquisition costs 15 (47 ) (32 ) Future policy benefits 1,289 (81 ) 1,208 Net cash provided by (used in) operating activities $ 994 $ — $ 994 The following tables present line items for June 30, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Q2 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of June 30, 2017 Assets: Other equity investments $ 1,477 $ (21 ) $ 1,456 $ — $ 1,456 Other invested assets 2,622 32 2,654 — 2,654 Total investments 62,111 11 62,122 — 62,122 DAC 4,141 247 4,388 525 4,913 Amounts due from reinsurers 4,870 19 4,889 — 4,889 Guaranteed minimum income benefit reinsurance contract asset, at fair value 11,290 (30 ) 11,260 — 11,260 Total Assets $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 Liabilities: Policyholders' account balance $ 41,531 $ (15 ) $ 41,516 $ — $ 41,516 Future policyholders' benefits and other policyholders' liabilities 26,799 79 26,878 2,801 29,679 Current and deferred taxes 4,000 65 4,065 (798 ) 3,267 Other liabilities 2,531 (9 ) 2,522 — 2,522 Total Liabilities 196,972 120 197,092 2,003 199,095 Equity: Retained Earnings 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income (loss) 493 (34 ) 459 (28 ) 431 AXA Equitable Equity 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest 2,973 11 2,984 — 2,984 Equity 17,608 127 17,735 (1,478 ) 16,257 Total Liabilities and Equity $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 865 $ 50 $ 915 $ (68 ) $ 847 Premiums 216 9 225 — 225 Net derivative gains (losses) 1,693 (197 ) 1,496 266 1,762 Total revenues 4,488 (138 ) 4,350 198 4,548 Benefits and other deductions: Policyholders' benefits 1,452 46 1,498 (134 ) 1,364 Amortization of deferred policy acquisition costs, net (82 ) 31 (51 ) 2 (49 ) Interest credited to policyholders’ account balances 321 (116 ) 205 — 205 Other operating costs and expenses 155 (6 ) 149 — 149 Total benefits and other deductions 2,691 (45 ) 2,646 (132 ) 2,514 Income (loss) from operations, before income taxes 1,797 (93 ) 1,704 330 2,034 Income tax (expense) benefit (338 ) 34 (304 ) (115 ) (419 ) Net income (loss) 1,459 (59 ) 1,400 215 1,615 Net income (loss) attributable to AXA Equitable $ 1,346 $ (59 ) $ 1,287 $ 215 $ 1,502 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Change in unrealized gains (losses), net of reclassification adjustment 314 (29 ) 285 8 293 Other comprehensive income 294 (29 ) 265 8 273 Comprehensive income (loss) 1,753 (88 ) 1,665 223 1,888 Comprehensive income (loss) attributable to AXA Equitable $ 1,660 $ (88 ) $ 1,572 $ 223 $ 1,795 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 1,761 $ 72 $ 1,833 $ (135 ) $ 1,698 Premiums 441 16 457 — 457 Net derivative gains (losses) 969 (296 ) 673 725 1,398 Total revenues 6,477 (208 ) 6,269 590 6,859 Benefits and other deductions: Policyholders' benefits 2,343 60 2,403 (65 ) 2,338 Interest credited to policyholders' account balances 658 (174 ) 484 — 484 Amortization of deferred policy acquisition costs, net 43 (66 ) (23 ) 3 (20 ) Other operating costs and expenses 539 (9 ) 530 — 530 Total benefits and other deductions 5,253 (189 ) 5,064 (62 ) 5,002 Income (loss) from operations, before income taxes 1,224 (19 ) 1,205 652 1,857 Income tax (expense) benefit (78 ) 8 (70 ) (228 ) (298 ) Net income (loss) 1,146 (11 ) 1,135 424 1,559 Net income (loss) attributable to AXA Equitable $ 915 $ (11 ) $ 904 $ 424 $ 1,328 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Change in unrealized gains (losses), net of reclassification adjustment 458 (48 ) 410 (24 ) 386 Other comprehensive income 473 (48 ) 425 (24 ) 401 Comprehensive income (loss) 1,619 (59 ) 1,560 400 1,960 Comprehensive income (loss) attributable to AXA Equitable $ 1,401 $ (59 ) $ 1,342 $ 400 $ 1,742 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,864 $ 161 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) 915 (11 ) 904 424 1,328 Retained earnings, end of period 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 486 (48 ) 438 (24 ) 414 Accumulated other comprehensive income, end of period 493 (34 ) 459 (28 ) 431 Total AXA Equitable’s equity, end of period 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 2,973 11 2,984 — 2,984 Total Equity, End of Period $ 17,608 $ 127 $ 17,735 $ (1,478 ) $ 16,257 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Policy charges and fee income (1,761 ) (72 ) (1,833 ) 135 (1,698 ) Interest credited to policyholders’ account balances 658 (174 ) 484 — 484 Net derivative (gains) loss (969 ) 296 (673 ) (725 ) (1,398 ) Changes in: Future policy benefits 1,381 (13 ) 1,368 (65 ) 1,303 Reinsurance recoverable (251 ) 57 (194 ) — (194 ) Deferred policy acquisition costs 43 (66 ) (23 ) 3 (20 ) Current and deferred income taxes (16 ) (8 ) (24 ) 228 204 Other 93 (9 ) 84 — 84 Net cash provided by (used in) operating activities $ (75 ) $ — $ (75 ) $ — $ (75 ) The following tables present line items for March 31, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Q1 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of March 31, 2017 Assets: Other equity investments $ 1,463 $ (23 ) $ 1,440 $ — $ 1,440 Other invested assets 2,050 34 2,084 — 2,084 Total investments 60,406 11 60,417 — 60,417 DAC 4,068 367 4,435 526 4,961 Amounts due from reinsurers 4,639 8 4,647 — 4,647 Guaranteed minimum income benefit 9,795 3 9,798 — 9,798 Total Assets $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 Liabilities: Policyholders' account balance $ 40,308 $ (16 ) $ 40,292 $ — $ 40,292 Future policyholders' benefits and other policyholders' liabilities 25,496 51 25,547 3,144 28,691 Current and deferred taxes 3,523 120 3,643 (917 ) 2,726 Other liabilities 2,496 (3 ) 2,493 — 2,493 Total Liabilities 192,712 152 192,864 2,227 195,091 Equity: Retained Earnings 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income (loss) 179 (6 ) 173 (36 ) 137 AXA Equitable Equity 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest 3,035 11 3,046 — 3,046 Equity 15,969 237 16,206 (1,701 ) 14,505 Total Liabilities and Equity $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 896 $ 23 $ 919 $ (67 ) $ 852 Premiums 225 7 232 — 232 Net derivative gains (losses) (724 ) (97 ) (821 ) 459 (362 ) Total revenues 1,989 (67 ) 1,922 392 2,314 Benefits and other deductions: Policyholders' benefits 891 15 906 69 975 Interest credited to policyholders' account balances 337 (58 ) 279 — 279 Amortization of deferred policy acquisition costs, net 125 (97 ) 28 1 29 Other operating costs and expenses 384 (3 ) 381 — 381 Total benefits and other deductions 2,562 (143 ) 2,419 70 2,489 Income (loss) from operations, before income taxes (573 ) 76 (497 ) 322 (175 ) Income tax (expense) benefit 260 (26 ) 234 (113 ) 121 Net income (loss) (313 ) 50 (263 ) 209 (54 ) Net income (loss) attributable to AXA Equitable $ (431 ) $ 50 $ (381 ) $ 209 $ (172 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Change in unrealized gains (losses), net of reclassification adjustment 144 (20 ) 124 (32 ) 92 Other comprehensive income 179 (20 ) 159 (32 ) 127 Comprehensive income (loss) (134 ) 30 (104 ) 177 73 Comprehensive income (loss) attributable to AXA Equitable $ (259 ) $ 30 $ (229 ) $ 177 $ (52 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,842 $ 182 $ 8,024 $ (1,874 ) $ 6,150 Net income (loss) (431 ) 50 (381 ) 209 (172 ) Retained earnings, end of period 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 172 (20 ) 152 (32 ) 120 Accumulated other comprehensive income, end of period 179 (6 ) 173 (36 ) 137 Total AXA Equitable’s equity, end of period 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 3,035 11 3,046 — 3,046 Total Equity, End of Period $ 15,969 $ 237 $ 16,206 $ (1,701 ) $ 14,505 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Cash flows: Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Policy charges and fee income (896 ) (23 ) (919 ) 67 (852 ) Interest credited to policyholders’ account balances 337 (58 ) 279 — 279 Net derivative (gains) loss 724 97 821 (459 ) 362 Changes in: Deferred policy acquisition costs 125 (97 ) 28 1 29 Future policy benefits 185 (13 ) 172 69 241 Reinsurance recoverable (44 ) 21 (23 ) — (23 ) Current and deferred income taxes (327 ) 26 (301 ) 113 (188 ) Other 180 (3 ) 177 — 177 Net cash provided by (used in) operating activities $ 18 $ — $ 18 $ — $ 18 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Effective February 1, 2018, AXA Equitable entered into a reinsurance agreement to cede 90% of its single premium deferred annuities (SPDA) products issued between 1978-2001 and its Guaranteed Growth Annuity (GGA) single premium deferred annuity products issued between 2001- 2014. As a result of this agreement, AXA Equitable transferred assets with a market value equal to the coinsurance reserves of approximately $635 million . In March 2018, AXA Equitable Life sold its interest in two real estate joint ventures to AXA France for a total purchase price of approximately $143 million , which resulted in the elimination of $203 million of long-term debt on the Company's balance sheet for the first quarter of 2018. The restatement of the Company’s 2016 financial statements may cause defaults under certain of AXA Equitable’s derivatives agreements. AXA Equitable is seeking waivers for these defaults from the relevant counterparties as appropriate. We do not consider this to have a material impact on our business, results of operations or financial condition. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments - Other than Investments in Related Parties | SCHEDULE I SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2017 Type of Investment Cost (1) Fair Value Carrying Value (in millions) Fixed Maturities: U.S. government, agencies and authorities $ 12,644 $ 13,135 $ 13,135 State, municipalities and political subdivisions 414 481 481 Foreign governments 376 396 396 Public utilities 3,540 3,728 3,728 All other corporate bonds 17,083 17,784 17,784 Residential mortgage-backed 236 251 251 Asset-backed 89 92 92 Redeemable preferred stocks 449 491 491 Total fixed maturities $ 34,831 $ 36,358 $ 36,358 Equity securities: Mortgage loans on real estate 10,943 10,895 10,935 Real estate held for the production of income 390 390 390 Policy loans 3,315 4,210 3,315 Other equity investments 1,351 1,351 1,351 Trading securities 12,661 12,628 12,628 Other invested assets 3,121 3,121 3,121 Total Investments $ 66,612 $ 68,953 $ 68,098 (1) Cost for fixed maturities represents original cost, reduced by repayments and writedowns and adjusted for amortization of premiums or accretion of discount; cost for equity securities represents original cost reduced by writedowns; cost for other limited partnership interests represents original cost adjusted for equity in income and reduced by distributions. |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2017 Segment Deferred Policy Acquisition Costs Policyholders’ Account Balances Future Policy Benefits and other Policyholders’ Funds Policy Charges And Premium Revenue Net Investment Income (Loss) (1) Policyholders’ Benefits and Interest Credited Amortization of Deferred Policy Acquisition Costs All Other Operating Expense (2) (in millions) Individual Retirement $ 2,490 $ 18,909 $ 15,090 $ 1,982 $ 1,568 $ 2,243 $ (296 ) $ 1,030 Group Retirement 501 11,318 2 248 548 284 (66 ) 427 Investment Management and Research — — — — 118 — — 2,517 Protection Solutions 1,496 9,846 3,468 1,581 703 1,064 639 502 Corporate and Other 60 3,732 10,474 427 536 911 (9 ) 232 Total $ 4,547 $ 43,805 $ 29,034 $ 4,238 $ 3,473 $ 4,502 $ 268 $ 4,708 (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. AXA EQUITABLE LIFE INSURANCE COMPANY SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2016 (AS RESTATED) Segment Deferred Policy Acquisition Costs Policyholders’ Account Balances Future Policy Benefits and other Policyholders’ Funds Policy Charges And Premium Revenue Net Investment Income (Loss) (1) Policyholders’ Benefits and Interest Credited Amortization of Deferred Policy Acquisition Costs All Other Operating Expense (2) (in millions) Individual Retirement $ 2,340 $ 15,024 $ 14,090 $ 1,844 $ (740 ) $ 1,045 $ (300 ) $ 1,258 Group Retirement 320 10,998 (2 ) 217 456 273 (36 ) 396 Investment Management and Research — — — — 134 — — 2,311 Protection Solutions 2,321 9,790 3,960 1,744 684 1,604 362 491 Corporate and Other 77 3,013 10,853 419 573 878 26 208 Total $ 5,058 $ 38,825 $ 28,901 $ 4,224 $ 1,107 $ 3,800 $ 52 $ 4,664 (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. AXA EQUITABLE LIFE INSURANCE COMPANY SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2015 Segment Policy Charges And Premium Revenue Net (1) Policyholders’ Amortization of Deferred Policy Acquisition Costs All Other Operating Expense (2) Individual Retirement 1,803 (849 ) 455 (319 ) 1,233 Group Retirement 220 436 261 (34 ) 393 Investment Management and Research — 29 — — 2,395 Protection Solutions 1,681 649 1,743 70 541 Corporate and Other 439 631 902 40 243 Total $ 4,143 $ 896 $ 3,361 $ (243 ) $ 4,805 (1) Net investment income (loss) is allocated to segments. Includes net derivative gains (losses). (2) Operating expenses are allocated to segments. |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV REINSURANCE (1) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2017 , 2016 AND 2015 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In millions) 2017 Life Insurance In-Force $ 392,926 $ 41,330 $ 30,300 $ 381,896 7.9 % Premiums: Life insurance and annuities $ 826 $ 135 $ 186 $ 877 21.2 % Accident and health 54 36 9 27 33.3 % Total Premiums $ 880 $ 171 $ 195 $ 904 21.6 % 2016 (As Restated) Life Insurance In-Force $ 399,230 $ 78,760 $ 31,722 $ 352,192 9.0 % Premiums: Life insurance and annuities $ 790 $ 135 $ 197 $ 852 23.1 % Accident and health 60 41 9 28 32.1 % Total Premiums $ 850 $ 176 $ 206 $ 880 23.4 % 2015 Life Insurance In-Force $ 406,240 $ 82,927 $ 31,427 $ 354,740 8.9 % Premiums: Life insurance and annuities $ 751 $ 128 $ 197 $ 820 24.0 % Accident and health 67 45 10 32 31.3 % Total Premiums $ 818 $ 173 $ 207 $ 852 24.3 % (1) Includes amounts related to the discontinued group life and health business. |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying consolidated financial statements reflect all adjustments necessary in the opinion of management for a fair presentation of the consolidated financial position of the Company and its consolidated results of operations and cash flows for the periods presented. The accompanying consolidated financial statements present the consolidated results of operations, financial condition, and cash flows of the Company and its subsidiaries and those investment companies, partnerships and joint ventures in which the Company has control and a majority economic interest as well as those variable interest entities (“VIEs”) that meet the requirements for consolidation. We believe that the consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. The years “ 2017 ”, “ 2016 ” and “ 2015 ” refer to the years ended December 31, 2017 , 2016 and 2015 , respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. |
Adoption of New and Future Accounting Pronouncements | Adoption of New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance that amends the definition of a business to provide a more robust framework for determining when a set of assets and activities is a business. The definition primarily adds clarity for evaluating whether certain transactions should be accounted for as acquisitions/dispositions of assets or businesses, the latter subject to guidance on business combinations, but also may interact with other areas of accounting where the defined term is used, such as in the application of guidance on consolidation and goodwill impairment. The new guidance is effective for fiscal years ending December 31, 2018. The Company elected to early adopt the new guidance for the year ending December 31, 2016. Implementation of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued updated guidance to simplify the accounting for goodwill impairment on a prospective basis in years beginning after December 15, 2019, with early adoption permitted for impairment testing performed after January 1, 2017. The revised guidance removes Step 2 from the goodwill impairment testing model that currently requires a hypothetical purchase price allocation to assess goodwill recoverability when Step 1 testing demonstrates a reporting unit’s carrying value exceeds its fair value. Existing guidance that limits the measure of goodwill impairment to the carrying amount of the reporting unit’s goodwill remains unchanged by elimination of the requirement to perform Step 2 testing. The Company elected to early adopt the guidance effective January 1, 2017 for its first quarter 2017 interim goodwill recoverability assessments. Adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued updated guidance on consolidation of interests held through related parties that are under common control, which alters how a decision maker needs to consider indirect interests in a VIE held through an entity under common control. The new guidance amends the recently adopted consolidation guidance analysis. Under the new guidance, if a decision maker is required to evaluate whether it is the primary beneficiary of a VIE, it will need to consider only its proportionate indirect interest in the VIE held through a common control party. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance simplifying the transition to the equity method of accounting. The amendment eliminates the requirement for an investor to retroactively adjust the basis of a previously held interest in an investment that subsequently qualifies for use of the equity method. Additionally, the amendment requires any unrealized holding gain or loss recognized in accumulated other comprehensive income (loss) (“AOCI “) to be realized in earnings at the date an available-for-sale (“AFS”) security qualifies for use of the equity method. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued new guidance on improvements to employee share-based payment accounting. The amendment includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements including: income tax effects of share-based payments, minimum statutory tax withholding requirements and forfeitures. The Company adopted the revised guidance effective January 1, 2017. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to the analysis of fee arrangements and related party relationships, modifies the guidance for the evaluation of limited partnerships and similar entities for consolidation to eliminate the presumption of general partner control, and ends the deferral that had been granted to certain investment companies for applying previous VIE guidance. The Company adopted this guidance beginning January 1, 2016 using a modified retrospective approach, thereby not requiring a restatement of prior year periods. At initial adoption, the Company’s reevaluation of all legal entities under the new standard resulted in identification of additional VIEs and consolidation of certain investment products of the Investment Management and Research segment that were not consolidated in accordance with previous guidance. The analysis performed under this guidance requires the exercise of judgment and is updated continuously as circumstances change or new entities are formed. In August 2014, the FASB issued new guidance which requires management to evaluate whether there is “substantial doubt” about the reporting entity’s ability to continue as a going concern and provide related footnote disclosures about those uncertainties, if they exist. The new guidance is effective for annual periods ending after December 15, 2016 and interim periods thereafter. The Company implemented this guidance in its reporting on the year ended December 31, 2016. The effect of implementing this guidance was not material to the Company’s consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2018, the FASB issued new guidance that will permit, but not require, entities to reclassify to retained earnings tax effects “stranded” in AOCI resulting from the change in federal tax rate enacted by the Tax Cuts and Jobs Act (the “Act”) on December 22, 2017. An entity that elects this option must reclassify these stranded tax effects for all items in AOCI, including, but not limited to, AFS securities and employee benefits. Tax effects stranded in AOCI for other reasons, such as prior changes in tax law, may not be reclassified. While the new guidance provides entities the option to reclassify these amounts, new disclosures are required regardless of whether entities elect to do so. The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including in the period the Act was signed into law (i.e., the reporting period including December 22, 2017). Election can be made either to apply the new guidance retrospectively to each period in which the effect of the Act is recognized or in the period of adoption. Management currently is evaluating the options provided for adopting this guidance and the potential impacts on the Company’s consolidated financial statements. In August 2017, the FASB issued new guidance on accounting for hedging activities, intended to more closely align the financial statement reporting of hedging relationships to the economic results of an entity’s risk management activities. In addition, the new guidance makes certain targeted modifications to simplify the application of current hedge accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early application permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). All transition requirements and elections should be applied to derivatives positions and hedging relationships existing on the date of adoption. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In May 2017, the FASB issued guidance on share-based payments. The amendment provides clarity intended to reduce diversity in practice and the cost and complexity of accounting for changes to the terms or conditions of share-based payment awards. The new guidance is effective for interim and annual periods beginning after December 15, 2017, requires prospective application to awards modified on or after the date of adoption, and permits early adoption. This amendment did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date and is intended to better align interest income recognition with the manner in which market participants price these instruments. The new guidance is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted and is to be applied on a modified retrospective basis. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and post-retirement benefit costs that requires disaggregation of the service cost component from the other components of net benefit costs on the income statement. The service cost component will be presented with other employee compensation costs in “income from operations,” and the remaining components will be reported separately outside of income from operations. While this standard does not change the rules for how benefits costs are measured, it limits the amount eligible for capitalization to the service cost component and, therefore, may require insurers and other entities that establish deferred assets related to the acquisition of new contracts to align its capitalization policies/practices with that limitation. The new guidance is effective for interim and annual periods beginning after December 15, 2017 with early adoption permitted and is to be applied retrospectively for changes in the income statement presentation of net benefit cost and prospectively for changes in capitalization eligibility. The guidance permits the use of amounts previously disclosed for the various components of net benefits cost as the basis for the retrospective change in the income statement presentation, and use of that approach must be disclosed as a “practical expedient” to determining how much of the various components of net benefits costs actually was reflected in historical income statements a result of capitalization and subsequent amortization. For purpose of segment reporting, net periodic benefits costs should continue to be presented based on how management reports those costs internally for evaluation, regardless of these new requirements. The Company expects to utilize the practical expedient for adopting the retrospective change in its income statement presentation of net benefits costs. Based on the assessments performed to-date, adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued new guidance to simplify elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied using a retrospective transition method. Adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company’s financial condition or results of operations. In June 2016, the FASB issued new guidance related to the accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for annual periods beginning after December 15, 2018. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In February 2016, the FASB issued revised guidance to lease accounting that will require lessees to recognize on the balance sheet a “right-of-use” asset and a lease liability for virtually all lease arrangements, including those embedded in other contracts. The new lease accounting model will continue to distinguish between capital and operating leases. The current straight-line pattern for the recognition of rent expense on an operating lease is expected to remain substantially unchanged by the new guidance but instead will be comprised of amortization of the right-of-use asset and interest cost on the related lease obligation, thereby resulting in an income statement presentation similar to a financing arrangement or capital lease. Lessor accounting will remain substantially unchanged from the current model but has been updated to align with certain changes made to the lessee model. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The transition provisions require application on a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (that is, January 1, 2017). Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing lease contracts and arrangements. Management currently is evaluating the impact that adoption of this guidance will have on the Company’s consolidated financial statements. In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale (“AFS”) debt securities. The new guidance will require equity investments in unconsolidated entities, except those accounted for under the equity method, to be measured at fair value through earnings, thereby eliminating the AFS classification for equity securities with readily determinable fair values for which changes in fair value currently are reported in AOCI. Adoption of this new guidance is required in interim and annual periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. At December 31, 2017, the Company’s equity investments include approximately $157 million common stock securities designated as AFS for which a cumulative effect adjustment to opening retained earnings will be made at January 1, 2018 to reclassify from AOCI the related net unrealized investment gains/(losses), net of income tax. The Company’s investment assets held in the form of equity interests in unconsolidated entities, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds, generally are accounted for under the equity method and will not be impacted by this new guidance. The Company does not currently report any of its financial liabilities under the fair value option. Adoption of this new guidance in first quarter 2018 is not expected to have a material impact on the Company’s financial condition or results of operations. In May 2014, the FASB issued new guidance that revises the recognition criteria for revenue arising from contracts with customers to provide goods or services, except when those revenue streams are from insurance contracts, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new standard’s core principle is that revenue should be recognized when “control” of promised goods or services is transferred to customers and in an amount that reflects the consideration to which it expects to be entitled in exchange. Applying the new revenue recognition criteria generally will require more judgments and estimates than under current guidance in order to identify contractual performance obligations to customers, assess the roles of intermediaries in fulfilling those obligations, determine the amount of variable consideration to include in the transaction price, and allocate the transaction price to distinct performance obligations in bundled contracts. The new guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. Transition to the new standard requires a retrospective approach but application is permitted either on a full or modified basis, the latter by recognition of a cumulative-effect adjustment to opening equity in the period of initial adoption. On January 1, 2018, the Company will adopt the new revenue recognition guidance on a modified retrospective basis and provide in its first quarter 2018 reporting the additional disclosures required by the new standard. Revenues within the scope of this standard and subject to the Company’s analysis largely emerge from its investment in AllianceBernstein, as reported in the Company’s Investment Management and Research segment, but also result from the Company’s direct wholly-owned subsidiary, FMG as well as broker-dealer operations. Based on the assessments performed to-date, the Company does not expect any changes in the amounts or timing of revenue recognition, including base investment management and advisory fees, distribution revenues, shareholder servicing revenues, and broker-dealer revenues. However, performance-based fees, that currently are recognized at the end of the applicable measurement period when no risk of reversal remains, and carried-interest distributions received (considered performance-based fees), that currently are recorded as deferred revenues until no risk of reversal remains, in certain instances may be recognized earlier under the new standard if it is probable that significant reversal will not occur. As a result, the Company currently expects its initial adoption of the new revenue recognition standard at January 1, 2018 will result in a pre-tax cumulative effect adjustment to increase opening equity by approximately $35 million , representing carried-interest distributions previously received, net of revenue sharing payments to investment team members, with respect to which it is probable that significant reversal will not occur. The Company’s future financial statements will include additional disclosures as required by the new revenue recognition guidance. |
Closed Block | Closed Block As a result of demutualization, the Company’s Closed Block was established in 1992 for the benefit of certain individual participating policies that were in force on that date. Assets, liabilities and income of the Closed Block are specifically identified to support its participating policyholders. Assets allocated to the Closed Block inure solely to the benefit of the Closed Block policyholders and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of the Company’s general account (the “General Account”), any of its separate accounts (the “Separate Accounts”) or any affiliate of the Company without the approval of the New York State Department of Financial Services (the “NYDFS”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the General Account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in AOCI) represents the expected maximum future post-tax income from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. As of January 1, 2001, the Company has developed an actuarial calculation of the expected timing of the Closed Block’s income. If the actual cumulative income from the Closed Block are greater than the expected cumulative income, only the expected income will be recognized in net income. Actual cumulative income in excess of expected cumulative income at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block income in a subsequent period are less than the expected income for that period, the policyholder dividend obligation would be reduced (but not below zero). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative income of the Closed Block are less than the expected cumulative income, only actual income would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of deferred policy acquisition costs (“DAC”), are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. |
Investments | Investments The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in other comprehensive income (“OCI”). The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock, and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. The Company determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. The Company’s management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Company’s Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity, and continued viability of the issuer and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in income (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage- and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. Real estate held for the production of income is stated at depreciated cost less valuation allowances. Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Partnerships, investment companies and joint venture interests that the Company has control of and has an economic interest in or those that meet the requirements for consolidation under accounting guidance for consolidation of VIEs are consolidated. Those that the Company does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity method of accounting and are reported in other equity investments. The Company records its interests in certain of these partnerships on a month or one quarter lag. Equity securities, which include common stock, and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in other equity investments with changes in fair value reported in OCI. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with realized and unrealized gains (losses) reported in net investment income (loss) in the statements of Net income (loss). Corporate owned life insurance (“COLI”) has been purchased by the Company and certain subsidiaries on the lives of certain key employees and the Company and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2017 and 2016 , the carrying value of COLI was $ 911 million and $892 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. The Company classifies as short-term securities purchased with a maturity of twelve months or less. Cash and cash equivalents includes cash on hand, demand deposits, money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. Cash and securities segregated primarily includes U.S. Treasury Bills segregated by AB in a special reserve bank custody account for the exclusive benefit of its brokerage customers under Rule 15c3-3 of the Exchange Act. All securities owned, including U.S. government and agency securities, mortgage-backed securities, futures and forwards transactions, are reported in the consolidated financial statements on a trade date basis. |
Derivatives | Derivatives Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by the Company include exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options and may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the consolidated balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. Freestanding derivative contracts are reported in the consolidated balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities.” The Company nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related Credit Support Annex (“CSA”) have been executed. The Company uses derivatives to manage asset/liability risk and has designated some of those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of the Company’s freestanding derivative positions not designated to hedge accounting relationships, including net receipts and payments, are included in “Net derivative gains (losses)” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When those criteria are satisfied, the resulting embedded derivative is bifurcated from the host contract, carried in the consolidated balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the consolidated statements of income (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. |
Securities Repurchase and Reverse Repurchase Agreements | Securities Repurchase and Reverse Repurchase Agreements Securities repurchase and reverse repurchase transactions involve the temporary exchange of securities for cash or other collateral of equivalent value, with agreement to redeliver a like quantity of the same or similar securities at a future date prior to maturity at a fixed and determinable price. Transfers of securities under these agreements to repurchase or resell are evaluated by the Company to determine whether they satisfy the criteria for accounting treatment as secured borrowing or lending arrangements. Agreements not meeting the criteria would require recognition of the transferred securities as sales or purchases with related forward repurchase or resale commitments. All of the Company’s securities repurchase transactions are accounted for as collateralized borrowings with the related obligations distinctly captioned in the consolidated balance sheets. Earnings from investing activities related to the cash received under the Company’s securities repurchase arrangements are reported in the consolidated statements of income (loss) as “Net investment income” and the associated borrowing cost is reported as “Interest expense.” The Company has not actively engaged in securities reverse repurchase transactions. |
Commercial and Agricultural Mortgage Loans on Real Estate | Commercial and Agricultural Mortgage Loans on Real Estate: Mortgage loans are stated at unpaid principal balances, net of unamortized discounts and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. For commercial and agricultural mortgage loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management’s judgment in determining allowance for credit losses include the following: • Loan-to-value ratio – Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the loan-to-value ratio is in excess of 100% . In the case where the loan-to-value is in excess of 100% , the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance. • Debt service coverage ratio – Derived from actual operating income divided by annual debt service. If the ratio is below 1.0 x, then the income from the property does not support the debt. • Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. • Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. • Maturity – Mortgage loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower’s ability to refinance the debt and/or pay off the balloon balance. • Borrower/tenant related issues – Financial concerns, potential bankruptcy, or words or actions that indicate imminent default or abandonment of property. • Payment status – current vs. delinquent – A history of delinquent payments may be a cause for concern. • Property condition – Significant deferred maintenance observed during the lenders annual site inspections. • Other – Any other factors such as current economic conditions may call into question the performance of the loan. Mortgage loans also are individually evaluated quarterly by the Company’s IUS Committee for impairment, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages are also identified, consisting of mortgage loans not currently classified as problem mortgages but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. For problem mortgage loans, a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for mortgage loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan-specific portion of the loss allowance is based on the Company’s assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan’s effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors. Impaired mortgage loans without provision for losses are mortgage loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on mortgage loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on mortgage loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. Mortgage loans are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans are classified as nonaccrual mortgage loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan has been restructured to where the collection of interest is considered likely. At December 31, 2017 and 2016 , the carrying values of commercial mortgage loans that had been classified as nonaccrual mortgage loans were $ 19 million and $34 million , respectively. |
Troubled Debt Restructuring | Troubled Debt Restructuring When a loan modification is determined to be a troubled debt restructuring (“TDR”), the impairment of the loan is re-measured by discounting the expected cash flows to be received based on the modified terms using the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the mortgage loans. Additionally, the loan continues to be subject to the credit review process noted above. |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) | Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in Investment gains (losses), net. Realized and unrealized holding gains (losses) on trading securities are reflected in Net investment income (loss). Unrealized investment gains (losses) on fixed maturities and equity securities designated as AFS held by the Company are accounted for as a separate component of AOCI, net of related deferred income taxes, amounts attributable to certain pension operations, Closed Block’s policyholders dividend obligation, insurance liability loss recognition, DAC related to UL policies, investment-type products and participating traditional life policies. Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities and equity securities classified as AFS and do not reflect any change in fair value of policyholders’ account balances and future policy benefits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity’s own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. The Company uses unadjusted quoted market prices to measure fair value for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, the Company often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, the Company either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. |
Recognition of Insurance Income and Related Expenses | Recognition of Insurance Income and Related Expenses Deposits related to universal life (“UL”) and investment-type contracts are reported as deposits to policyholders’ account balances. Revenues from these contracts consist of fees assessed during the period against policyholders’ account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders’ account balances. Premiums from participating and non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of DAC. For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. Premiums from individual health contracts are recognized as income over the period to which the premiums relate in proportion to the amount of insurance protection provided. |
DAC | DAC Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to income. Amortization Policy . In accordance with the guidance for the accounting and reporting by insurance enterprises for certain long-duration contracts and participating contracts and for realized gains and losses from the sale of investments, current and expected future profit margins for products covered by this guidance are examined regularly in determining the amortization of DAC. DAC associated with certain variable annuity products is amortized based on estimated assessments, with DAC on the remainder of variable annuities, UL and investment-type products amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience and changes in the reserve of products that have indexed features such as SCS IUL and MSO, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC are amortized using the present value of estimated assessments. The effect on the amortization of DAC of revisions to estimated gross profits or assessments is reflected in income (loss) in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC amortization. Conversely, an increase in expected gross profits or assessments would slow DAC amortization. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. A significant assumption in the amortization of DAC on variable annuities and, to a lesser extent, on variable and interest-sensitive life insurance relates to projected future separate account performance. Management sets estimated future gross profit or assessment assumptions related to separate account performance using a long-term view of expected average market returns by applying a reversion to the mean (“RTM”) approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC amortization for the period. The opposite occurs when returns are lower than expected. In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Based upon management’s current expectations of interest rates and future fund growth, the Company updated its RTM assumption from 9.0% to 7.0% . The average gross long-term return measurement start date was also updated to December 31, 2014. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. At December 31, 2017 , the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0 % ( 4.7 % net of product weighted average Separate Account fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0 % ( 12.7% net of product weighted average Separate Account fees) and 0.0% ( -2.3 % net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is five years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than five years in order to reach the average gross long-term return estimate, the application of the five year maximum duration limitation would result in an acceleration of DAC amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than five years would result in a required deceleration of DAC amortization. In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated quarterly to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC amortization. Other significant assumptions underlying gross profit estimates for UL and investment type products relate to contract persistency and General Account investment spread. For participating traditional life policies (substantially all of which are in the Closed Block), DAC is amortized over the expected total life of the contract group as a constant percentage based on the present value of the estimated gross margin amounts expected to be realized over the life of the contracts using the expected investment yield. At December 31, 2017 , the average rate of assumed investment yields, excluding policy loans, for the Company was 4.7% grading to 4.3% over 7 years. Estimated gross margins include anticipated premiums and investment results less claims and administrative expenses, changes in the net level premium reserve and expected annual policyholder dividends. The effect on the accumulated amortization of DAC of revisions to estimated gross margins is reflected in net income in the period such estimated gross margins are revised. The effect on the DAC assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in consolidated equity as of the balance sheet date. Many of the factors that affect gross margins are included in the determination of the Company’s dividends to these policyholders. DAC adjustments related to participating traditional life policies do not create significant volatility in results of operations as the Closed Block recognizes a cumulative policyholder dividend obligation expense in “Policyholders’ dividends,” for the excess of actual cumulative income over expected cumulative income as determined at the time of demutualization. DAC associated with non-participating traditional life policies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are estimated at the date of policy issue and are consistently applied during the life of the contracts. Deviations from estimated experience are reflected in net income (loss) in the period such deviations occur. For these contracts, the amortization periods generally are for the total life of the policy. DAC related to these policies are subject to recoverability testing as part of the Company’s premium deficiency testing. If a premium deficiency exists, DAC are reduced by the amount of the deficiency or to zero through a charge to current period net income (loss). If the deficiency exceeds the DAC balance, the reserve for future policy benefits is increased by the excess, reflected in net income (loss) in the period such deficiency occurs. For some products, policyholders can elect to modify product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. These transactions are known as internal replacements. If such modification substantially changes the contract, the associated DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. |
Policyholder Bonus Interest Credits | Policyholder Bonus Interest Credits Policyholder bonus interest credits are offered on certain deferred annuity products in the form of either immediate bonus interest credited or enhanced interest crediting rates for a period of time. The interest crediting expense associated with these policyholder bonus interest credits is deferred and amortized over the lives of the underlying contracts in a manner consistent with the amortization of DAC. Unamortized balances are included in Other assets in the consolidated balance sheets and amortization is included in Interest credited to policyholders’ account balances in the consolidated statements of income (loss). |
Policyholders' Account Balances and Future Policy Benefits | Policyholders’ Account Balances and Future Policy Benefits Policyholders’ account balances for UL and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium, investment performance and interest credited, net of surrenders, withdrawals, benefits and charges. For participating traditional life policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial assumptions equal to guaranteed mortality and dividend fund interest rates. The liability for annual dividends represents the accrual of annual dividends earned. Terminal dividends are accrued in proportion to gross margins over the life of the contract. For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on the Company’s experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated policyholders’ fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 5.0% to 6.3% (weighted average of 5.1% ) for approximately 99.1% of life insurance liabilities and from 1.6% to 5.5% (weighted average of 4.2% ) for annuity liabilities. Individual health benefit liabilities for active lives are estimated using the net level premium method and assumptions as to future morbidity, withdrawals and interest. Benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. While management believes its disability income (“DI”) reserves have been calculated on a reasonable basis and are adequate, there can be no assurance reserves will be sufficient to provide for future liabilities. When the liabilities for future policy benefits plus the present value of expected future gross premiums for a product are insufficient to provide for expected future policy benefits and expenses for that product, DAC is written off and thereafter, if required, a premium deficiency reserve is established by a charge to income. Funding agreements are reported in Policyholders’ account balances in the consolidated balance sheets. As a member of the Federal Home Loan Bank of New York (“FHLBNY”), the Company has access to collateralized borrowings. The Company may also issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require the Company to pledge qualified mortgage-backed assets and/or government securities as collateral. For reinsurance contracts other than those accounted for as derivatives, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. The Company has issued and continues to offer certain variable annuity products with guaranteed minimum death benefits (“GMDB”) and/or contain guaranteed minimum living benefit (“GMLB,” and together with GMDB, the “GMxB features”) which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a guaranteed minimum income benefit (“GMIB”) base. The Company previously issued certain variable annuity products with and guaranteed income benefit (“GIB”) features, guaranteed withdrawal benefit for life (“GWBL”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”) features. The Company has also assumed reinsurance for products with GMxB features. Reserves for products that have GMIB features, but do not have no-lapse guarantee features, and products with GMDB features are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts. The determination of this estimated liability is based on models that involve numerous estimates and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding separate account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a RTM approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management’s estimates. Products that have a GMIB feature with a no-lapse guarantee rider (“NLG”), GIB, GWBL, GMWB and GMAB features and the assumed products with GMIB features (collectively “GMxB derivative features”) are considered either freestanding or embedded derivatives and discussed below under (“Embedded and Freestanding Insurance Derivatives”). After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business ( i.e. , reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to income. Premium deficiency reserves have been recorded for the group single premium annuity business, certain interest-sensitive life contracts, structured settlements, individual disability income and major medical. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of income may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional profits followed by loss liability be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. A profits followed by loss liability is included in “Future policy benefits” and is predominately associated with certain interest-sensitive life contracts. |
Embedded and Freestanding Insurance Derivatives | Embedded and Freestanding Insurance Derivatives Reserves for products considered either embedded or freestanding derivatives are measured at estimated fair value separately from the host variable annuity product, with changes in estimated fair value reported in Net derivative gains (losses). The estimated fair values of these derivatives are determined based on the present value of projected future benefits minus the present value of projected future fees attributable to the guarantee. The projections of future benefits and future fees require capital markets and actuarial assumptions, including expectations concerning policyholder behavior. A risk neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk-free rates. Additionally the Company cedes and assumes reinsurance for products with GMxB features, which are considered an embedded when part of a reinsurance contract covers risks not treated as derivative or a freestanding derivative otherwise. The GMxB reinsurance contract asset and liabilities’ fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios. Changes in the fair value of embedded and freestanding derivatives are reported on the consolidated statements of income (loss) in Net derivative gains (losses). Reserves for embedded derivatives liabilities and assumed reinsurance contracts are reported in Future policyholders’ benefits and other policyholders’ liabilities and the GMIB reinsurance contract asset, at fair value is reported in a stand-alone line in the consolidated balance sheets. Embedded and freestanding insurance derivatives fair values are determined based on the present value of projected future benefits minus the present value of projected future fees. At policy inception, a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits is attributed to the embedded derivative. The percentage of fees included in the fair value measurement is locked-in at inception. Fees above those amounts represent “excess” fees and are reported in Policy charges and fee income. |
Separate Accounts | Separate Accounts Generally, Separate Accounts established under New York State Insurance Law are not chargeable with liabilities that arise from any other business of the Company. Separate Account assets are subject to General Account claims only to the extent Separate Account assets exceed separate accounts liabilities. Assets and liabilities of the Separate Account represent the net deposits and accumulated net investment income (loss) less fees, held primarily for the benefit of policyholders, and for which the Company does not bear the investment risk. Separate Account assets and liabilities are shown on separate lines in the consolidated balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security’s duration, also taking into consideration issuer-specific credit quality and liquidity. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to policyholders of such Separate Account are offset within the same line in the consolidated statements of income (loss). For 2017 , 2016 and 2015 , investment results of such Separate Accounts were gains (losses) of $ 16,735 million, $8,222 million and $(1,148) million , respectively. Deposits to Separate Accounts are reported as increases in Separate Account assets and liabilities and are not reported in revenues or expenses. Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. The Company reports the General Account’s interests in Separate Accounts as Other equity investments in the consolidated balance sheets. |
Recognition of Investment Advisory and Administrative Services Revenues and Related Expenses | Recognition of Investment Management and Service Fees and Related Expenses Investment Management and Research Investment management and service fees principally include the Investment Management and Research segment’s investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as basis points (“BPs”), of assets under management, are recorded as revenue as the related services are performed. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time. Performance-based fees are recorded as a component of revenue at the end of each contract’s measurement period. Institutional research services revenue consists of brokerage transaction charges received by Sanford C. Bernstein & Co. LLC (“SCB LLC”) and Sanford C. Bernstein Limited (“SCBL”) for independent research and brokerage-related services provided to institutional investors. Brokerage transaction charges earned and related expenses are recorded on a trade date basis. Distribution revenues and shareholder servicing fees are accrued as earned. Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge (“back-end load shares”) are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from contingent deferred sales commissions (“CDSC”) received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Since January 31, 2009, AB sponsored U.S. mutual funds have not offered back-end load shares to new investors. Likewise, as of December 31, 2016, AB sponsored Non-U.S. Funds are no longer offering back-end load shares, except in isolated instances. Management periodically reviews the deferred sales commission asset for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If these factors indicate impairment in value, a comparison is made of the carrying value to the undiscounted cash flows expected to be generated by the asset over its remaining life. If it is determined the deferred sales commission asset is not fully recoverable, the asset will be deemed impaired and a loss will be recorded in the amount by which the recorded amount of the asset exceeds its estimated fair value. Retirement and Protection Investment management and service fees also includes fees earned by AXA Equitable Funds Management Group, LLC (“AXA Equitable FMG”) from providing investment management and administrative services to AXA Premier VIP Trust (“VIP Trust”), EQ Advisors Trust (“EQAT”) and 1290 Funds as well as two private investment trusts established in the Cayman Islands, AXA Allocation Funds Trusts and AXA Offshore Multimanager Funds Trust (collectively, the “Other AXA Trusts”). AXA Equitable FMG’s administrative services include, among others, fund accounting and compliance services. AXA Equitable FMG has entered into sub-advisory agreements with affiliated and unaffiliated registered investment advisers to provide sub-advisory services to AXA Equitable FMG with respect to certain portfolios of EQAT and the Other AXA Trusts. It has also entered into a sub-administration agreement with JPMorgan Chase Bank, N.A. to provide certain sub-administration services to AXA Equitable FMG as instructed by AXA Equitable FMG. AXA Equitable FMG’s fees related to its services are calculated as a percentage of assets under management and are recorded in Investment management and service fees in the consolidated statements of income (loss) as the related services are performed. Sub-advisory and sub-administrative expenses associated with the services are calculated and recorded as the related services are performed in Other operating costs and expenses in the consolidated statements of income (loss). |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill reported by the Company represents the excess of the purchase price over the fair value of identifiable net assets of acquired companies and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. (“Bernstein Acquisition”) and purchases of units of the limited partnership interest in ABLP (“AB Units”). In accordance with the guidance for Goodwill and Other Intangible Assets, goodwill is tested annually for impairment and at interim periods if events or circumstances indicate an impairment could have occurred. Effective January 1, 2017, the Company early-adopted new guidance that eliminated Step 2 testing from the goodwill impairment model and continued to limit the measurement of any goodwill impairment to the carrying value of the reporting unit's goodwill. The Company’s intangible assets primarily relate to the Bernstein Acquisition and purchases of AB Units and reflect amounts assigned to acquired investment management contracts based on their estimated fair values at the time of acquisition, less accumulated amortization. These intangible assets generally are amortized on a straight-line basis over their estimated useful life, ranging from six to twenty years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, impairment tests are performed to measure the amount of the impairment loss, if any. |
Internal-use Software | Internal-use Software Capitalized internal-use software, included in Other assets in the consolidated balance sheets, is amortized on a straight-line basis over the estimated useful life of the software that ranges between three and five years. Capitalized amounts are periodically tested for impairment in accordance with the guidance on impairment of long-lived assets. An immediate charge to earnings is recognized if capitalized software costs no longer are deemed to be recoverable. In addition, service potential is periodically reassessed to determine whether facts and circumstances have compressed the software’s useful life such that acceleration of amortization over a shorter period than initially determined would be required. |
Income Taxes | Income Taxes The Company and certain of its consolidated subsidiaries and affiliates, including the Company, file a consolidated Federal income tax return. The Company provides for Federal and state income taxes currently payable, as well as those deferred due to temporary differences between the financial reporting and tax bases of assets and liabilities. Current Federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Under accounting for uncertainty in income taxes guidance, the Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the consolidated financial statements. Tax positions are then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. As required under accounting for income taxes, the Company determined reasonable estimates for certain effects of the Tax Cuts and Jobs Act enacted on December 22, 2017 and recorded those estimates as provisional amounts in the 2017 consolidated financial statements. In accordance with SEC Staff Accounting Bulletin No. 118 (“SAB 118”), the Company may make additional adjustments during 2018 (the measurement period) to the income tax balance sheet and income statement accounts as the U.S. Department of the Treasury issues further guidance and interpretations. |
Accounting and Consolidation of VIE's | Accounting and Consolidation of VIEs For all new investment products and entities developed by the Company (other than Collateralized Debt Obligations (“CDOs”)), the Company first determines whether the entity is a VIE, which involves determining an entity’s variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then identifies the primary beneficiary of the VIE. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. The Company provides seed capital to its investment teams to develop new products and services for their clients. The Company’s original seed investment typically represents all or a majority of the equity investment in the new product and is temporary in nature. The Company evaluates its seed investments on a quarterly basis to determine whether consolidation is required. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client assets under management (“AUM”) to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. A VIE must be consolidated by its primary beneficiary, which generally is defined as the party that has a controlling financial interest in the VIE. The Company is deemed to have a controlling financial interest in a VIE if it has (i) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive income from the VIE that potentially could be significant to the VIE. For purposes of evaluating (ii) above, fees paid to the Company as a decision maker or service provider are excluded if the fees are compensation for services provided commensurate with the level of effort required to be performed and the arrangement includes only customary terms, conditions or amounts present in arrangements for similar services negotiated at arm’s length. If the Company has a variable interest in an entity that is determined not to be a VIE, the entity then is evaluated for consolidation under the voting interest entity (“VOE”) model. For limited partnerships and similar entities, the Company is deemed to have a controlling financial interest in a VOE, and would be required to consolidate the entity, if the Company owns a majority of the entity’s kick-out rights through voting limited partnership interests and other limited partners do not hold substantive participating rights (or other rights that would indicate that the Company does not control the entity). For entities other than limited partnerships, the Company is deemed to have a controlling financial interest in a VOE if it owns a majority voting interest in the entity. The analysis performed to identify variable interests held, determine whether entities are VIEs or VOEs, and evaluate whether the Company has a controlling financial interest in such entities requires the exercise of judgment and is updated on a continuous basis as circumstances change or new entities are developed. The primary beneficiary evaluation generally is performed qualitatively based on all facts and circumstances, including consideration of economic interests in the VIE held directly and indirectly through related parties and entities under common control, as well as quantitatively, as appropriate. At December 31, 2017 , the Company held approximately $ 1,123 million of investment assets in the form of equity interests issued by non-corporate legal entities determined under the new guidance to be VIEs, such as limited partnerships and limited liability companies, including hedge funds, private equity funds, and real estate-related funds. As an equity investor, the Company is considered to have a variable interest in each of these VIEs as a result of its participation in the risks and/or rewards these funds were designed to create by their defined portfolio objectives and strategies. Primarily through qualitative assessment, including consideration of related party interests or other financial arrangements, if any, the Company was not identified as primary beneficiary of any of these VIEs, largely due to its inability to direct the activities that most significantly impact their economic performance. Consequently, the Company continues to reflect these equity interests in the consolidated balance sheet as Other equity investments and to apply the equity method of accounting for these positions. The net assets of these nonconsolidated VIEs are approximately $ 160,178 million. The Company’s maximum exposure to loss from its direct involvement with these VIEs is the carrying value of its investment of $ 1,123 million and approximately $ 693 million of unfunded commitments at December 31, 2017 . The Company has no further economic interest in these VIEs in the form of guarantees, derivatives, credit enhancements or similar instruments and obligations. At December 31, 2017 , the Company consolidated three real estate joint ventures for which it was identified as primary beneficiary under the VIE model. Two of the joint ventures are owned 95% by the Company and 5% by the venture partner. The third consolidated entity is jointly owned by AXA Equitable and AXA France and holds an investment in a real estate venture. Included in the Company’s consolidated balance sheets at December 31, 2017 and 2016 , respectively, are total assets of $393 million and $36 million related to these VIEs, primarily resulting from the consolidated presentation of $372 million and $36 million of real estate held for production of income. Also resulting from the Company’s consolidated presentation of these VIEs are total liabilities of $229 million and $11 million at December 31, 2017 and 2016 , respectively, including long term debt in the amount of $203 million and $0 million . In addition, real estate held for production of income reflects $18 million and $20 million as related to two non-consolidated joint ventures at December 31, 2017 and 2016 , respectively. Included in the Company's consolidated balance sheet at December 31, 2017 are assets of $1,550 million , liabilities of $696 million and redeemable non-controlling interest of $596 million associated with the consolidation of AB-sponsored investment funds under the VIE model. Also included in the Company's consolidated balance sheets are assets of $58 million , liabilities of $2 million and redeemable non-controlling interest of $0 million from consolidation of AB-sponsored investment funds under the VOE model. The assets of these consolidated funds are presented within Other invested assets and cash and cash equivalents, and liabilities of these consolidated funds are presented with other liabilities on the face of the Company's consolidated balance sheet at December 31, 2017; ownership interests not held by the Company relating to consolidated VIEs and VOEs are presented either as redeemable or non-redeemable noncontrolling interest, as appropriate. The Company is not required to provide financial support to these company-sponsored investment funds, and only the assets of such funds are available to settle each fund's own liabilities. As of December 31, 2017 , the net assets of investment products sponsored by AB that are nonconsolidated VIEs are approximately $53,600 million and the Company’s maximum exposure to loss from its direct involvement with these VIEs is its investment of $7.9 million at December 31, 2017 . The Company has no further commitments to or economic interest in these VIEs. |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of error corrections and prior period adjustments | December 31, 2016 As Previously Reported Impact of Adjustments (1) As Restated (In millions) Assets: Deferred policy acquisition costs $ 4,852 $ 206 $ 5,058 Guaranteed minimum income benefit reinsurance asset, at fair value 10,316 (2 ) 10,314 Total assets 204,352 204 204,556 Liabilities: Future policyholders' benefits and other policyholders' liabilities 28,939 (38 ) 28,901 Current and deferred taxes 2,751 83 2,834 Total liabilities 189,504 45 189,549 Equity: Retained earnings 6,005 145 6,150 Accumulated other comprehensive income (loss) 3 14 17 Total equity attributable to AXA Equitable 11,349 159 11,508 Total equity 14,445 159 14,604 Total liabilities, redeemable controlling interest and equity $ 204,352 $ 204 $ 204,556 (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information that impact the pre-change in accounting principle financial information that is being restated, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Adjustments (1) As Restated As Revised Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2016 2015 2016 2015 (In millions) Statements of Income (Loss): Revenues: Premiums 854 828 26 24 880 852 Net derivative gains (losses) (1,163 ) (1,075 ) (48 ) (86 ) (1,211 ) (1,161 ) Total revenues 9,160 9,023 (22 ) (62 ) 9,138 8,961 Benefits and other deductions: Policyholders' benefits 2,745 2,457 26 17 2,771 2,474 Interest credited to policyholder's account balances 1,079 973 (50 ) (86 ) 1,029 887 Amortization of deferred policy acquisition costs, net 287 (254 ) (235 ) 11 52 (243 ) Total benefits and other deductions 8,775 7,981 (259 ) (58 ) 8,516 7,923 Income (loss) from operations, before income taxes 385 1,042 237 (4 ) 622 1,038 Income tax (expense) benefit 168 23 (84 ) (1 ) 84 22 Net income (loss) 553 1,065 153 (5 ) 706 1,060 Net income (loss) attributable to AXA Equitable $ 57 $ 667 $ 153 $ (5 ) $ 210 $ 662 Statements of Comprehensive Income (Loss): Net income (loss) $ 553 $ 1,065 $ 153 $ (5 ) $ 706 $ 1,060 Change in unrealized gains (losses), net of reclassification adjustment (208 ) (828 ) 14 (4 ) (194 ) (832 ) Total other comprehensive income (loss), net of income taxes (229 ) (857 ) 14 (4 ) (215 ) (861 ) Comprehensive income (loss) 324 208 167 (9 ) 491 199 Comprehensive income (loss) attributable to AXA Equitable $ (155 ) $ (175 ) $ 167 $ (9 ) $ 12 $ (184 ) (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information for the year ended December 31, 2016 that impact the pre-change in accounting principle financial information that is being restated and identified certain additional errors that were not material to the previously disclosed financial information for the year ended December 31, 2015, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Adjustments (1) As Restated As Revised Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2016 2015 2016 2015 (In millions) Statements of Equity: Retained earnings, beginning of year $ 6,998 $ 7,243 $ (8 ) $ (3 ) $ 6,990 $ 7,240 Net income (loss) attributable to AXA Equitable 57 667 153 (5 ) 210 662 Retained earnings, end of period 6,005 6,998 145 (8 ) 6,150 6,990 Accumulated other comprehensive income (loss), beginning of year 215 285 — 4 215 289 Other comprehensive income (loss) (212 ) (842 ) 14 (4 ) (198 ) (846 ) Accumulated other comprehensive income (loss), end of year 3 215 14 — 17 215 Total AXA Equitable’s equity, end of period 11,349 12,536 159 (8 ) 11,508 12,528 Total Equity, End of Period $ 14,445 $ 15,595 $ 159 $ (8 ) $ 14,604 $ 15,587 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 553 $ 1,065 $ 153 $ (5 ) $ 706 $ 1,060 Interest credited to policyholders’ account balances 1,079 973 (50 ) (86 ) 1,029 887 Net derivative (gains) loss 1,163 1,075 48 86 1,211 1,161 Changes in: Deferred policy acquisition costs 287 (254 ) (235 ) 11 52 (243 ) Current and deferred income taxes (826 ) 49 84 1 (742 ) 50 Other (161 ) (92 ) — (7 ) (161 ) (99 ) Net cash provided by (used in) operating activities $ (461 ) $ (324 ) $ — $ — $ (461 ) $ (324 ) (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information as of and for the year ended December 31, 2016 that impact the pre-change in accounting principle financial information that is being restated and identified certain additional errors that were not material to the previously disclosed financial information as of and for the year ended December 31, 2015, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended September 30, 2017 Total Revenues $ 2,520 $ (91 ) $ 2,429 $ — $ 2,429 Total benefits and other deductions $ 2,581 $ (172 ) $ 2,409 $ — $ 2,409 Net income (loss) $ 66 $ 55 $ 121 $ — $ 121 Three Months Ended June 30, 2017 Total Revenues $ 4,488 $ (138 ) $ 4,350 $ 198 $ 4,548 Total benefits and other deductions $ 2,691 $ (45 ) $ 2,646 $ (132 ) $ 2,514 Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Three Months Ended March 31, 2017 Total Revenues $ 1,989 $ (67 ) $ 1,922 $ 392 $ 2,314 Total benefits and other deductions $ 2,562 $ (143 ) $ 2,419 $ 70 $ 2,489 Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Three Months Ended December 31, 2016 Total Revenues $ (1,942 ) $ 75 $ (1,867 ) $ 1,654 $ (213 ) Total benefits and other deductions $ 1,627 $ 73 $ 1,700 $ (62 ) $ 1,638 Net income (loss) $ (2,259 ) $ — $ (2,259 ) $ 1,115 $ (1,144 ) Three Months Ended September 30, 2016 Total Revenues $ 2,006 $ (8 ) $ 1,998 $ 155 $ 2,153 Total benefits and other deductions $ 2,036 $ (22 ) $ 2,014 $ (1 ) $ 2,013 Net income (loss) $ 22 $ 51 $ 73 $ 102 $ 175 Three Months Ended June 30, 2016 Total Revenues $ 4,157 $ 12 $ 4,169 $ (872 ) $ 3,297 Total benefits and other deductions $ 2,581 $ (5 ) $ 2,576 $ (152 ) $ 2,424 Net income (loss) $ 1,061 $ 7 $ 1,068 $ (468 ) $ 600 Three Months Ended March 31, 2016 Total Revenues $ 4,927 $ 110 $ 5,037 $ (1,136 ) $ 3,901 Total benefits and other deductions $ 2,473 $ 67 $ 2,540 $ (99 ) $ 2,441 Net income (loss) $ 1,720 $ 29 $ 1,749 $ (674 ) $ 1,075 The following tables present line items for September 30, 2017 financial information that has been affected by the revisions. This information has been corrected from the information previously presented in the Q3 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the revisions and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised (In millions) As of September 30, 2017 Assets: DAC 4,550 353 4,903 Amounts due from reinsurers 5,016 (12 ) 5,004 Guaranteed minimum income benefit reinsurance asset, at fair value 10,933 (33 ) 10,900 Other Assets 4,258 18 4,276 Total Assets $ 219,069 $ 326 $ 219,395 Liabilities: Future policyholders' benefits and other policyholders' liabilities 29,423 29 29,452 Current and deferred taxes 3,148 117 3,265 Total Liabilities 202,669 146 202,815 Equity: Retained Earnings 7,265 211 7,476 Accumulated other comprehensive income (loss) 362 (31 ) 331 AXA Equitable Equity 12,990 180 13,170 Equity 15,959 180 16,139 Total Liabilities and Equity $ 219,069 $ 326 $ 219,395 As Previously Reported Impact of Revisions As Revised (In millions) Three Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 914 $ (7 ) $ 907 Premiums 204 4 208 Net derivative gains (losses) (318 ) (88 ) (406 ) Total revenues 2,520 (91 ) 2,429 Benefits and other deductions: Policyholders' benefits 995 (88 ) 907 Interest credited to policyholders' account balances 350 (105 ) 245 Amortization of deferred policy acquisition costs, net (33 ) 21 (12 ) Total benefits and other deductions 2,581 (172 ) 2,409 Income (loss) from operations, before income taxes (61 ) 81 20 Income tax (expense) benefit 127 (26 ) 101 Net income (loss) 66 55 121 Net income (loss) attributable to AXA Equitable $ (56 ) $ 55 $ (1 ) Statements of Comprehensive Income (Loss): Net income (loss) $ 66 $ 55 $ 121 Change in unrealized gains (losses), net of reclassification adjustment (55 ) (24 ) (79 ) Other comprehensive income (52 ) (24 ) (76 ) Comprehensive income (loss) 14 31 45 Comprehensive income (loss) attributable to AXA Equitable $ (140 ) $ 31 $ (109 ) As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 2,626 $ (21 ) $ 2,605 Premiums 645 20 665 Net derivative gains (losses) 1,376 (384 ) 992 Total revenues 9,673 (385 ) 9,288 Benefits and other deductions: Policyholders' benefits 3,308 (62 ) 3,246 Interest credited to policyholders' account balances 1,008 (279 ) 729 Amortization of deferred policy acquisition costs, net 15 (47 ) (32 ) Total benefits and other deductions 7,800 (388 ) 7,412 Income (loss) from operations, before income taxes 1,873 3 1,876 Income tax (expense) benefit (196 ) (1 ) (197 ) Net income (loss) 1,677 2 1,679 Net income (loss) attributable to AXA Equitable $ 1,324 $ 2 $ 1,326 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,677 $ 2 $ 1,679 Change in unrealized gains (losses), net of reclassification adjustment 362 (47 ) 315 Other comprehensive income 380 (47 ) 333 Comprehensive income (loss) 2,057 (45 ) 2,012 Comprehensive income (loss) attributable to AXA Equitable $ 1,685 $ (45 ) $ 1,640 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 5,941 $ 209 $ 6,150 Net income (loss) 1,324 2 1,326 Retained earnings, end of period 7,265 211 7,476 Accumulated other comprehensive income, beginning of year 1 16 17 Other comprehensive income (loss) 361 (47 ) 314 Accumulated other comprehensive income, end of period 362 (31 ) 331 Total AXA Equitable’s equity, end of period 12,990 180 13,170 Total Equity, End of Period $ 15,959 $ 180 $ 16,139 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,677 $ 2 $ 1,679 Policy charges and fee income (2,626 ) 21 (2,605 ) Interest credited to policyholders’ account balances 1,008 (279 ) 729 Net derivative (gains) loss (1,376 ) 384 (992 ) Changes in: Deferred Policy Acquisition costs 15 (47 ) (32 ) Future policy benefits 1,289 (81 ) 1,208 Net cash provided by (used in) operating activities $ 994 $ — $ 994 The following tables present line items for June 30, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Q2 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of June 30, 2017 Assets: Other equity investments $ 1,477 $ (21 ) $ 1,456 $ — $ 1,456 Other invested assets 2,622 32 2,654 — 2,654 Total investments 62,111 11 62,122 — 62,122 DAC 4,141 247 4,388 525 4,913 Amounts due from reinsurers 4,870 19 4,889 — 4,889 Guaranteed minimum income benefit reinsurance contract asset, at fair value 11,290 (30 ) 11,260 — 11,260 Total Assets $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 Liabilities: Policyholders' account balance $ 41,531 $ (15 ) $ 41,516 $ — $ 41,516 Future policyholders' benefits and other policyholders' liabilities 26,799 79 26,878 2,801 29,679 Current and deferred taxes 4,000 65 4,065 (798 ) 3,267 Other liabilities 2,531 (9 ) 2,522 — 2,522 Total Liabilities 196,972 120 197,092 2,003 199,095 Equity: Retained Earnings 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income (loss) 493 (34 ) 459 (28 ) 431 AXA Equitable Equity 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest 2,973 11 2,984 — 2,984 Equity 17,608 127 17,735 (1,478 ) 16,257 Total Liabilities and Equity $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 865 $ 50 $ 915 $ (68 ) $ 847 Premiums 216 9 225 — 225 Net derivative gains (losses) 1,693 (197 ) 1,496 266 1,762 Total revenues 4,488 (138 ) 4,350 198 4,548 Benefits and other deductions: Policyholders' benefits 1,452 46 1,498 (134 ) 1,364 Amortization of deferred policy acquisition costs, net (82 ) 31 (51 ) 2 (49 ) Interest credited to policyholders’ account balances 321 (116 ) 205 — 205 Other operating costs and expenses 155 (6 ) 149 — 149 Total benefits and other deductions 2,691 (45 ) 2,646 (132 ) 2,514 Income (loss) from operations, before income taxes 1,797 (93 ) 1,704 330 2,034 Income tax (expense) benefit (338 ) 34 (304 ) (115 ) (419 ) Net income (loss) 1,459 (59 ) 1,400 215 1,615 Net income (loss) attributable to AXA Equitable $ 1,346 $ (59 ) $ 1,287 $ 215 $ 1,502 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Change in unrealized gains (losses), net of reclassification adjustment 314 (29 ) 285 8 293 Other comprehensive income 294 (29 ) 265 8 273 Comprehensive income (loss) 1,753 (88 ) 1,665 223 1,888 Comprehensive income (loss) attributable to AXA Equitable $ 1,660 $ (88 ) $ 1,572 $ 223 $ 1,795 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 1,761 $ 72 $ 1,833 $ (135 ) $ 1,698 Premiums 441 16 457 — 457 Net derivative gains (losses) 969 (296 ) 673 725 1,398 Total revenues 6,477 (208 ) 6,269 590 6,859 Benefits and other deductions: Policyholders' benefits 2,343 60 2,403 (65 ) 2,338 Interest credited to policyholders' account balances 658 (174 ) 484 — 484 Amortization of deferred policy acquisition costs, net 43 (66 ) (23 ) 3 (20 ) Other operating costs and expenses 539 (9 ) 530 — 530 Total benefits and other deductions 5,253 (189 ) 5,064 (62 ) 5,002 Income (loss) from operations, before income taxes 1,224 (19 ) 1,205 652 1,857 Income tax (expense) benefit (78 ) 8 (70 ) (228 ) (298 ) Net income (loss) 1,146 (11 ) 1,135 424 1,559 Net income (loss) attributable to AXA Equitable $ 915 $ (11 ) $ 904 $ 424 $ 1,328 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Change in unrealized gains (losses), net of reclassification adjustment 458 (48 ) 410 (24 ) 386 Other comprehensive income 473 (48 ) 425 (24 ) 401 Comprehensive income (loss) 1,619 (59 ) 1,560 400 1,960 Comprehensive income (loss) attributable to AXA Equitable $ 1,401 $ (59 ) $ 1,342 $ 400 $ 1,742 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,864 $ 161 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) 915 (11 ) 904 424 1,328 Retained earnings, end of period 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 486 (48 ) 438 (24 ) 414 Accumulated other comprehensive income, end of period 493 (34 ) 459 (28 ) 431 Total AXA Equitable’s equity, end of period 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 2,973 11 2,984 — 2,984 Total Equity, End of Period $ 17,608 $ 127 $ 17,735 $ (1,478 ) $ 16,257 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Policy charges and fee income (1,761 ) (72 ) (1,833 ) 135 (1,698 ) Interest credited to policyholders’ account balances 658 (174 ) 484 — 484 Net derivative (gains) loss (969 ) 296 (673 ) (725 ) (1,398 ) Changes in: Future policy benefits 1,381 (13 ) 1,368 (65 ) 1,303 Reinsurance recoverable (251 ) 57 (194 ) — (194 ) Deferred policy acquisition costs 43 (66 ) (23 ) 3 (20 ) Current and deferred income taxes (16 ) (8 ) (24 ) 228 204 Other 93 (9 ) 84 — 84 Net cash provided by (used in) operating activities $ (75 ) $ — $ (75 ) $ — $ (75 ) e Q1 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of March 31, 2017 Assets: Other equity investments $ 1,463 $ (23 ) $ 1,440 $ — $ 1,440 Other invested assets 2,050 34 2,084 — 2,084 Total investments 60,406 11 60,417 — 60,417 DAC 4,068 367 4,435 526 4,961 Amounts due from reinsurers 4,639 8 4,647 — 4,647 Guaranteed minimum income benefit 9,795 3 9,798 — 9,798 Total Assets $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 Liabilities: Policyholders' account balance $ 40,308 $ (16 ) $ 40,292 $ — $ 40,292 Future policyholders' benefits and other policyholders' liabilities 25,496 51 25,547 3,144 28,691 Current and deferred taxes 3,523 120 3,643 (917 ) 2,726 Other liabilities 2,496 (3 ) 2,493 — 2,493 Total Liabilities 192,712 152 192,864 2,227 195,091 Equity: Retained Earnings 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income (loss) 179 (6 ) 173 (36 ) 137 AXA Equitable Equity 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest 3,035 11 3,046 — 3,046 Equity 15,969 237 16,206 (1,701 ) 14,505 Total Liabilities and Equity $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 896 $ 23 $ 919 $ (67 ) $ 852 Premiums 225 7 232 — 232 Net derivative gains (losses) (724 ) (97 ) (821 ) 459 (362 ) Total revenues 1,989 (67 ) 1,922 392 2,314 Benefits and other deductions: Policyholders' benefits 891 15 906 69 975 Interest credited to policyholders' account balances 337 (58 ) 279 — 279 Amortization of deferred policy acquisition costs, net 125 (97 ) 28 1 29 Other operating costs and expenses 384 (3 ) 381 — 381 Total benefits and other deductions 2,562 (143 ) 2,419 70 2,489 Income (loss) from operations, before income taxes (573 ) 76 (497 ) 322 (175 ) Income tax (expense) benefit 260 (26 ) 234 (113 ) 121 Net income (loss) (313 ) 50 (263 ) 209 (54 ) Net income (loss) attributable to AXA Equitable $ (431 ) $ 50 $ (381 ) $ 209 $ (172 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Change in unrealized gains (losses), net of reclassification adjustment 144 (20 ) 124 (32 ) 92 Other comprehensive income 179 (20 ) 159 (32 ) 127 Comprehensive income (loss) (134 ) 30 (104 ) 177 73 Comprehensive income (loss) attributable to AXA Equitable $ (259 ) $ 30 $ (229 ) $ 177 $ (52 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,842 $ 182 $ 8,024 $ (1,874 ) $ 6,150 Net income (loss) (431 ) 50 (381 ) 209 (172 ) Retained earnings, end of period 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 172 (20 ) 152 (32 ) 120 Accumulated other comprehensive income, end of period 179 (6 ) 173 (36 ) 137 Total AXA Equitable’s equity, end of period 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 3,035 11 3,046 — 3,046 Total Equity, End of Period $ 15,969 $ 237 $ 16,206 $ (1,701 ) $ 14,505 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Cash flows: Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Policy charges and fee income (896 ) (23 ) (919 ) 67 (852 ) Interest credited to policyholders’ account balances 337 (58 ) 279 — 279 Net derivative (gains) loss 724 97 821 (459 ) 362 Changes in: Deferred policy acquisition costs 125 (97 ) 28 1 29 Future policy benefits 185 (13 ) 172 69 241 Reinsurance recoverable (44 ) 21 (23 ) — (23 ) Current and deferred income taxes (327 ) 26 (301 ) 113 (188 ) Other 180 (3 ) 177 — 177 Net cash provided by (used in) operating activities $ 18 $ — $ 18 $ — $ 18 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following table provides information relating to fixed maturities and equity securities classified as AFS: Available-for-Sale Securities by Classification Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (3) (in millions) December 31, 2017 Fixed Maturity Securities: Public corporate $ 13,645 $ 725 $ 25 $ 14,345 $ — Private corporate 6,951 217 31 7,137 — U.S. Treasury, government and agency 12,644 676 185 13,135 — States and political subdivisions 414 67 — 481 — Foreign governments 387 27 5 409 — Commercial mortgage-backed — — — — — Residential mortgage-backed (1) 236 15 — 251 — Asset-backed (2) 93 3 — 96 2 Redeemable preferred stock 461 44 1 504 — Total Fixed Maturities 34,831 1,774 247 36,358 2 Equity securities 157 — — 157 — Total at December 31, 2017 $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2 December 31, 2016: Fixed Maturity Securities: Public corporate $ 12,418 $ 675 $ 81 $ 13,012 $ — Private corporate 6,880 215 55 7,040 — U.S. Treasury, government and agency 10,739 221 624 10,336 — States and political subdivisions 432 63 2 493 — Foreign governments 375 29 14 390 — Commercial mortgage-backed 415 28 72 371 7 Residential mortgage-backed (1) 294 20 — 314 — Asset-backed (2) 51 10 1 60 3 Redeemable preferred stock 519 45 10 554 — Total Fixed Maturities 32,123 1,306 859 32,570 10 Equity securities 113 — — 113 — Total at December 31, 2016 $ 32,236 $ 1,306 $ 859 $ 32,683 $ 10 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. (3) Amounts represent OTTI losses in AOCI, which were not included in income (loss) in accordance with current accounting guidance. |
Investments Classified by Contractual Maturity Date | The contractual maturities of AFS fixed maturities at December 31, 2017 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Fixed Maturities Contractual Maturities at December 31, 2017 Amortized Cost Fair Value (in millions) Due in one year or less $ 1,339 $ 1,352 Due in years two through five 7,773 8,035 Due in years six through ten 9,889 10,136 Due after ten years 15,040 15,984 Subtotal 34,041 35,507 Commercial mortgage-backed securities — — Residential mortgage-backed securities 236 251 Asset-backed securities 93 96 Redeemable preferred stocks 461 504 Total $ 34,831 $ 36,358 |
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments | The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during 2017 , 2016 and 2015 : December 31, 2017 2016 2015 (in millions) Proceeds from sales $ 7,232 $ 4,324 $ 979 Gross gains on sales $ 98 $ 111 $ 33 Gross losses on sales $ (211 ) $ (58 ) $ (8 ) Total OTTI $ (13 ) $ (65 ) $ (41 ) Non-credit losses recognized in OCI — — — Credit losses recognized in net income (loss) $ (13 ) $ (65 ) $ (41 ) |
Fixed Maturities Credit Loss Impairments | The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts: Fixed Maturities - Credit Loss Impairments 2017 2016 (in millions) Balances at January 1, $ (190 ) $ (198 ) Previously recognized impairments on securities that matured, paid, prepaid or sold 193 73 Recognized impairments on securities impaired to fair value this period (1) — (17 ) Impairments recognized this period on securities not previously impaired (13 ) (46 ) Additional impairments this period on securities previously impaired — (2 ) Increases due to passage of time on previously recorded credit losses — — Accretion of previously recognized impairments due to increases in expected cash flows — — Balances at December 31, $ (10 ) $ (190 ) (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Unrealized Gain (Loss) on Investments | Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: December 31, 2017 2016 (in millions) AFS Securities: Fixed maturities: With OTTI loss $ 1 $ 19 All other 1,526 428 Equity securities — — Net Unrealized Gains (Losses) $ 1,527 $ 447 |
Unrealized Gain (Loss) On Investments With Other Than Temporary Impairment | Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses Net Unrealized Gain (Losses) on Investments DAC Policyholders Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2017 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 Net investment gains (losses) arising during the period (18 ) — — — (18 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) — — — — — Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 2 — — 2 Deferred income taxes — — — (2 ) (2 ) Policyholders liabilities — — 9 — 9 Balance, December 31, 2017 $ 1 $ 1 $ (1 ) $ (5 ) $ (4 ) Balance, January 1, 2016 $ 16 $ — $ (4 ) $ (5 ) $ 7 Net investment gains (losses) arising during the period (6 ) — — — (6 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) 9 — — — 9 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (1 ) — — (1 ) Deferred income taxes — — — 2 2 Policyholders liabilities — — (6 ) — (6 ) Balance, December 31, 2016 $ 19 $ (1 ) $ (10 ) $ (3 ) $ 5 (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in income (loss) for securities with no prior OTTI loss. |
Other Net Unrealized Investment Gains Losses In Accumulated Other Comprehensive Income | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments DAC Policyholders Liabilities Deferred Income Tax Asset (Liability) AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, January 1, 2017 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 Net investment gains (losses) arising during the period 1,085 — — — 1,085 Reclassification adjustment for OTTI losses: Included in Net income (loss) 13 — — — 13 Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — (245 ) — — (245 ) Deferred income taxes — — — (240 ) (240 ) Policyholders liabilities — — (44 ) — (44 ) Balance, December 31, 2017 $ 1,526 $ (315 ) $ (232 ) $ (300 ) $ 679 Balance, January 1, 2016 $ 674 $ (93 ) $ (221 ) $ (126 ) $ 234 Net investment gains (losses) arising during the period (240 ) — — — (240 ) Reclassification adjustment for OTTI losses: Included in Net income (loss) (6 ) — — — (6 ) Excluded from Net income (loss) (1) — — — — — Impact of net unrealized investment gains (losses) on: DAC — 23 — — 23 Deferred income taxes — — — 66 66 Policyholders liabilities — — 33 — 33 Balance, December 31, 2016 $ 428 $ (70 ) $ (188 ) $ (60 ) $ 110 (1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in income (loss) for securities with no prior OTTI loss. |
Schedule of Unrealized Loss on Investments | The following tables disclose the fair values and gross unrealized losses of the 620 issues at December 31, 2017 and the 794 issues at December 31, 2016 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: Less Than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Gross (in millions) December 31, 2017: Fixed Maturity Securities: Public corporate $ 1,384 $ 9 $ 548 $ 16 $ 1,932 $ 25 Private corporate 718 8 615 23 1,333 31 U.S. Treasury, government and agency 2,150 6 3,005 179 5,155 185 States and political subdivisions 20 — — — 20 — Foreign governments 11 — 73 5 84 5 Commercial mortgage-backed — — — — — — Residential mortgage-backed 18 — — — 18 — Asset-backed 7 — 2 — 9 — Redeemable preferred stock 7 — 12 1 19 1 Total $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247 December 31, 2016: Fixed Maturity Securities: Public corporate $ 2,455 $ 75 $ 113 $ 6 $ 2,568 $ 81 Private corporate 1,483 38 277 17 1,760 55 U.S. Treasury, government and agency 5,356 624 — — 5,356 624 States and political subdivisions — — 18 2 18 2 Foreign governments 73 3 49 11 122 14 Commercial mortgage-backed 66 5 171 67 237 72 Residential mortgage-backed 47 — 4 — 51 — Asset-backed 4 — 8 1 12 1 Redeemable preferred stock 218 9 12 1 230 10 Total $ 9,702 $ 754 $ 652 $ 105 $ 10,354 $ 859 |
Allowance for Credit Losses on Financing Receivable | Allowance for credit losses for mortgage loans for 2017 , 2016 and 2015 are as follows: Commercial Mortgage Loans 2017 2016 2015 Allowance for credit losses: (in millions) Beginning Balance, January 1, $ 8 $ 6 $ 37 Charge-offs — — (32 ) Recoveries — (2 ) (1 ) Provision — 4 2 Ending Balance, December 31, $ 8 $ 8 $ 6 Individually Evaluated for Impairment $ 8 $ 8 $ 6 |
Debt Service Coverage Ratio | The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at December 31, 2017 and 2016 , respectively. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2017 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 742 $ — $ 320 $ 74 $ — $ — $ 1,136 50% - 70% 4,088 682 1,066 428 145 — 6,409 70% - 90% 169 110 196 272 50 — 797 90% plus — — 27 — — — 27 Total Commercial Mortgage Loans $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ — $ 8,369 Agricultural Mortgage Loans (1) 0% - 50% $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557 50% - 70% 111 46 227 359 221 49 1,013 70% - 90% — — — 4 — — 4 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574 Total Mortgage Loans (1) 0% - 50% $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693 50% - 70% 4,199 728 1,293 787 366 49 7,422 70% - 90% 169 110 196 276 50 — 801 90% plus — — 27 — — — 27 Total Mortgage Loans $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2016 Debt Service Coverage Ratio (1) Loan-to-Value Ratio: (2) Greater than 2.0x 1.8x to 2.0x 1.5x to 1.8x 1.2x to 1.5x 1.0x to 1.2x Less than 1.0x Total Mortgage Loans (in millions) Commercial Mortgage Loans (1) 0% - 50% $ 738 $ 95 $ 59 $ 56 $ — $ — $ 948 50% - 70% 3,217 430 673 1,100 76 — 5,496 70% - 90% 282 65 229 127 28 46 777 90% plus — — 28 15 — — 43 Total Commercial Mortgage Loans $ 4,237 $ 590 $ 989 $ 1,298 $ 104 $ 46 $ 7,264 Agricultural Mortgage Loans (1) 0% - 50% $ 254 $ 138 $ 296 $ 468 $ 286 $ 49 $ 1,491 50% - 70% 141 57 209 333 219 45 1,004 70% - 90% — — 2 4 — — 6 90% plus — — — — — — — Total Agricultural Mortgage Loans $ 395 $ 195 $ 507 $ 805 $ 505 $ 94 $ 2,501 Total Mortgage Loans (1) 0% - 50% $ 992 $ 233 $ 355 $ 524 $ 286 $ 49 $ 2,439 50% - 70% 3,358 487 882 1,433 295 45 6,500 70% - 90% 282 65 231 131 28 46 783 90% plus — — 28 15 — — 43 Total Mortgage Loans $ 4,632 $ 785 $ 1,496 $ 2,103 $ 609 $ 140 $ 9,765 (1) The debt service coverage ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service. (2) The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. |
Age Analysis Of Past Due Mortgage Loans | The following table provides information relating to the aging analysis of past due mortgage loans at December 31, 2017 and 2016 , respectively. Age Analysis of Past Due Mortgage Loan 30-59 Days 60-89 Days 90 Days Or > Total Current Total Financing Receivables Recorded Investment 90 Days Or > and Accruing (in millions) December 31, 2017: Commercial $ 27 $ — $ — $ 27 $ 8,342 $ 8,369 $ — Agricultural 49 3 22 74 2,500 2,574 22 Total Mortgage Loans $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22 December 31, 2016: Commercial $ — $ — $ — $ — $ 7,264 $ 7,264 $ — Agricultural 9 2 6 17 2,484 2,501 6 Total Mortgage Loans $ 9 $ 2 $ 6 $ 17 $ 9,748 $ 9,765 $ 6 |
Impaired Mortgage Loans | The following table provides information relating to impaired mortgage loans at December 31, 2017 and 2016 , respectively. Impaired Mortgage Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment (1) Interest Income Recognized (in millions) December 31, 2017: With no related allowance recorded: Commercial mortgage loans - other $ — $ — $ — $ — $ — Agricultural mortgage loans — — — — — Total $ — $ — $ — $ — $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 27 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 27 $ 2 December 31, 2016: With no related allowance recorded: Commercial mortgage loans - other $ 15 $ 15 $ — $ 22 $ — Agricultural mortgage loans — — — — — Total $ 15 $ 15 $ — $ 22 $ — With related allowance recorded: Commercial mortgage loans - other $ 27 $ 27 $ (8 ) $ 48 $ 2 Agricultural mortgage loans — — — — — Total $ 27 $ 27 $ (8 ) $ 48 $ 2 (1) Represents a five-quarter average of recorded amortized cost. |
Real Estate Investment Financial Statements, Disclosure | The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments: Derivative Instruments by Category At or For the Year Ended December 31, 2017 Fair Value Notional Asset Liability Gains (Losses) (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 3,113 $ 1 $ 3 $ (670 ) Swaps 4,655 3 126 (848 ) Options 20,630 3,334 1,426 1,203 Interest rate contracts: (1) Floors — — — — Swaps 19,032 320 191 655 Futures 11,032 — — 125 Swaptions — — — — Credit contracts: (1) Credit default swaps 2,131 35 3 19 Other freestanding contracts: (1) Foreign currency contracts 1,423 19 10 (39 ) Margin — 24 — — Collateral — 4 1,855 — Embedded derivatives: GMIB reinsurance contracts (4) — 10,488 — 69 GMxB derivative features’ liability (2,4) — — 4,164 1,494 SCS, SIO, MSO and IUL indexed features (3,4) — — 1,698 (1,118 ) Balances, December 31, 2017 $ 62,016 $ 14,228 $ 9,476 $ 890 (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). |
Schedule of Derivative Instruments | Derivative Instruments by Category At or For the Year Ended December 31, 2016 Fair Value Notional Amount Asset Derivatives Liability Derivatives Gains (Losses) (in millions) Freestanding derivatives: Equity contracts: (1) Futures $ 5,086 $ 1 $ 1 $ (826 ) Swaps 3,529 13 67 (290 ) Options 11,465 2,114 1,154 727 Interest rate contracts: (1) Floors 1,500 11 — 4 Swaps 18,933 246 1,163 (224 ) Futures 6,926 — — — Swaptions — — — 87 Credit contracts: (1) Credit default swaps 2,757 20 15 15 Other freestanding contracts: (1) Foreign currency contracts 730 52 6 45 Margin — 113 6 — Collateral — 713 748 — Embedded derivatives: GMIB reinsurance contracts (4) — 10,314 — (261 ) GMxB derivative features’ liability (2,4) — — 5,319 140 SCS, SIO, MSO and IUL indexed features (3,4) — — 887 (628 ) Balances, December 31, 2016 $ 50,926 $ 13,597 $ 9,366 $ (1,211 ) (1) Reported in Other invested assets in the consolidated balance sheets. (2) Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets. (3) SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets. (4) Reported in Net derivative gains (losses) in the consolidated statements of income (loss). |
Offsetting Assets And Liabilities | The following table presents information about the Company’s offsetting of financial assets and liabilities and derivative instruments at December 31, 2016 : Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2016 Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (in millions) ASSETS (1) Derivatives: Equity contracts $ 2,128 $ 1,221 $ 907 Interest rate contracts 246 1,163 (917 ) Credit contracts 20 15 5 Currency 52 6 46 Margin 113 6 107 Collateral 713 748 (35 ) Total Derivatives, subject to an ISDA Master Agreement 3,272 3,159 113 Total Derivatives, not subject to an ISDA Master Agreement 11 — 11 Total Derivatives 3,283 3,159 124 Other financial instruments 2,102 — 2,102 Other invested assets $ 5,385 $ 3,159 $ 2,226 Securities purchased under agreement to resell $ — $ — $ — Gross Amounts Recognized Gross Amounts Offset in the Balance Sheets Net Amounts Presented in the Balance Sheets (in millions) LIABILITIES (2) Description Derivatives: Equity contracts $ 1,221 $ 1,221 $ — Interest rate contracts 1,163 1,163 — Credit contracts 15 15 — Currency 6 6 — Margin 6 6 — Collateral 748 748 — Total Derivatives, subject to an ISDA Master Agreement 3,159 3,159 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 3,159 3,159 — Other non-financial liabilities 2,108 — 2,108 Other liabilities $ 5,267 $ 3,159 $ 2,108 Securities sold under agreement to repurchase (3) $ 1,992 $ — $ 1,992 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 4 million in securities sold under agreement to repurchase. The following table presents information about the Company's offsetting of financial assets and liabilities and derivative instruments at December 31, 2017 . Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2017 Gross Gross Net Amounts (in millions) ASSETS (1) Derivatives: Equity contracts $ 3,339 $ 1,555 $ 1,784 Interest rate contracts 320 191 129 Credit contracts 35 3 32 Currency 19 10 9 Collateral 3 1,855 (1,852 ) Margin 24 — 24 Total Derivatives, subject to an ISDA Master Agreement 3,740 3,614 126 Total Derivatives 3,740 3,614 126 Other financial instruments 2,995 — 2,995 Other invested assets $ 6,735 $ 3,614 $ 3,121 Total Derivatives, not subject to an ISDA Master Agreement $ — $ — $ — Securities purchased under agreement to resell $ — — $ — Gross Gross Net Amounts (in millions) LIABILITIES (2) Derivatives: Equity contracts $ 1,555 $ 1,555 $ — Interest rate contracts 191 191 — Credit contracts 3 3 — Currency 10 10 — Margin — — — Collateral 1,855 1,855 — Total Derivatives, subject to an ISDA Master Agreement 3,614 3,614 — Total Derivatives, not subject to an ISDA Master Agreement — — — Total Derivatives 3,614 3,614 — Other non-financial liabilities 2,663 — 2,663 Other liabilities $ 6,277 $ 3,614 $ 2,663 Securities sold under agreement to repurchase (3) $ 1,882 $ — $ 1,882 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million in securities sold under agreement to repurchase. |
Collateral Arrangements By Counterparty Not Offset In Consolidated Balance Sheets | The following table presents information about the Company’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2017 : Collateral Amounts Offset in the Consolidated Balance Sheets At December 31, 2017 Fair Value of Assets Collateral (Received)/Held Financial Cash Net (in millions) ASSETS (1) Total Derivatives $ 1,954 $ — $ (1,828 ) $ 126 Other financial instruments 2,995 — — 2,995 Other invested assets $ 4,949 $ — $ (1,828 ) $ 3,121 Liabilities: (2) Other Derivatives $ — $ — $ — $ — Other financial liabilities 2,663 — — 2,663 Other liabilities 2,663 — — 2,663 Securities sold under agreement to repurchase (3) $ 1,882 $ (1,988 ) $ (21 ) $ (127 ) (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 5 million in securities sold under agreement to repurchase. The following table presents information about the Insurance segment’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2016 : Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2016 Fair Value of Assets Collateral (Received)/Held Financial Instruments Cash Net Amounts (in millions) ASSETS (1) Total Derivatives $ 54 $ — $ 70 $ 124 Other financial instruments 2,102 — — 2,102 Other invested assets $ 2,156 $ — $ 70 $ 2,226 LIABILITIES (2) Securities sold under agreement to repurchase (3) $ 1,992 $ (1,986 ) $ (2 ) $ 4 (1) Excludes Investment Management and Research segment’s derivative assets of consolidated VIEs/VOEs. (2) Excludes Investment Management and Research segment’s derivative liabilities of consolidated VIEs/VOEs. (3) Excludes expense of $ 4 million in securities sold under agreement to repurchase. |
Transfer Of Financial Assets Accounted For As Sales | Repurchase Agreement Accounted for as Secured Borrowings (1) At December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 days 30-90 days Greater Than Total (in millions) Securities sold under agreement to repurchase U.S. Treasury and agency securities $ — $ 1,992 $ — $ — $ 1,992 Total $ — $ 1,992 $ — $ — $ 1,992 (1) Excludes expense of $ 4 million in securities sold under agreement to repurchase. The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2017 : Repurchase Agreement Accounted for as Secured Borrowings At December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 days 30-90 Greater Than Total (In millions) Securities sold under agreement to repurchase (1) U.S. Treasury and agency securities $ — $ 1,882 $ — $ — $ 1,882 Total $ — $ 1,882 $ 1 $ — $ 2 $ — $ 3 $ 1,882 (1) Excludes expense of $ 5 million in securities sold under agreement to repurchase. |
Investment Income | The following table breaks out Net investment income (loss) by asset category: Twelve Months Ended December 31 2017 2016 2015 (in millions) Fixed maturities $ 1,365 $ 1,418 $ 1,420 Mortgage loans on real estate 453 461 338 Real estate held for the production of income 2 — — Repurchase agreement — 1 1 Other equity investments 188 170 84 Policy loans 205 210 213 Trading securities 381 80 17 Other investment income 54 44 40 Gross investment income (loss) 2,648 2,384 2,113 Investment expenses (65 ) (66 ) (56 ) Net Investment Income (Loss) $ 2,583 $ 2,318 $ 2,057 |
Trading Securities | Net Investment Income (Loss) from Trading Securities Twelve Months Ended December 31, 2017 2016 2015 (in millions) Net investment gains (losses) recognized during the period on securities held at the end of the period $ 171 $ (19 ) $ (63 ) Net investment gains (losses) recognized on securities sold during the period (5 ) (22 ) 20 Unrealized and realized gains (losses) on trading securities 166 (41 ) (43 ) Interest and dividend income from trading securities 215 121 60 Net investment income (loss) from trading securities $ 381 $ 80 $ 17 |
Investment Gains Losses Net Including Changes In Valuation Allowances | Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows: Twelve Months Ended December 31, 2017 2016 2015 (in millions) Fixed maturities $ (130 ) $ (3 ) $ (17 ) Mortgage loans on real estate 2 (2 ) (1 ) Other equity investments 3 (2 ) (5 ) Other — 23 3 Investment Gains (Losses), Net $ (125 ) $ 16 $ (20 ) |
CLOSED BLOCK (Tables)
CLOSED BLOCK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Assets and Liabilities | Summarized financial information for the Company's Closed Block is as follows: December 31, 2017 2016 (in millions) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders’ account balances and other $ 6,945 $ 7,179 Policyholder dividend obligation 32 52 Other liabilities 271 43 Total Closed Block liabilities 7,248 7,274 ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $3,923 and $3,884) 4,070 4,025 Mortgage loans on real estate 1,720 1,623 Policy loans 781 839 Cash and other invested assets 351 444 Other assets 219 213 Total assets designated to the Closed Block 7,141 7,144 Excess of Closed Block liabilities over assets designated to the Closed Block 107 130 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of policyholder dividend obligation of $32 and $52 138 100 Maximum Future Income To Be Recognized From Closed Block Assets and Liabilities $ 245 $ 230 |
Closed Block Operations, Net Results | The Company’s Closed Block revenues and expenses follow: 2017 2016 2015 (in millions) REVENUES: Premiums and other income $ 224 $ 212 $ 236 Investment income (loss) 314 349 368 Net investment gains (losses) (20 ) (1 ) 2 Total revenues 518 560 606 BENEFITS AND OTHER DEDUCTIONS: Policyholders’ benefits and dividends 537 522 550 Other operating costs and expenses 2 4 4 Total benefits and other deductions 539 526 554 Net revenues, before income taxes (21 ) 34 52 Income tax (expense) benefit 6 (12 ) (18 ) Net Revenues (Losses) $ (15 ) $ 22 $ 34 |
Closed Block Dividend Obligation | A reconciliation of the Company’s policyholder dividend obligation follows: December 31, 2017 2016 (in millions) Balances, beginning of year $ 52 $ 81 Unrealized investment gains (losses) (20 ) (29 ) Balances, End of year $ 32 $ 52 |
DAC AND POLICYHOLDER BONUS IN35
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - CONTRACTHOLDER BONUS INTEREST CREDITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contractholder Bonus Interest Credits [Abstract] | |
Schedule of Changes of Deferred Assets for Policyholder Bonus Credits and Deferred Acquisition Costs | Changes in the deferred asset for policyholder bonus interest credits are as follows: December 31, 2017 2016 As Restated (in millions) Balance, beginning of year $ 504 $ 534 Policyholder bonus interest credits deferred 6 13 Amortization charged to income (37 ) (43 ) Balance, End of Year $ 473 $ 504 Changes in deferred acquisition costs at December 31, 2017 and 2016 were as follows: December 31, 2017 2016 As Restated (in millions) Balance, beginning of year $ 5,058 $ 5,088 Capitalization of commissions, sales and issue expenses 578 594 Amortization (846 ) (646 ) Change in unrealized investment gains (losses) (243 ) 22 Balance, End of Year $ 4,547 $ 5,058 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. At December 31, 2017 and 2016 , no assets were required to be measured at fair value on a non-recurring basis. Fair value measurements are required on a non-recurring basis for certain assets, including goodwill and mortgage loans on real estate, only when an OTTI or other event occurs. When such fair value measurements are recorded, they are classified and disclosed within the fair value hierarchy. The Company recognizes transfers between valuation levels at the beginning of the reporting period. Fair Value Measurements at December 31, 2017 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 14,298 $ 47 $ 14,345 Private Corporate — 6,045 1,092 7,137 U.S. Treasury, government and agency — 13,135 — 13,135 States and political subdivisions — 441 40 481 Foreign governments — 409 — 409 Commercial mortgage-backed — — — — Residential mortgage-backed (1) — 251 — 251 Asset-backed (2) — 88 8 96 Redeemable preferred stock 180 324 — 504 Subtotal 180 34,991 1,187 36,358 Other equity investments 13 — 1 14 Trading securities 467 12,161 — 12,628 Other invested assets: Short-term investments — 768 — 768 Assets of consolidated VIEs/VOEs 1,060 215 27 1,302 Swaps — 15 — 15 Credit Default Swaps — 33 — 33 Futures (2 ) — — (2 ) Options — 1,907 — 1,907 Floors — — — — Subtotal 1,058 2,938 27 4,023 Cash equivalents 2,360 — — 2,360 Segregated securities — 825 — 825 GMIB reinsurance contracts asset — — 10,488 10,488 Separate Accounts’ assets 118,983 2,983 349 122,315 Total Assets $ 123,061 $ 53,898 $ 12,052 $ 189,011 Liabilities GMxB derivative features’ liability $ — $ — $ 4,164 $ 4,164 SCS, SIO, MSO and IUL indexed features’ liability — 1,698 — 1,698 Liabilities of consolidated VIEs/VOEs 670 22 — 692 Contingent payment arrangements — — 11 11 Total Liabilities $ 670 $ 1,720 $ 4,175 $ 6,565 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total (in millions) Assets Investments: Fixed maturities, available-for-sale: Public Corporate $ — $ 12,984 $ 28 $ 13,012 Private Corporate — 6,223 817 7,040 U.S. Treasury, government and agency — 10,336 — 10,336 States and political subdivisions — 451 42 493 Foreign governments — 390 — 390 Commercial mortgage-backed — 22 349 371 Residential mortgage-backed (1) — 314 — 314 Asset-backed (2) — 36 24 60 Redeemable preferred stock 218 335 1 554 Subtotal 218 31,091 1,261 32,570 Other equity investments 3 — 5 8 Trading securities 478 8,656 — 9,134 Other invested assets: Short-term investments — 574 — 574 Assets of consolidated VIEs/VOEs 342 205 46 593 Swaps — (925 ) — (925 ) Credit Default Swaps — 5 — 5 Futures — — — — Options — 960 — 960 Floors — 11 — 11 Subtotal 342 830 46 1,218 Cash equivalents 1,529 — — 1,529 Segregated securities — 946 — 946 GMIB reinsurance contracts asset — — 10,314 10,314 Separate Accounts’ assets 108,085 2,818 313 111,216 Total Assets $ 110,655 $ 44,341 $ 11,939 $ 166,935 Liabilities GMxB derivative features’ liability $ — $ — $ 5,319 $ 5,319 SCS, SIO, MSO and IUL indexed features’ liability — 887 — 887 Liabilities of consolidated VIEs/VOEs 248 2 — 250 Contingent payment arrangements — — 18 18 Total Liabilities $ 248 $ 889 $ 5,337 $ 6,474 (1) Includes publicly traded agency pass-through securities and collateralized obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. |
Reconciliation of Assets and Liabilities at Level 3 | The table below presents a reconciliation for all Level 3 assets and liabilities at December 31, 2017 , 2016 and 2015 respectively: Level 3 Instruments Fair Value Measurements Corporate State and Political Sub-divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (in millions) Balance, January 1, 2017 $ 845 $ 42 $ — $ 349 $ — $ 24 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 5 — — (2 ) — — Investment gains (losses), net 2 — — (63 ) — 15 Subtotal 7 — — (65 ) — 15 Other comprehensive income (loss) 4 (1 ) — 45 — (9 ) Purchases 612 — — — — — Sales (331 ) (1 ) — (329 ) — (21 ) Transfers into Level 3 (1) 7 — — — — — Transfers out of Level 3 (1) (5 ) — — — — (1 ) Balance, December 31, 2017 $ 1,139 $ 40 $ — $ — $ — $ 8 Balance, January 1, 2016 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net 1 — — (67 ) — — Subtotal 1 — — (67 ) — — Other comprehensive income (loss) 7 (2 ) — 14 — 1 Purchases 572 — — — — — Sales (142 ) (1 ) — (87 ) — (8 ) Transfers into Level 3 (1) 25 — — — — — Transfers out of Level 3 (1) (38 ) — (1 ) (14 ) — (9 ) Balance, December 31, 2016 $ 845 $ 42 $ — $ 349 $ — $ 24 Level 3 Instruments Fair Value Measurements Corporate State and Political Sub-divisions Foreign Govts Commercial Mortgage- backed Residential Mortgage- backed Asset- backed (In millions) Balance, January 1, 2015 $ 380 $ 47 $ — $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) 3 — — 1 — — Investment gains (losses), net 2 — — (38 ) — — Subtotal 5 — — (37 ) — — Other comprehensive income (loss) (25 ) (1 ) — 64 — (4 ) Purchases 60 — 1 — — — Sales (38 ) (1 ) — (175 ) (2 ) (9 ) Transfers into Level 3 (1) 99 — — — — — Transfers out of Level 3 (1) (61 ) — — (64 ) — — Balance, December 31, 2015 $ 420 $ 45 $ 1 $ 503 $ — $ 40 Redeem Other Equity Investments (2) GMIB Reinsurance Asset Separate Accounts Assets GMxB derivative features' liability Contingent Payment Arrangement (in millions) Balance, January 1, 2017 $ 1 $ 51 $ 10,314 $ 313 $ (5,319 ) 18 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 29 — — Net derivative gains (losses) — — 69 — 1,494 — Subtotal — — 69 29 1,494 — Other comprehensive income (loss) (1 ) (4 ) — — — — Purchases (2) — 6 221 13 (344 ) — Sales (3) — (3 ) (116 ) (2 ) 5 — Settlements (4) — — — (4 ) — (7 ) Activities related to VIEs/VOEs — (22 ) — — — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — — — — Balance, December 31, 2017 $ — $ 28 $ 10,488 $ 349 $ (4,164 ) $ 11 Balance, January 1, 2016 $ — $ 49 $ 10,582 $ 313 $ (5,146 ) 31 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — — — 19 — — Net derivative gains (losses) — — (261 ) — 140 — Subtotal — — (261 ) 19 140 — Other comprehensive income(loss) — (2 ) — — — Purchases (2) 1 — 223 10 (317 ) 11 Sales (3) — — (230 ) — 4 — Settlements (4) — — — (7 ) — (24 ) Activities related to VIEs/VOEs — 60 — — — — Transfers into Level 3 (1) — — — 1 — — Transfers out of Level 3 (1) — (56 ) — (23 ) — — Balance, December 31, 2016 $ 1 $ 51 $ 10,314 $ 313 $ (5,319 ) $ 18 Redeem Other (2) GMIB Separate GMxB derivative features' liability Contingent Payment Arrangement (in millions) Balance, January 1, 2015 $ — $ 61 $ 10,723 $ 260 $ (4,130 ) $ 42 Total gains (losses), realized and unrealized, included in: Income (loss) as: Net investment income (loss) — — — — — — Investment gains (losses), net — 5 — 36 — — Net derivative gains (losses) — — (316 ) — (743 ) — Subtotal — 5 (316 ) 36 (743 ) — Other comprehensive income (loss) — 2 — — — — Purchases (2) — 1 228 26 (274 ) — Sales (3) — (20 ) (53 ) (2 ) 1 (11 ) Settlements (4) — — — (5 ) — — Transfers into Level 3 (1) — — — — — — Transfers out of Level 3 (1) — — — (2 ) — — Balance, December 31, 2015 $ — $ 49 $ 10,582 $ 313 $ (5,146 ) $ 31 (1) Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. (2) For the GMIB reinsurance contract asset, and GMxB derivative features’ liability, represents attributed fee. (3) For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GMxB derivative features liability represents benefits paid. (4) For contingent payment arrangements, it represents payments under the arrangement. The table below details changes in unrealized gains (losses) for 2017 and 2016 by category for Level 3 assets and liabilities still held at December 31, 2017 and 2016 , respectively: Income (Loss) Investment Net Derivative Gains (losses) OCI (in millions) Level 3 Instruments Full Year 2017 Still Held at December 31, 2017 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 4 State and political subdivisions — — — Commercial mortgage-backed — — 45 Asset-backed — — (9 ) Subtotal $ — $ — $ 40 GMIB reinsurance contracts — 69 — Separate Accounts’ assets (1) 29 — — GMxB derivative features' liability — 1,494 — Total $ 29 $ 1,563 $ 40 Level 3 Instruments Full Year 2016 Still Held at December 31, 2016 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate $ — $ — $ 11 State and political subdivisions — — (1 ) Commercial mortgage-backed — — 9 Asset-backed — — 1 Subtotal $ — $ — $ 20 GMIB reinsurance contracts — (262 ) — Separate Accounts’ assets (1) 20 — — GMxB derivative features' liability — 140 — Total $ 20 $ (122 ) $ 20 (1) There is an investment expense that offsets this investment gain (loss). |
Quantitative Information About Level 3 Fair Value Measurement | The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2017 and 2016 , respectively. Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Assets: (in millions) Investments: Fixed maturities, available-for-sale: Corporate $ 53 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 - 565 bps 125 bps 789 Market comparable companies EBITDA multiples Discount rate Cash flow Multiples 5.3x - 27.9x 7.2% - 17.0% 9.0x - 17.7x 12.9x 11.1% 13.1x Separate Accounts’ assets 326 Third party appraisal Capitalization rate Exit capitalization rate Discount rate 4.6% 5.6% 6.6% 1 Discounted cash flow Spread over U.S. Treasury curve Discount factor 243 bps 4.4% GMIB reinsurance contract asset 10,488 Discounted cash flow Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates—Equity 1.0% - 6.3% Liabilities: GMIBNLG 4,056 Discounted cash flow Non-performance risk 1.0% GWBL/GMWB 130 Discounted cash flow Lapse Rates 0.9% - 5.7% GIB (27 ) Discounted cash flow Lapse Rates 0.9% - 5.7% GMAB 5 Discounted cash flow Lapse Rates 0.5% - 11.0% Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Assets: (in millions) Investments: Fixed maturities, available-for-sale: Corporate $ 55 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 bps - 565 bps 151 bps 636 Market comparable companies EBITDA multiples 4.3x - 25.6x 11.7x Asset-backed 2 Matrix pricing model Spread over U.S. Treasury curve 25 bps - 687 bps 38 bps Separate Accounts’ assets 295 Third party appraisal Capitalization rate Exit capitalization rate Discount rate 4.8% 3 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product rate Discount factor 273 bps-512 bps 283 bps GMIB reinsurance contract asset 10,314 Discounted cash flow Lapse Rates Withdrawal rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity 1.5% - 5.7% Liabilities: GMIBNLG 5,155 Discounted cash flow Non-performance risk 1.1% GWBL/GMWB 114 Discounted cash flow Lapse Rates 1.0% - 5.7% GIB 30 Discounted cash flow Withdrawal Rates 1.0% - 5.7% GMAB 20 Discounted cash flow Lapse Rates 1.0% - 11.0% |
Fair Value Disclosure Financial Instruments Not Carried At Fair Value | The carrying values and fair values at December 31, 2017 and 2016 for financial instruments not otherwise disclosed in Notes 3 and 12 are presented in the table below. Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts, limited partnerships accounted for under the equity method and pension and other postretirement obligations. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (in millions) December 31, 2017: Mortgage loans on real estate $ 10,935 $ — $ — $ 10,895 $ 10,895 Loans to affiliates 703 $ — 700 — 700 Policyholders liabilities: Investment contracts 2,068 — — 2,170 2,170 Funding Agreements 3,014 — 3,020 — 3,020 Policy loans 3,315 — 4,210 4,210 Short-term and Long-term debt 769 — 768 — 768 Separate Account Liabilities 7,537 — — 7,537 7,537 December 31, 2016: Mortgage loans on real estate $ 9,757 $ — $ — $ 9,608 $ 9,608 Loans to affiliates 703 — 775 — 775 Policyholders liabilities: Investment contracts 2,226 — — 2,337 2,337 Funding Agreements 2,255 — 2,202 — 2,202 Policy loans 3,361 — — 4,257 4,257 Short-term and Long-term debt 513 — 513 — 513 Separate Account Liabilities 6,194 — — 6,194 6,194 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Variable Annuity Contracts- GMDB GMIB | The following table summarizes the direct GMDB and GMIB with no NLG features liabilities, before reinsurance ceded, reflected in the consolidated balance sheets in future policy benefits and other policyholders’ liabilities: GMDB GMIB Total (in millions) Balance at January 1, 2015 $ 1,725 $ 4,702 $ 6,427 Paid guarantee benefits (313 ) (89 ) (402 ) Other changes in reserve 1,579 (727 ) 852 Balance at December 31, 2015 2,991 3,886 6,877 Paid guarantee benefits (357 ) (281 ) (638 ) Other changes in reserve 531 265 796 Balance at December 31, 2016 3,165 3,870 7,035 Paid guarantee benefits (354 ) (151 ) (505 ) Other changes in reserve 1,269 1,083 2,352 Balance at December 31, 2017 $ 4,080 $ 4,802 $ 8,882 |
Guaranteed Minimum Death Benefit Reinsurance Ceded | The following table summarizes the ceded GMDB liabilities, reflected in the consolidated balance sheets in amounts due from reinsurers: GMDB (in millions) Balance at January 1, 2015 $ 833 Paid guarantee benefits (148 ) Other changes in reserve 745 Balance at December 31, 2015 1,430 Paid guarantee benefits (174 ) Other changes in reserve 302 Balance at December 31, 2016 1,558 Paid guarantee benefits (171 ) Other changes in reserve 643 Balance at December 31, 2017 $ 2,030 |
Schedule of Liability for GMxB Derivative and other Features | The liability for the GMxB derivative features liability, the liability for SCS, SIO, MSO and IUL indexed features and the GMIB reinsurance contracts are considered embedded or freestanding insurance derivatives and are reported at fair value. Summarized in the table below is a summary of the fair value of these liabilities at December 31, 2017 and 2016 : December 31, 2017 2016 (In millions) GMIBNLG (1) $ 4,056 $ 5,155 SCS, MSO, IUL features (2) 1,698 887 GWBL/GMWB (1) 130 114 GIB (1) (27 ) 30 GMAB (1) 5 20 Total Embedded and Freestanding derivative liability $ 5,862 $ 6,206 GMIB reinsurance contract asset (3) $ 10,488 $ 10,314 (1) Reported in future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. (2) Reported in policyholders' account balances in the consolidated balance sheets. (3) Reported in GMIB reinsurance contract asset, at fair value in the consolidated balance sheets. |
Schedule of Net Amount of Risk by Product and Guarantee | The December 31, 2017 values for direct variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of utilization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: Return of Premium Ratchet Roll-Up Combo Total (Dollars In millions) GMDB: Account values invested in: General Account $ 13,820 $ 109 $ 65 $ 200 $ 14,194 Separate Accounts $ 45,816 $ 9,556 $ 3,516 $ 35,784 $ 94,672 Net amount at risk, gross $ 169 $ 57 $ 1,961 $ 15,340 $ 17,527 Net amount at risk, net of amounts reinsured $ 169 $ 39 $ 1,344 $ 6,294 $ 7,846 Average attained age of contractholders’ 51.3 66.3 72.9 68.2 55.1 Percentage of contractholders’ over age 70 9.6 % 40.2 % 63.1 % 46.5 % 18.1 % Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% GMIB: Account values invested in: General Account N.A. N.A. $ 23 $ 293 $ 316 Separate Accounts N.A. N.A. $ 21,195 $ 41,091 $ 62,286 Net amount at risk, gross N.A. N.A. $ 917 $ 6,337 $ 7,254 Net amount at risk, net of amounts reinsured N.A. N.A. $ 287 $ 1,561 $ 1,848 Weighted average years remaining until utilization N.A. N.A. 1.6 0.7 0.8 Range of contractually specified interest rates N.A. N.A. 3% - 6% 3% - 6.5% 3% - 6.5% |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Investment in Variable Insurance Trust Mutual Funds December 31, 2017 2016 (in millions) GMDB: Equity $ 78,069 $ 69,625 Fixed income 2,234 2,483 Balanced 14,084 14,434 Other 285 348 Total $ 94,672 $ 86,890 GMIB: Equity $ 50,429 $ 45,931 Fixed income 1,568 1,671 Balanced 10,165 10,097 Other 124 149 Total $ 62,286 $ 57,848 |
No Lapse Guarantee Liabilities | The following table summarizes the NLG liabilities, reflected in the General Account in Future policy benefits and other policyholders’ liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets: Direct Liability Reinsurance Ceded Net (in millions) Balance at January 1, 2015 $ 979 $ (526 ) $ 453 Other changes in reserves 165 16 181 Balance at December 31, 2015 1,144 (510 ) 634 Other changes in reserves 53 (99 ) (46 ) Balance at December 31, 2016 1,197 (609 ) 588 Paid Guaranteed Benefits (24 ) — (24 ) Other changes in reserves (487 ) (55 ) (542 ) Balance at December 31, 2017 $ 686 $ (664 ) $ 22 |
REINSURANCE AGREEMENTS (Tables)
REINSURANCE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
Schedule Of Effect Of Reinsurance | The following table summarizes the effect of reinsurance: 2017 2016 2015 (in millions) Direct premiums $ 880 $ 850 $ 818 Reinsurance assumed 195 206 207 Reinsurance ceded (171 ) (176 ) (173 ) Premiums $ 904 $ 880 $ 852 Policy charges and fee income ceded $ 718 $ 640 $ 645 Policyholders’ Benefits Ceded $ 694 $ 942 $ 527 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule Short-term and Long-term Debt | Short-term and long-term debt consists of the following: December 31, 2017 2016 (in millions) Short-term debt: AB revolving credit facility (with interest rate of 2.4%) $ 75 $ — AB commercial paper (with interest rates of 1.6% and 0.9%) 491 513 Total short-term debt $ 566 $ 513 Long-term debt: AXA Equitable non-recourse mortgage debt (with interest rate of 4.1%) 82 — AXA Equitable non-recourse mortgage debt (with interest rate of 3.9%) 121 — Total Short-term and Long-term debt $ 769 $ 513 |
Schedule of Credit Facilities Available | Credit facilities available to the Company consist of following: Date Available to Company Facilities Start Maturity Total Facility Revolver Swingline (in millions) Syndicated Facilities: AB Revolver 11/29/2017 11/28/2018 $ 200 $ 200 $ — AB Credit Facility 10/22/2014 10/22/2019 $ 1,000 $ 1,000 $ 240 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Expenses Reimbursed from Related Party Transactions | The table below summarizes the expenses reimbursed to/from the Company and fees received/paid by the Company in connection with agreements with AXA Affiliates described above for 2017 , 2016 and 2015 . 2017 2016 2015 (in millions) Expenses paid or accrued for by the Company: General services provided by AXA Affiliates $ 186 $ 188 $ 164 Paid or accrued commission and fee expenses for sale of insurance products by AXA Distribution 608 587 603 Investment management services provided by AXA IM, AXA REIM and AXA Rosenberg 5 2 1 Total 799 777 768 Revenue received or accrued for by the Company: General services provided to AXA Affiliates 456 531 491 Amounts received or accrued for commissions and fees earned for sale of MONY America's insurance products 43 43 57 Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts 720 674 707 Total $ 1,219 $ 1,248 $ 1,255 |
Schedule of Investment Management and Service Fees | Investment management and service fees includes certain revenues for services provided by AB to mutual funds sponsored by AB. These revenues are described below: 2017 2016 2015 (in millions) Investment management and services fees $ 1,148 $ 999 $ 1,056 Distribution revenues 398 372 415 Other revenues - shareholder servicing fees 73 76 85 Other revenues - other 7 6 5 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans Net Periodic Pension Expense | Components of net periodic pension expense for the Company’s qualified plans were as follows: 2017 2016 2015 (in millions) Service cost $ — $ — $ 8 Interest cost 6 6 93 Expected return on assets (5 ) (5 ) (159 ) Actuarial (gain) loss 1 1 1 Net amortization — — 110 Net Periodic Pension Expense $ 2 $ 2 $ 53 |
Schedule of Accumulated and Projected Benefit Obligations | Changes in the PBO of the Company’s qualified plans were comprised of: December 31, 2017 2016 (in millions) Projected benefit obligation, beginning of year $ 132 $ 129 Interest cost 6 6 Actuarial (gains) losses 14 2 Benefits paid (6 ) (5 ) Projected Benefit Obligation 146 132 Transfer to AXA Financial — — Projected Benefit Obligation, End of Year $ 146 $ 132 |
Schedule of Net Funded Status | The following table discloses the changes in plan assets and the funded status of the Company’s qualified pension plans. The fair value of plan assets supporting the AXA Equitable QP liability was not impacted by the Assumption Transaction and the payment of plan benefits will continue to be made from the plan assets held in trust for the exclusive benefit of plan participants. December 31, 2017 2016 (in millions) Pension plan assets at fair value, beginning of year $ 87 $ 86 Actual return on plan assets 14 4 Contributions 4 — Benefits paid and fees (4 ) (3 ) Pension plan assets at fair value, end of year 101 87 PBO 146 132 Excess of PBO Over Pension Plan Assets (45 ) (45 ) Transfer to AXA Financial $ — $ — Excess of PBO Over Pension Plan Assets, end of year $ (45 ) $ (45 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The following table discloses the amounts included in AOCI at December 31, 2017 and 2016 that have not yet been recognized as components of net periodic pension cost. December 31, 2017 2016 (in millions) Unrecognized net actuarial (gain) loss $ 55 $ 51 Unrecognized prior service cost (credit) 1 1 Total $ 56 $ 52 |
Schedule of Allocation of Plan Assets | At December 31, 2017 and 2016 , the total fair value of plan assets for the qualified pension plans was approximately $ 101 million and $87 million , respectively, all supporting the AB qualified retirement plan. December 31, 2017 2016 Fixed Maturities 15.0 % 18.0 % Equity Securities 66.0 61.0 Other 19.0 21.0 Total 100.0 % 100.0 % |
Schedule of Fair Values of Plan Assets Within Fair Value Hierarchy | December 31, 2017: Level 1 Level 2 Level 3 Total Asset Categories (in millions) Common and preferred equity $ 24 $ — $ — $ 24 Mutual funds 55 — — 55 Total assets in the fair value hierarchy 79 — — 79 Investments measured at net assets value — — — 22 Investments at fair value $ 79 $ — $ — $ 101 December 31, 2016: Asset Categories Common and preferred equity $ 21 $ — $ — $ 21 Mutual funds 47 — — 47 Total assets in the fair value hierarchy 68 — — 68 Investments measured at net assets value — — — 19 Investments at fair value $ 68 $ — $ — $ 87 |
Schedule of Actuarial Computations Used to Determine Net Period Costs | Actuarial computations used to determine net periodic costs were made utilizing the following weighted-average assumptions: Year ended December31, 2017 2016 2015 Discount rate on benefit obligations 4.55 % 4.75 % 4.30 % Expected long-term rate of return on plan assets 6.0 % 6.5 % 7.0 % |
Schedule or Description of Weighted Average Discount Rate | As described above, AXA Equitable refined its calculation of the discount rate for the year ended December 31, 2015 valuation of its defined benefits plans to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient. December 31, 2017 2016 Discount rates: Other AXA Equitable defined benefit plans 3.17 % 3.48 % AB Qualified Retirement Plan 4.55 % 4.75 % Periodic cost 3.48 % 3.7 % Expected long-term rates of return on pension plan assets (periodic cost) 6.0 % 6.5 % |
Schedule of Expected Benefit Payments | These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2017 and include benefits attributable to estimated future employee service. Pension Benefits (in millions) 2018 $ 7 2019 7 2020 5 2021 6 2022 8 Years 2023-2027 40 |
SHARE-BASED AND OTHER COMPENS42
SHARE-BASED AND OTHER COMPENSATION PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of compensation costs | Compensation costs for 2017 , 2016 and 2015 for share-based payment arrangements as further described herein are as follows: 2017 2016 2015 (in millions) Performance Shares $ 18 $ 17 $ 18 Stock Options (Other than AB stock options) 1 1 1 AXA Shareplan 9 14 16 Restricted Awards 185 154 174 Other Compensation plans (1) 2 1 2 Total Compensation Expenses $ 215 $ 187 $ 211 (1) Other compensation plans include Stock Appreciation Rights, Restricted Stock and AXA Miles. |
Summary of stock option activity | A summary of the activity in the AXA and the Company's option plans during 2017 follows: Options Outstanding AXA Ordinary Shares AXA ADRs (2) AB Holding Units Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Number Outstanding (In 000’s) Weighted Average Exercise Price Options Outstanding at January 1, 2017 9,536 € 21.02 45 $ 24.90 5,085 $ 49.45 Options granted 488 € 23.92 — $ — — $ — Options exercised (1,996 ) € 18.02 (2 ) $ 21.35 (1,180 ) $ 17.04 Options forfeited, net — € — — $ — — $ — Options expired (2,626 ) 33.77 (8 ) 42.62 (823 ) $ 84.96 Options Outstanding at December 31, 2017 5,402 € 17.36 35 $ 20.98 3,082 $ 52.37 Aggregate Intrinsic Value of Options Outstanding (1) € 39,861 (2) $ 303 — Weighted Average Remaining Contractual Term (in years) 4.2 1.2 1.2 Options Exercisable at December 31, 2017 3,406 € 14.68 35 $ 42.62 3,018 $ 52.97 Aggregate Intrinsic Value of Options Exercisable & Expected to Vest (1) € 34,275 $ 303 — Weighted Average Remaining Contractual Term (in years) 2.8 1.2 1.1 (1) Aggregate intrinsic value, presented in thousands, is calculated as the excess of the closing market price on December 31, 2017 of the respective underlying shares over the strike prices of the option awards. (2) AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. |
Schedule of share-based payment award, valuation assumptions | Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2017 , 2016 and 2015 , respectively. AXA Ordinary Shares AB Holding Units (1) 2017 2016 2015 2017 2016 2015 Dividend yield 6.53 % 6.49 % 6.29 % N/A 7.10 % 7.10 % Expected volatility 25.05 % 26.60 % 23.68 % N/A 31.00 % 32.10 % Risk-free interest rates 0.59 % 0.33 % 0.92 % N/A 1.30 % 1.50 % Expected life in years 8.83 8.1 8.2 N/A 6.0 6.0 Weighted average fair value per option at grant date $ 2.01 $ 2.06 $ 1.73 N/A $ 2.75 $ 4.13 (1) There were no options to buy AB Holding Units awarded during 2017. As such, the input assumptions for 2017 are not applicable. |
Schedule of share-based compensation, restricted stock units award activity | The following table summarizes restricted AXA ordinary share activity for 2017 . In addition, approximately 11,069 RSUs were granted during 2017 with graded vesting over a weighted average service period of 2.06 years. 4 Shares of Restricted Stock Weighted Average Grant Date Fair Value Unvested as of January 1, 2017 36,306 $ 24.46 Granted 12,929 $ 27.49 Vested 11,819 $ 24.30 Unvested as of December 31, 2017 37,416 $ 24.04 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax expense (benefit) | A summary of the income tax (expense) benefit in the consolidated statements of income (loss) follows: 2017 2016 2015 (in millions) Income tax (expense) benefit: Current (expense) benefit $ (6 ) $ (274 ) $ (19 ) Deferred (expense) benefit 1,145 358 41 Total $ 1,139 $ 84 $ 22 |
Schedule of effective income tax rate reconciliation | The Federal income taxes attributable to consolidated operations are different from the amounts determined by multiplying the income before income taxes and noncontrolling interest by the expected Federal income tax rate of 35.0% . The sources of the difference and their tax effects are as follows: 2017 2016 2015 (in millions) Expected income tax (expense) benefit $ (789 ) $ (218 ) $ (363 ) Noncontrolling interest 175 162 118 Non-taxable investment income (loss) 250 175 189 Tax audit interest (6 ) (22 ) 1 State income taxes (3 ) (8 ) 1 Tax settlements/Uncertain Tax Position Release 221 — 77 Change in Tax Law 1,308 — — Other (17 ) (5 ) (1 ) Income tax (expense) benefit $ 1,139 $ 84 $ 22 |
Schedule of net deferred income taxes | The components of the net deferred income taxes are as follows: December 31, 2017 December 31, 2016 Assets Liabilities Assets Liabilities (in millions) Compensation and related benefits $ 47 $ — $ 88 $ — Net operating loss — — — — Reserves and reinsurance — 83 — 534 DAC — 821 — 1,463 Unrealized investment gains (losses) — 298 — 23 Investments — 997 — 1,062 Alternative minimum tax credits 387 — 394 — Other 67 — 5 — Total $ 501 $ 2,199 $ 487 $ 3,082 |
Unrecognized tax benefits reconciliation | A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: 2017 2016 2015 (in millions) Balance at January 1, $ 457 $ 418 $ 475 Additions for tax positions of prior years 28 39 44 Reductions for tax positions of prior years (245 ) — (101 ) Additions for tax positions of current year — — — Settlements with Tax Authorities (33 ) — — Balance at December 31, $ 207 $ 457 $ 418 Unrecognized tax benefits that, if recognized, would impact the effective rate 172 329 293 |
ACCUMULATED OTHER COMPREHENSI44
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | AOCI represents cumulative gains (losses) on items that are not reflected in Net income (loss). The balances for the past three years follow: December 31, 2017 2016 2015 (in millions) Unrealized gains (losses) on investments $ 617 $ 54 $ 248 Foreign currency translation adjustments (36 ) (77 ) (59 ) Defined benefit pension plans (51 ) (46 ) (43 ) Total accumulated other comprehensive income (loss) 530 (69 ) 146 Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest 68 86 69 Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 598 $ 17 $ 215 |
Comprehensive Income (Loss) | The components of OCI for the past three years, net of tax, follow: 2017 2016 2015 (in millions) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period $ 41 $ (18 ) $ (25 ) (Gains) losses reclassified into net income (loss) during the period — — — Foreign currency translation adjustment 41 (18 ) (25 ) Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the year 741 (160 ) (1,020 ) (Gains) losses reclassified into net income (loss) during the year (1) 8 2 12 Net unrealized gains (losses) on investments 749 (158 ) (1,008 ) Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other (186 ) (36 ) 176 Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(244) million, $(97) million, and $(454) million) 563 (194 ) (832 ) Change in defined benefit plans: Net gain (loss) arising during the year — — — Prior service cost arising during the year — — — Less: reclassification adjustments to net income (loss) for: (2) Amortization of net (gains) losses included in net periodic cost (5 ) (3 ) (4 ) Amortization of net prior service credit included in net periodic cost — — — Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(2) and $(2)) (5 ) (3 ) (4 ) Total other comprehensive income (loss), net of income taxes 599 (215 ) (861 ) Less: Other comprehensive (income) loss attributable to noncontrolling interest (18 ) 17 15 Other Comprehensive Income (Loss) Attributable to AXA Equitable $ 581 $ (198 ) $ (846 ) (1) See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $ (5) million, $(1) million and $(6) million for 2017 , 2016 and 2015 , respectively. (2) These AOCI components are included in the computation of net periodic costs (see “Employee Benefit Plans” in Note 12). Reclassification amounts presented net of income tax expense (benefit) of $ 2 million, $2 million and $2 million for 2017 , 2016 and 2015 , respectively. |
COMMITMENTS AND CONTINGENT LI45
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Funding Agreements with FHLBNY | The table below summarizes AXA Equitable's activity of funding agreements with the FHLBNY. Outstanding balance at end of year Maturity of Outstanding balance Issued during the Year Repaid during the year (in millions) December 31, 2017: Short-term FHLBNY funding agreements 500 less than one month 6,000 6,000 Long-term FHLBNY funding agreements 1,244 less than 4 years 324 377 Less than 5 years 303 879 great than five years 135 Total long-term funding agreements 2,500 762 — Total FHLBNY funding agreements at December 31, 2017 (1) 3,000 6,762 6,000 December 31, 2016: Short-term FHLBNY funding agreements $ 500 less than one month $ 6,000 $ 6,000 Long-term FHLBNY funding agreements $ 58 less than 4 years $ 58 $ — $ 862 Less than 5 years $ 862 $ — $ 818 great than five years $ 818 $ — Total long-term funding agreements $ 1,738 $ 1,738 $ — Total FHLBNY funding agreements at December 31, 2016 $ 2,238 $ 7,738 $ 6,000 (1) The $14 million difference between the funding agreements carrying value shown in fair value table for 2017 reflects the remaining amortization of a hedge implemented and closed, which locked in the funding agreements borrowing rates. |
Restructuring and Related Costs | The restructuring costs and liabilities associated with the Company’s initiatives were as follows: December 31, 2017 2016 (in millions) Severance Balance, beginning of year $ 22 $ 11 Additions 17 20 Cash payments (14 ) (9 ) Other reductions (2 ) — Balance, end of Year $ 23 $ 22 December 31, 2017 2016 (in millions) Leases Balance, beginning of year $ 170 $ 190 Expense incurred 29 12 Deferred rent 10 5 Payments made (48 ) (42 ) Interest accretion 4 5 Balance, end of year $ 165 $ 170 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Earnings (Loss) to Net Income (Loss) | The table below presents operating earnings (loss) by segment and Corporate and Other and a reconciliation to Net income (loss) attributable to AXA Equitable for the years ended December 31, 2017 , 2016 and 2015 , respectively: Year Ended December 31, 2017 2016 2015 (in millions) Net income (loss) attributable to AXA Equitable $ 2,860 $ 210 $ 662 Adjustments related to: GMxB features 282 1,511 818 Investment (gains) losses 125 (16 ) 20 Investment income (loss) from certain derivative instruments 18 6 (104 ) Net actuarial (gains) losses related to pension and other postretirement benefit obligations 132 135 137 Other adjustments 49 15 (11 ) Income tax expense (benefit) related to above adjustments (183 ) (566 ) (279 ) Non-recurring tax items (1,538 ) 22 (78 ) Non-GAAP Operating Earnings $ 1,745 $ 1,317 $ 1,165 Operating earnings (loss) by segment: Individual Retirement $ 1,230 $ 1,026 $ 911 Group Retirement 287 173 166 Investment Management and Research 139 108 136 Protection Solutions 210 105 108 Corporate and Other (1) (121 ) (95 ) (156 ) (1) Includes interest expense of $ 23 million , $ 13 million and $ 19 million , in 2017 , 2016 and 2015 , respectively. |
Reconciliation of Segment Revenues | The table below presents Segment revenues for the years ended December 31, 2017, 2016 and 2015. Year Ended December 31, 2017 2016 2015 (in millions) Segment revenues: Individual Retirement (1) $ 3,788 $ 3,239 $ 2,548 Group Retirement (1) 972 822 806 Investment Management and Research (2) 3,214 2,931 3,015 Protection Solutions (1) 2,417 2,544 2,451 Corporate and Other (1) 907 935 913 Adjustments related to: GMxB features 381 (1,500 ) (818 ) Investment gains (losses) (125 ) 16 (20 ) Investment income (loss) from certain derivative instruments (18 ) (6 ) 104 Other adjustments to segment revenues 197 157 (38 ) Total revenues $ 11,733 $ 9,138 $ 8,961 (1) Includes investment expenses charged by AB of approximately $ 52 million , $ 50 million , and $ 45 million for 2017 , 2016 and 2015 , respectively, for services provided to the Company. (2) Inter-segment investment management and other fees of approximately $ 81 million , $ 77 million , and $ 73 million for 2017 , 2016 and 2015 , respectively, are included in segment revenues of the Investment Management and Research segment. |
Reconciliation of Segment Assets | The table below presents Total assets by segment as of December 31, 2017 and 2016 : December 31, 2017 2016 (in millions) Total assets by segment: Individual Retirement $ 120,612 $ 106,249 Group Retirement 40,472 33,300 Investment Management and Research 10,079 9,533 Protection Solutions 34,328 32,310 Corporate and Other 20,494 23,164 Total assets $ 225,985 $ 204,556 |
QUARTERLY INTERIM FINANCIAL I47
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly interim financial information | Three Months Ended March 31 June 30 September 30 December 31 (in millions) 2017 Total Revenues $ 2,314 $ 4,548 $ 2,429 $ 2,442 Total benefits and other deductions $ 2,489 $ 2,514 $ 2,409 $ 2,066 Net income (loss) $ (54 ) $ 1,615 $ 121 $ 1,712 2016 Total Revenues $ 3,901 $ 3,297 $ 2,153 $ (213 ) Total benefits and other deductions $ 2,441 $ 2,424 $ 2,013 $ 1,638 Net income (loss) $ 1,075 $ 600 $ 175 $ (1,144 ) |
Schedule of error corrections and prior period adjustments | December 31, 2016 As Previously Reported Impact of Adjustments (1) As Restated (In millions) Assets: Deferred policy acquisition costs $ 4,852 $ 206 $ 5,058 Guaranteed minimum income benefit reinsurance asset, at fair value 10,316 (2 ) 10,314 Total assets 204,352 204 204,556 Liabilities: Future policyholders' benefits and other policyholders' liabilities 28,939 (38 ) 28,901 Current and deferred taxes 2,751 83 2,834 Total liabilities 189,504 45 189,549 Equity: Retained earnings 6,005 145 6,150 Accumulated other comprehensive income (loss) 3 14 17 Total equity attributable to AXA Equitable 11,349 159 11,508 Total equity 14,445 159 14,604 Total liabilities, redeemable controlling interest and equity $ 204,352 $ 204 $ 204,556 (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information that impact the pre-change in accounting principle financial information that is being restated, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Adjustments (1) As Restated As Revised Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2016 2015 2016 2015 (In millions) Statements of Income (Loss): Revenues: Premiums 854 828 26 24 880 852 Net derivative gains (losses) (1,163 ) (1,075 ) (48 ) (86 ) (1,211 ) (1,161 ) Total revenues 9,160 9,023 (22 ) (62 ) 9,138 8,961 Benefits and other deductions: Policyholders' benefits 2,745 2,457 26 17 2,771 2,474 Interest credited to policyholder's account balances 1,079 973 (50 ) (86 ) 1,029 887 Amortization of deferred policy acquisition costs, net 287 (254 ) (235 ) 11 52 (243 ) Total benefits and other deductions 8,775 7,981 (259 ) (58 ) 8,516 7,923 Income (loss) from operations, before income taxes 385 1,042 237 (4 ) 622 1,038 Income tax (expense) benefit 168 23 (84 ) (1 ) 84 22 Net income (loss) 553 1,065 153 (5 ) 706 1,060 Net income (loss) attributable to AXA Equitable $ 57 $ 667 $ 153 $ (5 ) $ 210 $ 662 Statements of Comprehensive Income (Loss): Net income (loss) $ 553 $ 1,065 $ 153 $ (5 ) $ 706 $ 1,060 Change in unrealized gains (losses), net of reclassification adjustment (208 ) (828 ) 14 (4 ) (194 ) (832 ) Total other comprehensive income (loss), net of income taxes (229 ) (857 ) 14 (4 ) (215 ) (861 ) Comprehensive income (loss) 324 208 167 (9 ) 491 199 Comprehensive income (loss) attributable to AXA Equitable $ (155 ) $ (175 ) $ 167 $ (9 ) $ 12 $ (184 ) (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information for the year ended December 31, 2016 that impact the pre-change in accounting principle financial information that is being restated and identified certain additional errors that were not material to the previously disclosed financial information for the year ended December 31, 2015, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Adjustments (1) As Restated As Revised Year Ended December 31, Year Ended December 31, Year Ended December 31, 2016 2015 2016 2015 2016 2015 (In millions) Statements of Equity: Retained earnings, beginning of year $ 6,998 $ 7,243 $ (8 ) $ (3 ) $ 6,990 $ 7,240 Net income (loss) attributable to AXA Equitable 57 667 153 (5 ) 210 662 Retained earnings, end of period 6,005 6,998 145 (8 ) 6,150 6,990 Accumulated other comprehensive income (loss), beginning of year 215 285 — 4 215 289 Other comprehensive income (loss) (212 ) (842 ) 14 (4 ) (198 ) (846 ) Accumulated other comprehensive income (loss), end of year 3 215 14 — 17 215 Total AXA Equitable’s equity, end of period 11,349 12,536 159 (8 ) 11,508 12,528 Total Equity, End of Period $ 14,445 $ 15,595 $ 159 $ (8 ) $ 14,604 $ 15,587 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 553 $ 1,065 $ 153 $ (5 ) $ 706 $ 1,060 Interest credited to policyholders’ account balances 1,079 973 (50 ) (86 ) 1,029 887 Net derivative (gains) loss 1,163 1,075 48 86 1,211 1,161 Changes in: Deferred policy acquisition costs 287 (254 ) (235 ) 11 52 (243 ) Current and deferred income taxes (826 ) 49 84 1 (742 ) 50 Other (161 ) (92 ) — (7 ) (161 ) (99 ) Net cash provided by (used in) operating activities $ (461 ) $ (324 ) $ — $ — $ (461 ) $ (324 ) (1) In the Form 8-K filed on December 21, 2017, the Company reported in Exhibit 99.1 to reflect a change in accounting principle as well as to correct errors in the previously issued financial statements. Subsequent to the filing of the Form 8-K, the Company identified certain additional errors that were material to the previously disclosed financial information as of and for the year ended December 31, 2016 that impact the pre-change in accounting principle financial information that is being restated and identified certain additional errors that were not material to the previously disclosed financial information as of and for the year ended December 31, 2015, and thus these figures differ from what was reported in the Form 8-K. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended September 30, 2017 Total Revenues $ 2,520 $ (91 ) $ 2,429 $ — $ 2,429 Total benefits and other deductions $ 2,581 $ (172 ) $ 2,409 $ — $ 2,409 Net income (loss) $ 66 $ 55 $ 121 $ — $ 121 Three Months Ended June 30, 2017 Total Revenues $ 4,488 $ (138 ) $ 4,350 $ 198 $ 4,548 Total benefits and other deductions $ 2,691 $ (45 ) $ 2,646 $ (132 ) $ 2,514 Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Three Months Ended March 31, 2017 Total Revenues $ 1,989 $ (67 ) $ 1,922 $ 392 $ 2,314 Total benefits and other deductions $ 2,562 $ (143 ) $ 2,419 $ 70 $ 2,489 Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Three Months Ended December 31, 2016 Total Revenues $ (1,942 ) $ 75 $ (1,867 ) $ 1,654 $ (213 ) Total benefits and other deductions $ 1,627 $ 73 $ 1,700 $ (62 ) $ 1,638 Net income (loss) $ (2,259 ) $ — $ (2,259 ) $ 1,115 $ (1,144 ) Three Months Ended September 30, 2016 Total Revenues $ 2,006 $ (8 ) $ 1,998 $ 155 $ 2,153 Total benefits and other deductions $ 2,036 $ (22 ) $ 2,014 $ (1 ) $ 2,013 Net income (loss) $ 22 $ 51 $ 73 $ 102 $ 175 Three Months Ended June 30, 2016 Total Revenues $ 4,157 $ 12 $ 4,169 $ (872 ) $ 3,297 Total benefits and other deductions $ 2,581 $ (5 ) $ 2,576 $ (152 ) $ 2,424 Net income (loss) $ 1,061 $ 7 $ 1,068 $ (468 ) $ 600 Three Months Ended March 31, 2016 Total Revenues $ 4,927 $ 110 $ 5,037 $ (1,136 ) $ 3,901 Total benefits and other deductions $ 2,473 $ 67 $ 2,540 $ (99 ) $ 2,441 Net income (loss) $ 1,720 $ 29 $ 1,749 $ (674 ) $ 1,075 The following tables present line items for September 30, 2017 financial information that has been affected by the revisions. This information has been corrected from the information previously presented in the Q3 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported and the impact upon those line items due to the revisions and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised (In millions) As of September 30, 2017 Assets: DAC 4,550 353 4,903 Amounts due from reinsurers 5,016 (12 ) 5,004 Guaranteed minimum income benefit reinsurance asset, at fair value 10,933 (33 ) 10,900 Other Assets 4,258 18 4,276 Total Assets $ 219,069 $ 326 $ 219,395 Liabilities: Future policyholders' benefits and other policyholders' liabilities 29,423 29 29,452 Current and deferred taxes 3,148 117 3,265 Total Liabilities 202,669 146 202,815 Equity: Retained Earnings 7,265 211 7,476 Accumulated other comprehensive income (loss) 362 (31 ) 331 AXA Equitable Equity 12,990 180 13,170 Equity 15,959 180 16,139 Total Liabilities and Equity $ 219,069 $ 326 $ 219,395 As Previously Reported Impact of Revisions As Revised (In millions) Three Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 914 $ (7 ) $ 907 Premiums 204 4 208 Net derivative gains (losses) (318 ) (88 ) (406 ) Total revenues 2,520 (91 ) 2,429 Benefits and other deductions: Policyholders' benefits 995 (88 ) 907 Interest credited to policyholders' account balances 350 (105 ) 245 Amortization of deferred policy acquisition costs, net (33 ) 21 (12 ) Total benefits and other deductions 2,581 (172 ) 2,409 Income (loss) from operations, before income taxes (61 ) 81 20 Income tax (expense) benefit 127 (26 ) 101 Net income (loss) 66 55 121 Net income (loss) attributable to AXA Equitable $ (56 ) $ 55 $ (1 ) Statements of Comprehensive Income (Loss): Net income (loss) $ 66 $ 55 $ 121 Change in unrealized gains (losses), net of reclassification adjustment (55 ) (24 ) (79 ) Other comprehensive income (52 ) (24 ) (76 ) Comprehensive income (loss) 14 31 45 Comprehensive income (loss) attributable to AXA Equitable $ (140 ) $ 31 $ (109 ) As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 2,626 $ (21 ) $ 2,605 Premiums 645 20 665 Net derivative gains (losses) 1,376 (384 ) 992 Total revenues 9,673 (385 ) 9,288 Benefits and other deductions: Policyholders' benefits 3,308 (62 ) 3,246 Interest credited to policyholders' account balances 1,008 (279 ) 729 Amortization of deferred policy acquisition costs, net 15 (47 ) (32 ) Total benefits and other deductions 7,800 (388 ) 7,412 Income (loss) from operations, before income taxes 1,873 3 1,876 Income tax (expense) benefit (196 ) (1 ) (197 ) Net income (loss) 1,677 2 1,679 Net income (loss) attributable to AXA Equitable $ 1,324 $ 2 $ 1,326 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,677 $ 2 $ 1,679 Change in unrealized gains (losses), net of reclassification adjustment 362 (47 ) 315 Other comprehensive income 380 (47 ) 333 Comprehensive income (loss) 2,057 (45 ) 2,012 Comprehensive income (loss) attributable to AXA Equitable $ 1,685 $ (45 ) $ 1,640 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 5,941 $ 209 $ 6,150 Net income (loss) 1,324 2 1,326 Retained earnings, end of period 7,265 211 7,476 Accumulated other comprehensive income, beginning of year 1 16 17 Other comprehensive income (loss) 361 (47 ) 314 Accumulated other comprehensive income, end of period 362 (31 ) 331 Total AXA Equitable’s equity, end of period 12,990 180 13,170 Total Equity, End of Period $ 15,959 $ 180 $ 16,139 As Previously Reported Impact of Revisions As Revised (In millions) Nine Months Ended September 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,677 $ 2 $ 1,679 Policy charges and fee income (2,626 ) 21 (2,605 ) Interest credited to policyholders’ account balances 1,008 (279 ) 729 Net derivative (gains) loss (1,376 ) 384 (992 ) Changes in: Deferred Policy Acquisition costs 15 (47 ) (32 ) Future policy benefits 1,289 (81 ) 1,208 Net cash provided by (used in) operating activities $ 994 $ — $ 994 The following tables present line items for June 30, 2017 financial information that has been affected by the revisions and the change in accounting principle. This information has been corrected from the information previously presented in the Q2 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of June 30, 2017 Assets: Other equity investments $ 1,477 $ (21 ) $ 1,456 $ — $ 1,456 Other invested assets 2,622 32 2,654 — 2,654 Total investments 62,111 11 62,122 — 62,122 DAC 4,141 247 4,388 525 4,913 Amounts due from reinsurers 4,870 19 4,889 — 4,889 Guaranteed minimum income benefit reinsurance contract asset, at fair value 11,290 (30 ) 11,260 — 11,260 Total Assets $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 Liabilities: Policyholders' account balance $ 41,531 $ (15 ) $ 41,516 $ — $ 41,516 Future policyholders' benefits and other policyholders' liabilities 26,799 79 26,878 2,801 29,679 Current and deferred taxes 4,000 65 4,065 (798 ) 3,267 Other liabilities 2,531 (9 ) 2,522 — 2,522 Total Liabilities 196,972 120 197,092 2,003 199,095 Equity: Retained Earnings 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income (loss) 493 (34 ) 459 (28 ) 431 AXA Equitable Equity 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest 2,973 11 2,984 — 2,984 Equity 17,608 127 17,735 (1,478 ) 16,257 Total Liabilities and Equity $ 214,941 $ 247 $ 215,188 $ 525 $ 215,713 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 865 $ 50 $ 915 $ (68 ) $ 847 Premiums 216 9 225 — 225 Net derivative gains (losses) 1,693 (197 ) 1,496 266 1,762 Total revenues 4,488 (138 ) 4,350 198 4,548 Benefits and other deductions: Policyholders' benefits 1,452 46 1,498 (134 ) 1,364 Amortization of deferred policy acquisition costs, net (82 ) 31 (51 ) 2 (49 ) Interest credited to policyholders’ account balances 321 (116 ) 205 — 205 Other operating costs and expenses 155 (6 ) 149 — 149 Total benefits and other deductions 2,691 (45 ) 2,646 (132 ) 2,514 Income (loss) from operations, before income taxes 1,797 (93 ) 1,704 330 2,034 Income tax (expense) benefit (338 ) 34 (304 ) (115 ) (419 ) Net income (loss) 1,459 (59 ) 1,400 215 1,615 Net income (loss) attributable to AXA Equitable $ 1,346 $ (59 ) $ 1,287 $ 215 $ 1,502 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,459 $ (59 ) $ 1,400 $ 215 $ 1,615 Change in unrealized gains (losses), net of reclassification adjustment 314 (29 ) 285 8 293 Other comprehensive income 294 (29 ) 265 8 273 Comprehensive income (loss) 1,753 (88 ) 1,665 223 1,888 Comprehensive income (loss) attributable to AXA Equitable $ 1,660 $ (88 ) $ 1,572 $ 223 $ 1,795 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 1,761 $ 72 $ 1,833 $ (135 ) $ 1,698 Premiums 441 16 457 — 457 Net derivative gains (losses) 969 (296 ) 673 725 1,398 Total revenues 6,477 (208 ) 6,269 590 6,859 Benefits and other deductions: Policyholders' benefits 2,343 60 2,403 (65 ) 2,338 Interest credited to policyholders' account balances 658 (174 ) 484 — 484 Amortization of deferred policy acquisition costs, net 43 (66 ) (23 ) 3 (20 ) Other operating costs and expenses 539 (9 ) 530 — 530 Total benefits and other deductions 5,253 (189 ) 5,064 (62 ) 5,002 Income (loss) from operations, before income taxes 1,224 (19 ) 1,205 652 1,857 Income tax (expense) benefit (78 ) 8 (70 ) (228 ) (298 ) Net income (loss) 1,146 (11 ) 1,135 424 1,559 Net income (loss) attributable to AXA Equitable $ 915 $ (11 ) $ 904 $ 424 $ 1,328 Statements of Comprehensive Income (Loss): Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Change in unrealized gains (losses), net of reclassification adjustment 458 (48 ) 410 (24 ) 386 Other comprehensive income 473 (48 ) 425 (24 ) 401 Comprehensive income (loss) 1,619 (59 ) 1,560 400 1,960 Comprehensive income (loss) attributable to AXA Equitable $ 1,401 $ (59 ) $ 1,342 $ 400 $ 1,742 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,864 $ 161 $ 8,025 $ (1,874 ) $ 6,151 Net income (loss) 915 (11 ) 904 424 1,328 Retained earnings, end of period 8,779 150 8,929 (1,450 ) 7,479 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 486 (48 ) 438 (24 ) 414 Accumulated other comprehensive income, end of period 493 (34 ) 459 (28 ) 431 Total AXA Equitable’s equity, end of period 14,635 116 14,751 (1,478 ) 13,273 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 2,973 11 2,984 — 2,984 Total Equity, End of Period $ 17,608 $ 127 $ 17,735 $ (1,478 ) $ 16,257 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Six Months Ended June 30, 2017 Statements of Cash flows: Cash flow from operating activities: Net income (loss) $ 1,146 $ (11 ) $ 1,135 $ 424 $ 1,559 Policy charges and fee income (1,761 ) (72 ) (1,833 ) 135 (1,698 ) Interest credited to policyholders’ account balances 658 (174 ) 484 — 484 Net derivative (gains) loss (969 ) 296 (673 ) (725 ) (1,398 ) Changes in: Future policy benefits 1,381 (13 ) 1,368 (65 ) 1,303 Reinsurance recoverable (251 ) 57 (194 ) — (194 ) Deferred policy acquisition costs 43 (66 ) (23 ) 3 (20 ) Current and deferred income taxes (16 ) (8 ) (24 ) 228 204 Other 93 (9 ) 84 — 84 Net cash provided by (used in) operating activities $ (75 ) $ — $ (75 ) $ — $ (75 ) e Q1 2017 Form 10-Q. For these items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions, as revised after the revisions, the impacts of the change in accounting principle and the amounts as currently revised. As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) As of March 31, 2017 Assets: Other equity investments $ 1,463 $ (23 ) $ 1,440 $ — $ 1,440 Other invested assets 2,050 34 2,084 — 2,084 Total investments 60,406 11 60,417 — 60,417 DAC 4,068 367 4,435 526 4,961 Amounts due from reinsurers 4,639 8 4,647 — 4,647 Guaranteed minimum income benefit 9,795 3 9,798 — 9,798 Total Assets $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 Liabilities: Policyholders' account balance $ 40,308 $ (16 ) $ 40,292 $ — $ 40,292 Future policyholders' benefits and other policyholders' liabilities 25,496 51 25,547 3,144 28,691 Current and deferred taxes 3,523 120 3,643 (917 ) 2,726 Other liabilities 2,496 (3 ) 2,493 — 2,493 Total Liabilities 192,712 152 192,864 2,227 195,091 Equity: Retained Earnings 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income (loss) 179 (6 ) 173 (36 ) 137 AXA Equitable Equity 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest 3,035 11 3,046 — 3,046 Equity 15,969 237 16,206 (1,701 ) 14,505 Total Liabilities and Equity $ 209,098 $ 389 $ 209,487 $ 526 $ 210,013 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Income (Loss): Revenues: Policy charges and fee income $ 896 $ 23 $ 919 $ (67 ) $ 852 Premiums 225 7 232 — 232 Net derivative gains (losses) (724 ) (97 ) (821 ) 459 (362 ) Total revenues 1,989 (67 ) 1,922 392 2,314 Benefits and other deductions: Policyholders' benefits 891 15 906 69 975 Interest credited to policyholders' account balances 337 (58 ) 279 — 279 Amortization of deferred policy acquisition costs, net 125 (97 ) 28 1 29 Other operating costs and expenses 384 (3 ) 381 — 381 Total benefits and other deductions 2,562 (143 ) 2,419 70 2,489 Income (loss) from operations, before income taxes (573 ) 76 (497 ) 322 (175 ) Income tax (expense) benefit 260 (26 ) 234 (113 ) 121 Net income (loss) (313 ) 50 (263 ) 209 (54 ) Net income (loss) attributable to AXA Equitable $ (431 ) $ 50 $ (381 ) $ 209 $ (172 ) Statements of Comprehensive Income (Loss): Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Change in unrealized gains (losses), net of reclassification adjustment 144 (20 ) 124 (32 ) 92 Other comprehensive income 179 (20 ) 159 (32 ) 127 Comprehensive income (loss) (134 ) 30 (104 ) 177 73 Comprehensive income (loss) attributable to AXA Equitable $ (259 ) $ 30 $ (229 ) $ 177 $ (52 ) As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Equity: Retained earnings, beginning of year $ 7,842 $ 182 $ 8,024 $ (1,874 ) $ 6,150 Net income (loss) (431 ) 50 (381 ) 209 (172 ) Retained earnings, end of period 7,411 232 7,643 (1,665 ) 5,978 Accumulated other comprehensive income, beginning of year 7 14 21 (4 ) 17 Other comprehensive income (loss) 172 (20 ) 152 (32 ) 120 Accumulated other comprehensive income, end of period 179 (6 ) 173 (36 ) 137 Total AXA Equitable’s equity, end of period 12,934 226 13,160 (1,701 ) 11,459 Noncontrolling interest, beginning of year 3,085 11 3,096 — 3,096 Noncontrolling interest, end of period 3,035 11 3,046 — 3,046 Total Equity, End of Period $ 15,969 $ 237 $ 16,206 $ (1,701 ) $ 14,505 As Previously Reported Impact of Revisions As Revised and Adjusted Herein Impact of Accounting Change As Revised (In millions) Three Months Ended March 31, 2017 Statements of Cash flows: Net income (loss) $ (313 ) $ 50 $ (263 ) $ 209 $ (54 ) Policy charges and fee income (896 ) (23 ) (919 ) 67 (852 ) Interest credited to policyholders’ account balances 337 (58 ) 279 — 279 Net derivative (gains) loss 724 97 821 (459 ) 362 Changes in: Deferred policy acquisition costs 125 (97 ) 28 1 29 Future policy benefits 185 (13 ) 172 69 241 Reinsurance recoverable (44 ) 21 (23 ) — (23 ) Current and deferred income taxes (327 ) 26 (301 ) 113 (188 ) Other 180 (3 ) 177 — 177 Net cash provided by (used in) operating activities $ 18 $ — $ 18 $ — $ 18 |
ORGANIZATIONS (Details)
ORGANIZATIONS (Details) | 12 Months Ended | |
Dec. 31, 2017segmentclient_channel | Dec. 31, 2016 | |
Organization Basis Of Presentation [Line Items] | ||
Number of reportable segments | segment | 4 | |
Number of main client channels | client_channel | 3 | |
AXA Equitable | ||
Organization Basis Of Presentation [Line Items] | ||
Economic interest in AllianceBernstein | 29.00% | 29.00% |
Parent | ||
Organization Basis Of Presentation [Line Items] | ||
Economic interest in AllianceBernstein | 64.70% | 63.70% |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING CHANGE AND ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Retained earnings | $ 9,010 | $ 7,476 | $ 7,479 | $ 5,978 | $ 6,150 |
Difference Between Revenue Guidance In Effect Before And After Topic 606 | Accounting Standards Update 2014-09 | Pro Forma | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Retained earnings | 35 | ||||
Equity | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Available-for-sale securities | $ 157 |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES - INVESTMENTS AND MORTGAGE LOANS ON REAL ESTATE (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Rate | Dec. 31, 2016USD ($) | |
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Carrying value of COLI | $ 911 | $ 892 |
Loan-to-Value Ratio for Allowance to be Recommended | Rate | 100.00% | |
Debt Service Coverage Ratio Threshold | 1 | |
Minimum | ||
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Lease Expiration Period | 12 months | |
Mortgage Loan Maturity Period for Monitoring | 12 months | |
Maximum | ||
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Lease Expiration Period | 36 months | |
Mortgage Loan Maturity Period for Monitoring | 24 months | |
Commercial Real Estate Portfolio Segment | ||
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Recorded Investment, Nonaccrual Status | $ 19 | $ 34 |
Real estate held for the production of income | Minimum | ||
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Real estate held for the production of income, useful lives | 40 years | |
Real estate held for the production of income | Maximum | ||
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ||
Real estate held for the production of income, useful lives | 50 years |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES - DEFERRED ACQUISITION COSTS (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Mean (RTM) assumption | 7.00% | 9.00% | |
Average annual rate of return, gross | 7.00% | ||
Average annual rate of return, net | 4.70% | ||
Future annual rate of return, gross, maximum | 15.00% | ||
Future annual rate of return, gross, minimum | 12.70% | ||
Future annual rate of return, net, maximum | 0.00% | ||
Future annual rate of return, net, minimum | (2.30%) | ||
Future annual rate of return assumption duration maximum | 5 years | ||
Assumed actual future annual rate of return resulting in acceleration of deferred acquisition costs amortization | 15.00% | ||
Assumed actual future annual rate of return resulting in decelaration of deferred acquisition costs amortization | 0.00% | ||
Assumed average investment yield excluding policy loans, high end | 4.70% | ||
Assumed average investment yield excluding policy loans, low end | 4.30% | ||
Period used In assumed average investment yield excluding policy loans | 7 years |
SIGNIFICANT ACCOUNTING POLICI52
SIGNIFICANT ACCOUNTING POLICIES - OTHER POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Separate Accounts Disclosure [Abstract] | |||
Gain (loss) recognized on assets transferred to separate account | $ 16,735 | $ 8,222 | $ (1,148) |
Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Percentage of life insurance liabilities calculate within traditional life interest rate range | 99.10% | ||
Minimum | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Capitalized computer software amortization period | 3 years | ||
Minimum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 5.00% | ||
Minimum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 1.60% | ||
Maximum | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Capitalized computer software amortization period | 5 years | ||
Maximum | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 6.30% | ||
Maximum | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 5.50% | ||
Weighted Average | Life Insurance Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for future policy benefits, interest rate | 5.10% | ||
Weighted Average | Annuity Liabilities | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 4.20% | ||
Investment Management Contracts | Minimum | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Intangible asset useful life | 6 years | ||
Investment Management Contracts | Maximum | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Intangible asset useful life | 20 years | ||
US | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Amortization period, front-end load commissions | 5 years 6 months | ||
Non-US | |||
Liability For Future Policy Benefits Assumptions [Line Items] | |||
Amortization period, front-end load commissions | 4 years |
SIGNIFICANT ACCOUNTING POLICI53
SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING AND CONSOLIDATION OF VIEs (Details) $ in Millions | Dec. 31, 2017USD ($)joint_venture | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Variable Interest Entity [Line Items] | ||||||||
Other equity investments | $ 1,351 | [1] | $ 1,456 | $ 1,440 | $ 1,323 | [1] | ||
Number of consolidated real estate joint ventures | joint_venture | 3 | |||||||
Number of non-consolidated real estate joint ventures | joint_venture | 2 | |||||||
Total Assets | $ 225,985 | $ 219,395 | 215,713 | 210,013 | 204,556 | |||
Real estate held for production of income | [1] | 390 | 56 | |||||
Total Liabilities | 205,795 | $ 202,815 | $ 199,095 | $ 195,091 | 189,549 | |||
Redeemable noncontrolling interest | [1] | 626 | 403 | |||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Unfunded commitments | 693 | |||||||
Real estate held for production of income | 18 | 20 | ||||||
Variable Interest Entity, Not Primary Beneficiary | Other Equity Investments | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Nonconsolidated VIE, carrying amount, assets | 160,178 | |||||||
Maximum loss exposure, amount | 1,123 | |||||||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Total Assets | 393 | 36 | ||||||
Real estate held for production of income | 372 | 36 | ||||||
Total Liabilities | 229 | 11 | ||||||
Long-term debt | 203 | $ 0 | ||||||
Individual Retirement | Variable Interest Entity, Not Primary Beneficiary | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Other equity investments | 1,123 | |||||||
Protection Solutions | Variable Interest Entity, Not Primary Beneficiary | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Nonconsolidated VIE, carrying amount, assets | 53,600 | |||||||
Maximum loss exposure, amount | 7.9 | |||||||
Voting Interest Entity, Primary Beneficiary, Aggregated Disclosure | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Total Assets | 58 | |||||||
Total Liabilities | 2 | |||||||
Redeemable noncontrolling interest | $ 0 | |||||||
95% Owned | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Number of consolidated real estate joint ventures | joint_venture | 2 | |||||||
AB-Sponsored Investment Funds | Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Total Assets | $ 1,550 | |||||||
Total Liabilities | 696 | |||||||
Redeemable noncontrolling interest | $ 596 | |||||||
[1] | See Note 2 for details of balances with variable interest entities. |
SIGNIFICANT ACCOUNTING POLICI54
SIGNIFICANT ACCOUNTING POLICIES - ASSUMPTION UPDATES AND MODEL CHANGES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | $ 907 | $ 1,364 | $ 975 | $ 2,338 | $ 3,246 | $ 3,462 | $ 2,771 | $ 2,474 | |||||||
Amortization of deferred policy acquisition costs, net increase (decrease) | 846 | 646 | |||||||||||||
Income (loss) from operations, before income taxes | 20 | 2,034 | (175) | 1,857 | 1,876 | 2,255 | 622 | 1,038 | |||||||
Face value amount threshold for rate increase | 1 | ||||||||||||||
Net income (loss) | $ 1,712 | $ 121 | $ 1,615 | $ (54) | $ (1,144) | $ 175 | $ 600 | $ 1,075 | $ 1,559 | $ 1,679 | 3,394 | 706 | 1,060 | ||
Mean (RTM) assumption | 7.00% | 9.00% | |||||||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 174 | (268) | (141) | ||||||||||||
2016 Assumption Updates | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | 23 | (135) | |||||||||||||
Amortization of deferred policy acquisition costs, net increase (decrease) | 247 | 193 | |||||||||||||
Fees and commissions | 88 | 35 | |||||||||||||
Income (loss) from operations, before income taxes | 1,700 | (23) | |||||||||||||
Net income (loss) | 1,100 | $ (15) | |||||||||||||
Increase in Cost of Insurance | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Income (loss) from operations, before income taxes | 71 | ||||||||||||||
Net income (loss) | 46 | ||||||||||||||
Long-term Lapses, Partial Withdrawal Rates and Election Assumptions Updates | GMIB | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | (864) | ||||||||||||||
Amortization of deferred policy acquisition costs, net increase (decrease) | (32) | ||||||||||||||
Income (loss) from operations, before income taxes | (636) | ||||||||||||||
Net income (loss) | (413) | ||||||||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 1,500 | (746) | |||||||||||||
Increase (decrease) in fair value of policy liability | $ (447) | 786 | |||||||||||||
Update RTM Assumptions | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Income (loss) from operations, before income taxes | (527) | ||||||||||||||
Net income (loss) | $ (342) | ||||||||||||||
Mean (RTM) assumption | 7.00% | 9.00% | |||||||||||||
Update RTM Assumptions | GMIB | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | $ 570 | ||||||||||||||
Amortization of deferred policy acquisition costs, net increase (decrease) | (73) | ||||||||||||||
Update RTM Assumptions | Variable and Interest Sensitive Life | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | 29 | ||||||||||||||
Long Term Lapse Assumption | GMIB | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | 53 | ||||||||||||||
Amortization of deferred policy acquisition costs, net increase (decrease) | (12) | ||||||||||||||
Income (loss) from operations, before income taxes | 74 | ||||||||||||||
Net income (loss) | 48 | ||||||||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | 216 | ||||||||||||||
Increase (decrease) in fair value of policy liability | 101 | ||||||||||||||
Impact of Lump Sum Payment Option | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Income (loss) from operations, before income taxes | 103 | ||||||||||||||
Net income (loss) | 67 | ||||||||||||||
Impact of Lump Sum Payment Option | GMIB | |||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||
Policyholders’ benefits increase (decrease) | (47) | ||||||||||||||
Increase (decrease) in the fair value of the reinsurance contract asset | (263) | ||||||||||||||
Increase (decrease) in fair value of policy liability | $ (320) |
SIGNIFICANT ACCOUNTING POLICI55
SIGNIFICANT ACCOUNTING POLICIES - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||||
Deferred policy acquisition costs | $ 4,547 | $ 4,903 | $ 4,913 | $ 4,961 | $ 5,058 | $ 5,088 |
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,488 | 10,900 | 11,260 | 9,798 | 10,314 | |
Total Assets | 225,985 | 219,395 | 215,713 | 210,013 | 204,556 | |
LIABILITIES | ||||||
Future policy benefits and other policyholders liabilities | 29,034 | 29,452 | 29,679 | 28,691 | 28,901 | |
Current and deferred taxes | 2,834 | |||||
Total liabilities | 205,795 | 202,815 | 199,095 | 195,091 | 189,549 | |
EQUITY | ||||||
Retained earnings | 9,010 | 7,476 | 7,479 | 5,978 | 6,150 | |
Accumulated other comprehensive income (loss) | 598 | 331 | 431 | 137 | 17 | |
Total equity attributable to AXA Equitable | 16,469 | 13,170 | 13,273 | 11,459 | 11,508 | |
Total equity | 19,564 | 16,139 | 16,257 | 14,505 | 14,604 | $ 15,587 |
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 225,985 | 219,395 | 215,713 | 210,013 | 204,556 | |
As Previously Reported | ||||||
ASSETS | ||||||
Deferred policy acquisition costs | 4,550 | 4,141 | 4,068 | 4,852 | ||
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,933 | 11,290 | 9,795 | 10,316 | ||
Total Assets | 219,069 | 214,941 | 209,098 | 204,352 | ||
LIABILITIES | ||||||
Future policy benefits and other policyholders liabilities | 29,423 | 26,799 | 25,496 | 28,939 | ||
Current and deferred taxes | 2,751 | |||||
Total liabilities | 202,669 | 196,972 | 192,712 | 189,504 | ||
EQUITY | ||||||
Retained earnings | 7,265 | 8,779 | 7,411 | 6,005 | ||
Accumulated other comprehensive income (loss) | 362 | 493 | 179 | 3 | ||
Total equity attributable to AXA Equitable | 12,990 | 14,635 | 12,934 | 11,349 | ||
Total equity | 15,959 | 17,608 | 15,969 | 14,445 | ||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 219,069 | $ 214,941 | $ 209,098 | 204,352 | ||
Impact of Adjustments | ||||||
ASSETS | ||||||
Deferred policy acquisition costs | 353 | 206 | ||||
Guaranteed minimum income benefit reinsurance asset, at fair value | (33) | (2) | ||||
Total Assets | 326 | 204 | ||||
LIABILITIES | ||||||
Future policy benefits and other policyholders liabilities | 29 | (38) | ||||
Current and deferred taxes | 83 | |||||
Total liabilities | 146 | 45 | ||||
EQUITY | ||||||
Retained earnings | 211 | 145 | ||||
Accumulated other comprehensive income (loss) | (31) | 14 | ||||
Total equity attributable to AXA Equitable | 180 | 159 | ||||
Total equity | 180 | 159 | ||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 326 | $ 204 |
SIGNIFICANT ACCOUNTING POLICI56
SIGNIFICANT ACCOUNTING POLICIES - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - INCOME STATEMENT AND COMPRHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||||
Premiums | $ 208 | $ 225 | $ 232 | $ 457 | $ 665 | $ 904 | $ 880 | $ 852 | |||||
Net derivative gains (losses) | (406) | 1,762 | (362) | 1,398 | 992 | 890 | (1,211) | (1,161) | |||||
Total revenues | $ 2,442 | 2,429 | 4,548 | 2,314 | $ (213) | $ 2,153 | $ 3,297 | $ 3,901 | 6,859 | 9,288 | 11,733 | 9,138 | 8,961 |
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 907 | 1,364 | 975 | 2,338 | 3,246 | 3,462 | 2,771 | 2,474 | |||||
Interest credited to policyholder's account balances | 245 | 205 | 279 | 484 | 729 | 1,040 | 1,029 | 887 | |||||
Amortization of deferred policy acquisition costs, net | 52 | (243) | |||||||||||
Total benefits and other deductions | 2,066 | 2,409 | 2,514 | 2,489 | 1,638 | 2,013 | 2,424 | 2,441 | 5,002 | 7,412 | 9,478 | 8,516 | 7,923 |
Income (loss) from operations, before income taxes | 20 | 2,034 | (175) | 1,857 | 1,876 | 2,255 | 622 | 1,038 | |||||
Income tax (expense) benefit | 101 | (419) | 121 | (298) | (197) | 1,139 | 84 | 22 | |||||
Net income (loss) | $ 1,712 | 121 | 1,615 | (54) | (1,144) | 175 | 600 | 1,075 | 1,559 | 1,679 | 3,394 | 706 | 1,060 |
Net income (loss) attributable to AXA Equitable | (1) | 1,502 | (172) | 1,328 | 1,326 | 2,860 | 210 | 662 | |||||
Change in unrealized gains (losses), net of reclassification adjustment | (79) | 293 | 92 | 386 | 315 | 563 | (194) | (832) | |||||
Total other comprehensive income (loss), net of income taxes | (76) | 273 | 127 | 401 | 333 | 599 | (215) | (861) | |||||
Statements of Comprehensive Income (Loss): | |||||||||||||
Comprehensive income (loss) | 45 | 1,888 | 73 | 1,960 | 2,012 | 3,993 | 491 | 199 | |||||
Comprehensive income (loss) attributable to AXA Equitable | (109) | 1,795 | (52) | 1,742 | 1,640 | $ 3,441 | 12 | (184) | |||||
As Previously Reported | |||||||||||||
Revenues: | |||||||||||||
Premiums | 204 | 216 | 225 | 441 | 645 | 854 | 828 | ||||||
Net derivative gains (losses) | (318) | 1,693 | (724) | 969 | 1,376 | (1,163) | (1,075) | ||||||
Total revenues | 2,520 | 4,488 | 1,989 | (1,942) | 2,006 | 4,157 | 4,927 | 6,477 | 9,673 | 9,160 | 9,023 | ||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 995 | 1,452 | 891 | 2,343 | 3,308 | 2,745 | 2,457 | ||||||
Interest credited to policyholder's account balances | 350 | 321 | 337 | 658 | 1,008 | 1,079 | 973 | ||||||
Amortization of deferred policy acquisition costs, net | 287 | (254) | |||||||||||
Total benefits and other deductions | 2,581 | 2,691 | 2,562 | 1,627 | 2,036 | 2,581 | 2,473 | 5,253 | 7,800 | 8,775 | 7,981 | ||
Income (loss) from operations, before income taxes | (61) | 1,797 | (573) | 1,224 | 1,873 | 385 | 1,042 | ||||||
Income tax (expense) benefit | 127 | (338) | 260 | (78) | (196) | 168 | 23 | ||||||
Net income (loss) | 66 | 1,459 | (313) | $ (2,259) | $ 22 | $ 1,061 | $ 1,720 | 1,146 | 1,677 | 553 | 1,065 | ||
Net income (loss) attributable to AXA Equitable | (56) | 1,346 | (431) | 915 | 1,324 | 57 | 667 | ||||||
Change in unrealized gains (losses), net of reclassification adjustment | (55) | 314 | 144 | 458 | 362 | (208) | (828) | ||||||
Total other comprehensive income (loss), net of income taxes | (52) | 294 | 179 | 473 | 380 | (229) | (857) | ||||||
Statements of Comprehensive Income (Loss): | |||||||||||||
Comprehensive income (loss) | 14 | 1,753 | (134) | 1,619 | 2,057 | 324 | 208 | ||||||
Comprehensive income (loss) attributable to AXA Equitable | (140) | $ 1,660 | $ (259) | $ 1,401 | 1,685 | (155) | (175) | ||||||
Impact of Adjustments | |||||||||||||
Revenues: | |||||||||||||
Premiums | 4 | 20 | 26 | 24 | |||||||||
Net derivative gains (losses) | (88) | (384) | (48) | (86) | |||||||||
Total revenues | (91) | (385) | (22) | (62) | |||||||||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | (88) | (62) | 26 | 17 | |||||||||
Interest credited to policyholder's account balances | (105) | (279) | (50) | (86) | |||||||||
Amortization of deferred policy acquisition costs, net | (235) | 11 | |||||||||||
Total benefits and other deductions | (172) | (388) | (259) | (58) | |||||||||
Income (loss) from operations, before income taxes | 81 | 3 | 237 | (4) | |||||||||
Income tax (expense) benefit | (26) | (1) | (84) | (1) | |||||||||
Net income (loss) | 55 | 2 | 153 | (5) | |||||||||
Net income (loss) attributable to AXA Equitable | 55 | 2 | 153 | (5) | |||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (24) | (47) | 14 | (4) | |||||||||
Total other comprehensive income (loss), net of income taxes | (24) | (47) | 14 | (4) | |||||||||
Statements of Comprehensive Income (Loss): | |||||||||||||
Comprehensive income (loss) | 31 | (45) | 167 | (9) | |||||||||
Comprehensive income (loss) attributable to AXA Equitable | $ 31 | $ (45) | $ 167 | $ (9) |
SIGNIFICANT ACCOUNTING POLICI57
SIGNIFICANT ACCOUNTING POLICIES - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - STATEMENT OF EQUITY AND CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Equity: | ||||||||||||||
Net income (loss) attributable to AXA Equitable | $ (1) | $ 1,502 | $ (172) | $ 1,328 | $ 1,326 | $ 2,860 | $ 210 | $ 662 | ||||||
Equity balance, end of year | $ 19,564 | 16,139 | 16,257 | 14,505 | $ 14,604 | 16,257 | 16,139 | 19,564 | 14,604 | 15,587 | ||||
Other comprehensive income (loss) | (76) | 273 | 127 | 401 | 333 | 599 | (215) | (861) | ||||||
Cash flow from operating activities: | ||||||||||||||
Net income (loss) | 1,712 | 121 | 1,615 | (54) | (1,144) | $ 175 | $ 600 | $ 1,075 | 1,559 | 1,679 | 3,394 | 706 | 1,060 | |
Interest credited to policyholders’ account balances | 245 | 205 | 279 | 484 | 729 | 1,040 | 1,029 | 887 | ||||||
Net derivative (gains) losses | 406 | (1,762) | 362 | (1,398) | (992) | (890) | 1,211 | 1,161 | ||||||
Changes in: | ||||||||||||||
Deferred policy acquisition costs | (12) | (49) | 29 | (20) | (32) | 268 | 52 | (243) | ||||||
Current and deferred income taxes | (188) | 204 | (664) | (742) | 50 | |||||||||
Other | 177 | 84 | 189 | (161) | (99) | |||||||||
Net cash provided by (used in) operating activities | 18 | (75) | 994 | 1,077 | (461) | (324) | ||||||||
Parent | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | 16,469 | 13,170 | 13,273 | 11,459 | 11,508 | 13,273 | 13,170 | 16,469 | 11,508 | 12,528 | ||||
Total Equity, End of Period | 14,604 | 14,604 | 15,587 | |||||||||||
Retained Earnings | ||||||||||||||
Statements of Equity: | ||||||||||||||
Retained earnings, beginning of year | 6,990 | $ 7,240 | ||||||||||||
Net income (loss) attributable to AXA Equitable | (172) | 1,328 | 1,326 | 2,860 | 210 | 662 | ||||||||
Equity balance, end of year | 9,010 | 7,476 | 7,479 | 5,978 | 6,150 | 7,479 | 7,476 | 9,010 | 6,150 | 6,990 | ||||
Total Equity, End of Period | 6,150 | 6,150 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | $ 598 | 331 | 431 | 137 | 17 | 431 | 331 | 598 | 17 | 215 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 215 | 215 | 289 | |||||||||||
Other comprehensive income (loss) | 120 | 414 | 314 | $ 581 | (198) | (846) | ||||||||
Total Equity, End of Period | 17 | 17 | ||||||||||||
As Previously Reported | ||||||||||||||
Statements of Equity: | ||||||||||||||
Net income (loss) attributable to AXA Equitable | (56) | 1,346 | (431) | 915 | 1,324 | 57 | 667 | |||||||
Equity balance, end of year | 15,959 | 17,608 | 15,969 | 14,445 | 17,608 | 15,959 | 14,445 | |||||||
Other comprehensive income (loss) | (52) | 294 | 179 | 473 | 380 | (229) | (857) | |||||||
Cash flow from operating activities: | ||||||||||||||
Net income (loss) | 66 | 1,459 | (313) | (2,259) | $ 22 | $ 1,061 | $ 1,720 | 1,146 | 1,677 | 553 | 1,065 | |||
Interest credited to policyholders’ account balances | 350 | 321 | 337 | 658 | 1,008 | 1,079 | 973 | |||||||
Net derivative (gains) losses | 318 | (1,693) | 724 | (969) | (1,376) | 1,163 | 1,075 | |||||||
Changes in: | ||||||||||||||
Deferred policy acquisition costs | (33) | (82) | 125 | 43 | 15 | 287 | (254) | |||||||
Current and deferred income taxes | (327) | (16) | (826) | 49 | ||||||||||
Other | 180 | 93 | (161) | (92) | ||||||||||
Net cash provided by (used in) operating activities | 18 | (75) | 994 | (461) | (324) | |||||||||
As Previously Reported | Parent | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | 12,990 | 14,635 | 12,934 | 11,349 | 14,635 | 12,990 | 11,349 | 12,536 | ||||||
Total Equity, End of Period | 14,445 | 14,445 | 15,595 | |||||||||||
As Previously Reported | Retained Earnings | ||||||||||||||
Statements of Equity: | ||||||||||||||
Retained earnings, beginning of year | 6,998 | 7,243 | ||||||||||||
Net income (loss) attributable to AXA Equitable | (431) | 915 | 1,324 | 57 | 667 | |||||||||
Equity balance, end of year | 7,265 | 8,779 | 7,411 | 6,005 | 8,779 | 7,265 | 6,005 | 6,998 | ||||||
Total Equity, End of Period | 5,941 | 5,941 | ||||||||||||
As Previously Reported | Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | 362 | $ 493 | 179 | 3 | 493 | 362 | 3 | 215 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 215 | 215 | 285 | |||||||||||
Other comprehensive income (loss) | $ 172 | $ 486 | 361 | (212) | (842) | |||||||||
Total Equity, End of Period | 1 | 1 | ||||||||||||
Impact of Adjustments | ||||||||||||||
Statements of Equity: | ||||||||||||||
Net income (loss) attributable to AXA Equitable | 55 | 2 | 153 | (5) | ||||||||||
Equity balance, end of year | 180 | 159 | 180 | 159 | ||||||||||
Other comprehensive income (loss) | (24) | (47) | 14 | (4) | ||||||||||
Cash flow from operating activities: | ||||||||||||||
Net income (loss) | 55 | 2 | 153 | (5) | ||||||||||
Interest credited to policyholders’ account balances | (105) | (279) | (50) | (86) | ||||||||||
Net derivative (gains) losses | 88 | 384 | 48 | 86 | ||||||||||
Changes in: | ||||||||||||||
Deferred policy acquisition costs | 21 | (47) | (235) | 11 | ||||||||||
Current and deferred income taxes | 84 | 1 | ||||||||||||
Other | 0 | (7) | ||||||||||||
Net cash provided by (used in) operating activities | 0 | 0 | 0 | |||||||||||
Impact of Adjustments | Parent | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | 180 | 159 | 180 | 159 | (8) | |||||||||
Total Equity, End of Period | 159 | 159 | (8) | |||||||||||
Impact of Adjustments | Retained Earnings | ||||||||||||||
Statements of Equity: | ||||||||||||||
Retained earnings, beginning of year | (8) | $ (3) | ||||||||||||
Net income (loss) attributable to AXA Equitable | 2 | 153 | (5) | |||||||||||
Equity balance, end of year | 211 | 145 | 211 | 145 | (8) | |||||||||
Total Equity, End of Period | 209 | 209 | ||||||||||||
Impact of Adjustments | Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | ||||||||||||||
Statements of Equity: | ||||||||||||||
Equity balance, end of year | $ (31) | 14 | (31) | 14 | 0 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 0 | 0 | 4 | |||||||||||
Other comprehensive income (loss) | $ (47) | 14 | $ (4) | |||||||||||
Total Equity, End of Period | $ 16 | $ 16 |
INVESTMENTS (AVAILABLE FOR SALE
INVESTMENTS (AVAILABLE FOR SALE SECURITIES) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 34,988 | $ 32,236 | |
Gross Unrealized Gains | 1,774 | 1,306 | |
Gross Unrealized Losses | 247 | 859 | |
Fair Value | 36,515 | 32,683 | |
OTTI in AOCI | 2 | 10 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Subtotal, Fair Value | 36,358 | 32,570 | |
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | |||
Proceeds from sales | 7,232 | 4,324 | $ 979 |
Gross gains on sales | 98 | 111 | 33 |
Gross losses on sales | (211) | (58) | (8) |
Total other-than-temporary impairment losses | (13) | (65) | (41) |
Non-credit losses recognized in OCI | 0 | 0 | 0 |
Net impairment losses recognized | (13) | (65) | (41) |
Fixed Maturities - Credit Loss Impairments | |||
Recognized impairments on securities impaired to fair value this period | 0 | (17) | |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | |
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 | |
Public corporate | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 13,645 | 12,418 | |
Gross Unrealized Gains | 725 | 675 | |
Gross Unrealized Losses | 25 | 81 | |
Fair Value | 14,345 | 13,012 | |
OTTI in AOCI | 0 | 0 | |
Private corporate | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 6,951 | 6,880 | |
Gross Unrealized Gains | 217 | 215 | |
Gross Unrealized Losses | 31 | 55 | |
Fair Value | 7,137 | 7,040 | |
OTTI in AOCI | 0 | 0 | |
U.S. Treasury, government and agency | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 12,644 | 10,739 | |
Gross Unrealized Gains | 676 | 221 | |
Gross Unrealized Losses | 185 | 624 | |
Fair Value | 13,135 | 10,336 | |
OTTI in AOCI | 0 | 0 | |
States and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 414 | 432 | |
Gross Unrealized Gains | 67 | 63 | |
Gross Unrealized Losses | 0 | 2 | |
Fair Value | 481 | 493 | |
OTTI in AOCI | 0 | 0 | |
Foreign governments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 387 | 375 | |
Gross Unrealized Gains | 27 | 29 | |
Gross Unrealized Losses | 5 | 14 | |
Fair Value | 409 | 390 | |
OTTI in AOCI | 0 | 0 | |
Commercial mortgage-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 415 | |
Gross Unrealized Gains | 0 | 28 | |
Gross Unrealized Losses | 0 | 72 | |
Fair Value | 0 | 371 | |
OTTI in AOCI | 0 | 7 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Amortized Cost Basis, without Single Maturity Date | 0 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Fair Value, without Single Maturity Date | 0 | ||
Residential mortgage-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 236 | 294 | |
Gross Unrealized Gains | 15 | 20 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 251 | 314 | |
OTTI in AOCI | 0 | 0 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Amortized Cost Basis, without Single Maturity Date | 236 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Fair Value, without Single Maturity Date | 251 | ||
Asset-backed | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 93 | 51 | |
Gross Unrealized Gains | 3 | 10 | |
Gross Unrealized Losses | 0 | 1 | |
Fair Value | 96 | 60 | |
OTTI in AOCI | 2 | 3 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Amortized Cost Basis, without Single Maturity Date | 93 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Fair Value, without Single Maturity Date | 96 | ||
Redeemable preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 461 | 519 | |
Gross Unrealized Gains | 44 | 45 | |
Gross Unrealized Losses | 1 | 10 | |
Fair Value | 504 | 554 | |
OTTI in AOCI | 0 | 0 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Amortized Cost Basis, without Single Maturity Date | 461 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Fair Value, without Single Maturity Date | 504 | ||
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 34,831 | 32,123 | |
Gross Unrealized Gains | 1,774 | 1,306 | |
Gross Unrealized Losses | 247 | 859 | |
Fair Value | 36,358 | 32,570 | |
OTTI in AOCI | 2 | 10 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Due in one year or less, Amortized Cost | 1,339 | ||
Due in years two through five, Amortized Cost | 7,773 | ||
Due in years six through ten, Amortized Cost | 9,889 | ||
Due after ten years, Amortized Cost | 15,040 | ||
Subtotal, Amortized Cost Basis | 34,041 | ||
Amortized Cost Basis, without Single Maturity Date | 34,831 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Due in one year or less, Fair Value | 1,352 | ||
Due in years two through five, Fair Value | 8,035 | ||
Due in years six through ten, Fair Value | 10,136 | ||
Due after ten years, Fair Value | 15,984 | ||
Subtotal, Fair Value | 35,507 | ||
Fair Value, without Single Maturity Date | 36,358 | ||
Fixed Maturities - Credit Loss Impairments | |||
Balance beginning of period | (190) | (198) | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 193 | 73 | |
Impairments recognized this period on securities not previously impaired | (13) | (46) | |
Additional impairments this period on securities previously impaired | 0 | (2) | |
Balances at December 31, | (10) | (190) | $ (198) |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 157 | 113 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 157 | 113 | |
OTTI in AOCI | $ 0 | $ 0 |
INVESTMENTS (NET UNREALIZED INV
INVESTMENTS (NET UNREALIZED INVESTMENTS) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
DAC | $ (243) | $ 22 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 447 | |
Balance, end of the period | 1,527 | 447 |
Unrealized Investment Gains Losses With Otti Losses | Net Unrealized Gains (Losses) on Investments | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 19 | 16 |
Net unrealized gains (losses) arising during the year | (18) | (6) |
Included in Net income (loss) | 0 | 9 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | 1 | 19 |
Unrealized Investment Gains Losses With Otti Losses | DAC | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (1) | 0 |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 2 | (1) |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | 1 | (1) |
Unrealized Investment Gains Losses With Otti Losses | Policyholders Liabilities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (10) | (4) |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | 9 | (6) |
Balance, end of the period | (1) | (10) |
Unrealized Investment Gains Losses With Otti Losses | Deferred Income Tax Asset (Liability) | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (3) | (5) |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | (2) | 2 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | (5) | (3) |
Unrealized Investment Gains Losses With Otti Losses | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 5 | 7 |
Net unrealized gains (losses) arising during the year | (18) | (6) |
Included in Net income (loss) | 0 | 9 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 2 | (1) |
Deferred income taxes | (2) | 2 |
Policyholders liabilities | 9 | (6) |
Balance, end of the period | (4) | 5 |
Unrealized Investment Gains Losses All Other | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 428 | |
Balance, end of the period | 1,526 | 428 |
Unrealized Investment Gains Losses All Other | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 0 | |
Balance, end of the period | 0 | 0 |
Unrealized Investment Gains Losses All Other | Net Unrealized Gains (Losses) on Investments | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 428 | 674 |
Net unrealized gains (losses) arising during the year | 1,085 | (240) |
Included in Net income (loss) | 13 | (6) |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | 1,526 | 428 |
Unrealized Investment Gains Losses All Other | DAC | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (70) | (93) |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | (245) | 23 |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | (315) | (70) |
Unrealized Investment Gains Losses All Other | Policyholders Liabilities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (188) | (221) |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | 0 | 0 |
Policyholders liabilities | (44) | 33 |
Balance, end of the period | (232) | (188) |
Unrealized Investment Gains Losses All Other | Deferred Income Tax Asset (Liability) | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | (60) | (126) |
Net unrealized gains (losses) arising during the year | 0 | 0 |
Included in Net income (loss) | 0 | 0 |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | 0 | 0 |
Deferred income taxes | (240) | 66 |
Policyholders liabilities | 0 | 0 |
Balance, end of the period | (300) | (60) |
Unrealized Investment Gains Losses All Other | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Balance, beginning of the period | 110 | 234 |
Net unrealized gains (losses) arising during the year | 1,085 | (240) |
Included in Net income (loss) | 13 | (6) |
Excluded from Net earnings (loss) | 0 | 0 |
DAC | (245) | 23 |
Deferred income taxes | (240) | 66 |
Policyholders liabilities | (44) | 33 |
Balance, end of the period | $ 679 | $ 110 |
INVESTMENTS (FIXED MATURITIES A
INVESTMENTS (FIXED MATURITIES AVAILABLE FOR SALE) (Details) $ in Millions | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of positions in unrealized loss position | security | 620 | 794 |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | $ 4,315 | $ 9,702 |
Less than 12 Months, Gross unrealized Losses | 23 | 754 |
12 Months or Longer, Fair Value | 4,255 | 652 |
12 Months or Longer, Gross unrealized Losses | 224 | 105 |
Total Fair Value | 8,570 | 10,354 |
Total Gross unrealized losses | $ 247 | 859 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Debt securities exposure in single issuer greater than stated percentage of total investments | 0.80% | |
Amortized Cost | $ 34,988 | 32,236 |
Trading securities, at fair value | 12,628 | 9,134 |
Separate account equity investment carrying value | 49 | 63 |
Public corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 1,384 | 2,455 |
Less than 12 Months, Gross unrealized Losses | 9 | 75 |
12 Months or Longer, Fair Value | 548 | 113 |
12 Months or Longer, Gross unrealized Losses | 16 | 6 |
Total Fair Value | 1,932 | 2,568 |
Total Gross unrealized losses | 25 | 81 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Exposure in single issuer of total investments | 182 | 169 |
Amortized Cost | 13,645 | 12,418 |
Private corporate | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 718 | 1,483 |
Less than 12 Months, Gross unrealized Losses | 8 | 38 |
12 Months or Longer, Fair Value | 615 | 277 |
12 Months or Longer, Gross unrealized Losses | 23 | 17 |
Total Fair Value | 1,333 | 1,760 |
Total Gross unrealized losses | 31 | 55 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 6,951 | 6,880 |
U.S. Treasury, government and agency | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 2,150 | 5,356 |
Less than 12 Months, Gross unrealized Losses | 6 | 624 |
12 Months or Longer, Fair Value | 3,005 | 0 |
12 Months or Longer, Gross unrealized Losses | 179 | 0 |
Total Fair Value | 5,155 | 5,356 |
Total Gross unrealized losses | 185 | 624 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 12,644 | 10,739 |
States and political subdivisions | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 20 | 0 |
Less than 12 Months, Gross unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 0 | 18 |
12 Months or Longer, Gross unrealized Losses | 0 | 2 |
Total Fair Value | 20 | 18 |
Total Gross unrealized losses | 0 | 2 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 414 | 432 |
Foreign governments | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 11 | 73 |
Less than 12 Months, Gross unrealized Losses | 0 | 3 |
12 Months or Longer, Fair Value | 73 | 49 |
12 Months or Longer, Gross unrealized Losses | 5 | 11 |
Total Fair Value | 84 | 122 |
Total Gross unrealized losses | 5 | 14 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 387 | 375 |
Commercial mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 66 |
Less than 12 Months, Gross unrealized Losses | 0 | 5 |
12 Months or Longer, Fair Value | 0 | 171 |
12 Months or Longer, Gross unrealized Losses | 0 | 67 |
Total Fair Value | 0 | 237 |
Total Gross unrealized losses | 0 | 72 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 0 | 415 |
Residential mortgage-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 18 | 47 |
Less than 12 Months, Gross unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 0 | 4 |
12 Months or Longer, Gross unrealized Losses | 0 | 0 |
Total Fair Value | 18 | 51 |
Total Gross unrealized losses | 0 | 0 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 236 | 294 |
Asset-backed | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 7 | 4 |
Less than 12 Months, Gross unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 2 | 8 |
12 Months or Longer, Gross unrealized Losses | 0 | 1 |
Total Fair Value | 9 | 12 |
Total Gross unrealized losses | 0 | 1 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 93 | 51 |
Redeemable preferred stock | ||
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than Twelve Months, Fair Value | 7 | 218 |
Less than 12 Months, Gross unrealized Losses | 0 | 9 |
12 Months or Longer, Fair Value | 12 | 12 |
12 Months or Longer, Gross unrealized Losses | 1 | 1 |
Total Fair Value | 19 | 230 |
Total Gross unrealized losses | 1 | 10 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 461 | 519 |
Fixed maturities | ||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Amortized Cost | 34,831 | 32,123 |
Unrealized loss on available for sale securities | 1,527 | 447 |
Carrying value of fixed maturities non-income producing | 3 | |
Fixed maturities | Other Than Investment Grade | External Credit Rating, Non Investment Grade | ||
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ||
Available-for-sale securities, amortized cost basis other than investment grade | $ 1,309 | $ 1,574 |
Percentage of available for sale securities | 3.80% | 4.90% |
Unrealized loss on available for sale securities | $ 5 | $ 28 |
INVESTMENTS (TROUBLED DEBT REST
INVESTMENTS (TROUBLED DEBT RESTRUCTURING) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | |||
Gross interest income on restructured loans included in net investment income (loss) | $ 0 | $ 0 | $ 1 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Outstanding Recorded Investment Post Modification | $ 0 | $ 15 |
INVESTMENTS (MORTGAGE LOANS) (D
INVESTMENTS (MORTGAGE LOANS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Individually Evaluated for Impairment | $ 8 | $ 8 | |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 8 | 6 | $ 37 |
Charge-offs | 0 | 0 | (32) |
Recoveries | 0 | (2) | (1) |
Provisions | 0 | 4 | 2 |
Ending balance | 8 | 8 | 6 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||
Individually Evaluated for Impairment | $ 8 | $ 8 | $ 6 |
INVESTMENTS (LOANS) (Details)
INVESTMENTS (LOANS) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Agricultural Mortgages | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | $ 0 | $ 0 | $ 0 | |
Commercial Real Estate Portfolio Segment | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 8,000,000 | 8,000,000 | $ 6,000,000 | $ 37,000,000 |
Face amount of mortgage loans | 8,369,000,000 | 7,264,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 27,000,000 | 0 | ||
Current | 8,342,000,000 | 7,264,000,000 | ||
Total Financing Receivables | 8,369,000,000 | 7,264,000,000 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | With no related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 0 | 15,000,000 | ||
Unpaid Principal Balance | 0 | 15,000,000 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment | 0 | 22,000,000 | ||
Interest Income Recognized | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | With related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 27,000,000 | 27,000,000 | ||
Unpaid Principal Balance | 27,000,000 | 27,000,000 | ||
Related Allowance | (8,000,000) | (8,000,000) | ||
Average Recorded Investment | 27,000,000 | 48,000,000 | ||
Interest Income Recognized | 2,000,000 | 2,000,000 | ||
Commercial Real Estate Portfolio Segment | 30-59 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 27,000,000 | 0 | ||
Commercial Real Estate Portfolio Segment | 60-89 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 90 Days Or Greater | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 4,999,000,000 | 4,237,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 4,999,000,000 | 4,237,000,000 | ||
Commercial Real Estate Portfolio Segment | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 792,000,000 | 590,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 792,000,000 | 590,000,000 | ||
Commercial Real Estate Portfolio Segment | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,609,000,000 | 989,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,609,000,000 | 989,000,000 | ||
Commercial Real Estate Portfolio Segment | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 774,000,000 | 1,298,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 774,000,000 | 1,298,000,000 | ||
Commercial Real Estate Portfolio Segment | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 195,000,000 | 104,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 195,000,000 | 104,000,000 | ||
Commercial Real Estate Portfolio Segment | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 46,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 46,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,136,000,000 | 948,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,136,000,000 | 948,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 742,000,000 | 738,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 742,000,000 | 738,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 95,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 95,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 320,000,000 | 59,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 320,000,000 | 59,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 74,000,000 | 56,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 74,000,000 | 56,000,000 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 0% - 50% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 6,409,000,000 | 5,496,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 6,409,000,000 | 5,496,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 4,088,000,000 | 3,217,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 4,088,000,000 | 3,217,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 682,000,000 | 430,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 682,000,000 | 430,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,066,000,000 | 673,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,066,000,000 | 673,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 428,000,000 | 1,100,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 428,000,000 | 1,100,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 145,000,000 | 76,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 145,000,000 | 76,000,000 | ||
Commercial Real Estate Portfolio Segment | 50% - 70% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 797,000,000 | 777,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 797,000,000 | 777,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 169,000,000 | 282,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 169,000,000 | 282,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 110,000,000 | 65,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 110,000,000 | 65,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 196,000,000 | 229,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 196,000,000 | 229,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 272,000,000 | 127,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 272,000,000 | 127,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 50,000,000 | 28,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 50,000,000 | 28,000,000 | ||
Commercial Real Estate Portfolio Segment | 70% - 90% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 46,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 46,000,000 | ||
Commercial Real Estate Portfolio Segment | 90% plus | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 27,000,000 | 43,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 27,000,000 | 43,000,000 | ||
Commercial Real Estate Portfolio Segment | 90% plus | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 90% plus | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 90% plus | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 27,000,000 | 28,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 27,000,000 | 28,000,000 | ||
Commercial Real Estate Portfolio Segment | 90% plus | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 15,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 15,000,000 | ||
Commercial Real Estate Portfolio Segment | 90% plus | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Commercial Real Estate Portfolio Segment | 90% plus | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 2,574,000,000 | 2,501,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 74,000,000 | 17,000,000 | ||
Current | 2,500,000,000 | 2,484,000,000 | ||
Total Financing Receivables | 2,574,000,000 | 2,501,000,000 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 22,000,000 | 6,000,000 | ||
Agricultural Real Estate Portfolio Segment | With no related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | With related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | ||
Interest Income Recognized | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 30-59 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 49,000,000 | 9,000,000 | ||
Agricultural Real Estate Portfolio Segment | 60-89 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 3,000,000 | 2,000,000 | ||
Agricultural Real Estate Portfolio Segment | 90 Days Or Greater | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 22,000,000 | 6,000,000 | ||
Agricultural Real Estate Portfolio Segment | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 383,000,000 | 395,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 383,000,000 | 395,000,000 | ||
Agricultural Real Estate Portfolio Segment | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 195,000,000 | 195,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 195,000,000 | 195,000,000 | ||
Agricultural Real Estate Portfolio Segment | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 502,000,000 | 507,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 502,000,000 | 507,000,000 | ||
Agricultural Real Estate Portfolio Segment | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 878,000,000 | 805,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 878,000,000 | 805,000,000 | ||
Agricultural Real Estate Portfolio Segment | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 537,000,000 | 505,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 537,000,000 | 505,000,000 | ||
Agricultural Real Estate Portfolio Segment | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 79,000,000 | 94,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 79,000,000 | 94,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,557,000,000 | 1,491,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,557,000,000 | 1,491,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 272,000,000 | 254,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 272,000,000 | 254,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 149,000,000 | 138,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 149,000,000 | 138,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 275,000,000 | 296,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 275,000,000 | 296,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 515,000,000 | 468,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 515,000,000 | 468,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 316,000,000 | 286,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 316,000,000 | 286,000,000 | ||
Agricultural Real Estate Portfolio Segment | 0% - 50% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 30,000,000 | 49,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 30,000,000 | 49,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,013,000,000 | 1,004,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,013,000,000 | 1,004,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 111,000,000 | 141,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 111,000,000 | 141,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 46,000,000 | 57,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 46,000,000 | 57,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 227,000,000 | 209,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 227,000,000 | 209,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 359,000,000 | 333,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 359,000,000 | 333,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 221,000,000 | 219,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 221,000,000 | 219,000,000 | ||
Agricultural Real Estate Portfolio Segment | 50% - 70% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 49,000,000 | 45,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 49,000,000 | 45,000,000 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 4,000,000 | 6,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 4,000,000 | 6,000,000 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 2,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 2,000,000 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 4,000,000 | 4,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 4,000,000 | 4,000,000 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 70% - 90% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Agricultural Real Estate Portfolio Segment | 90% plus | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Total Mortgages Loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 10,943,000,000 | 9,765,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 101,000,000 | 17,000,000 | ||
Current | 10,842,000,000 | 9,748,000,000 | ||
Total Financing Receivables | 10,943,000,000 | 9,765,000,000 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 22,000,000 | 6,000,000 | ||
Total Mortgages Loan | With no related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 0 | 15,000,000 | ||
Unpaid Principal Balance | 0 | 15,000,000 | ||
Related Allowance | 0 | 0 | ||
Average Recorded Investment | 0 | 22,000,000 | ||
Interest Income Recognized | 0 | 0 | ||
Total Mortgages Loan | With related allowance recorded | ||||
Impaired Mortgage Loans [Abstract] | ||||
Recorded Investment | 27,000,000 | 27,000,000 | ||
Unpaid Principal Balance | 27,000,000 | 27,000,000 | ||
Related Allowance | (8,000,000) | (8,000,000) | ||
Average Recorded Investment | 27,000,000 | 48,000,000 | ||
Interest Income Recognized | 2,000,000 | 2,000,000 | ||
Total Mortgages Loan | 30-59 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 76,000,000 | 9,000,000 | ||
Total Mortgages Loan | 60-89 Days | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 3,000,000 | 2,000,000 | ||
Total Mortgages Loan | 90 Days Or Greater | ||||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Past Due | 22,000,000 | 6,000,000 | ||
Total Mortgages Loan | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 5,382,000,000 | 4,632,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 5,382,000,000 | 4,632,000,000 | ||
Total Mortgages Loan | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 987,000,000 | 785,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 987,000,000 | 785,000,000 | ||
Total Mortgages Loan | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 2,111,000,000 | 1,496,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 2,111,000,000 | 1,496,000,000 | ||
Total Mortgages Loan | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,652,000,000 | 2,103,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,652,000,000 | 2,103,000,000 | ||
Total Mortgages Loan | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 732,000,000 | 609,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 732,000,000 | 609,000,000 | ||
Total Mortgages Loan | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 79,000,000 | 140,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 79,000,000 | 140,000,000 | ||
Total Mortgages Loan | 0% - 50% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 2,693,000,000 | 2,439,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 2,693,000,000 | 2,439,000,000 | ||
Total Mortgages Loan | 0% - 50% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,014,000,000 | 992,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,014,000,000 | 992,000,000 | ||
Total Mortgages Loan | 0% - 50% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 149,000,000 | 233,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 149,000,000 | 233,000,000 | ||
Total Mortgages Loan | 0% - 50% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 595,000,000 | 355,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 595,000,000 | 355,000,000 | ||
Total Mortgages Loan | 0% - 50% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 589,000,000 | 524,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 589,000,000 | 524,000,000 | ||
Total Mortgages Loan | 0% - 50% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 316,000,000 | 286,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 316,000,000 | 286,000,000 | ||
Total Mortgages Loan | 0% - 50% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 30,000,000 | 49,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 30,000,000 | 49,000,000 | ||
Total Mortgages Loan | 50% - 70% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 7,422,000,000 | 6,500,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 7,422,000,000 | 6,500,000,000 | ||
Total Mortgages Loan | 50% - 70% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 4,199,000,000 | 3,358,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 4,199,000,000 | 3,358,000,000 | ||
Total Mortgages Loan | 50% - 70% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 728,000,000 | 487,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 728,000,000 | 487,000,000 | ||
Total Mortgages Loan | 50% - 70% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 1,293,000,000 | 882,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 1,293,000,000 | 882,000,000 | ||
Total Mortgages Loan | 50% - 70% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 787,000,000 | 1,433,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 787,000,000 | 1,433,000,000 | ||
Total Mortgages Loan | 50% - 70% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 366,000,000 | 295,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 366,000,000 | 295,000,000 | ||
Total Mortgages Loan | 50% - 70% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 49,000,000 | 45,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 49,000,000 | 45,000,000 | ||
Total Mortgages Loan | 70% - 90% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 801,000,000 | 783,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 801,000,000 | 783,000,000 | ||
Total Mortgages Loan | 70% - 90% | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 169,000,000 | 282,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 169,000,000 | 282,000,000 | ||
Total Mortgages Loan | 70% - 90% | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 110,000,000 | 65,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 110,000,000 | 65,000,000 | ||
Total Mortgages Loan | 70% - 90% | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 196,000,000 | 231,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 196,000,000 | 231,000,000 | ||
Total Mortgages Loan | 70% - 90% | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 276,000,000 | 131,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 276,000,000 | 131,000,000 | ||
Total Mortgages Loan | 70% - 90% | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 50,000,000 | 28,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 50,000,000 | 28,000,000 | ||
Total Mortgages Loan | 70% - 90% | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 46,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 46,000,000 | ||
Total Mortgages Loan | 90% plus | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 27,000,000 | 43,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 27,000,000 | 43,000,000 | ||
Total Mortgages Loan | 90% plus | Greater than 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Total Mortgages Loan | 90% plus | 1.8x to 2.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Total Mortgages Loan | 90% plus | 1.5x to 1.8x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 27,000,000 | 28,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 27,000,000 | 28,000,000 | ||
Total Mortgages Loan | 90% plus | 1.2x to 1.5x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 15,000,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 15,000,000 | ||
Total Mortgages Loan | 90% plus | 1.0x to 1.2x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | 0 | 0 | ||
Total Mortgages Loan | 90% plus | Less than 1.0x | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Face amount of mortgage loans | 0 | 0 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||||
Total Financing Receivables | $ 0 | $ 0 |
INVESTMENTS (EQUITY) (Details)
INVESTMENTS (EQUITY) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Carrying value of equity investments | $ 1,106 | $ 1,123 | |
Total equity in net earnings (losses) for equity method investments | $ 156 | $ 50 | $ 67 |
INVESTMENTS (DERIVATIVES) (Deta
INVESTMENTS (DERIVATIVES) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Net investment income (loss) from derivatives | $ (125) | $ 16 | $ (20) |
Unrealized Gain (Loss) on Derivatives | 1,601 | (458) | (555) |
Notional Amount | 62,016 | 50,926 | |
Asset Derivatives | 14,228 | 13,597 | |
Liability Derivatives | 9,476 | 9,366 | |
Gains (Losses) Reported In Income (Loss) | 890 | (1,211) | |
Fair value of freestanding derivative positions | $ 1,953 | 51 | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Credit derivative term | 5 years | ||
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 3,113 | 5,086 | |
Asset Derivatives | 1 | 1 | |
Liability Derivatives | 3 | 1 | |
Gains (Losses) Reported In Income (Loss) | (670) | (826) | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 4,655 | 3,529 | |
Asset Derivatives | 3 | 13 | |
Liability Derivatives | 126 | 67 | |
Gains (Losses) Reported In Income (Loss) | (848) | (290) | |
Options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 20,630 | 11,465 | |
Asset Derivatives | 3,334 | 2,114 | |
Liability Derivatives | 1,426 | 1,154 | |
Gains (Losses) Reported In Income (Loss) | 1,203 | 727 | |
Floors | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 1,500 | |
Asset Derivatives | 0 | 11 | |
Liability Derivatives | 0 | 0 | |
Gains (Losses) Reported In Income (Loss) | 0 | 4 | |
Swaps | |||
Derivatives, Fair Value [Line Items] | |||
Proceeds from Derivative Instrument, Financing Activities | 3,905 | ||
Notional Amount | 19,032 | 18,933 | |
Asset Derivatives | 320 | 246 | |
Liability Derivatives | 191 | 1,163 | |
Gains (Losses) Reported In Income (Loss) | 655 | (224) | |
Fair value of freestanding derivative positions | (23) | ||
Futures | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 11,032 | 6,926 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 0 | |
Gains (Losses) Reported In Income (Loss) | 125 | 0 | |
Swaptions | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 0 | |
Gains (Losses) Reported In Income (Loss) | 0 | 87 | |
Credit default swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 2,131 | 2,757 | |
Asset Derivatives | 35 | 20 | |
Liability Derivatives | 3 | 15 | |
Gains (Losses) Reported In Income (Loss) | 19 | 15 | |
Foreign currency contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,423 | 730 | |
Asset Derivatives | 19 | 52 | |
Liability Derivatives | 10 | 6 | |
Gains (Losses) Reported In Income (Loss) | (39) | 45 | |
Margin | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 24 | 113 | |
Liability Derivatives | 0 | 6 | |
Gains (Losses) Reported In Income (Loss) | 0 | 0 | |
Collateral | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 4 | 713 | |
Liability Derivatives | 1,855 | 748 | |
Gains (Losses) Reported In Income (Loss) | 0 | 0 | |
GMIB reinsurance contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 10,488 | 10,314 | |
Liability Derivatives | 0 | 0 | |
Gains (Losses) Reported In Income (Loss) | 69 | (261) | |
GMxB derivative features’ liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 4,164 | 5,319 | |
Gains (Losses) Reported In Income (Loss) | 1,494 | 140 | |
SCS, SIO, MSO and IUL indexed features’ liability | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | |
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 1,698 | 887 | |
Gains (Losses) Reported In Income (Loss) | (1,118) | (628) | |
U.S. Treasury, government and agency | |||
Derivatives, Fair Value [Line Items] | |||
Available-for-Sale Securities, Amount Derecognized in Period | 3,905 | ||
Available-for-Sale Securities, Fair Value of Amount Derecognized | 3,796 | ||
Treasury Inflation Protected Securities | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized Gain (Loss) on Derivatives | 86 | (97) | |
Derivative investments | |||
Derivatives, Fair Value [Line Items] | |||
Net investment income (loss) from derivatives | $ (1,156) | $ (4) | $ 474 |
INVESTMENTS (DERIVATIVES 1) (De
INVESTMENTS (DERIVATIVES 1) (Details) - USD ($) $ in Millions | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Exchange Traded Future Contract [Line Items] | |||
Reduction in Derivative Assets | $ 18 | ||
Cash and securities collateral for derivative contract | $ 1,855 | $ 755 | |
Collateralized derivative transactions | 2 | 700 | |
Cash and securities collateral | 3 | $ 820 | |
S&P 500, Russell 1000, NASDAQ 100 and Emerging Market Indices | |||
Exchange Traded Future Contract [Line Items] | |||
Initial margin requirement | 97 | ||
Us Treasury Notes Ultra Long Bonds And Euro Dollar | |||
Exchange Traded Future Contract [Line Items] | |||
Initial margin requirement | 10 | ||
Euro Stoxx, FTSE100, EAFE And Topix Indices | |||
Exchange Traded Future Contract [Line Items] | |||
Initial margin requirement | $ 13 | ||
Swaps | |||
Exchange Traded Future Contract [Line Items] | |||
Credit derivative term | 5 years |
INVESTMENTS (OFFSETTING) (Detai
INVESTMENTS (OFFSETTING) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Offsetting Assets [Line Items] | |||
Interest Expense, Securities Sold under Agreements to Repurchase | $ 5 | $ 4 | |
Securities sold under agreements to repurchase | 1,887 | 1,996 | |
LIABILITIES | |||
Gross Amounts Recognized | 0 | ||
Gross Amounts Offset in the Balance Sheets | 0 | ||
Net Amounts Presented in the Balance Sheets | 0 | ||
Expense in securities sold under agreement to repurchase | 3 | $ 4 | |
Equity contracts | |||
ASSETS | |||
Gross Amounts Recognized | 3,339 | 2,128 | |
Gross Amounts Offset in the Balance Sheets | 1,555 | 1,221 | |
Net Amounts Presented in the Balance Sheets | 1,784 | 907 | |
LIABILITIES | |||
Gross Amounts Recognized | 1,555 | 1,221 | |
Gross Amounts Offset in the Balance Sheets | 1,555 | 1,221 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Interest rate contracts | |||
ASSETS | |||
Gross Amounts Recognized | 320 | 246 | |
Gross Amounts Offset in the Balance Sheets | 191 | 1,163 | |
Net Amounts Presented in the Balance Sheets | 129 | (917) | |
LIABILITIES | |||
Gross Amounts Recognized | 191 | 1,163 | |
Gross Amounts Offset in the Balance Sheets | 191 | 1,163 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Credit contracts | |||
ASSETS | |||
Gross Amounts Recognized | 35 | 20 | |
Gross Amounts Offset in the Balance Sheets | 3 | 15 | |
Net Amounts Presented in the Balance Sheets | 32 | 5 | |
LIABILITIES | |||
Gross Amounts Recognized | 3 | 15 | |
Gross Amounts Offset in the Balance Sheets | 3 | 15 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Currency | |||
ASSETS | |||
Gross Amounts Recognized | 19 | 52 | |
Gross Amounts Offset in the Balance Sheets | 10 | 6 | |
Net Amounts Presented in the Balance Sheets | 9 | 46 | |
LIABILITIES | |||
Gross Amounts Recognized | 10 | 6 | |
Gross Amounts Offset in the Balance Sheets | 10 | 6 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Collateral | |||
ASSETS | |||
Gross Amounts Recognized | 3 | 713 | |
Gross Amounts Offset in the Balance Sheets | 1,855 | 748 | |
Net Amounts Presented in the Balance Sheets | (1,852) | (35) | |
LIABILITIES | |||
Gross Amounts Recognized | 1,855 | 748 | |
Gross Amounts Offset in the Balance Sheets | 1,855 | 748 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Margin | |||
ASSETS | |||
Gross Amounts Recognized | 24 | 113 | |
Gross Amounts Offset in the Balance Sheets | 0 | 6 | |
Net Amounts Presented in the Balance Sheets | 24 | 107 | |
LIABILITIES | |||
Gross Amounts Recognized | 0 | 6 | |
Gross Amounts Offset in the Balance Sheets | 0 | 6 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Derivatives Subject to an ISDA Master Agreements | |||
ASSETS | |||
Gross Amounts Recognized | 3,740 | 3,272 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 126 | 113 | |
LIABILITIES | |||
Gross Amounts Recognized | 3,614 | 3,159 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Derivative investments | |||
ASSETS | |||
Gross Amounts Recognized | 3,740 | 3,283 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 126 | 124 | |
LIABILITIES | |||
Gross Amounts Recognized | 3,614 | 3,159 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Other financial instruments | |||
ASSETS | |||
Gross Amounts Recognized | 2,995 | 2,102 | |
Gross Amounts Offset in the Balance Sheets | 0 | 0 | |
Net Amounts Presented in the Balance Sheets | 2,995 | 2,102 | |
Other invested assets | |||
ASSETS | |||
Gross Amounts Recognized | 6,735 | 5,385 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 3,121 | 2,226 | |
Derivatives not subject to an ISDA Master Agreements | |||
ASSETS | |||
Gross Amounts Recognized | 0 | 11 | |
Gross Amounts Offset in the Balance Sheets | 0 | 0 | |
Net Amounts Presented in the Balance Sheets | 0 | 11 | |
LIABILITIES | |||
Gross Amounts Recognized | 0 | ||
Gross Amounts Offset in the Balance Sheets | 0 | ||
Net Amounts Presented in the Balance Sheets | 0 | ||
Other non-financial liabilities | |||
LIABILITIES | |||
Gross Amounts Recognized | 2,663 | 2,108 | |
Gross Amounts Offset in the Balance Sheets | 0 | 0 | |
Net Amounts Presented in the Balance Sheets | 2,663 | 2,108 | |
Other liabilities | |||
LIABILITIES | |||
Gross Amounts Recognized | 6,277 | 5,267 | |
Gross Amounts Offset in the Balance Sheets | 3,614 | 3,159 | |
Net Amounts Presented in the Balance Sheets | 2,663 | 2,108 | |
Securities purchased under agreement to resell | |||
ASSETS | |||
Gross Amounts Recognized | 0 | 0 | |
Gross Amounts Offset in the Balance Sheets | 0 | 0 | |
Net Amounts Presented in the Balance Sheets | 0 | 0 | |
Securities sold under agreement to repurchase(3) | |||
Offsetting Assets [Line Items] | |||
Securities sold under agreements to repurchase | 1,882 | ||
LIABILITIES | |||
Gross Amounts Recognized | 1,882 | 1,992 | |
Gross Amounts Offset in the Balance Sheets | 0 | 0 | |
Net Amounts Presented in the Balance Sheets | $ 1,882 | $ 1,992 |
INVESTMENTS (OFFSETTING 1) (Det
INVESTMENTS (OFFSETTING 1) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Offsetting Assets [Line Items] | |||
Interest Expense, Securities Sold under Agreements to Repurchase | $ 5 | $ 4 | |
Securities sold under agreements to repurchase | 1,887 | 1,996 | |
Expense in securities sold under agreement to repurchase | 3 | $ 4 | |
Derivative investments | |||
Offsetting Assets [Line Items] | |||
Fair Value of Assets | 1,954 | 54 | |
Collateral (Received)/Held, Financial Instruments | 0 | 0 | |
Collateral (Received)/Held, Cash | (1,828) | 70 | |
Net Amounts | 126 | 124 | |
Securities sold under agreements to repurchase | 0 | ||
Collateral (Received)/Held, Financial Instruments | 0 | ||
Collateral (Received)/Held, Cash | 0 | ||
Net amounts | 0 | ||
Other financial instruments | |||
Offsetting Assets [Line Items] | |||
Fair Value of Assets | 2,995 | 2,102 | |
Collateral (Received)/Held, Financial Instruments | 0 | 0 | |
Collateral (Received)/Held, Cash | 0 | 0 | |
Net Amounts | 2,995 | 2,102 | |
Securities sold under agreements to repurchase | 2,663 | ||
Collateral (Received)/Held, Financial Instruments | 0 | ||
Collateral (Received)/Held, Cash | 0 | ||
Net amounts | 2,663 | ||
Other investment income | |||
Offsetting Assets [Line Items] | |||
Fair Value of Assets | 4,949 | 2,156 | |
Collateral (Received)/Held, Financial Instruments | 0 | 0 | |
Collateral (Received)/Held, Cash | (1,828) | 70 | |
Net Amounts | 3,121 | 2,226 | |
Securities sold under agreement to repurchase(3) | |||
Offsetting Assets [Line Items] | |||
Securities sold under agreements to repurchase | 1,992 | ||
Collateral (Received)/Held, Financial Instruments | (1,986) | ||
Collateral (Received)/Held, Cash | (2) | ||
Net amounts | $ 4 | ||
Other liabilities | |||
Offsetting Assets [Line Items] | |||
Securities sold under agreements to repurchase | 2,663 | ||
Collateral (Received)/Held, Financial Instruments | 0 | ||
Collateral (Received)/Held, Cash | 0 | ||
Net amounts | 2,663 | ||
Securities sold under agreement to repurchase(3) | |||
Offsetting Assets [Line Items] | |||
Securities sold under agreements to repurchase | 1,882 | ||
Collateral (Received)/Held, Financial Instruments | (1,988) | ||
Collateral (Received)/Held, Cash | (21) | ||
Net amounts | $ (127) |
INVESTMENTS (REPURCHASE TO MATU
INVESTMENTS (REPURCHASE TO MATURITY TRANSACTIONS) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | $ 1,992 | |
U.S. Treasury, government and agency | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | $ 1,882 | 1,992 |
Maturity Overnight and Continuous | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 0 | |
Maturity Overnight and Continuous | U.S. Treasury, government and agency | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
Maturity Up To 30 Days | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 1,992 | |
Maturity Up To 30 Days | U.S. Treasury, government and agency | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 1,882 | 1,992 |
Maturity 30 to 90 Days | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 0 | |
Maturity 30 to 90 Days | U.S. Treasury, government and agency | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 0 | 0 |
Maturity Greater than 90 Days | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | 0 | |
Maturity Greater than 90 Days | U.S. Treasury, government and agency | ||
Derivative [Line Items] | ||
Securities sold under agreement to repurchase | $ 0 | $ 0 |
INVESTMENTS (NET INVESTMENT INC
INVESTMENTS (NET INVESTMENT INCOME) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||
Investment income | $ 2,648 | $ 2,384 | $ 2,113 |
Investment expenses | (65) | (66) | (56) |
Net investment income (loss) | 2,583 | 2,318 | 2,057 |
Net investment income (loss) from derivatives | (125) | 16 | (20) |
Realized gains (losses) on contracts closed | 1,601 | (458) | (555) |
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Abstract] | |||
Expense in securities sold under agreement to repurchase | 3 | 4 | |
Fixed maturities | |||
Net Investment Income [Line Items] | |||
Investment income | 1,365 | 1,418 | 1,420 |
Net investment income (loss) from derivatives | (130) | (3) | (17) |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Investment income | 453 | 461 | 338 |
Net investment income (loss) from derivatives | 2 | (2) | (1) |
Real estate held for the production of income | |||
Net Investment Income [Line Items] | |||
Investment income | 2 | 0 | 0 |
Repurchase agreement | |||
Net Investment Income [Line Items] | |||
Investment income | 0 | 1 | 1 |
Other equity investments | |||
Net Investment Income [Line Items] | |||
Investment income | 188 | 170 | 84 |
Net investment income (loss) from derivatives | 3 | (2) | (5) |
Policy loans | |||
Net Investment Income [Line Items] | |||
Investment income | 205 | 210 | 213 |
Trading securities | |||
Net Investment Income [Line Items] | |||
Investment income | 381 | 80 | 17 |
Other investment income | |||
Net Investment Income [Line Items] | |||
Investment income | 54 | 44 | 40 |
Net investment income (loss) from derivatives | $ 0 | $ 23 | $ 3 |
INVESTMENTS (TRADING SECURITIES
INVESTMENTS (TRADING SECURITIES) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ 171 | $ (19) | $ (63) |
Net investment gains (losses) recognized on securities sold during the period | (5) | (22) | 20 |
Unrealized and realized gains (losses) on trading securities | 166 | (41) | (43) |
Interest and dividend income from trading securities | 215 | 121 | 60 |
Net investment income (loss) from trading securities | $ 381 | $ 80 | $ 17 |
GOODWILL AND OTHER INTANGIBLE72
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | Sep. 23, 2016 | Jun. 21, 2014 | Jun. 20, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Asset Impairment [Line Items] | |||||||
Amortization of other intangibles | $ 31 | $ 29 | $ 28 | ||||
AllianceBernstein Acquisitions[Abstract] | |||||||
Redeemable noncontrolling interest | [1] | 626 | 403 | ||||
Capitalized Computer Software, Net [Abstract] | |||||||
Capitalized software, net | 162 | 170 | |||||
Amortization of capitalized software | 47 | 52 | 55 | ||||
Alliance Bernstein | |||||||
Goodwill And Intangible Asset Impairment [Line Items] | |||||||
Carrying value of goodwill | 3,584 | 3,584 | |||||
Gross carrying amount of Alliance Bernstein related intangible assets | 623 | 625 | |||||
Accumulated amortization of these intangible assets | 498 | 468 | |||||
Amortization of other intangibles | 31 | 29 | $ 28 | ||||
Amortization expense, 2018 | 30 | ||||||
Amortization expense, 2019 | 30 | ||||||
Amortization expense, 2020 | 23 | ||||||
Amortization expense, 2021 | 7 | ||||||
Amortization expense, 2022 | 7 | ||||||
Investment Management segments Other assets [Abstract] | |||||||
Net deferred sales commissions | 30 | 64 | |||||
Estimated amortization expense of deferred sales commissions for year 1 | 21 | ||||||
Estimated amortization expense of deferred sales commissions for year 2 | 6 | ||||||
Estimated amortization expense of deferred sales commissions for year 3 | 3 | ||||||
Estimated amortization expense of deferred sales commissions for year 4 | 0 | ||||||
Estimated amortization expense of deferred sales commissions for year 5 | 0 | ||||||
AllianceBernstein Acquisitions[Abstract] | |||||||
Carrying value of goodwill | $ 3,584 | $ 3,584 | |||||
Alliance Bernstein | Ramius Alternative Solutions LLC | |||||||
Goodwill And Intangible Asset Impairment [Line Items] | |||||||
Carrying value of goodwill | $ 22 | ||||||
AllianceBernstein Acquisitions[Abstract] | |||||||
Ownership percentage acquired | 100.00% | ||||||
Recognized identifiable assets acquired and liabilities assumed, assets under management | $ 2,500 | ||||||
Cash payment | 21 | ||||||
Contingent consideration payable | $ 12 | ||||||
Consideration payable, measurement period | 5 years | ||||||
Carrying value of goodwill | $ 22 | ||||||
Finite-lived intangible assets acquired | $ 10 | ||||||
Alliance Bernstein | CPH Capital | |||||||
Goodwill And Intangible Asset Impairment [Line Items] | |||||||
Carrying value of goodwill | $ 58 | ||||||
AllianceBernstein Acquisitions[Abstract] | |||||||
Ownership percentage acquired | 82.00% | 90.00% | |||||
Cash payment | $ 64 | ||||||
Contingent consideration payable | $ 9 | ||||||
Consideration payable, measurement period | 3 years | ||||||
Carrying value of goodwill | $ 58 | ||||||
Finite-lived intangible assets acquired | 24 | ||||||
Assets under management, carrying amount | 3,000 | ||||||
Indefinite-lived intangible assets acquired | $ 4 | ||||||
Redeemable noncontrolling interest | $ 17 | ||||||
[1] | See Note 2 for details of balances with variable interest entities. |
CLOSED BLOCK (Details)
CLOSED BLOCK (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
CLOSED BLOCK LIABILITIES: | |||||
Future policy benefits, policyholders’ account balances and other | $ 6,945 | $ 7,179 | |||
Policyholder dividend obligation | $ 52 | $ 81 | $ 81 | 32 | 52 |
Other liabilities | 271 | 43 | |||
Total Closed Block liabilities | 7,248 | 7,274 | |||
ASSETS DESIGNATED TO THE CLOSED BLOCK: | |||||
Fixed maturities, available for sale, at fair value (amortized cost of $3,923 and $3,884) | 4,070 | 4,025 | |||
Mortgage loans on real estate | 1,720 | 1,623 | |||
Policy loans | 781 | 839 | |||
Cash and other invested assets | 351 | 444 | |||
Other assets | 219 | 213 | |||
Total assets designated to the Closed Block | 7,141 | 7,144 | |||
Excess of Closed Block liabilities over assets designated to the Closed Block | 107 | 130 | |||
Amounts included in accumulated other comprehensive income (loss): | |||||
Net unrealized investment gains (losses), net of policyholder dividend obligation of $32 and $52 | 138 | 100 | |||
Maximum Future Income To Be Recognized From Closed Block Assets and Liabilities | 245 | 230 | |||
Closed block investments fixed maturity available for sale amortized cost | $ 3,923 | $ 3,884 | |||
REVENUES: | |||||
Premiums and other income | 224 | 212 | 236 | ||
Investment income (loss) | 314 | 349 | 368 | ||
Net investment gains (losses) | (20) | (1) | 2 | ||
Total revenues | 518 | 560 | 606 | ||
BENEFITS AND OTHER DEDUCTIONS: | |||||
Policyholders’ benefits and dividends | 537 | 522 | 550 | ||
Other operating costs and expenses | 2 | 4 | 4 | ||
Total benefits and other deductions | 539 | 526 | 554 | ||
Net revenues, before income taxes | (21) | 34 | 52 | ||
Income tax (expense) benefit | 6 | (12) | (18) | ||
Net Revenues (Losses) | (15) | 22 | 34 | ||
Movement in Closed Block Dividend Obligation [Roll Forward] | |||||
Balances, beginning of year | 52 | 81 | |||
Unrealized investment gains (losses) | (20) | (29) | |||
Balances, End of year | $ 32 | $ 52 | $ 81 |
DAC AND POLICYHOLDER BONUS IN74
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - CONTRACTHOLDER BONUS INTEREST CREDITS (DEFERRED ASSET FOR CONTRACTHOLDER BONUS INTEREST CREDITS) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the deferred asset for contractholder bonus interest credits | ||
Balance, beginning of year | $ 504 | $ 534 |
Policyholder bonus interest credits deferred | 6 | 13 |
Amortization charged to income | (37) | (43) |
Balance, End of Year | $ 473 | $ 504 |
DAC AND POLICYHOLDER BONUS IN75
DAC AND POLICYHOLDER BONUS INTEREST CREDITS - CONTRACTHOLDER BONUS INTEREST CREDITS (CHANGES IN DEFERRED ACQUISITION COSTS) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of year | $ 5,058 | $ 5,088 |
Capitalization of commissions, sales and issue expenses | 578 | 594 |
Amortization | (846) | (646) |
Change in unrealized investment gains (losses) | (243) | 22 |
Balance, End of Year | $ 4,547 | $ 5,058 |
FAIR VALUE DISCLOSURES - SCHEDU
FAIR VALUE DISCLOSURES - SCHEDULES OF ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | $ 36,515 | $ 32,683 |
Trading securities, at fair value | 12,628 | 9,134 |
Level 3 | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 2 | |
Fair Value, Measurements, Recurring | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 36,358 | 32,570 |
Other equity investments | 14 | 8 |
Trading securities, at fair value | 12,628 | 9,134 |
Other invested assets: | 4,023 | 1,218 |
Cash equivalents | 2,360 | 1,529 |
Segregated securities | 825 | 946 |
GMIB reinsurance contracts asset | 10,488 | 10,314 |
Separate Accounts’ assets | 122,315 | 111,216 |
Total Assets | 189,011 | 166,935 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total Liabilities | 6,565 | 6,474 |
Fair Value, Measurements, Recurring | Public Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 14,345 | 13,012 |
Fair Value, Measurements, Recurring | Private Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 7,137 | 7,040 |
Fair Value, Measurements, Recurring | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 13,135 | 10,336 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 481 | 493 |
Fair Value, Measurements, Recurring | Foreign governments | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 409 | 390 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 371 |
Fair Value, Measurements, Recurring | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 251 | 314 |
Fair Value, Measurements, Recurring | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 96 | 60 |
Fair Value, Measurements, Recurring | Redeemable preferred stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 504 | 554 |
Fair Value, Measurements, Recurring | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 768 | 574 |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 1,302 | 593 |
Fair Value, Measurements, Recurring | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 15 | (925) |
Fair Value, Measurements, Recurring | Credit default swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 33 | 5 |
Fair Value, Measurements, Recurring | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | (2) | 0 |
Fair Value, Measurements, Recurring | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 1,907 | 960 |
Fair Value, Measurements, Recurring | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 11 |
Fair Value, Measurements, Recurring | GMxB derivative features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 4,164 | 5,319 |
Fair Value, Measurements, Recurring | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 1,698 | 887 |
Fair Value, Measurements, Recurring | Liabilities of consolidated VIEs/VOEs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 692 | 250 |
Fair Value, Measurements, Recurring | Contingent payment arrangements | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 11 | 18 |
Fair Value, Measurements, Recurring | Level 1 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 180 | 218 |
Other equity investments | 13 | 3 |
Trading securities, at fair value | 467 | 478 |
Other invested assets: | 1,058 | 342 |
Cash equivalents | 2,360 | 1,529 |
Segregated securities | 0 | 0 |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts’ assets | 118,983 | 108,085 |
Total Assets | 123,061 | 110,655 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total Liabilities | 670 | 248 |
Fair Value, Measurements, Recurring | Level 1 | Public Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign governments | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Redeemable preferred stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 180 | 218 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Assets of consolidated VIEs/VOEs | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 1,060 | 342 |
Fair Value, Measurements, Recurring | Level 1 | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Credit default swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | (2) | 0 |
Fair Value, Measurements, Recurring | Level 1 | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GMxB derivative features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Liabilities of consolidated VIEs/VOEs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 670 | 248 |
Fair Value, Measurements, Recurring | Level 1 | Contingent payment arrangements | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 34,991 | 31,091 |
Other equity investments | 0 | 0 |
Trading securities, at fair value | 12,161 | 8,656 |
Other invested assets: | 2,938 | 830 |
Cash equivalents | 0 | 0 |
Segregated securities | 825 | 946 |
GMIB reinsurance contracts asset | 0 | 0 |
Separate Accounts’ assets | 2,983 | 2,818 |
Total Assets | 53,898 | 44,341 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total Liabilities | 1,720 | 889 |
Fair Value, Measurements, Recurring | Level 2 | Public Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 14,298 | 12,984 |
Fair Value, Measurements, Recurring | Level 2 | Private Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 6,045 | 6,223 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 13,135 | 10,336 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 441 | 451 |
Fair Value, Measurements, Recurring | Level 2 | Foreign governments | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 409 | 390 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 22 |
Fair Value, Measurements, Recurring | Level 2 | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 251 | 314 |
Fair Value, Measurements, Recurring | Level 2 | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 88 | 36 |
Fair Value, Measurements, Recurring | Level 2 | Redeemable preferred stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 324 | 335 |
Fair Value, Measurements, Recurring | Level 2 | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 768 | 574 |
Fair Value, Measurements, Recurring | Level 2 | Assets of consolidated VIEs/VOEs | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 215 | 205 |
Fair Value, Measurements, Recurring | Level 2 | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 15 | (925) |
Fair Value, Measurements, Recurring | Level 2 | Credit default swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 33 | 5 |
Fair Value, Measurements, Recurring | Level 2 | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 1,907 | 960 |
Fair Value, Measurements, Recurring | Level 2 | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 11 |
Fair Value, Measurements, Recurring | Level 2 | GMxB derivative features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 1,698 | 887 |
Fair Value, Measurements, Recurring | Level 2 | Liabilities of consolidated VIEs/VOEs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 22 | 2 |
Fair Value, Measurements, Recurring | Level 2 | Contingent payment arrangements | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 1,187 | 1,261 |
Other equity investments | 1 | 5 |
Trading securities, at fair value | 0 | 0 |
Other invested assets: | 27 | 46 |
Cash equivalents | 0 | 0 |
Segregated securities | 0 | 0 |
GMIB reinsurance contracts asset | 10,488 | 10,314 |
Separate Accounts’ assets | 349 | 313 |
Total Assets | 12,052 | 11,939 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total Liabilities | 4,175 | 5,337 |
Fair Value, Measurements, Recurring | Level 3 | Public Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 47 | 28 |
Fair Value, Measurements, Recurring | Level 3 | Private Corporate | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 1,092 | 817 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury, government and agency | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 40 | 42 |
Fair Value, Measurements, Recurring | Level 3 | Foreign governments | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 349 |
Fair Value, Measurements, Recurring | Level 3 | Residential Mortgage- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset- backed | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 8 | 24 |
Fair Value, Measurements, Recurring | Level 3 | Redeemable preferred stock | ||
Investment Fair Value Disclosure [Abstract] | ||
Fixed maturities, available-for-sale | 0 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Short-term investments | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Assets of consolidated VIEs/VOEs | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 27 | 46 |
Fair Value, Measurements, Recurring | Level 3 | Swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Credit default swaps | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Futures | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Options | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Floors | ||
Investment Fair Value Disclosure [Abstract] | ||
Other invested assets: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GMxB derivative features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 4,164 | 5,319 |
Fair Value, Measurements, Recurring | Level 3 | SCS, SIO, MSO and IUL indexed features’ liability | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Liabilities of consolidated VIEs/VOEs | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Contingent payment arrangements | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Liabilities | $ 11 | $ 18 |
FAIR VALUE DISCLOSURES - ASSETS
FAIR VALUE DISCLOSURES - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | $ 36,515 | $ 32,683 | |
Fair value of freestanding derivative positions | $ 1,953 | $ 51 | |
Fair value of freestanding derivative positions (percentage) | 48.50% | 8.20% | |
Fair value adjustments on GMIB asset | $ 69 | $ 139 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
AFS fixed maturities transferred from Level 3 to Level 2 | $ 6 | 62 | $ 125 |
AFS fixed maturities transferred from Level 3 to Level 2 | $ 25 | $ 99 | |
AFS fixed maturities transferred between Level 2 and 3 (percentage) | 0.10% | 0.90% | 1.30% |
Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Assets measured at fair value on recurring basis by inputs level (percentage) | 69.20% | 71.10% | |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Assets measured at fair value on recurring basis by inputs level (percentage) | 29.90% | 27.90% | |
Owned mortgages and asset-backed securities including CMBS at fair value | $ 257 | $ 340 | |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Assets measured at fair value on recurring basis by inputs level (percentage) | 0.90% | 1.00% | |
Owned mortgages and asset-backed securities including CMBS at fair value | $ 8 | $ 373 | |
Fixed maturities fair value, broker priced | 97 | 111 | |
Other invested assets | 2 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
AFS fixed maturities transferred from Level 3 to Level 2 | 7 | ||
Public Fixed Maturities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | $ 28,826 | $ 24,918 | |
Fixed maturities, available for sale (percentage) | 16.20% | 16.00% | |
Private Fixed Maturities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | $ 7,532 | $ 7,652 | |
Fixed maturities, available for sale (percentage) | 4.20% | 4.90% | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
AFS fixed maturities transferred from Level 3 to Level 2 | $ 56 | ||
Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | $ 36,358 | 32,570 | |
Other invested assets | 4,023 | 1,218 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | 180 | 218 | |
Other invested assets | 1,058 | 342 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | 34,991 | 31,091 | |
Other invested assets | 2,938 | 830 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Fixed maturities, available-for-sale | 1,187 | 1,261 | |
Other invested assets | 27 | 46 | |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Other invested assets | 1,302 | 593 | |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Other invested assets | 1,060 | 342 | |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Other invested assets | 215 | 205 | |
Fair Value, Measurements, Recurring | Assets of consolidated VIEs/VOEs | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Quantitative Disclosure [Line Items] | |||
Other invested assets | $ 27 | $ 46 |
FAIR VALUE DISCLOSURES - FAIR V
FAIR VALUE DISCLOSURES - FAIR VALUE MEASUREMENT RECONCILIATION FOR ALL LEVELS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | $ (125) | $ 16 | $ (20) |
Transfers into level 3 | 25 | 99 | |
Transfers out of Level 3 | (6) | (62) | (125) |
Level 3 | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Transfers into level 3 | 7 | ||
Level 3 | Public corporate | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 845 | 420 | 380 |
Net investment income (loss) | 5 | 0 | 3 |
Investment gains (losses), net | 2 | 1 | 2 |
Subtotal | 7 | 1 | 5 |
Other comprehensive income (loss) | 4 | 7 | (25) |
Purchases | 612 | 572 | 60 |
Sales | (331) | (142) | (38) |
Transfers into level 3 | 7 | 25 | 99 |
Transfers out of Level 3 | (5) | (38) | (61) |
Closing Balance | 1,139 | 845 | 420 |
Level 3 | States and political subdivisions | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 42 | 45 | 47 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
Other comprehensive income (loss) | (1) | (2) | (1) |
Purchases | 0 | 0 | 0 |
Sales | (1) | (1) | (1) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 40 | 42 | 45 |
Level 3 | Foreign governments | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 0 | 1 | 0 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 1 |
Sales | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (1) | 0 |
Closing Balance | 0 | 0 | 1 |
Level 3 | Commercial mortgage-backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 349 | 503 | 715 |
Net investment income (loss) | (2) | 0 | 1 |
Investment gains (losses), net | (63) | (67) | (38) |
Subtotal | (65) | (67) | (37) |
Other comprehensive income (loss) | 45 | 14 | 64 |
Purchases | 0 | 0 | 0 |
Sales | (329) | (87) | (175) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (14) | (64) |
Closing Balance | 0 | 349 | 503 |
Level 3 | Residential Mortgage- backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 0 | 0 | 2 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | (2) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 0 | 0 | 0 |
Level 3 | Asset- backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 24 | 40 | 53 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 15 | 0 | 0 |
Subtotal | 15 | 0 | 0 |
Other comprehensive income (loss) | (9) | 1 | (4) |
Purchases | 0 | 0 | 0 |
Sales | (21) | (8) | (9) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | (1) | (9) | 0 |
Closing Balance | 8 | 24 | 40 |
Level 3 | Redeemable preferred stock | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 1 | 0 | 0 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
Other comprehensive income (loss) | (1) | 0 | 0 |
Purchases | 0 | 1 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Activities related to VIEs/VOEs | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 0 | 1 | 0 |
Level 3 | Other equity investments | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 51 | 49 | 61 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 5 |
Net derivative gains (losses) | 0 | 0 | 0 |
Subtotal | 0 | 0 | 5 |
Other comprehensive income (loss) | (4) | (2) | 2 |
Purchases | 6 | 0 | 1 |
Sales | (3) | 0 | (20) |
Settlements | 0 | 0 | 0 |
Activities related to VIEs/VOEs | (22) | 60 | |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | (56) | 0 |
Closing Balance | 28 | 51 | 49 |
Level 3 | GMIB reinsurance contracts | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 10,314 | 10,582 | 10,723 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Net derivative gains (losses) | 69 | (261) | (316) |
Subtotal | 69 | (261) | (316) |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 221 | 223 | 228 |
Sales | (116) | (230) | (53) |
Settlements | 0 | 0 | 0 |
Activities related to VIEs/VOEs | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 10,488 | 10,314 | 10,582 |
Level 3 | Separate Accounts’ assets | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 313 | 313 | 260 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 29 | 19 | 36 |
Net derivative gains (losses) | 0 | 0 | 0 |
Subtotal | 29 | 19 | 36 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 13 | 10 | 26 |
Sales | (2) | 0 | (2) |
Settlements | (4) | (7) | (5) |
Activities related to VIEs/VOEs | 0 | 0 | |
Transfers into level 3 | 0 | 1 | 0 |
Transfers out of Level 3 | 0 | (23) | (2) |
Closing Balance | 349 | 313 | 313 |
Level 3 | GMxB derivative features' liability | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | (5,319) | (5,146) | (4,130) |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Net derivative gains (losses) | 1,494 | 140 | (743) |
Subtotal | 1,494 | 140 | (743) |
Other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | (344) | (317) | (274) |
Sales | 5 | 4 | 1 |
Settlements | 0 | 0 | 0 |
Activities related to VIEs/VOEs | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | (4,164) | (5,319) | (5,146) |
Level 3 | Contingent payment arrangements | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Beginning Balance | 18 | 31 | 42 |
Net investment income (loss) | 0 | 0 | 0 |
Investment gains (losses), net | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | |
Purchases | 0 | 11 | 0 |
Sales | 0 | 0 | (11) |
Settlements | (7) | (24) | 0 |
Activities related to VIEs/VOEs | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Closing Balance | 11 | 18 | $ 31 |
Level 3 Assets And Liabilities Held | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 29 | 20 | |
Net derivative gains (losses) for assets and liabilities held | 1,563 | (122) | |
Other comprehensive income (loss) | 40 | 20 | |
Level 3 Assets And Liabilities Held | Public corporate | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | 4 | 11 | |
Level 3 Assets And Liabilities Held | States and political subdivisions | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | 0 | (1) | |
Level 3 Assets And Liabilities Held | Commercial mortgage-backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | 45 | 9 | |
Level 3 Assets And Liabilities Held | Asset- backed | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | (9) | 1 | |
Level 3 Assets And Liabilities Held | Total debt maturities available for sale | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | 40 | 20 | |
Level 3 Assets And Liabilities Held | GMIB reinsurance contracts | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 69 | (262) | |
Other comprehensive income (loss) | 0 | 0 | |
Level 3 Assets And Liabilities Held | Separate Accounts’ assets | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 29 | 20 | |
Net derivative gains (losses) for assets and liabilities held | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | |
Level 3 Assets And Liabilities Held | GMxB derivative features' liability | |||
Total Gains Losses Realized Unrealized Included In [Abstract] | |||
Investment gains (losses), net | 0 | 0 | |
Net derivative gains (losses) for assets and liabilities held | 1,494 | 140 | |
Other comprehensive income (loss) | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - QUANTI
FAIR VALUE DISCLOSURES - QUANTITATIVE INFORMATION ABOUT LEVEL 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs [Abstract] | ||
Asset Derivatives | $ 14,228 | $ 13,597 |
Embedded and freestanding derivative liability | 5,862 | $ 6,206 |
Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
GMxB Utilization Rates | 100.00% | |
Public corporate | Matrix Pricing Model Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Fair value unobservable inputs, assets | $ 53 | $ 55 |
Public corporate | Matrix Pricing Model Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0 | 0 |
Public corporate | Matrix Pricing Model Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0565 | 0.0565 |
Public corporate | Matrix Pricing Model Valuation Technique | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0125 | 0.0151 |
Public corporate | Market Comparable Companies Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Fair value unobservable inputs, assets | $ 789 | $ 636 |
Public corporate | Market Comparable Companies Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiples | 5.3 | 4.3 |
Discount rate | 7.20% | 7.00% |
Cash flow multiples | 9 | 14 |
Public corporate | Market Comparable Companies Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiples | 27.9 | 25.6 |
Discount rate | 17.00% | 17.80% |
Cash flow multiples | 17.7 | 16.5 |
Public corporate | Market Comparable Companies Valuation Technique | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
EBITDA multiples | 12.9 | 11.7 |
Discount rate | 11.10% | 11.40% |
Cash flow multiples | 13.1 | 15.6 |
Asset-backed | Matrix Pricing Model Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Fair value unobservable inputs, assets | $ 2 | |
Asset-backed | Matrix Pricing Model Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0025 | |
Asset-backed | Matrix Pricing Model Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0687 | |
Asset-backed | Matrix Pricing Model Valuation Technique | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0038 | |
Separate Accounts’ assets | Third Party Appraisal Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 6.60% | 6.60% |
Capitalization Rate | 4.60% | 4.80% |
Exit capitalization rate | 5.60% | 5.70% |
Fair value unobservable inputs, assets | $ 326 | $ 295 |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0243 | |
Discount rate | 4.40% | |
Fair value unobservable inputs, assets | $ 1 | $ 3 |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0273 | |
Discount rate | 1.10% | |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0512 | |
Discount rate | 7.00% | |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Spread over the industry-specific benchmark yield curve | 0.0283 | |
Discount rate | 4.30% | |
GMIB reinsurance contracts | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Fair value unobservable inputs, assets | $ 10,314 | |
GMIB reinsurance contracts | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 0.00% | 0.00% |
Utilization Rates | 0.00% | 0.00% |
Non Performance Risk | 0.0005 | 0.0005 |
Volatility Rates- Equity | 9.90% | 11.00% |
Lapse Rates | 1.00% | 1.50% |
GMIB reinsurance contracts | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 8.00% | 8.00% |
Utilization Rates | 16.00% | 16.00% |
Non Performance Risk | 0.0010 | 0.0017 |
Volatility Rates- Equity | 30.90% | 38.00% |
Lapse Rates | 6.30% | 5.70% |
GMIBNLG | ||
Fair Value Inputs [Abstract] | ||
Embedded and freestanding derivative liability | $ 4,056 | $ 5,155 |
GMIBNLG | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Non Performance Risk | 0.010 | 0.011 |
Volatility Rates- Equity | 20.00% | 20.00% |
Embedded and freestanding derivative liability | $ 4,056 | $ 5,155 |
GMIBNLG | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
NLG Forfeiture Rates | 0.55% | 0.55% |
Withdrawal Rates | 0.00% | 0.00% |
Utilization Rates | 0.00% | 0.00% |
Lapse Rates | 0.80% | 1.20% |
GMIBNLG | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
NLG Forfeiture Rates | 2.10% | 2.10% |
Withdrawal Rates | 12.40% | 11.50% |
Fair Value Inputs GMxB Annuitization Rates | 16.00% | 16.00% |
Lapse Rates | 26.20% | 26.20% |
GWBL/GMWB | ||
Fair Value Inputs [Abstract] | ||
Embedded and freestanding derivative liability | $ 130 | $ 114 |
GWBL/GMWB | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
GMxB Utilization Rates | 100.00% | |
Embedded and freestanding derivative liability | $ 130 | $ 114 |
GWBL/GMWB | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 0.00% | 0.00% |
Volatility Rates- Equity | 9.90% | 9.00% |
Lapse Rates | 0.90% | 1.00% |
GWBL/GMWB | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 7.00% | 7.00% |
Volatility Rates- Equity | 30.90% | 35.00% |
Lapse Rates | 5.70% | 5.70% |
GIB | ||
Fair Value Inputs [Abstract] | ||
Embedded and freestanding derivative liability | $ (27) | $ 30 |
GIB | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
GMxB Utilization Rates | 0.00% | 100.00% |
Embedded and freestanding derivative liability | $ (27) | $ 30 |
GIB | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 0.00% | 0.00% |
Volatility Rates- Equity | 9.90% | 9.00% |
Lapse Rates | 0.90% | 1.00% |
GIB | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Withdrawal Rates | 7.00% | 8.00% |
Volatility Rates- Equity | 30.90% | 35.00% |
Fair Value Inputs GMxB Annuitization Rates | 16.00% | |
Lapse Rates | 5.70% | 5.70% |
GMAB | ||
Fair Value Inputs [Abstract] | ||
Embedded and freestanding derivative liability | $ 5 | $ 20 |
GMAB | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Embedded and freestanding derivative liability | $ 5 | $ 20 |
GMAB | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value Inputs [Abstract] | ||
Volatility Rates- Equity | 9.90% | 9.00% |
Lapse Rates | 0.50% | 1.00% |
GMAB | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value Inputs [Abstract] | ||
Volatility Rates- Equity | 30.90% | 35.00% |
Lapse Rates | 11.00% | 11.00% |
GMIB reinsurance contracts | ||
Fair Value Inputs [Abstract] | ||
Asset Derivatives | $ 10,488 | $ 10,314 |
GMIB reinsurance contracts | GMIB reinsurance contracts | Discounted Cash Flow Valuation Technique | ||
Fair Value Inputs [Abstract] | ||
Asset Derivatives | $ 10,488 |
FAIR VALUE DISCLOSURES - NARRAT
FAIR VALUE DISCLOSURES - NARRATIVE (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)contingent_liability | Dec. 31, 2016USD ($) | |
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value measurements not included in quantitative information about level 3 fair value measurements | $ 370 | $ 594 |
Fair value measurements not included in quantitative information percentage of total assets classified as level 3 | 24.00% | 37.50% |
Fair value measurements not included in quantitative information percentage of total assets measured at fair value on recurring basis | 0.20% | 0.40% |
Public corporate | Matrix Pricing Model Valuation Technique | Private corporate | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | $ 842 | $ 691 |
Percentage of level 3 asset fair value | 73.90% | 81.80% |
Asset- backed | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | $ 8 | $ 3 |
Asset- backed | Matrix Pricing Model Valuation Technique | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Percentage of level 3 asset fair value | 4.50% | 8.30% |
Separate Accounts’ assets | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | $ 14 | $ 12 |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | Private Equity Funds | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | 0 | 1 |
Separate Accounts’ assets | Discounted Cash Flow Valuation Technique | Mortgage loans on real estate | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | 1 | 2 |
Separate Accounts’ assets | Third Party Appraisal And Discounted Cash Flow Valuation Technique | Private Real Estate Fund | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | $ 326 | 295 |
Contingent payment arrangements | AUM Growth Rates | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Number of contingent liability arrangements | contingent_liability | 3 | |
Number of business acquisitions | contingent_liability | 3 | |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Number of contingent liability arrangements | contingent_liability | 1 | |
Business combination, contingent consideration, liability | $ 11 | |
Revenue growth rate | 31.00% | |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | AUM Growth Rates | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Fair value unobservable inputs, assets | $ 18 | $ 18 |
Number of contingent liability arrangements | contingent_liability | 1 | |
Projected AUM growth rate | 18.00% | |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | Minimum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Discount rate | 1.40% | |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | Minimum | AUM Growth Rates | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Revenue growth rate | 4.00% | 1.40% |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | Maximum | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Discount rate | 2.30% | |
Contingent payment arrangements | Two Thousand And Sixteen Acquisitions | Maximum | AUM Growth Rates | ||
Fair Value Inputs Assets Quantitative Information 1 [Line Items] | ||
Revenue growth rate | 31.00% | 6.40% |
FAIR VALUE DISCLOSURES - CARRYI
FAIR VALUE DISCLOSURES - CARRYING VALUES AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | $ 10,935 | $ 9,757 | |||
Loans to affiliates | 703 | $ 5,004 | $ 4,889 | $ 4,647 | 703 |
Policyholders liabilities: Investment contracts | 43,805 | $ 41,516 | $ 40,292 | 38,825 | |
Policy loans | 3,315 | 3,361 | |||
Short-term and Long-term debt | 566 | 513 | |||
Separate Accounts’ liabilities | 122,537 | 111,403 | |||
Carrying Value | |||||
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | 10,935 | 9,757 | |||
Loans to affiliates | 703 | 703 | |||
Policyholders liabilities: Investment contracts | 2,068 | 2,226 | |||
Funding Agreements | 3,014 | 2,255 | |||
Policy loans | 3,315 | 3,361 | |||
Short-term and Long-term debt | 769 | 513 | |||
Separate Accounts’ liabilities | 7,537 | 6,194 | |||
Measured at Fair Value | |||||
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | 10,895 | 9,608 | |||
Loans to affiliates | 700 | 775 | |||
Policyholders liabilities: Investment contracts | 2,170 | 2,337 | |||
Funding Agreements | 3,020 | 2,202 | |||
Policy loans | 4,210 | 4,257 | |||
Short-term and Long-term debt | 768 | 513 | |||
Separate Accounts’ liabilities | 7,537 | 6,194 | |||
Measured at Fair Value | Level 1 | |||||
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | 0 | 0 | |||
Loans to affiliates | 0 | 0 | |||
Policyholders liabilities: Investment contracts | 0 | 0 | |||
Funding Agreements | 0 | 0 | |||
Policy loans | 0 | ||||
Short-term and Long-term debt | 0 | 0 | |||
Separate Accounts’ liabilities | 0 | 0 | |||
Measured at Fair Value | Level 2 | |||||
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | 0 | 0 | |||
Loans to affiliates | 700 | 775 | |||
Policyholders liabilities: Investment contracts | 0 | 0 | |||
Funding Agreements | 3,020 | 2,202 | |||
Policy loans | 0 | 0 | |||
Short-term and Long-term debt | 768 | 513 | |||
Separate Accounts’ liabilities | 0 | 0 | |||
Measured at Fair Value | Level 3 | |||||
Consolidated Amounts [Abstract] | |||||
Mortgage loans on real estate | 10,895 | 9,608 | |||
Loans to affiliates | 0 | 0 | |||
Policyholders liabilities: Investment contracts | 2,170 | 2,337 | |||
Funding Agreements | 0 | 0 | |||
Policy loans | 4,210 | 4,257 | |||
Short-term and Long-term debt | 0 | 0 | |||
Separate Accounts’ liabilities | $ 7,537 | $ 6,194 |
INSURANCE LIABILITIES (Details)
INSURANCE LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement In Guaranteed Benefit Liability Gross [Line Items] | |||
Opening Balance | $ 7,035 | $ 6,877 | $ 6,427 |
Paid guarantee benefits | (505) | (638) | (402) |
Other changes in reserves | 2,352 | 796 | 852 |
Closing Balance | 8,882 | 7,035 | 6,877 |
GMDB | |||
Movement In Guaranteed Benefit Liability Gross [Line Items] | |||
Opening Balance | 3,165 | 2,991 | 1,725 |
Paid guarantee benefits | (354) | (357) | (313) |
Other changes in reserves | 1,269 | 531 | 1,579 |
Closing Balance | 4,080 | 3,165 | 2,991 |
Guaranteed Minimum Death Benefit Reinsurance Ceded [Abstract] | |||
Opening Balance | 1,558 | 1,430 | 833 |
Paid guarantee benefits | (171) | (174) | (148) |
Other changes in reserve | 643 | 302 | 745 |
Closing Balance | 2,030 | 1,558 | 1,430 |
GMIB | |||
Movement In Guaranteed Benefit Liability Gross [Line Items] | |||
Opening Balance | 3,870 | 3,886 | 4,702 |
Paid guarantee benefits | (151) | (281) | (89) |
Other changes in reserves | 1,083 | 265 | (727) |
Closing Balance | $ 4,802 | $ 3,870 | $ 3,886 |
INSURANCE LIABILITIES - Fair Va
INSURANCE LIABILITIES - Fair Values of GMxB and Other Derivative Liability (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | $ 5,862 | $ 6,206 | |||
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,488 | $ 10,900 | $ 11,260 | $ 9,798 | 10,314 |
GMIBNLG | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | 4,056 | 5,155 | |||
SCS, SIO, MSO and IUL indexed features’ liability | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | 1,698 | 887 | |||
GWBL/GMWB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | 130 | 114 | |||
GIB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | (27) | 30 | |||
GMAB | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Embedded and freestanding derivative liability | 5 | 20 | |||
GMIB reinsurance contracts | |||||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||||
Guaranteed minimum income benefit reinsurance asset, at fair value | $ 10,488 | $ 10,314 |
INSURANCE LIABILITIES - Variabl
INSURANCE LIABILITIES - Variable Annuity Contracts with GMDB and GMIB Features and Buybacks (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Separate Accounts | $ 62,286 | $ 57,848 | |
Option to elect a partial buyout of rider, percentage | (50.00%) | ||
Loss from impact of buyback | $ 4 | ||
GMDB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | 14,194 | ||
Separate Accounts | 94,672 | $ 86,890 | |
Net amount at risk, gross | 17,527 | ||
Net amount at risk, net of amounts reinsured | $ 7,846 | ||
Average attained age of contractholders (in years) | 55 years 1 month 6 days | ||
Percentage of contractholders’ over age 70 | 18.10% | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.50% | ||
GMIB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 316 | ||
Separate Accounts | 62,286 | ||
Net amount at risk, gross | 7,254 | ||
Net amount at risk, net of amounts reinsured | $ 1,848 | ||
Weighted average years remaining until annuitization (in years) | 9 months 18 days | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.50% | ||
Return of Premium | GMDB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 13,820 | ||
Separate Accounts | 45,816 | ||
Net amount at risk, gross | 169 | ||
Net amount at risk, net of amounts reinsured | $ 169 | ||
Average attained age of contractholders (in years) | 51 years 3 months 18 days | ||
Percentage of contractholders’ over age 70 | 9.60% | ||
Ratchet | GMDB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 109 | ||
Separate Accounts | 9,556 | ||
Net amount at risk, gross | 57 | ||
Net amount at risk, net of amounts reinsured | $ 39 | ||
Average attained age of contractholders (in years) | 66 years 3 months 18 days | ||
Percentage of contractholders’ over age 70 | 40.20% | ||
Roll-Up | GMDB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 65 | ||
Separate Accounts | 3,516 | ||
Net amount at risk, gross | 1,961 | ||
Net amount at risk, net of amounts reinsured | $ 1,344 | ||
Average attained age of contractholders (in years) | 72 years 10 months 24 days | ||
Percentage of contractholders’ over age 70 | 63.10% | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.00% | ||
Roll-Up | GMIB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 23 | ||
Separate Accounts | 21,195 | ||
Net amount at risk, gross | 917 | ||
Net amount at risk, net of amounts reinsured | $ 287 | ||
Weighted average years remaining until annuitization (in years) | 1 year 7 months 6 days | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.00% | ||
Combo | GMDB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 200 | ||
Separate Accounts | 35,784 | ||
Net amount at risk, gross | 15,340 | ||
Net amount at risk, net of amounts reinsured | $ 6,294 | ||
Average attained age of contractholders (in years) | 68 years 2 months 12 days | ||
Percentage of contractholders’ over age 70 | 46.50% | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.50% | ||
Combo | GMIB | |||
Net Amount at Risk by Product and Guarantee [Line Items] | |||
General Account | $ 293 | ||
Separate Accounts | 41,091 | ||
Net amount at risk, gross | 6,337 | ||
Net amount at risk, net of amounts reinsured | $ 1,561 | ||
Weighted average years remaining until annuitization (in years) | 8 months 12 days | ||
Range of contractually specified interest rates (as a percent), minimum | 3.00% | ||
Range of contractually specified interest rates (as a percent), maximum | 6.50% |
INSURANCE LIABILITIES - Separat
INSURANCE LIABILITIES - Separate Account Investments, Hedging Programs and Variable and Interest-Sensitive Live Insurance Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | $ 62,286 | $ 57,848 | |
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | 7,035 | 6,877 | $ 6,427 |
Paid guarantee benefits | (505) | (638) | (402) |
Other changes in reserves | 2,352 | 796 | 852 |
Closing Balance | 8,882 | 7,035 | 6,877 |
GMDB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 94,672 | 86,890 | |
Price Risk Fair Value Hedge Derivative On Balance Sheet [Abstract] | |||
Total account value of hedged variable annuity contracts | 55,771 | ||
Net amount at risk of hedged variable annuity contracts | 6,893 | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | 3,165 | 2,991 | 1,725 |
Paid guarantee benefits | (354) | (357) | (313) |
Other changes in reserves | 1,269 | 531 | 1,579 |
Closing Balance | 4,080 | 3,165 | 2,991 |
GMIB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 62,286 | ||
Price Risk Fair Value Hedge Derivative On Balance Sheet [Abstract] | |||
Total account value of hedged variable annuity contracts | 42,077 | ||
Net amount at risk of hedged variable annuity contracts | 2,613 | ||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | 3,870 | 3,886 | 4,702 |
Paid guarantee benefits | (151) | (281) | (89) |
Other changes in reserves | 1,083 | 265 | (727) |
Closing Balance | 4,802 | 3,870 | 3,886 |
Equity | GMDB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 78,069 | 69,625 | |
Equity | GMIB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 50,429 | 45,931 | |
Fixed income | GMDB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 2,234 | 2,483 | |
Fixed income | GMIB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 1,568 | 1,671 | |
Balanced | GMDB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 14,084 | 14,434 | |
Balanced | GMIB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 10,165 | 10,097 | |
Other | GMDB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 285 | 348 | |
Other | GMIB | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Fair Value of Assets | 124 | 149 | |
Direct Liabilities For Guarantees | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | 1,197 | 1,144 | 979 |
Paid guarantee benefits | (24) | ||
Other changes in reserves | (487) | 53 | 165 |
Closing Balance | 686 | 1,197 | 1,144 |
Ceded Liabilities For Guarantees | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | (609) | (510) | (526) |
Paid guarantee benefits | 0 | ||
Other changes in reserves | (55) | (99) | 16 |
Closing Balance | (664) | (609) | (510) |
Net Liabilities For Guarantees | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Opening Balance | 588 | 634 | 453 |
Paid guarantee benefits | (24) | ||
Other changes in reserves | (542) | (46) | 181 |
Closing Balance | $ 22 | $ 588 | $ 634 |
REINSURANCE AGREEMENTS - Effect
REINSURANCE AGREEMENTS - Effect of reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums: | ||||||||
Direct premiums | $ 880 | $ 850 | $ 818 | |||||
Reinsurance assumed | 195 | 206 | 207 | |||||
Reinsurance ceded | (171) | (176) | (173) | |||||
Premiums | $ 208 | $ 225 | $ 232 | $ 457 | $ 665 | 904 | 880 | 852 |
Policy charges and fee income ceded | 718 | 640 | 645 | |||||
Policyholders’ Benefits Ceded | $ 694 | $ 942 | $ 527 |
REINSURANCE AGREEMENTS (Details
REINSURANCE AGREEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Reinsurance retention policy, percentage of excess reinsured | 100.00% | |||||
Guaranteed minimum income benefit reinsurance asset, at fair value | $ 10,488 | $ 10,314 | $ 10,900 | $ 11,260 | $ 9,798 | |
Increase (decrease) in the fair value of the reinsurance contract asset | 174 | (268) | $ (141) | |||
Amounts due to reinsurers | 134 | 125 | ||||
Non Affiliated Entity | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Reinsurance recoverables related to insurance contracts | 2,420 | 2,458 | ||||
Amounts due to reinsurers | 134 | 125 | ||||
Non Affiliated Entity | Credit Concentration Risk | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Reinsurance recoverables related to insurance contracts | 1,904 | 2,381 | ||||
Variable Universal Term Life Insurance Single Life | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Reinsurance retention policy, amount retained | 25 | |||||
Variable Universal Term Life Insurance Joint Life | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Reinsurance retention policy, amount retained | 30 | |||||
Group Life And Health Insurance | Non Affiliated Entity | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Insurance liabilities ceded | 71 | 82 | ||||
Reinsurance assumed reserves | $ 716 | $ 734 | ||||
GMDB | Non Affiliated Entity | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Exposure reinsured percentage | 3.50% | |||||
GMIB | Non Affiliated Entity | ||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||||
Exposure reinsured percentage | 16.80% |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Schedule Short-term and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Short-term and Long-term debt | $ 566 | $ 513 | |
Total Short-term and Long-term debt | [1] | $ 769 | 513 |
Mortgage debt | 4.1% Non-recourse mortgage debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4.10% | ||
Long-term debt | $ 82 | 0 | |
Mortgage debt | 3.9% Non-recourse mortgage debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.90% | ||
Long-term debt | $ 121 | 0 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 2.40% | ||
Short-term and Long-term debt | $ 75 | $ 0 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.60% | 0.90% | |
Short-term and Long-term debt | $ 491 | $ 513 | |
[1] | See Note 2 for details of balances with variable interest entities. |
SHORT-TERM AND LONG-TERM DEBT89
SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) | Dec. 01, 2016USD ($) | Dec. 31, 2017USD ($)joint_ventureline_of_credit | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | |||
Total short-term debt | $ 566,000,000 | $ 513,000,000 | |
Number of consolidated real estate joint ventures | joint_venture | 2 | ||
Revolver | Alliance Bernstein | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | ||
Debt instrument, term | 364 days | ||
Line of credit facility, amount outstanding | $ 75,000,000 | ||
Debt instrument, interest rate, stated percentage | 2.40% | ||
Revolver | Commercial Banks and Other Lenders | Alliance Bernstein | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Line of credit facility, amount outstanding | 0 | ||
Incremental amount in principal allowed (up to) | 250,000,000 | ||
Revolver | Commercial Paper | Alliance Bernstein | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Line of Credit | Financial Institutions | |||
Line of Credit Facility [Line Items] | |||
Number of uncommitted lines of credit | line_of_credit | 4 | ||
Line of Credit | Financial Institutions | Alliance Bernstein | |||
Line of Credit Facility [Line Items] | |||
Number of uncommitted lines of credit | line_of_credit | 3 | ||
Line of Credit | Financial Institutions | SCB LLC | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, amount outstanding | $ 0 | ||
Incremental amount in principal allowed (up to) | $ 175,000,000 | ||
Number of uncommitted lines of credit | line_of_credit | 3 | ||
Number of lines of credit with aggregate borrowing capacity | line_of_credit | 2 | ||
Number of lines of credit with no stated credit limit | line_of_credit | 1 | ||
Commercial Paper | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.60% | 0.90% | |
Total short-term debt | $ 491,000,000 | $ 513,000,000 | |
Mortgage loans on real estate | 4.1% Non-recourse mortgage debt | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, interest rate, stated percentage | 4.10% | ||
Long-term debt | $ 82,000,000 | 0 | |
Mortgage loans on real estate | 3.9% Non-recourse mortgage debt | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.90% | ||
Long-term debt | $ 121,000,000 | $ 0 |
SHORT-TERM AND LONG-TERM DEBT90
SHORT-TERM AND LONG-TERM DEBT - Schedule of Credit Facilities Available (Details) - Alliance Bernstein - USD ($) | Dec. 31, 2017 | Dec. 01, 2016 |
Revolver | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 200,000,000 | |
AB Revolver | Total Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 200,000,000 | |
AB Revolver | Revolver | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
AB Revolver | Swingline | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 0 | |
AB Credit Facility | Total Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
AB Credit Facility | Revolver | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
AB Credit Facility | Swingline | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 240,000,000 |
RELATED PARTY TRANSACTIONS - NA
RELATED PARTY TRANSACTIONS - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jan. 31, 2016 | Nov. 30, 2014 | Mar. 31, 2011 | Jun. 30, 2009 | Dec. 31, 2008 | Sep. 30, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2005 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2007 | |
Related Party Transaction [Line Items] | |||||||||||||||||
Loans to affiliates | $ 703 | $ 703 | $ 5,004 | $ 4,889 | $ 4,647 | ||||||||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,488 | 10,314 | $ 10,900 | $ 11,260 | $ 9,798 | ||||||||||||
Ceded premiums | 20 | 20 | $ 21 | ||||||||||||||
Ceded claims paid | $ 5 | $ 6 | 5 | ||||||||||||||
Catastrophe insurance, retrocede term | 1 year | ||||||||||||||||
AXA | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Undrawn letters of credit related to reinsurance | $ 18 | ||||||||||||||||
AXA | Senior Unsecured Notes | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loans to affiliates | $ 650 | ||||||||||||||||
Related party transaction, original rate (as a percent) | 5.40% | ||||||||||||||||
Related party transaction, rate (as a percent) | 5.70% | ||||||||||||||||
AXA Equitable | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity method investment, ownership percentage | 70.00% | ||||||||||||||||
Investment in real estate joint venture | $ 25 | ||||||||||||||||
AXA Equitable | Mortgage Note 2009 | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loans to affiliates | $ 400 | ||||||||||||||||
Related party transaction, rate (as a percent) | 8.00% | ||||||||||||||||
Value of real estate property | $ 1,100 | ||||||||||||||||
Proceeds from sale of real estate | $ 700 | ||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||
AXA Financial | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Undrawn letters of credit related to reinsurance | 250 | ||||||||||||||||
AXA Financial | Mortgage Note 2014 | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loans to affiliates | $ 382 | ||||||||||||||||
Related party transaction, rate (as a percent) | 4.00% | ||||||||||||||||
Debt instrument, term | 7 years | ||||||||||||||||
Repayment of loans from affiliates | $ 382 | ||||||||||||||||
Prepayment penalty | $ 65 | ||||||||||||||||
AXA Financial | Surplus Notes 2005 | Note Maturity 2035 | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, rate (as a percent) | 6.00% | ||||||||||||||||
Loans from affiliates | $ 325 | ||||||||||||||||
Net receivable related to contracts | $ 1 | ||||||||||||||||
AXA Financial | Surplus Notes December 2008 | Note Maturity 2018 | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction, rate (as a percent) | 7.10% | ||||||||||||||||
Loans from affiliates | $ 500 | ||||||||||||||||
Net receivable related to contracts | $ 3 | ||||||||||||||||
AXA Arizona | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 8,594 | $ 8,578 | |||||||||||||||
Undrawn letters of credit related to reinsurance | 3,990 | ||||||||||||||||
AXA Arizona | Universal Life And No Lapse Guarantee Riders | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Ceded premiums | 454 | 447 | 453 | ||||||||||||||
Ceded claims paid | 213 | 65 | $ 54 | ||||||||||||||
AXA Arizona | Senior Unsecured Notes | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loans to affiliates | $ 50 | ||||||||||||||||
Related party transaction, rate (as a percent) | 5.40% | ||||||||||||||||
AXA Arizona | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Assets held in trust | 9,786 | ||||||||||||||||
AXA Global Life | Affiliated Entity | Loss from Catastrophes | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Premiums and expenses associated with the reinsurance program | $ 4 | $ 4 | |||||||||||||||
Saum Sing | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity method investment, ownership percentage | 30.00% | ||||||||||||||||
Variable Annuity | AXA Arizona | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Exposure reinsured percentage | 100.00% | ||||||||||||||||
Term Life Insurance | AXA Arizona | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Exposure reinsured percentage | 90.00% | ||||||||||||||||
Sale of Artwork | AXA Equitable | AXA Financial | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Gain on sale of artwork | $ 20 | ||||||||||||||||
Donation to AXA Foundation, Inc | AXA Equitable | AXA Foundation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Donation made to AXA Foundation | 21 | ||||||||||||||||
Reinsurer Concentration Risk | Affiliated Entity | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Reinsurance recoverables related to insurance contracts | $ 2,659 | $ 2,177 |
RELATED PARTY TRANSACTIONS - SC
RELATED PARTY TRANSACTIONS - SCHEDULE OF EXPENSES REIMBURSED FROM RELATED PARTY TRANSACTIONS (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for by the Company: | $ 799 | $ 777 | $ 768 |
Revenue received or accrued for by the Company: | 1,219 | 1,248 | 1,255 |
General services provided by AXA Affiliates | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for by the Company: | 186 | 188 | 164 |
Paid or accrued commission and fee expenses for sale of insurance products by AXA Distribution | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for by the Company: | 608 | 587 | 603 |
Investment management services provided by AXA IM, AXA REIM and AXA Rosenberg | |||
Related Party Transaction [Line Items] | |||
Expenses paid or accrued for by the Company: | 5 | 2 | 1 |
General services provided to AXA Affiliates | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for by the Company: | 456 | 531 | 491 |
Amounts received or accrued for commissions and fees earned for sale of MONY America's insurance products | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for by the Company: | 43 | 43 | 57 |
Investment management and administrative services provided to EQAT, VIP Trust, 1290 Funds and Other AXA Trusts | |||
Related Party Transaction [Line Items] | |||
Revenue received or accrued for by the Company: | $ 720 | $ 674 | $ 707 |
RELATED PARTY TRANSACTIONS - 93
RELATED PARTY TRANSACTIONS - SCHEDULE OF INVESTMENT MANAGEMENT AND SERVICE FEES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |||
Investment management and services fees | $ 1,148 | $ 999 | $ 1,056 |
Distribution revenues | 398 | 372 | 415 |
Other revenues - shareholder servicing fees | 73 | 76 | 85 |
Other revenues - other | $ 7 | $ 6 | $ 5 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of plan | $ 101,000,000 | $ 87,000,000 | $ 86,000,000 |
Liability of plan | 146,000,000 | 132,000,000 | 129,000,000 |
Capital contribution | 211,000,000 | ||
Capital contribution, net of tax | $ 137,000,000 | ||
Actuarial gains (losses) | (14,000,000) | (2,000,000) | |
Employer contributions made to pension plan | 4,000,000 | 0 | |
Excess of PBO Over Pension Plan Assets, end of year | (45,000,000) | $ (45,000,000) | |
Estimated net actuarial gain (loss) | 1,600,000 | ||
Estimated prior service cost (credit) | $ 23,959 | ||
Discount rate (as a percent) | 4.00% | ||
Projected benefit obligation increase (decrease) | $ 4,000,000 | ||
Defined benefit plan, mortality projection rate (as a percent) | 125.00% | ||
Expected long-term rate of return on plan assets | 6.00% | 6.50% | 7.00% |
Alliance Bernstein | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of plan | $ 101,000,000 | $ 87,000,000 | |
AXA Equitable QP, immediately preceding Transfer to AXA Financial | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of plan | $ 2,236,000,000 | ||
Liability of plan | 2,447,000,000 | ||
Actuarial gains (losses) | (1,193,000,000) | ||
Actuarial gain (loss), net of tax | $ (772,000,000) | ||
Discount rate (as a percent) | 3.98% | ||
AB Qualified Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Market value of plan | $ 101,000,000 | $ 87,000,000 | |
Discount rate (as a percent) | 4.55% | 4.75% | |
AB Qualified Retirement Plan | Return Seeking Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation (as a percent) | 40.00% | ||
Target asset allocation range, minimum (as a percent) | 30.00% | ||
Target asset allocation range, maximum (as a percent) | 60.00% | ||
AB Qualified Retirement Plan | Risk Mitigating Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation (as a percent) | 15.00% | ||
Target asset allocation range, minimum (as a percent) | 10.00% | ||
Target asset allocation range, maximum (as a percent) | 30.00% | ||
AB Qualified Retirement Plan | Diversifying Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation (as a percent) | 17.00% | ||
Target asset allocation range, minimum (as a percent) | 0.00% | ||
Target asset allocation range, maximum (as a percent) | 25.00% | ||
AB Qualified Retirement Plan | Dynamic Asset Allocation Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation (as a percent) | 28.00% | ||
Target asset allocation range, minimum (as a percent) | 18.00% | ||
Target asset allocation range, maximum (as a percent) | 38.00% | ||
AB Qualified Retirement Plan | Alliance Bernstein | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions made to pension plan | $ 4,000,000 | ||
Estimated future employer contributions in next fiscal year | 5,000,000 | ||
AXA Equitable 401(k) Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cost recognized associated with 401(k) Plan | $ 15,000,000 | $ 16,000,000 | $ 18,000,000 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost, Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 8 |
Interest cost | 6 | 6 | 93 |
Expected return on assets | (5) | (5) | (159) |
Actuarial (gain) loss | 1 | 1 | 1 |
Net amortization | 0 | 0 | 110 |
Net Periodic Pension Expense | $ 2 | $ 2 | $ 53 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | $ 132 | $ 129 | |
Interest cost | 6 | 6 | $ 93 |
Actuarial (gains) losses | 14 | 2 | |
Benefits paid | (6) | (5) | |
Projected Benefit Obligation | 146 | 132 | |
Transfer to AXA Financial | 0 | 0 | |
Projected Benefit Obligation, End of Year | 146 | 132 | 129 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Pension plan assets at fair value, beginning of year | 87 | 86 | |
Actual return on plan assets | 14 | 4 | |
Contributions | 4 | 0 | |
Benefits paid and fees | (4) | (3) | |
Pension plan assets at fair value, end of year | 101 | 87 | $ 86 |
Excess of PBO Over Pension Plan Assets | (45) | (45) | |
Transfer to AXA Financial | 0 | 0 | |
Excess of PBO Over Pension Plan Assets, end of year | (45) | (45) | |
Amounts included in AOCI not yet recognized as components of net periodic pension costs | |||
Unrecognized net actuarial (gain) loss | 55 | 51 | |
Unrecognized prior service cost (credit) | 1 | 1 | |
Total | $ 56 | $ 52 |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocations (Details) - AB Qualified Retirement Plan | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 100.00% | 100.00% |
Fixed Maturities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 15.00% | 18.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 66.00% | 61.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, actual plan asset allocations (as a percent) | 19.00% | 21.00% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 101 | $ 87 | $ 86 |
AB Qualified Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 101 | 87 | |
Defined benefit plan, fair value of plan assets, excluding net asset value investments | 79 | 68 | |
AB Qualified Retirement Plan | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 79 | 68 | |
Defined benefit plan, fair value of plan assets, excluding net asset value investments | 79 | 68 | |
AB Qualified Retirement Plan | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Defined benefit plan, fair value of plan assets, excluding net asset value investments | 0 | 0 | |
AB Qualified Retirement Plan | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Defined benefit plan, fair value of plan assets, excluding net asset value investments | 0 | 0 | |
AB Qualified Retirement Plan | Common and preferred equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 24 | 21 | |
AB Qualified Retirement Plan | Common and preferred equity | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 24 | 21 | |
AB Qualified Retirement Plan | Common and preferred equity | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Common and preferred equity | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Mutual funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 55 | 47 | |
AB Qualified Retirement Plan | Mutual funds | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 55 | 47 | |
AB Qualified Retirement Plan | Mutual funds | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Mutual funds | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Investments measured at net assets value | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, alternative investments, fair value of plan assets | 22 | 19 | |
AB Qualified Retirement Plan | Investments measured at net assets value | Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, alternative investments, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Investments measured at net assets value | Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, alternative investments, fair value of plan assets | 0 | 0 | |
AB Qualified Retirement Plan | Investments measured at net assets value | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, alternative investments, fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Actuar
EMPLOYEE BENEFIT PLANS - Actuarial Computations to Determine Net Period Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate on benefit obligations | 3.48% | 3.70% | |
Expected long-term rate of return on plan assets | 6.00% | 6.50% | 7.00% |
AB Qualified Retirement Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate on benefit obligations | 4.55% | 4.75% | 4.30% |
EMPLOYEE BENEFIT PLANS - Assump
EMPLOYEE BENEFIT PLANS - Assumptions, Estimated Future Benefit Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate (as a percent) | 4.00% | ||
Discount rate on benefit obligations | 3.48% | 3.70% | |
Expected long-term rates of return on pension plan assets (periodic cost) (as a percent) | 6.00% | 6.50% | 7.00% |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,018 | $ 7 | ||
2,019 | 7 | ||
2,020 | 5 | ||
2,021 | 6 | ||
2,022 | 8 | ||
Years 2023-2027 | $ 40 | ||
Other AXA Equitable defined benefit plans | |||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate (as a percent) | 3.17% | 3.48% | |
AB Qualified Retirement Plan | |||
Weighted Average Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate (as a percent) | 4.55% | 4.75% | |
Discount rate on benefit obligations | 4.55% | 4.75% | 4.30% |
SHARE-BASED AND OTHER COMPEN101
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 215 | $ 187 | $ 211 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 18 | 17 | 18 |
Stock Options (Other than AB stock options) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 1 | 1 | 1 |
AXA Shareplan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 9 | 14 | 16 |
Restricted Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | 185 | 154 | 174 |
Other Compensation plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation Expenses | $ 2 | $ 1 | $ 2 |
SHARE-BASED AND OTHER COMPEN102
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Performance Units (Details) - USD ($) shares in Millions, $ in Millions | Jun. 21, 2017 | Mar. 24, 2017 | Jun. 06, 2016 | Mar. 22, 2016 | Jun. 19, 2015 | Apr. 02, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ 215 | $ 187 | $ 211 | ||||||
Performance Unit Plan 2017 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options granted (in shares) | 1.7 | ||||||||
Share based compensation expense | 9 | ||||||||
Performance Unit Plan 2017 | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 0.00% | ||||||||
Performance Unit Plan 2017 | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 130.00% | ||||||||
Performance Unit Plan 2014 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity settlement of vested units with ordinary shares, value | $ 21 | ||||||||
Equity settlement of vested units with ordinary shares number (in shares) | 2.3 | ||||||||
Performance Unit Plan 2016 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options granted (in shares) | 1.9 | ||||||||
Share based compensation expense | 4 | 10 | |||||||
Performance Unit Plan 2016 | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 0.00% | ||||||||
Performance Unit Plan 2016 | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 130.00% | ||||||||
Performance Unit Plan 2013 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity settlement of vested units with ordinary shares number (in shares) | 2.3 | ||||||||
Cash settlement of vested units | $ 55 | ||||||||
Performance Unit Plan 2015 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options granted (in shares) | 1.7 | ||||||||
Share based compensation expense | 3 | 4 | 8 | ||||||
Performance Unit Plan 2015 | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 0.00% | ||||||||
Performance Unit Plan 2015 | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Range of performance units at stake percentage | 130.00% | ||||||||
Performance Unit Plan 2012 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cash settlement of vested units | $ 53 | ||||||||
Vested (in shares) | 2.3 | ||||||||
Performance Unit Plans Combined | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | 18 | 17 | $ 18 | ||||||
Fair value of performance units reported in Other Liabilities | $ 45 | $ 31 | |||||||
Unvested restricted shares and holding units (in shares) | 2 |
SHARE-BASED AND OTHER COMPEN103
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Stock Options Narrative (Details) $ / shares in Units, $ in Millions | Jun. 21, 2017USD ($)shares | Jun. 21, 2017€ / shares | Jun. 06, 2016USD ($)shares | Jun. 06, 2016€ / shares | Jun. 19, 2015USD ($)shares | Jun. 19, 2015€ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares€ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / shares |
Summary of Plan Activity [Line Items] | ||||||||||
Share based compensation expense | $ 215 | $ 187 | $ 211 | |||||||
Tax benefits from exercise of stock options | 0.1 | |||||||||
Stock Options (Other than AB stock options) | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Share based compensation expense | $ 1 | $ 1 | 1 | |||||||
Stock options exercised during period | shares | 0 | 0 | ||||||||
Stock options, exercises in period, intrinsic value | 0.2 | |||||||||
Tax benefits from exercise of stock options | 0.1 | |||||||||
Parent | Stock Option Plan 2017 | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 500,000 | |||||||||
Stock options granted, exercise price (in dollars and euros per share) | € / shares | € 23.92 | |||||||||
Vesting period | 5 years | |||||||||
Weighted average grant date fair value (in dollars and euros per share) | € / shares | € 1.78 | |||||||||
Term/expiration period | 10 years | |||||||||
Fair value assumptions, expected volatility rate | 25.05% | |||||||||
Weighted average expected term | 8 years 9 months 18 days | |||||||||
Fair value assumptions, risk expected dividend yield | 6.53% | |||||||||
Fair value assumptions, risk free interest rate | 0.59% | |||||||||
Fair value of options (net of expected forfeitures) | $ 1 | |||||||||
Share based compensation expense | $ 0.5 | |||||||||
Parent | Stock Option Plan 2017 | Vesting tranche one | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2017 | Vesting tranche two | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2017 | Vesting tranche three | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2017 | Conditional Vesting Term | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 300,000 | |||||||||
Parent | Stock Option Plan 2016 | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 600,000 | |||||||||
Stock options granted, exercise price (in dollars and euros per share) | € / shares | € 21.52 | |||||||||
Vesting period | 5 years | |||||||||
Weighted average grant date fair value (in dollars and euros per share) | € / shares | € 1.85 | |||||||||
Term/expiration period | 10 years | |||||||||
Fair value assumptions, expected volatility rate | 26.60% | |||||||||
Weighted average expected term | 8 years 1 month 6 days | |||||||||
Fair value assumptions, risk expected dividend yield | 6.49% | |||||||||
Fair value assumptions, risk free interest rate | 0.33% | |||||||||
Fair value of options (net of expected forfeitures) | $ 1 | |||||||||
Share based compensation expense | 0.1 | $ 0.6 | ||||||||
Parent | Stock Option Plan 2016 | Vesting tranche one | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2016 | Vesting tranche two | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2016 | Vesting tranche three | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2016 | Conditional Vesting Term | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 300,000 | |||||||||
Parent | Stock Option Plan 2015 | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 400,000 | |||||||||
Stock options granted, exercise price (in dollars and euros per share) | € / shares | € 22.90 | |||||||||
Vesting period | 5 years | |||||||||
Weighted average grant date fair value (in dollars and euros per share) | € / shares | € 1.58 | |||||||||
Term/expiration period | 10 years | |||||||||
Fair value assumptions, expected volatility rate | 23.68% | |||||||||
Weighted average expected term | 8 years 2 months 12 days | |||||||||
Fair value assumptions, risk expected dividend yield | 6.29% | |||||||||
Fair value assumptions, risk free interest rate | 0.92% | |||||||||
Fair value of options (net of expected forfeitures) | $ 1 | |||||||||
Share based compensation expense | $ 0.1 | $ 0.1 | $ 0.3 | |||||||
Parent | Stock Option Plan 2015 | Vesting tranche one | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2015 | Vesting tranche two | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2015 | Vesting tranche three | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Vesting percentage | 33.33% | |||||||||
Parent | Stock Option Plan 2015 | Conditional Vesting Term | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 200,000 | |||||||||
Parent | AXA Ordinary Shares | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Stock options granted (in shares) | shares | 488,000 | |||||||||
Stock options granted, exercise price (in dollars and euros per share) | € / shares | € 23.92 | |||||||||
Weighted average grant date fair value (in dollars and euros per share) | $ / shares | $ 2.01 | $ 2.06 | $ 1.73 | |||||||
Fair value assumptions, expected volatility rate | 25.05% | 26.60% | 23.68% | |||||||
Weighted average expected term | 8 years 9 months 29 days | 8 years 1 month 6 days | 8 years 2 months 12 days | |||||||
Fair value assumptions, risk expected dividend yield | 6.53% | 6.49% | 6.29% | |||||||
Fair value assumptions, risk free interest rate | 0.59% | 0.33% | 0.92% | |||||||
Stock options exercised during period | shares | 1,996,000 | |||||||||
Common stock, capital shares reserved for future issuance (in shares) | shares | 22,974 | 22,974 | ||||||||
Shares held in treasury at weighted average cost (in dollars per share) | $ / shares | $ 23.14 | € 23.14 | ||||||||
Parent | Stock Options (Other than AB stock options) | ||||||||||
Summary of Plan Activity [Line Items] | ||||||||||
Compensation cost not yet recognized | $ 1 | € 1 | ||||||||
Compensation cost, recognition period | 2 years 9 months 18 days |
SHARE-BASED AND OTHER COMPEN104
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Stock Option Activity (Details) - Parent $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares€ / sharesshares | Dec. 31, 2017€ / shares | |
AXA Ordinary Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Number Outstanding, Beginning Balance (in shares) | 9,536 | 9,536 | |
Options granted (in shares) | 488 | 488 | |
Options exercised (in shares) | (1,996) | (1,996) | |
Options forfeited, net (in shares) | 0 | 0 | |
Options expired/reinstated (in shares) | (2,626) | (2,626) | |
Options, Number Outstanding, Ending Balance (in shares) | 5,402 | 5,402 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | € / shares | € 21.02 | ||
Options granted, Weighted Average Exercise Price (in dollars per share) | € / shares | 23.92 | ||
Options exercised, Weighted Average Exercise Price (in dollars per share) | € / shares | 18.02 | ||
Options forfeited, net, Weighted Average Exercise Price (in dollars per share) | € / shares | 0 | ||
Options expired/reinstated, Weighted Average Exercise Price (in dollars per share) | € / shares | 33.77 | ||
Options, Weighted Average Exercise Price, Ending Balance (in dollars per share) | € / shares | € 17.36 | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 39,861 | € 39,861 | |
Weighted Average Remaining Contractual Term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | |
Options Exercisable (in shares) | 3,406 | 3,406 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | € / shares | € 14.68 | ||
Options Exercisable, Aggregate Intrinsic Value | $ | $ 34,275 | € 34,275 | |
Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 18 days | 2 years 9 months 18 days | |
AXA ADRs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Number Outstanding, Beginning Balance (in shares) | 45 | 45 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (2) | (2) | |
Options forfeited, net (in shares) | 0 | 0 | |
Options expired/reinstated (in shares) | (8) | (8) | |
Options, Number Outstanding, Ending Balance (in shares) | 35 | 35 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | $ 24.90 | ||
Options granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 | ||
Options exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | 21.35 | ||
Options forfeited, net, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 | ||
Options expired/reinstated, Weighted Average Exercise Price (in dollars per share) | $ / shares | 42.62 | ||
Options, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 20.98 | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 303,000 | € 303,000 | |
Weighted Average Remaining Contractual Term (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days | |
Options Exercisable (in shares) | 35 | 35 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 42.62 | € 42.62 | |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 303 | € 303 | |
Weighted Average Remaining Contractual Term (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days | |
AB Holding Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options, Number Outstanding, Beginning Balance (in shares) | 5,085 | 5,085 | |
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (1,180) | (1,180) | |
Options forfeited, net (in shares) | 0 | 0 | |
Options expired/reinstated (in shares) | (823) | (823) | |
Options, Number Outstanding, Ending Balance (in shares) | 3,082 | 3,082 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | $ 49.45 | ||
Options granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 | ||
Options exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | 17.04 | ||
Options forfeited, net, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 | ||
Options expired/reinstated, Weighted Average Exercise Price (in dollars per share) | $ / shares | 84.96 | ||
Options, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 52.37 | ||
Options Outstanding, Aggregate Intrinsic Value | $ | $ 0 | € 0 | |
Weighted Average Remaining Contractual Term (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days | |
Options Exercisable (in shares) | 3,018 | 3,018 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 52.97 | € 52.97 | |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 0 | € 0 | |
Weighted Average Remaining Contractual Term (in years) | 1 year 1 month 6 days | 1 year 1 month 6 days |
SHARE-BASED AND OTHER COMPEN105
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Fair Value Stock Option Assumptions (Details) | Jun. 21, 2017€ / shares | Jun. 06, 2016€ / shares | Jun. 19, 2015€ / shares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares |
Parent | Stock Option Plan 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 6.53% | |||||
Expected volatility | 25.05% | |||||
Risk-free interest rates | 0.59% | |||||
Expected life in years | 8 years 9 months 18 days | |||||
Weighted average fair value per option at grant date (in dollars per share) | € 1.78 | |||||
Parent | Stock Option Plan 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 6.49% | |||||
Expected volatility | 26.60% | |||||
Risk-free interest rates | 0.33% | |||||
Expected life in years | 8 years 1 month 6 days | |||||
Weighted average fair value per option at grant date (in dollars per share) | € 1.85 | |||||
Parent | Stock Option Plan 2015 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 6.29% | |||||
Expected volatility | 23.68% | |||||
Risk-free interest rates | 0.92% | |||||
Expected life in years | 8 years 2 months 12 days | |||||
Weighted average fair value per option at grant date (in dollars per share) | € 1.58 | |||||
Parent | AXA Ordinary Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 6.53% | 6.49% | 6.29% | |||
Expected volatility | 25.05% | 26.60% | 23.68% | |||
Risk-free interest rates | 0.59% | 0.33% | 0.92% | |||
Expected life in years | 8 years 9 months 29 days | 8 years 1 month 6 days | 8 years 2 months 12 days | |||
Weighted average fair value per option at grant date (in dollars per share) | $ / shares | $ 2.01 | $ 2.06 | $ 1.73 | |||
Parent | AB Holding Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividend yield | 7.10% | 7.10% | ||||
Expected volatility | 31.00% | 32.10% | ||||
Risk-free interest rates | 1.30% | 1.50% | ||||
Expected life in years | 6 years | 6 years | ||||
Weighted average fair value per option at grant date (in dollars per share) | $ / shares | $ 2.75 | $ 4.13 | ||||
Alliance Bernstein | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant of holding units (in shares) | shares | 0 |
SHARE-BASED AND OTHER COMPEN106
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Restricted Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Awards Plan [Line Items] | |||
Share based compensation expense | $ 215 | $ 187 | $ 211 |
Restricted Awards | |||
Restricted Awards Plan [Line Items] | |||
Share based compensation expense | $ 185 | 154 | 174 |
Restricted Awards | Parent | |||
Restricted Awards Plan [Line Items] | |||
Trading period for cash payment once vested | 20 days | ||
Share based compensation expense | $ 185 | $ 154 | $ 174 |
Unvested restricted shares and holding units (in shares) | 19,100,000 | ||
Compensation cost not yet recognized | $ 57 | ||
Compensation cost, recognition period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested, Beginning Balance (in shares) | 36,306 | ||
Granted (in shares) | 12,929 | ||
Vested (in shares) | 11,819 | ||
Unvested, Ending Balance (in shares) | 37,416 | 36,306 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.46 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 27.49 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 24.30 | ||
Unvested, Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.04 | $ 24.46 | |
Graded Vesting Period Over Three Years | Restricted Awards | Parent | |||
Restricted Awards Plan [Line Items] | |||
Weighted average remaining contractual terms | 2 years 21 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 11,069 |
SHARE-BASED AND OTHER COMPEN107
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Unrestricted Awards (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Stock Compensation Plan | Parent | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Value of share received under plan | $ 55 |
SHARE-BASED AND OTHER COMPEN108
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Employee Option Plans (Details) $ in Millions | Mar. 16, 2016USD ($)shares | Mar. 16, 2012shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017€ / shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Share based compensation expense | $ | $ 215 | $ 187 | $ 211 | |||
Parent | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Post-vesting holding period | 5 years | |||||
AXA Shareplan Option A 2017 | Parent | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Discount from market price, purchase date | 20.00% | |||||
Weighted average purchase price of shares purchased (Euro/share) | € / shares | € 20.19 | |||||
AXA Shareplan Option B 2015 | Parent | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Discount from market price, purchase date | 8.98% | |||||
Weighted average purchase price of shares purchased (Euro/share) | € / shares | € 22.96 | |||||
Ordinary share price measurement period (52 weeks) | 364 days | |||||
Shares issued during period under employee stock ownership plan | 4,000,000 | 6,000,000 | 5,000,000 | |||
AXA Miles Program 2012 | AXA Financial | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Maximum number of shares per employee (shares) | 50 | |||||
Vesting period | 4 years | |||||
Stock options exercised (in shares) | $ | $ 4 | |||||
Units issued upon exercise of options (in shares) | 200,000 | |||||
AXA Miles Program 2012 | AXA Financial | Four Year Cliff Vesting Term | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Maximum number of shares per employee (shares) | 25 | |||||
AXA Shareplan | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Share based compensation expense | $ | $ 9 | $ 14 | $ 16 |
SHARE-BASED AND OTHER COMPEN109
SHARE-BASED AND OTHER COMPENSATION PROGRAMS - Alliance Bernstein (Details) - Alliance Bernstein - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units purchased during the period (in shares) | 9,000,000 | 11,000,000 | ||
Dollar amount paid for Holding Units acquired | $ 220 | $ 237 | ||
Open-market purchases (in shares) | 5,000,000 | 8,000,000 | ||
Open-market purchases, value | $ 117 | $ 176 | ||
Restricted holding unit awards granted to employees (in shares) | 6,100,000 | 6,100,000 | 8,300,000 | 7,000,000 |
Units issued upon exercise of options (in shares) | 1,200,000 | 400,000 | ||
Proceeds from options exercised | $ 20 | $ 6 | ||
Holding unit-based awards authorized for grant (in shares) | 60,000,000 | 60,000,000 | ||
Holding unit-based awards, maximum additional shares authorized for grant (in shares) | 30,000,000 | |||
Grant of holding units (in shares) | 0 | |||
Grant of holding units, net of forfeitures (in shares) | 6,100,000 | |||
Holding unit-based awards available for grant (in shares) | 53,900,000 | 53,900,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2015 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||||
Income (loss) from continuing operations before income taxes, domestic | $ 2,115 | $ 505 | $ 924 | ||||||
Income (loss) from continuing operations before income taxes, foreign | 140 | 117 | 114 | ||||||
Income tax (expense) benefit: | |||||||||
Current (expense) benefit | (6) | (274) | (19) | ||||||
Deferred (expense) benefit | 1,145 | 358 | 41 | ||||||
Income tax (expense) benefit | $ 101 | $ (419) | $ 121 | $ (298) | $ (197) | $ 1,139 | 84 | 22 | |
Federal statutory rate, percent | 35.00% | ||||||||
Effective Income Tax Rate Reconciliation | |||||||||
Expected income tax (expense) benefit | $ (789) | (218) | (363) | ||||||
Noncontrolling interest | 175 | 162 | 118 | ||||||
Non-taxable investment income (loss) | 250 | 175 | 189 | ||||||
Tax audit interest | (6) | (22) | 1 | ||||||
State income taxes | (3) | (8) | 1 | ||||||
Tax settlements/Uncertain Tax Position Release | $ 77 | 221 | 0 | 77 | |||||
Change in Tax Law | 1,308 | 0 | 0 | ||||||
Other | (17) | (5) | (1) | ||||||
Foreign Tax Authority | |||||||||
Income tax (expense) benefit: | |||||||||
Income tax (expense) benefit | $ 29 | $ 31 | $ 28 |
INCOME TAXES - Net Deferred Inc
INCOME TAXES - Net Deferred Income Taxes and Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Uncertainties [Abstract] | ||||
Tax Reform Act, income tax benefit for reduction of deferred taxes | $ 1,331 | |||
Tax Cuts and Jobs Act of 2017, deferred tax asset revaluation due to sequestration fee, income tax expense | 20 | |||
Tax Cuts and Jobs Act of 2017, transition tax | 23 | |||
Interest and penalties included in unrecognized tax benefits | 23 | $ 67 | ||
Interest expense related to unrecognized tax benefits | (44) | (15) | $ (25) | |
Components of Deferred Tax Assets [Abstract] | ||||
Compensation and related benefits | 47 | 88 | ||
Net operating loss | 0 | 0 | ||
Reserves and reinsurance | 0 | |||
Alternative minimum tax credits | 387 | 394 | ||
Other | 67 | 5 | ||
Total | 501 | 487 | ||
Components of Deferred Tax Liabilities [Abstract] | ||||
Reserves and reinsurance | 83 | 534 | ||
DAC | 821 | 1,463 | ||
Unrealized investment gains (losses) | 298 | 23 | ||
Investments | 997 | 1,062 | ||
Other | 0 | 0 | ||
Total | 2,199 | 3,082 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at January 1, | 457 | 418 | 475 | |
Additions for tax positions of prior years | $ 221 | 28 | 39 | 44 |
Reductions for tax positions of prior years | (245) | 0 | (101) | |
Additions for tax positions of current year | 0 | 0 | 0 | |
Settlements with Tax Authorities | (33) | 0 | 0 | |
Balance at December 31, | 207 | 457 | 418 | |
Unrecognized tax benefits that, if recognized, would impact the effective rate | $ 172 | $ 329 | $ 293 |
ACCUMULATED OTHER COMPREHENS112
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | $ 16,139 | $ 16,257 | $ 14,505 | $ 16,257 | $ 16,139 | $ 19,564 | $ 14,604 | $ 15,587 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Total other comprehensive income (loss), net of income taxes | (76) | 273 | 127 | 401 | 333 | 599 | (215) | (861) | |
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(244) million, $(97) million, and $(454) million) | (79) | 293 | 92 | 386 | 315 | 563 | (194) | (832) | |
Unrealized gains (losses) on investments | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | 617 | 54 | 248 | ||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Other comprehensive income (loss), before reclassifications, net of tax | 741 | (160) | (1,020) | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 8 | 2 | 12 | ||||||
Total other comprehensive income (loss), net of income taxes | 749 | (158) | (1,008) | ||||||
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | (186) | (36) | 176 | ||||||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(244) million, $(97) million, and $(454) million) | 563 | (194) | (832) | ||||||
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||||||
Other comprehensive income (loss), income tax expense (benefit) | (244) | (97) | (454) | ||||||
Reclassifications from AOCI, income tax expense (benefit) | (5) | (1) | (6) | ||||||
Foreign currency translation adjustments | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | (36) | (77) | (59) | ||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Other comprehensive income (loss), before reclassifications, net of tax | 41 | (18) | (25) | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | ||||||
Total other comprehensive income (loss), net of income taxes | 41 | (18) | (25) | ||||||
Defined benefit pension plans | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | (51) | (46) | (43) | ||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Total other comprehensive income (loss), net of income taxes | (5) | (3) | (4) | ||||||
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||||||
Other comprehensive income (loss), income tax expense (benefit) | (2) | (2) | (2) | ||||||
Gains/losses | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | (5) | (3) | (4) | ||||||
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | |||||||||
Reclassifications from AOCI, income tax expense (benefit) | 2 | 2 | 2 | ||||||
Prior service cost/credit | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | ||||||
Total accumulated other comprehensive income (loss) | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | 530 | (69) | 146 | ||||||
Accumulated other comprehensive income (loss) attributable to noncontrolling interest | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | 68 | 86 | 69 | ||||||
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Total other comprehensive income (loss), net of income taxes | (18) | 17 | 15 | ||||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | |||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||||
Equity | $ 331 | $ 431 | 137 | 431 | 331 | 598 | 17 | 215 | $ 289 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||||||
Total other comprehensive income (loss), net of income taxes | $ 120 | $ 414 | $ 314 | $ 581 | $ (198) | $ (846) |
COMMITMENTS AND CONTINGENT L113
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ / policy in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | 19 Months Ended | ||||
Feb. 29, 2016$ / policy | Dec. 31, 2017USD ($)line_of_creditlegal_action | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) | Jan. 31, 2013fund | Dec. 31, 2010USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||
Future minimum payments under non-cancelable operating leases - 2018 | $ 214 | ||||||
Future minimum payments under non-cancelable operating leases - 2019 | 207 | ||||||
Future minimum payments under non-cancelable operating leases - 2020 | 177 | ||||||
Future minimum payments under non-cancelable operating leases - 2021 | 169 | ||||||
Future minimum payments under non-cancelable operating leases - 2022 | 156 | ||||||
Future minimum payments under non-cancelable operating leases - thereafter | 334 | ||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Minimum future sublease rental income under non-cancelable operating leases - 2018 | 56 | ||||||
Minimum future sublease rental income under non-cancelable operating leases - 2019 | 58 | ||||||
Minimum future sublease rental income under non-cancelable operating leases - 2020 | 41 | ||||||
Minimum future sublease rental income under non-cancelable operating leases - 2021 | 40 | ||||||
Minimum future sublease rental income under non-cancelable operating leases - 2022 | 37 | ||||||
Minimum future sublease rental income under non-cancelable operating leases - thereafter | 60 | ||||||
Rent expense | 142.9 | $ 140.2 | $ 137.7 | ||||
Sublease income | 16.4 | 15.8 | 5.2 | ||||
Federal home loan bank stock | 144 | ||||||
Carrying value of collateral pledged for federal home loan bank | 4,510 | ||||||
Outstanding balance at end of year | 3,000 | 2,238 | |||||
Issued during the Year | 6,762 | 7,738 | |||||
Repaid during the year | 6,000 | 6,000 | |||||
Advances from Federal Home Loan Banks, difference between carrying value and fair value | 14 | ||||||
Loss Contingencies [Line Items] | |||||||
Unaccrued amounts of reasonably possible range of losses | $ 90 | ||||||
Number of individual actions challenging cost of insurance rate increases | legal_action | 7 | ||||||
Number of individual actions challenging cost of insurance rate increases transferred to federal court | legal_action | 3 | ||||||
Line of Credit | Financial Institutions | |||||||
Loss Contingencies [Line Items] | |||||||
Number of guarantees maintained | line_of_credit | 4 | ||||||
Federal Home Loan Bank of New York Short-Term Funding Agreements Maturing in Less than One Month | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Outstanding balance at end of year | $ 500 | 500 | |||||
Issued during the Year | 6,000 | 6,000 | |||||
Repaid during the year | 6,000 | 6,000 | |||||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Less than Four Years | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Outstanding balance at end of year | 1,244 | 58 | |||||
Issued during the Year | 324 | 58 | |||||
Repaid during the year | 0 | ||||||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Less than Five Years | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Outstanding balance at end of year | 377 | 862 | |||||
Issued during the Year | 303 | 862 | |||||
Repaid during the year | 0 | ||||||
Federal Home Loan Bank of New York Long-Term Funding Agreements Maturing in Greater than Five Years | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Outstanding balance at end of year | 879 | 818 | |||||
Issued during the Year | 135 | 818 | |||||
Repaid during the year | 0 | ||||||
Federal Home Loan Bank of New York Long-Term Funding Agreements | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Outstanding balance at end of year | 2,500 | 1,738 | |||||
Issued during the Year | 762 | 1,738 | |||||
Repaid during the year | 0 | 0 | |||||
Sivolella Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of funds involved in lawsuit | fund | 12 | ||||||
Brach Family Foundation Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Current face amount per policy | $ / policy | 1 | ||||||
Issue age | 70 years | ||||||
SCB LLC | Line of Credit | Financial Institutions | |||||||
Loss Contingencies [Line Items] | |||||||
Total amount of guarantees maintained | $ 375 | ||||||
Number of guarantees maintained | line_of_credit | 3 | ||||||
AXA | |||||||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||||||
Severance costs | $ 29 | 21 | 3 | ||||
Pre tax real estate charge | 25 | ||||||
Loss Contingencies [Line Items] | |||||||
Commitments by the Company to provide equity financing | 715 | ||||||
Letters of credit | 18 | ||||||
Commitments under existing mortgage loan agreements | 636 | ||||||
AXA | Affiliated Entity | |||||||
Loss Contingencies [Line Items] | |||||||
Commitments by the Company to provide equity financing | 193 | ||||||
AXA | Assets of Consolidated VIEs/VOEs | |||||||
Loss Contingencies [Line Items] | |||||||
Commitments by the Company to provide equity financing | 22 | ||||||
AXA | Severance | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance, beginning of year | 22 | 11 | |||||
Additions | 17 | 20 | |||||
Cash payments | (14) | (9) | |||||
Other reductions | (2) | 0 | |||||
Balance, end of Year | 23 | 22 | 11 | ||||
AXA | Leases | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance, beginning of year | 170 | 190 | |||||
Additions | 29 | 12 | |||||
Deferred rent | 10 | 5 | |||||
Cash payments | (48) | (42) | |||||
Interest accretion | 4 | 5 | |||||
Balance, end of Year | 165 | $ 170 | $ 190 | ||||
Alliance Bernstein | Private real estate investment funds | |||||||
Loss Contingencies [Line Items] | |||||||
Commitment to invest | $ 25 | ||||||
Commitment to invest, funded | 22 | ||||||
Alliance Bernstein | Real Estate Funds II | |||||||
Loss Contingencies [Line Items] | |||||||
Commitment to invest | $ 28 | ||||||
Commitment to invest, funded | 10 | ||||||
Alliance Bernstein | Oil And Gas Fund | |||||||
Loss Contingencies [Line Items] | |||||||
Commitment to invest | $ 8 | ||||||
Commitment to invest, funded | 6 | ||||||
Commitment to invest, period | 3 years | ||||||
Alliance Bernstein | Commercial Banks | Limited Partner | |||||||
Loss Contingencies [Line Items] | |||||||
Liability for commitments | $ 0 | ||||||
Alliance Bernstein | Line of Credit | Financial Institutions | |||||||
Loss Contingencies [Line Items] | |||||||
Number of guarantees maintained | line_of_credit | 3 | ||||||
SCBL | Line of Credit | Financial Institutions | |||||||
Loss Contingencies [Line Items] | |||||||
Number of guarantees maintained | line_of_credit | 3 | ||||||
SCBL | Line of Credit | Commercial Banks | |||||||
Loss Contingencies [Line Items] | |||||||
Total amount of guarantees maintained | $ 410 |
INSURANCE GROUP STATUTORY FI114
INSURANCE GROUP STATUTORY FINANCIAL INFORMATION (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance Group Statutory Financial Information [Abstract] | |||
Statutory accounting practices, statutory Amount available for dividend payments without regulatory approval | $ 1,242 | ||
Insurance Groups statutory net income (loss) | 894 | $ 679 | $ 2,038 |
Statutory surplus, capital stock and Asset Valuation Reserve | 7,988 | 5,278 | |
Shareholder dividends | $ 1,050 | $ 767 | |
Common stock dividends, shares | 10 | ||
Fair value of units transferred | $ 245 | ||
Securities on deposit with such government or state agencies | $ 61 | ||
Repayments of surplus notes | $ 200 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)segmentclient_channel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||
Number of reportable segments | segment | 4 | ||||||||||||
Number of main client channels | client_channel | 3 | ||||||||||||
Income (loss) from operations, before income taxes | $ 20 | $ 2,034 | $ (175) | $ 1,857 | $ 1,876 | $ 2,255 | $ 622 | $ 1,038 | |||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Net income (loss) attributable to AXA Equitable | (1) | 1,502 | (172) | 1,328 | 1,326 | 2,860 | 210 | 662 | |||||
Non-GAAP Operating Earnings | 1,745 | 1,317 | 1,165 | ||||||||||
Interest expense | 29 | 16 | 20 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | $ 2,442 | $ 2,429 | $ 4,548 | $ 2,314 | $ (213) | $ 2,153 | $ 3,297 | $ 3,901 | $ 6,859 | $ 9,288 | 11,733 | 9,138 | 8,961 |
Investment income, investment expense | 65 | 66 | 56 | ||||||||||
Intersegment investment advisory and other fees | 1,148 | 999 | 1,056 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | 225,985 | 204,556 | 225,985 | 204,556 | |||||||||
Corporate and Other | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Non-GAAP Operating Earnings | (121) | (95) | (156) | ||||||||||
Interest expense | 23 | 13 | 19 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | 907 | 935 | 913 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | 20,494 | 23,164 | 20,494 | 23,164 | |||||||||
Segment Reconciling Items | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Net income (loss) attributable to AXA Equitable | 2,860 | 210 | 662 | ||||||||||
GMxB features | 282 | 1,511 | 818 | ||||||||||
Investment (gains) losses | 125 | (16) | 20 | ||||||||||
Investment income (loss) from certain derivative instruments | 18 | 6 | (104) | ||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 132 | 135 | 137 | ||||||||||
Other adjustments | 49 | 15 | (11) | ||||||||||
Income tax expense (benefit) related to above adjustments | (183) | (566) | (279) | ||||||||||
Non-recurring tax items | (1,538) | 22 | (78) | ||||||||||
Reconciliation of segment revenues | |||||||||||||
GMxB features | 381 | (1,500) | (818) | ||||||||||
Investment gains (losses) | (125) | 16 | (20) | ||||||||||
Investment income (loss) from certain derivative instruments | (18) | (6) | 104 | ||||||||||
Other adjustments to segment revenues | 197 | 157 | (38) | ||||||||||
Intersegment Eliminations | |||||||||||||
Reconciliation of segment revenues | |||||||||||||
Investment income, investment expense | 52 | 50 | 45 | ||||||||||
Intersegment investment advisory and other fees | 81 | 77 | 73 | ||||||||||
Individual Retirement | Operating Segments | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Non-GAAP Operating Earnings | 1,230 | 1,026 | 911 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | 3,788 | 3,239 | 2,548 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | 120,612 | 106,249 | 120,612 | 106,249 | |||||||||
Group Retirement | Operating Segments | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Non-GAAP Operating Earnings | 287 | 173 | 166 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | 972 | 822 | 806 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | 40,472 | 33,300 | 40,472 | 33,300 | |||||||||
Investment Management and Research | Operating Segments | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Non-GAAP Operating Earnings | 139 | 108 | 136 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | 3,214 | 2,931 | 3,015 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | 10,079 | 9,533 | 10,079 | 9,533 | |||||||||
Protection Solutions | Operating Segments | |||||||||||||
Reconciliation to net income (loss) attributable to AXA Equitable | |||||||||||||
Non-GAAP Operating Earnings | 210 | 105 | 108 | ||||||||||
Reconciliation of segment revenues | |||||||||||||
Segment revenues | 2,417 | 2,544 | 2,451 | ||||||||||
Reconciliation of segment assets | |||||||||||||
Assets | $ 34,328 | $ 32,310 | 34,328 | 32,310 | |||||||||
Non-US | Investment Management and Research | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Income (loss) from operations, before income taxes | $ 139 | $ 109 | $ 111 |
QUARTERLY INTERIM FINANCIAL 116
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||||
Total Revenues | $ 2,442 | $ 2,429 | $ 4,548 | $ 2,314 | $ (213) | $ 2,153 | $ 3,297 | $ 3,901 | $ 6,859 | $ 9,288 | $ 11,733 | $ 9,138 | $ 8,961 |
Total benefits and other deductions | 2,066 | 2,409 | 2,514 | 2,489 | 1,638 | 2,013 | 2,424 | 2,441 | 5,002 | 7,412 | 9,478 | 8,516 | 7,923 |
Net income (loss) | $ 1,712 | $ 121 | $ 1,615 | $ (54) | $ (1,144) | $ 175 | $ 600 | $ 1,075 | $ 1,559 | $ 1,679 | $ 3,394 | $ 706 | $ 1,060 |
QUARTERLY INTERIM FINANCIAL 117
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) - Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total Revenues | $ 2,442 | $ 2,429 | $ 4,548 | $ 2,314 | $ (213) | $ 2,153 | $ 3,297 | $ 3,901 | $ 6,859 | $ 9,288 | $ 11,733 | $ 9,138 | $ 8,961 |
Total benefits and other deductions | 2,066 | 2,409 | 2,514 | 2,489 | 1,638 | 2,013 | 2,424 | 2,441 | 5,002 | 7,412 | 9,478 | 8,516 | 7,923 |
Net income (loss) | $ 1,712 | 121 | 1,615 | (54) | (1,144) | 175 | 600 | 1,075 | 1,559 | 1,679 | $ 3,394 | 706 | 1,060 |
As Previously Reported | |||||||||||||
Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total Revenues | 2,520 | 4,488 | 1,989 | (1,942) | 2,006 | 4,157 | 4,927 | 6,477 | 9,673 | 9,160 | 9,023 | ||
Total benefits and other deductions | 2,581 | 2,691 | 2,562 | 1,627 | 2,036 | 2,581 | 2,473 | 5,253 | 7,800 | 8,775 | 7,981 | ||
Net income (loss) | 66 | 1,459 | (313) | (2,259) | 22 | 1,061 | 1,720 | 1,146 | $ 1,677 | $ 553 | $ 1,065 | ||
Impact of Revisions | |||||||||||||
Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total Revenues | (91) | (138) | (67) | 75 | (8) | 12 | 110 | (208) | |||||
Total benefits and other deductions | (172) | (45) | (143) | 73 | (22) | (5) | 67 | (189) | |||||
Net income (loss) | 55 | (59) | 50 | 0 | 51 | 7 | 29 | (11) | |||||
As Revised and Adjusted Herein | |||||||||||||
Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total Revenues | 2,429 | 4,350 | 1,922 | (1,867) | 1,998 | 4,169 | 5,037 | 6,269 | |||||
Total benefits and other deductions | 2,409 | 2,646 | 2,419 | 1,700 | 2,014 | 2,576 | 2,540 | 5,064 | |||||
Net income (loss) | 121 | 1,400 | (263) | (2,259) | 73 | 1,068 | 1,749 | 1,135 | |||||
Impact of Accounting Change | |||||||||||||
Schedule of Error Correction, Change in Accounting Principal and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Total Revenues | 0 | 198 | 392 | 1,654 | 155 | (872) | (1,136) | 590 | |||||
Total benefits and other deductions | 0 | (132) | 70 | (62) | (1) | (152) | (99) | (62) | |||||
Net income (loss) | $ 0 | $ 215 | $ 209 | $ 1,115 | $ 102 | $ (468) | $ (674) | $ 424 |
QUARTERLY INTERIM FINANCIAL 118
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
ASSETS | ||||||||
Other equity investments | $ 1,351 | [1] | $ 1,456 | $ 1,440 | $ 1,323 | [1] | ||
Other invested assets | 3,121 | [1] | 2,654 | 2,084 | 2,226 | [1] | ||
Total investments | 68,098 | 62,122 | 60,417 | 58,427 | ||||
Deferred policy acquisition costs | 4,547 | $ 4,903 | 4,913 | 4,961 | 5,058 | $ 5,088 | ||
Loans to affiliates | 703 | 5,004 | 4,889 | 4,647 | 703 | |||
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,488 | 10,900 | 11,260 | 9,798 | 10,314 | |||
Other assets | 4,432 | [1] | 4,276 | 4,260 | [1] | |||
Total Assets | 225,985 | 219,395 | 215,713 | 210,013 | 204,556 | |||
LIABILITIES | ||||||||
Policyholders' account balances | 43,805 | 41,516 | 40,292 | 38,825 | ||||
Future policy benefits and other policyholders liabilities | 29,034 | 29,452 | 29,679 | 28,691 | 28,901 | |||
Current and deferred income taxes | 1,973 | 3,265 | 3,267 | 2,726 | 2,834 | |||
Other liabilities | 2,663 | [1] | 2,522 | 2,493 | 2,108 | [1] | ||
Total liabilities | 205,795 | 202,815 | 199,095 | 195,091 | 189,549 | |||
EQUITY | ||||||||
Retained earnings | 9,010 | 7,476 | 7,479 | 5,978 | 6,150 | |||
Accumulated other comprehensive income (loss) | 598 | 331 | 431 | 137 | 17 | |||
AXA Equitable Equity | 16,469 | 13,170 | 13,273 | 11,459 | 11,508 | |||
Noncontrolling interest | 3,095 | 2,984 | 3,046 | 3,096 | ||||
Equity | 19,564 | 16,139 | 16,257 | 14,505 | 14,604 | $ 15,587 | ||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 225,985 | 219,395 | 215,713 | 210,013 | 204,556 | |||
As Previously Reported | ||||||||
ASSETS | ||||||||
Other equity investments | 1,477 | 1,463 | ||||||
Other invested assets | 2,622 | 2,050 | ||||||
Total investments | 62,111 | 60,406 | ||||||
Deferred policy acquisition costs | 4,550 | 4,141 | 4,068 | 4,852 | ||||
Loans to affiliates | 5,016 | 4,870 | 4,639 | |||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 10,933 | 11,290 | 9,795 | 10,316 | ||||
Other assets | 4,258 | |||||||
Total Assets | 219,069 | 214,941 | 209,098 | 204,352 | ||||
LIABILITIES | ||||||||
Policyholders' account balances | 41,531 | 40,308 | ||||||
Future policy benefits and other policyholders liabilities | 29,423 | 26,799 | 25,496 | 28,939 | ||||
Current and deferred income taxes | 3,148 | 4,000 | 3,523 | |||||
Other liabilities | 2,531 | 2,496 | ||||||
Total liabilities | 202,669 | 196,972 | 192,712 | 189,504 | ||||
EQUITY | ||||||||
Retained earnings | 7,265 | 8,779 | 7,411 | 6,005 | ||||
Accumulated other comprehensive income (loss) | 362 | 493 | 179 | 3 | ||||
AXA Equitable Equity | 12,990 | 14,635 | 12,934 | 11,349 | ||||
Noncontrolling interest | 2,973 | 3,035 | ||||||
Equity | 15,959 | 17,608 | 15,969 | 14,445 | ||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 219,069 | 214,941 | 209,098 | 204,352 | ||||
Impact of Revisions | ||||||||
ASSETS | ||||||||
Deferred policy acquisition costs | 353 | 206 | ||||||
Loans to affiliates | (12) | |||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | (33) | (2) | ||||||
Other assets | 18 | |||||||
Total Assets | 326 | 204 | ||||||
LIABILITIES | ||||||||
Future policy benefits and other policyholders liabilities | 29 | (38) | ||||||
Current and deferred income taxes | 117 | |||||||
Total liabilities | 146 | 45 | ||||||
EQUITY | ||||||||
Retained earnings | 211 | 145 | ||||||
Accumulated other comprehensive income (loss) | (31) | 14 | ||||||
AXA Equitable Equity | 180 | 159 | ||||||
Equity | 180 | 159 | ||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 326 | $ 204 | ||||||
Impact of Revisions | ||||||||
ASSETS | ||||||||
Other equity investments | (21) | (23) | ||||||
Other invested assets | 32 | 34 | ||||||
Total investments | 11 | 11 | ||||||
Deferred policy acquisition costs | 247 | 367 | ||||||
Loans to affiliates | 19 | 8 | ||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | (30) | 3 | ||||||
Total Assets | 247 | 389 | ||||||
LIABILITIES | ||||||||
Policyholders' account balances | (15) | (16) | ||||||
Future policy benefits and other policyholders liabilities | 79 | 51 | ||||||
Current and deferred income taxes | 65 | 120 | ||||||
Other liabilities | (9) | (3) | ||||||
Total liabilities | 120 | 152 | ||||||
EQUITY | ||||||||
Retained earnings | 150 | 232 | ||||||
Accumulated other comprehensive income (loss) | (34) | (6) | ||||||
AXA Equitable Equity | 116 | 226 | ||||||
Noncontrolling interest | 11 | 11 | ||||||
Equity | 127 | 237 | ||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 247 | 389 | ||||||
As Revised and Adjusted Herein | ||||||||
ASSETS | ||||||||
Other equity investments | 1,456 | 1,440 | ||||||
Other invested assets | 2,654 | 2,084 | ||||||
Total investments | 62,122 | 60,417 | ||||||
Deferred policy acquisition costs | 4,388 | 4,435 | ||||||
Loans to affiliates | 4,889 | 4,647 | ||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 11,260 | 9,798 | ||||||
Total Assets | 215,188 | 209,487 | ||||||
LIABILITIES | ||||||||
Policyholders' account balances | 41,516 | 40,292 | ||||||
Future policy benefits and other policyholders liabilities | 26,878 | 25,547 | ||||||
Current and deferred income taxes | 4,065 | 3,643 | ||||||
Other liabilities | 2,522 | 2,493 | ||||||
Total liabilities | 197,092 | 192,864 | ||||||
EQUITY | ||||||||
Retained earnings | 8,929 | 7,643 | ||||||
Accumulated other comprehensive income (loss) | 459 | 173 | ||||||
AXA Equitable Equity | 14,751 | 13,160 | ||||||
Noncontrolling interest | 2,984 | 3,046 | ||||||
Equity | 17,735 | 16,206 | ||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | 215,188 | 209,487 | ||||||
Impact of Accounting Change | ||||||||
ASSETS | ||||||||
Other equity investments | 0 | 0 | ||||||
Other invested assets | 0 | 0 | ||||||
Total investments | 0 | 0 | ||||||
Deferred policy acquisition costs | 525 | 526 | ||||||
Loans to affiliates | 0 | 0 | ||||||
Guaranteed minimum income benefit reinsurance asset, at fair value | 0 | 0 | ||||||
Total Assets | 525 | 526 | ||||||
LIABILITIES | ||||||||
Policyholders' account balances | 0 | 0 | ||||||
Future policy benefits and other policyholders liabilities | 2,801 | 3,144 | ||||||
Current and deferred income taxes | (798) | (917) | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | 2,003 | 2,227 | ||||||
EQUITY | ||||||||
Retained earnings | (1,450) | (1,665) | ||||||
Accumulated other comprehensive income (loss) | (28) | (36) | ||||||
AXA Equitable Equity | (1,478) | (1,701) | ||||||
Noncontrolling interest | 0 | 0 | ||||||
Equity | (1,478) | (1,701) | ||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ 525 | $ 526 | ||||||
[1] | See Note 2 for details of balances with variable interest entities. |
QUARTERLY INTERIM FINANCIAL 119
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - INCOME STATEMENT AND COMPRHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||||
Policy charges and fee income | $ 907 | $ 847 | $ 852 | $ 1,698 | $ 2,605 | $ 3,334 | $ 3,344 | $ 3,291 | |||||
Premiums | 208 | 225 | 232 | 457 | 665 | 904 | 880 | 852 | |||||
Net derivative gains (losses) | (406) | 1,762 | (362) | 1,398 | 992 | 890 | (1,211) | (1,161) | |||||
Total revenues | $ 2,442 | 2,429 | 4,548 | 2,314 | $ (213) | $ 2,153 | $ 3,297 | $ 3,901 | 6,859 | 9,288 | 11,733 | 9,138 | 8,961 |
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 907 | 1,364 | 975 | 2,338 | 3,246 | 3,462 | 2,771 | 2,474 | |||||
Interest credited to policyholder's account balances | 245 | 205 | 279 | 484 | 729 | 1,040 | 1,029 | 887 | |||||
Amortization of deferred policy acquisition costs, net | (12) | (49) | 29 | (20) | (32) | 268 | 52 | (243) | |||||
Other operating costs and expenses | 149 | 381 | 530 | 1,431 | 1,458 | 1,497 | |||||||
Total benefits and other deductions | 2,066 | 2,409 | 2,514 | 2,489 | 1,638 | 2,013 | 2,424 | 2,441 | 5,002 | 7,412 | 9,478 | 8,516 | 7,923 |
Income (loss) from operations, before income taxes | 20 | 2,034 | (175) | 1,857 | 1,876 | 2,255 | 622 | 1,038 | |||||
Income tax (expense) benefit | 101 | (419) | 121 | (298) | (197) | 1,139 | 84 | 22 | |||||
Net income (loss) | $ 1,712 | 121 | 1,615 | (54) | (1,144) | 175 | 600 | 1,075 | 1,559 | 1,679 | 3,394 | 706 | 1,060 |
Net income (loss) attributable to AXA Equitable | (1) | 1,502 | (172) | 1,328 | 1,326 | 2,860 | 210 | 662 | |||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (79) | 293 | 92 | 386 | 315 | 563 | (194) | (832) | |||||
Other comprehensive income (loss) | (76) | 273 | 127 | 401 | 333 | 599 | (215) | (861) | |||||
Comprehensive income (loss) | 45 | 1,888 | 73 | 1,960 | 2,012 | 3,993 | 491 | 199 | |||||
Comprehensive income (loss) attributable to AXA Equitable | (109) | 1,795 | (52) | 1,742 | 1,640 | $ 3,441 | 12 | (184) | |||||
As Previously Reported | |||||||||||||
Revenues: | |||||||||||||
Policy charges and fee income | 914 | 865 | 896 | 1,761 | 2,626 | ||||||||
Premiums | 204 | 216 | 225 | 441 | 645 | 854 | 828 | ||||||
Net derivative gains (losses) | (318) | 1,693 | (724) | 969 | 1,376 | (1,163) | (1,075) | ||||||
Total revenues | 2,520 | 4,488 | 1,989 | (1,942) | 2,006 | 4,157 | 4,927 | 6,477 | 9,673 | 9,160 | 9,023 | ||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 995 | 1,452 | 891 | 2,343 | 3,308 | 2,745 | 2,457 | ||||||
Interest credited to policyholder's account balances | 350 | 321 | 337 | 658 | 1,008 | 1,079 | 973 | ||||||
Amortization of deferred policy acquisition costs, net | (33) | (82) | 125 | 43 | 15 | 287 | (254) | ||||||
Other operating costs and expenses | 155 | 384 | 539 | ||||||||||
Total benefits and other deductions | 2,581 | 2,691 | 2,562 | 1,627 | 2,036 | 2,581 | 2,473 | 5,253 | 7,800 | 8,775 | 7,981 | ||
Income (loss) from operations, before income taxes | (61) | 1,797 | (573) | 1,224 | 1,873 | 385 | 1,042 | ||||||
Income tax (expense) benefit | 127 | (338) | 260 | (78) | (196) | 168 | 23 | ||||||
Net income (loss) | 66 | 1,459 | (313) | (2,259) | 22 | 1,061 | 1,720 | 1,146 | 1,677 | 553 | 1,065 | ||
Net income (loss) attributable to AXA Equitable | (56) | 1,346 | (431) | 915 | 1,324 | 57 | 667 | ||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (55) | 314 | 144 | 458 | 362 | (208) | (828) | ||||||
Other comprehensive income (loss) | (52) | 294 | 179 | 473 | 380 | (229) | (857) | ||||||
Comprehensive income (loss) | 14 | 1,753 | (134) | 1,619 | 2,057 | 324 | 208 | ||||||
Comprehensive income (loss) attributable to AXA Equitable | (140) | 1,660 | (259) | 1,401 | 1,685 | (155) | (175) | ||||||
Impact of Revisions | |||||||||||||
Revenues: | |||||||||||||
Policy charges and fee income | (7) | (21) | |||||||||||
Premiums | 4 | 20 | 26 | 24 | |||||||||
Net derivative gains (losses) | (88) | (384) | (48) | (86) | |||||||||
Total revenues | (91) | (385) | (22) | (62) | |||||||||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | (88) | (62) | 26 | 17 | |||||||||
Interest credited to policyholder's account balances | (105) | (279) | (50) | (86) | |||||||||
Amortization of deferred policy acquisition costs, net | 21 | (47) | (235) | 11 | |||||||||
Total benefits and other deductions | (172) | (388) | (259) | (58) | |||||||||
Income (loss) from operations, before income taxes | 81 | 3 | 237 | (4) | |||||||||
Income tax (expense) benefit | (26) | (1) | (84) | (1) | |||||||||
Net income (loss) | 55 | 2 | 153 | (5) | |||||||||
Net income (loss) attributable to AXA Equitable | 55 | 2 | 153 | (5) | |||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (24) | (47) | 14 | (4) | |||||||||
Other comprehensive income (loss) | (24) | (47) | 14 | (4) | |||||||||
Comprehensive income (loss) | 31 | (45) | 167 | (9) | |||||||||
Comprehensive income (loss) attributable to AXA Equitable | 31 | $ (45) | $ 167 | $ (9) | |||||||||
Impact of Revisions | |||||||||||||
Revenues: | |||||||||||||
Policy charges and fee income | 50 | 23 | 72 | ||||||||||
Premiums | 9 | 7 | 16 | ||||||||||
Net derivative gains (losses) | (197) | (97) | (296) | ||||||||||
Total revenues | (91) | (138) | (67) | 75 | (8) | 12 | 110 | (208) | |||||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 46 | 15 | 60 | ||||||||||
Interest credited to policyholder's account balances | (116) | (58) | (174) | ||||||||||
Amortization of deferred policy acquisition costs, net | 31 | (97) | (66) | ||||||||||
Other operating costs and expenses | (6) | (3) | (9) | ||||||||||
Total benefits and other deductions | (172) | (45) | (143) | 73 | (22) | (5) | 67 | (189) | |||||
Income (loss) from operations, before income taxes | (93) | 76 | (19) | ||||||||||
Income tax (expense) benefit | 34 | (26) | 8 | ||||||||||
Net income (loss) | 55 | (59) | 50 | 0 | 51 | 7 | 29 | (11) | |||||
Net income (loss) attributable to AXA Equitable | (59) | 50 | (11) | ||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (29) | (20) | (48) | ||||||||||
Other comprehensive income (loss) | (29) | (20) | (48) | ||||||||||
Comprehensive income (loss) | (88) | 30 | (59) | ||||||||||
Comprehensive income (loss) attributable to AXA Equitable | (88) | 30 | (59) | ||||||||||
As Revised and Adjusted Herein | |||||||||||||
Revenues: | |||||||||||||
Policy charges and fee income | 915 | 919 | 1,833 | ||||||||||
Premiums | 225 | 232 | 457 | ||||||||||
Net derivative gains (losses) | 1,496 | (821) | 673 | ||||||||||
Total revenues | 2,429 | 4,350 | 1,922 | (1,867) | 1,998 | 4,169 | 5,037 | 6,269 | |||||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | 1,498 | 906 | 2,403 | ||||||||||
Interest credited to policyholder's account balances | 205 | 279 | 484 | ||||||||||
Amortization of deferred policy acquisition costs, net | (51) | 28 | (23) | ||||||||||
Other operating costs and expenses | 149 | 381 | 530 | ||||||||||
Total benefits and other deductions | 2,409 | 2,646 | 2,419 | 1,700 | 2,014 | 2,576 | 2,540 | 5,064 | |||||
Income (loss) from operations, before income taxes | 1,704 | (497) | 1,205 | ||||||||||
Income tax (expense) benefit | (304) | 234 | (70) | ||||||||||
Net income (loss) | 121 | 1,400 | (263) | (2,259) | 73 | 1,068 | 1,749 | 1,135 | |||||
Net income (loss) attributable to AXA Equitable | 1,287 | (381) | 904 | ||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | 285 | 124 | 410 | ||||||||||
Other comprehensive income (loss) | 265 | 159 | 425 | ||||||||||
Comprehensive income (loss) | 1,665 | (104) | 1,560 | ||||||||||
Comprehensive income (loss) attributable to AXA Equitable | 1,572 | (229) | 1,342 | ||||||||||
Impact of Accounting Change | |||||||||||||
Revenues: | |||||||||||||
Policy charges and fee income | (68) | (67) | (135) | ||||||||||
Premiums | 0 | 0 | 0 | ||||||||||
Net derivative gains (losses) | 266 | 459 | 725 | ||||||||||
Total revenues | 0 | 198 | 392 | 1,654 | 155 | (872) | (1,136) | 590 | |||||
Benefits and other deductions: | |||||||||||||
Policyholders’ benefits | (134) | 69 | (65) | ||||||||||
Interest credited to policyholder's account balances | 0 | 0 | 0 | ||||||||||
Amortization of deferred policy acquisition costs, net | 2 | 1 | 3 | ||||||||||
Other operating costs and expenses | 0 | 0 | 0 | ||||||||||
Total benefits and other deductions | 0 | (132) | 70 | (62) | (1) | (152) | (99) | (62) | |||||
Income (loss) from operations, before income taxes | 330 | 322 | 652 | ||||||||||
Income tax (expense) benefit | (115) | (113) | (228) | ||||||||||
Net income (loss) | $ 0 | 215 | 209 | $ 1,115 | $ 102 | $ (468) | $ (674) | 424 | |||||
Net income (loss) attributable to AXA Equitable | 215 | 209 | 424 | ||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | 8 | (32) | (24) | ||||||||||
Other comprehensive income (loss) | 8 | (32) | (24) | ||||||||||
Comprehensive income (loss) | 223 | 177 | 400 | ||||||||||
Comprehensive income (loss) attributable to AXA Equitable | $ 223 | $ 177 | $ 400 |
QUARTERLY INTERIM FINANCIAL 120
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - STATEMENTS OF EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | $ 16,257 | $ 14,505 | $ 14,604 | $ 14,604 | $ 14,604 | $ 14,604 | $ 15,587 | |
Net income (loss) | (1) | 1,502 | (172) | 1,328 | 1,326 | 2,860 | 210 | $ 662 |
Other comprehensive income (loss) | (76) | 273 | 127 | 401 | 333 | 599 | (215) | (861) |
Equity balance, end of year | 16,139 | 16,257 | 14,505 | 16,257 | 16,139 | 19,564 | 14,604 | 15,587 |
As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 17,608 | 15,969 | 14,445 | 14,445 | 14,445 | 14,445 | ||
Net income (loss) | (56) | 1,346 | (431) | 915 | 1,324 | 57 | 667 | |
Other comprehensive income (loss) | (52) | 294 | 179 | 473 | 380 | (229) | (857) | |
Equity balance, end of year | 15,959 | 17,608 | 15,969 | 17,608 | 15,959 | 14,445 | ||
Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 159 | 159 | 159 | 159 | ||||
Net income (loss) | 55 | 2 | 153 | (5) | ||||
Other comprehensive income (loss) | (24) | (47) | 14 | (4) | ||||
Equity balance, end of year | 180 | 180 | 159 | |||||
Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 127 | 237 | ||||||
Net income (loss) | (59) | 50 | (11) | |||||
Other comprehensive income (loss) | (29) | (20) | (48) | |||||
Equity balance, end of year | 127 | 237 | 127 | |||||
As Revised and Adjusted Herein | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 17,735 | 16,206 | ||||||
Net income (loss) | 1,287 | (381) | 904 | |||||
Other comprehensive income (loss) | 265 | 159 | 425 | |||||
Equity balance, end of year | 17,735 | 16,206 | 17,735 | |||||
Impact of Accounting Change | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | (1,478) | (1,701) | ||||||
Net income (loss) | 215 | 209 | 424 | |||||
Other comprehensive income (loss) | 8 | (32) | (24) | |||||
Equity balance, end of year | (1,478) | (1,701) | (1,478) | |||||
Retained Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 7,479 | 5,978 | 6,150 | 6,150 | 6,150 | 6,150 | 6,990 | 7,240 |
Equity balance, as revised, beginning of year | 6,150 | |||||||
Equity balance, as revised and adjusted, beginning of year | 6,151 | |||||||
Equity balance, previously reported, as revised | 6,150 | |||||||
Net income (loss) | (172) | 1,328 | 1,326 | 2,860 | 210 | 662 | ||
Equity balance, end of year | 7,476 | 7,479 | 5,978 | 7,479 | 7,476 | 9,010 | 6,150 | 6,990 |
Retained Earnings | As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 8,779 | 7,411 | 6,005 | 6,005 | 6,005 | 6,005 | 6,998 | |
Equity balance, as revised, beginning of year | 5,941 | |||||||
Equity balance, as revised and adjusted, beginning of year | 7,864 | |||||||
Equity balance, previously reported, as revised | 7,842 | |||||||
Net income (loss) | (431) | 915 | 1,324 | 57 | 667 | |||
Equity balance, end of year | 7,265 | 8,779 | 7,411 | 8,779 | 7,265 | 6,005 | 6,998 | |
Retained Earnings | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 145 | 145 | 145 | 145 | (8) | |||
Equity balance, as revised, beginning of year | 209 | |||||||
Net income (loss) | 2 | 153 | (5) | |||||
Equity balance, end of year | 211 | 211 | 145 | (8) | ||||
Retained Earnings | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 150 | 232 | ||||||
Equity balance, as revised and adjusted, beginning of year | 161 | |||||||
Equity balance, previously reported, as revised | 182 | |||||||
Net income (loss) | 50 | (11) | ||||||
Equity balance, end of year | 150 | 232 | 150 | |||||
Retained Earnings | As Revised and Adjusted Herein | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 8,929 | 7,643 | ||||||
Equity balance, as revised and adjusted, beginning of year | 8,025 | |||||||
Equity balance, previously reported, as revised | 8,024 | |||||||
Net income (loss) | (381) | 904 | ||||||
Equity balance, end of year | 8,929 | 7,643 | 8,929 | |||||
Retained Earnings | Impact of Accounting Change | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | (1,450) | (1,665) | ||||||
Equity balance, as revised and adjusted, beginning of year | (1,874) | |||||||
Equity balance, previously reported, as revised | (1,874) | |||||||
Net income (loss) | 209 | 424 | ||||||
Equity balance, end of year | (1,450) | (1,665) | (1,450) | |||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 431 | 137 | 17 | 17 | 17 | 17 | 215 | 289 |
Equity balance, as revised, beginning of year | 17 | |||||||
Equity balance, as revised and adjusted, beginning of year | 17 | |||||||
Equity balance, previously reported, as revised | 17 | |||||||
Other comprehensive income (loss) | 120 | 414 | 314 | 581 | (198) | (846) | ||
Equity balance, end of year | 331 | 431 | 137 | 431 | 331 | 598 | 17 | 215 |
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 493 | 179 | 3 | 3 | 3 | 3 | 215 | |
Equity balance, as revised, beginning of year | 1 | |||||||
Equity balance, as revised and adjusted, beginning of year | 7 | |||||||
Equity balance, previously reported, as revised | 7 | |||||||
Other comprehensive income (loss) | 172 | 486 | 361 | (212) | (842) | |||
Equity balance, end of year | 362 | 493 | 179 | 493 | 362 | 3 | 215 | |
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 14 | 14 | 14 | 14 | 0 | |||
Equity balance, as revised, beginning of year | 16 | |||||||
Other comprehensive income (loss) | (47) | 14 | (4) | |||||
Equity balance, end of year | (31) | (31) | 14 | 0 | ||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | (34) | (6) | ||||||
Equity balance, as revised and adjusted, beginning of year | 14 | |||||||
Equity balance, previously reported, as revised | 14 | |||||||
Other comprehensive income (loss) | (20) | (48) | ||||||
Equity balance, end of year | (34) | (6) | (34) | |||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | As Revised and Adjusted Herein | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 459 | 173 | ||||||
Equity balance, as revised and adjusted, beginning of year | 21 | |||||||
Equity balance, previously reported, as revised | 21 | |||||||
Other comprehensive income (loss) | 152 | 438 | ||||||
Equity balance, end of year | 459 | 173 | 459 | |||||
Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable | Impact of Accounting Change | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | (28) | (36) | ||||||
Equity balance, as revised and adjusted, beginning of year | (4) | |||||||
Equity balance, previously reported, as revised | (4) | |||||||
Other comprehensive income (loss) | (32) | (24) | ||||||
Equity balance, end of year | (28) | (36) | (28) | |||||
Parent | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 13,273 | 11,459 | 11,508 | 11,508 | 11,508 | 11,508 | 12,528 | |
Equity balance, as revised, beginning of year | 14,604 | 15,587 | ||||||
Equity balance, end of year | 13,170 | 13,273 | 11,459 | 13,273 | 13,170 | 16,469 | 11,508 | 12,528 |
Parent | As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 14,635 | 12,934 | 11,349 | 11,349 | 11,349 | 11,349 | 12,536 | |
Equity balance, as revised, beginning of year | 14,445 | 15,595 | ||||||
Equity balance, end of year | 12,990 | 14,635 | 12,934 | 14,635 | 12,990 | 11,349 | 12,536 | |
Parent | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 159 | 159 | 159 | 159 | (8) | |||
Equity balance, as revised, beginning of year | 159 | (8) | ||||||
Equity balance, end of year | 180 | 180 | 159 | (8) | ||||
Parent | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 116 | 226 | ||||||
Equity balance, end of year | 116 | 226 | 116 | |||||
Parent | As Revised and Adjusted Herein | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 14,751 | 13,160 | ||||||
Equity balance, end of year | 14,751 | 13,160 | 14,751 | |||||
Parent | Impact of Accounting Change | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | (1,478) | (1,701) | ||||||
Equity balance, end of year | (1,478) | (1,701) | (1,478) | |||||
Noncontrolling Interest | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 2,984 | 3,046 | 3,096 | 3,096 | 3,096 | 3,096 | 3,059 | 2,967 |
Other comprehensive income (loss) | 18 | (17) | (15) | |||||
Equity balance, end of year | 2,984 | 3,046 | 2,984 | 3,095 | 3,096 | $ 3,059 | ||
Noncontrolling Interest | As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 2,973 | 3,035 | 3,085 | 3,085 | 3,085 | 3,085 | ||
Equity balance, end of year | 2,973 | 3,035 | 2,973 | 3,085 | ||||
Noncontrolling Interest | Impact of Revisions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 11 | 11 | 11 | 11 | 11 | 11 | ||
Equity balance, end of year | 11 | 11 | 11 | 11 | ||||
Noncontrolling Interest | As Revised and Adjusted Herein | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | 2,984 | 3,046 | 3,096 | 3,096 | 3,096 | 3,096 | ||
Equity balance, end of year | 2,984 | 3,046 | 2,984 | 3,096 | ||||
Noncontrolling Interest | Impact of Accounting Change | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Equity balance, beginning of year | $ 0 | 0 | 0 | 0 | $ 0 | $ 0 | ||
Equity balance, end of year | $ 0 | $ 0 | $ 0 | $ 0 |
QUARTERLY INTERIM FINANCIAL 121
QUARTERLY INTERIM FINANCIAL INFORMATION (UNAUDITED) - REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | $ 1,712 | $ 121 | $ 1,615 | $ (54) | $ (1,144) | $ 175 | $ 600 | $ 1,075 | $ 1,559 | $ 1,679 | $ 3,394 | $ 706 | $ 1,060 |
Policy charges and fee income | (907) | (847) | (852) | (1,698) | (2,605) | (3,334) | (3,344) | (3,291) | |||||
Interest credited to policyholder's account balances | 245 | 205 | 279 | 484 | 729 | 1,040 | 1,029 | 887 | |||||
Net derivative (gains) losses | 406 | (1,762) | 362 | (1,398) | (992) | (890) | 1,211 | 1,161 | |||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | (12) | (49) | 29 | (20) | (32) | 268 | 52 | (243) | |||||
Future policy benefits | 241 | 1,303 | 1,208 | 1,511 | 431 | 631 | |||||||
Reinsurance recoverable | (23) | (194) | (416) | (304) | (929) | ||||||||
Current and deferred income taxes | (188) | 204 | (664) | (742) | 50 | ||||||||
Other | 177 | 84 | 189 | (161) | (99) | ||||||||
Net cash provided by (used in) operating activities | 18 | (75) | 994 | $ 1,077 | (461) | (324) | |||||||
As Previously Reported | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | 66 | 1,459 | (313) | (2,259) | 22 | 1,061 | 1,720 | 1,146 | 1,677 | 553 | 1,065 | ||
Policy charges and fee income | (914) | (865) | (896) | (1,761) | (2,626) | ||||||||
Interest credited to policyholder's account balances | 350 | 321 | 337 | 658 | 1,008 | 1,079 | 973 | ||||||
Net derivative (gains) losses | 318 | (1,693) | 724 | (969) | (1,376) | 1,163 | 1,075 | ||||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | (33) | (82) | 125 | 43 | 15 | 287 | (254) | ||||||
Future policy benefits | 185 | 1,381 | 1,289 | ||||||||||
Reinsurance recoverable | (44) | (251) | |||||||||||
Current and deferred income taxes | (327) | (16) | (826) | 49 | |||||||||
Other | 180 | 93 | (161) | (92) | |||||||||
Net cash provided by (used in) operating activities | 18 | (75) | 994 | (461) | (324) | ||||||||
Impact of Revisions | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | 55 | 2 | 153 | (5) | |||||||||
Policy charges and fee income | 7 | 21 | |||||||||||
Interest credited to policyholder's account balances | (105) | (279) | (50) | (86) | |||||||||
Net derivative (gains) losses | 88 | 384 | 48 | 86 | |||||||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | 21 | (47) | (235) | 11 | |||||||||
Future policy benefits | (81) | ||||||||||||
Current and deferred income taxes | 84 | 1 | |||||||||||
Other | 0 | (7) | |||||||||||
Net cash provided by (used in) operating activities | $ 0 | $ 0 | $ 0 | ||||||||||
Restatement, Impact of Revisions | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | 55 | (59) | 50 | 0 | 51 | 7 | 29 | (11) | |||||
Policy charges and fee income | (50) | (23) | (72) | ||||||||||
Interest credited to policyholder's account balances | (116) | (58) | (174) | ||||||||||
Net derivative (gains) losses | 197 | 97 | 296 | ||||||||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | 31 | (97) | (66) | ||||||||||
Future policy benefits | (13) | (13) | |||||||||||
Reinsurance recoverable | 21 | 57 | |||||||||||
Current and deferred income taxes | 26 | (8) | |||||||||||
Other | (3) | (9) | |||||||||||
Net cash provided by (used in) operating activities | 0 | 0 | |||||||||||
As Revised and Adjusted Herein | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | 121 | 1,400 | (263) | (2,259) | 73 | 1,068 | 1,749 | 1,135 | |||||
Policy charges and fee income | (915) | (919) | (1,833) | ||||||||||
Interest credited to policyholder's account balances | 205 | 279 | 484 | ||||||||||
Net derivative (gains) losses | (1,496) | 821 | (673) | ||||||||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | (51) | 28 | (23) | ||||||||||
Future policy benefits | 172 | 1,368 | |||||||||||
Reinsurance recoverable | (23) | (194) | |||||||||||
Current and deferred income taxes | (301) | (24) | |||||||||||
Other | 177 | 84 | |||||||||||
Net cash provided by (used in) operating activities | 18 | (75) | |||||||||||
Impact of Accounting Change | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Net income (loss) | $ 0 | 215 | 209 | $ 1,115 | $ 102 | $ (468) | $ (674) | 424 | |||||
Policy charges and fee income | 68 | 67 | 135 | ||||||||||
Interest credited to policyholder's account balances | 0 | 0 | 0 | ||||||||||
Net derivative (gains) losses | (266) | (459) | (725) | ||||||||||
Changes in: | |||||||||||||
Deferred policy acquisition costs | $ 2 | 1 | 3 | ||||||||||
Future policy benefits | 69 | (65) | |||||||||||
Reinsurance recoverable | 0 | 0 | |||||||||||
Current and deferred income taxes | 113 | 228 | |||||||||||
Other | 0 | 0 | |||||||||||
Net cash provided by (used in) operating activities | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event $ in Millions | 1 Months Ended | |
Mar. 31, 2018USD ($)joint_venture | Feb. 01, 2018USD ($) | |
Subsequent Event [Line Items] | ||
Percentage of single premium deferred annuities ceded | 90.00% | |
Coinsurance agreement, transferred assets | $ 635 | |
Number of joint ventures sold | joint_venture | 2 | |
Proceeds from sale of joint ventures | $ 143 | |
Reduction in long term debt | $ 203 |
SCHEDULE I - SUMMARY OF INVE123
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 66,612 |
Fair Value | 68,953 |
Carrying Value | 68,098 |
U.S. Treasury, government and agency | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 12,644 |
Fair Value | 13,135 |
Carrying Value | 13,135 |
States and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 414 |
Fair Value | 481 |
Carrying Value | 481 |
Foreign governments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 376 |
Fair Value | 396 |
Carrying Value | 396 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3,540 |
Fair Value | 3,728 |
Carrying Value | 3,728 |
All other corporate bonds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,083 |
Fair Value | 17,784 |
Carrying Value | 17,784 |
Residential mortgage-backed | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 236 |
Fair Value | 251 |
Carrying Value | 251 |
Asset-backed | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 89 |
Fair Value | 92 |
Carrying Value | 92 |
Redeemable preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 449 |
Fair Value | 491 |
Carrying Value | 491 |
Fixed maturities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 34,831 |
Fair Value | 36,358 |
Carrying Value | 36,358 |
Mortgage loans on real estate | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10,943 |
Fair Value | 10,895 |
Carrying Value | 10,935 |
Real estate held for the production of income | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 390 |
Fair Value | 390 |
Carrying Value | 390 |
Policy loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3,315 |
Fair Value | 4,210 |
Carrying Value | 3,315 |
Other equity investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,351 |
Fair Value | 1,351 |
Carrying Value | 1,351 |
Trading securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 12,661 |
Fair Value | 12,628 |
Carrying Value | 12,628 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3,121 |
Fair Value | 3,121 |
Carrying Value | $ 3,121 |
SCHEDULE III - SUPPLEMENTARY124
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | Mar. 31, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||
Deferred Policy Acquisition Costs | $ 4,547 | $ 5,058 | |||
Policyholders’ Account Balances | 43,805 | 38,825 | $ 41,516 | $ 40,292 | |
Future Policy Benefits and other Policyholders’ Funds | 29,034 | 28,901 | |||
Policy Charges And Premium Revenue | 4,238 | 4,224 | $ 4,143 | ||
Net Investment Income (Loss) | 3,473 | 1,107 | 896 | ||
Policyholders’ Benefits and Interest Credited | 4,502 | 3,800 | 3,361 | ||
Amortization of Deferred Policy Acquisition Costs | 268 | 52 | (243) | ||
All Other Operating Expense | $ 4,708 | $ 4,664 | $ 4,805 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Life Insurance In-Force | ||||||||
Gross Amount | $ 392,926 | $ 399,230 | $ 406,240 | |||||
Ceded to Other Companies | 41,330 | 78,760 | 82,927 | |||||
Assumed from Other Companies | 30,300 | 31,722 | 31,427 | |||||
Net Amount | 381,896 | 352,192 | 354,740 | |||||
Premiums: | ||||||||
Gross Amount | 880 | 850 | 818 | |||||
Ceded to Other Companies | 171 | 176 | 173 | |||||
Assumed from Other Companies | 195 | 206 | 207 | |||||
Premiums | $ 208 | $ 225 | $ 232 | $ 457 | $ 665 | $ 904 | $ 880 | $ 852 |
Life Insurance In-Force, Percentage of Amount Assumed to Net | 7.90% | 9.00% | 8.90% | |||||
Premiums, Percentage of Amount Assumed to Net | 21.60% | 23.40% | 24.30% | |||||
Life insurance and annuities | ||||||||
Premiums: | ||||||||
Gross Amount | $ 826 | $ 790 | $ 751 | |||||
Ceded to Other Companies | 135 | 135 | 128 | |||||
Assumed from Other Companies | 186 | 197 | 197 | |||||
Premiums | $ 877 | $ 852 | $ 820 | |||||
Premiums, Percentage of Amount Assumed to Net | 21.20% | 23.10% | 24.00% | |||||
Accident and health | ||||||||
Premiums: | ||||||||
Gross Amount | $ 54 | $ 60 | $ 67 | |||||
Ceded to Other Companies | 36 | 41 | 45 | |||||
Assumed from Other Companies | 9 | 9 | 10 | |||||
Premiums | $ 27 | $ 28 | $ 32 | |||||
Premiums, Percentage of Amount Assumed to Net | 33.30% | 32.10% | 31.30% |