Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 10, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2019 | |||
Document Transition Report | false | |||
Entity File Number | 033-23376 | |||
Entity Registrant Name | VOYA RETIREMENT INSURANCE & ANNUITY CO | |||
Entity Incorporation, State or Country Code | CT | |||
Entity Tax Identification Number | 71-0294708 | |||
Entity Address, Address Line One | One Orange Way | |||
Entity Address, City or Town | Windsor | |||
Entity Address, State or Province | CT | |||
Entity Address, Postal Zip Code | 06095-4774 | |||
City Area Code | 860 | |||
Local Phone Number | 580-4646 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Company | false | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 0 | |||
Entity Common Stock, Shares Outstanding | 55,000 | |||
Common stock, par value | $ 50 | $ 50 | $ 50 | |
Entity Central Index Key | 0000837010 | |||
Current Fiscal Year End Date | --12-31 | |||
Document Fiscal Year Focus | 2019 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $23,107 as of 2019 and $22,860 as of 2018) | $ 25,153 | $ 22,981 |
Fixed maturities, at fair value using the fair value option | 1,479 | 1,171 |
Equity securities, at fair value (cost of $73 as of 2019 and $45 as of 2018) | 80 | 57 |
Short-term investments | 0 | 50 |
Mortgage loans on real estate, net of valuation allowance of $0 as of 2019 and $1 as of 2018 | 4,664 | 4,918 |
Policy loans | 205 | 210 |
Limited partnerships/corporations | 738 | 583 |
Derivatives | 224 | 128 |
Other investments | 43 | 40 |
Total investments | 33,414 | 31,020 |
Cash and cash equivalents | 512 | 371 |
Short-term investments under securities loan agreements, including collateral delivered | 917 | 793 |
Accrued investment income | 293 | 301 |
Premiums receivable and reinsurance recoverable | 1,304 | 1,409 |
Deferred policy acquisition costs, Value of business acquired and Sales inducements to contract owners | 608 | 1,104 |
Short-term loan to affiliate | 69 | 0 |
Current income tax recoverable | 9 | 32 |
Due from affiliates | 67 | 54 |
Property and equipment | 60 | 62 |
Other assets | 255 | 331 |
Assets held in separate accounts | 78,713 | 67,323 |
Total assets | 116,221 | 102,800 |
Liabilities and Shareholder's Equity | ||
Future policy benefits and contract owner account balances | 31,142 | 30,695 |
Payable for securities purchased | 5 | 49 |
Payables under securities loan agreements, including collateral held | 865 | 827 |
Due to affiliates | 95 | 81 |
Derivatives | 285 | 99 |
Deferred income taxes | 304 | 5 |
Other liabilities | 369 | 286 |
Liabilities related to separate accounts | 78,713 | 67,323 |
Total liabilities | 111,778 | 99,365 |
Commitments and Contingencies (Note 13) | ||
Shareholder's equity: | ||
Common stock (100,000 shares authorized, 55,000 issued and outstanding as of 2019 and 2018; $50 par value per share) | 3 | 3 |
Additional paid-in capital | 2,873 | 2,816 |
Accumulated other comprehensive income (loss) | 1,292 | 108 |
Retained earnings (deficit) | 275 | 508 |
Total shareholder's equity | 4,443 | 3,435 |
Total liabilities and shareholder's equity | $ 116,221 | $ 102,800 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, amortized cost | $ 23,107 | $ 22,860 |
Equity securities, cost | 73 | 45 |
Mortgage loans on real estate valuation allowance | 0 | 1 |
Securities pledged, amortized costs | $ 749 | $ 867 |
Common stock, par value | $ 50 | $ 50 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 55,000 | 55,000 |
Common stock, shares outstanding | 55,000 | 55,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||||
Net investment income | $ 1,689,000,000 | $ 1,623,000,000 | $ 1,520,000,000 | |
Fee income | 877,000,000 | 875,000,000 | 857,000,000 | |
Premiums | 31,000,000 | 41,000,000 | 48,000,000 | |
Broker-dealer commission revenue | 2,000,000 | 69,000,000 | 170,000,000 | |
Net realized capital gains (losses): | ||||
Total other-than-temporary impairments | (41,000,000) | (18,000,000) | (19,000,000) | |
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss) | 2,000,000 | 2,000,000 | (7,000,000) | |
Net other-than-temporary impairments recognized in earnings | (43,000,000) | (20,000,000) | (12,000,000) | |
Other net realized capital gains (losses) | (101,000,000) | (222,000,000) | (188,000,000) | |
Total net realized capital gains (losses) | (144,000,000) | (242,000,000) | (200,000,000) | |
Other revenue | 14,000,000 | 19,000,000 | 3,000,000 | |
Total revenues | 2,469,000,000 | 2,385,000,000 | 2,398,000,000 | |
Benefits and expenses: | ||||
Interest credited and other benefits to contract owners/policyholders | 1,013,000,000 | 828,000,000 | 958,000,000 | |
Operating expenses | 1,056,000,000 | 894,000,000 | 1,022,000,000 | |
Broker-dealer commission expense | 2,000,000 | 69,000,000 | 170,000,000 | |
Net amortization of Deferred policy acquisition costs and Value of business acquired | 65,000,000 | 86,000,000 | 233,000,000 | |
Interest expense | $ 1,000,000 | 1,000,000 | 2,000,000 | |
Total benefits and expenses | 2,137,000,000 | 1,879,000,000 | 2,384,000,000 | |
Income (loss) before income taxes | 332,000,000 | 506,000,000 | 14,000,000 | |
Income tax expense (benefit) | 32,000,000 | 61,000,000 | (101,000,000) | |
Net income (loss) | $ 300,000,000 | $ 445,000,000 | $ 115,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 300 | $ 445 | $ 115 |
Other comprehensive income (loss), before tax: | |||
Unrealized gains/losses on securities | 1,323 | (897) | 387 |
Other-than-temporary impairments | 1 | 8 | (4) |
Pension and other postretirement benefits liability | (1) | (1) | (2) |
Other comprehensive income (loss), before tax | 1,323 | (890) | 381 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 276 | (192) | 122 |
Other comprehensive income (loss), after tax | 1,047 | (698) | 259 |
Comprehensive income (loss) | $ 1,347 | $ (253) | $ 374 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) | Previously Reported | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-In Capital | Previously ReportedAccumulated Other Comprehensive Income (Loss) | Previously ReportedRetained Earnings (Deficit) |
Beginning Balance at Dec. 31, 2016 | $ 3,563 | $ 3 | $ 3,015 | $ 559 | $ (14) | |||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 115 | 0 | 0 | 0 | 115 | |||||
Other comprehensive income (loss), after tax | 259 | 0 | 0 | 259 | 0 | |||||
Comprehensive income (loss) | 374 | |||||||||
Dividends paid and distributions of capital | (265) | 0 | (265) | 0 | 0 | |||||
Contribution of capital | 12 | 0 | 12 | 0 | 0 | |||||
Employee related benefits | 1 | 0 | 1 | 0 | 0 | |||||
Ending Balance at Dec. 31, 2017 | $ 3,685 | $ 3 | $ 2,763 | $ 818 | $ 101 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stockholders' Equity Atrributable to Parent, Adjusted Balance | 3,761 | 3 | 2,763 | 806 | 189 | |||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 445 | 0 | 0 | 0 | 445 | |||||
Other comprehensive income (loss), after tax | (698) | 0 | 0 | (698) | 0 | |||||
Comprehensive income (loss) | (253) | |||||||||
Dividends paid and distributions of capital | (126) | 0 | 0 | 0 | (126) | |||||
Contribution of capital | 55 | 0 | 55 | 0 | 0 | |||||
Employee related benefits | (2) | 0 | (2) | 0 | 0 | |||||
Ending Balance at Dec. 31, 2018 | 3,435 | 3 | 2,816 | 108 | 508 | |||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 300 | 0 | 0 | 0 | 300 | |||||
Other comprehensive income (loss), after tax | 1,047 | 0 | 0 | 1,047 | 0 | |||||
Comprehensive income (loss) | 1,347 | |||||||||
Dividends paid and distributions of capital | (396) | 0 | 0 | 0 | (396) | |||||
Contribution of capital | 57 | 0 | 57 | 0 | 0 | |||||
Employee related benefits | 0 | 0 | 0 | 0 | 0 | |||||
Effect of transaction for entities under common control | 0 | 0 | 0 | 0 | 0 | |||||
Ending Balance at Dec. 31, 2019 | 4,443 | 3 | 2,873 | 1,292 | 275 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Adjustment for adoption of ASU 2018-02 | $ 0 | $ 0 | $ 0 | $ 137 | $ (137) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 300,000,000 | $ 445,000,000 | $ 115,000,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Capitalization of deferred policy acquisition costs, value of business acquired and sales inducements | (49,000,000) | (64,000,000) | (80,000,000) |
Net amortization of deferred policy acquisition costs, value of business acquired and sales inducements | 65,000,000 | 87,000,000 | 234,000,000 |
Net accretion/amortization of discount/premium | 5,000,000 | (3,000,000) | 12,000,000 |
Future policy benefits, claims reserves and interest credited | 568,000,000 | 547,000,000 | 534,000,000 |
Deferred income tax (benefit) expense | 23,000,000 | 58,000,000 | (95,000,000) |
Net realized capital losses | 144,000,000 | 242,000,000 | 200,000,000 |
Depreciation and amortization | 21,000,000 | 14,000,000 | 17,000,000 |
(Gains) losses on limited partnerships/corporations | (35,000,000) | 0 | 0 |
Change in: | |||
Accrued investment income | 9,000,000 | 3,000,000 | (3,000,000) |
Premiums receivable and reinsurance recoverable | 105,000,000 | 87,000,000 | 138,000,000 |
Other receivables and asset accruals | 55,000,000 | (8,000,000) | 19,000,000 |
Due to/from affiliates | 2,000,000 | 24,000,000 | (113,000,000) |
Other payables and accruals | 158,000,000 | (176,000,000) | 10,000,000 |
Other, net | (8,000,000) | (33,000,000) | (24,000,000) |
Net cash provided by operating activities | 1,363,000,000 | 1,223,000,000 | 964,000,000 |
Proceeds from the sale, maturity, disposal or redemption of: | |||
Fixed maturities | 3,956,000,000 | 3,983,000,000 | 4,462,000,000 |
Equity securities, available-for-sale | 3,000,000 | 3,000,000 | 25,000,000 |
Mortgage loans on real estate | 803,000,000 | 598,000,000 | 494,000,000 |
Limited partnerships/corporations | 70,000,000 | 99,000,000 | 81,000,000 |
Acquisition of: | |||
Fixed maturities | (4,582,000,000) | (5,475,000,000) | (4,247,000,000) |
Equity securities, available-for-sale | (12,000,000) | (3,000,000) | (2,000,000) |
Mortgage loans on real estate | (555,000,000) | (606,000,000) | (1,149,000,000) |
Limited partnerships/corporations | (190,000,000) | (254,000,000) | (120,000,000) |
Derivatives, net | 23,000,000 | 23,000,000 | 203,000,000 |
Policy loans, net | 5,000,000 | 4,000,000 | 5,000,000 |
Short-term investments, net | 50,000,000 | (26,000,000) | 8,000,000 |
Short-term loan to affiliate, net | (69,000,000) | 80,000,000 | (80,000,000) |
Collateral received (delivered), net | (86,000,000) | (46,000,000) | (189,000,000) |
Other, net | (3,000,000) | (45,000,000) | (6,000,000) |
Net cash used in investing activities | (587,000,000) | (1,665,000,000) | (515,000,000) |
Cash Flows from Financing Activities: | |||
Deposits received for investment contracts | 3,395,000,000 | 3,744,000,000 | 2,380,000,000 |
Maturities and withdrawals from investment contracts | (3,686,000,000) | (3,108,000,000) | (2,794,000,000) |
Settlements on deposit contracts | (5,000,000) | (20,000,000) | (64,000,000) |
Short-term loans from affiliates, net | 0 | (68,000,000) | 26,000,000 |
Dividends paid and return of capital distribution | (396,000,000) | (126,000,000) | (265,000,000) |
Proceeds from Contributions from Parent | 57,000,000 | 55,000,000 | 12,000,000 |
Net cash (used in) provided by financing activities | (635,000,000) | 477,000,000 | (705,000,000) |
Net increase (decrease) in cash and cash equivalents | 141,000,000 | 35,000,000 | (256,000,000) |
Cash and cash equivalents, beginning of year | 371,000,000 | 336,000,000 | 592,000,000 |
Cash and cash equivalents, end of year | 512,000,000 | 371,000,000 | 336,000,000 |
Supplemental cash flow information: | |||
Income taxes paid (received), net | $ (13,000,000) | $ 60,000,000 | $ (43,000,000) |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | Business, Basis of Presentation and Significant Accounting Policies Business Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia and in Guam, Puerto Rico and the Virgin Islands. Prior to May 2013, Voya Financial, Inc. ("Voya Financial"), together with its subsidiaries, including the Company was an indirect, wholly owned subsidiary of ING Groep N.V. ("ING Group" or "ING"), a global financial services holding company based in The Netherlands. In May 2013, Voya Financial, Inc. completed its initial public offering o f common stock, including the issuance and sale of common stock by Voya Financial, Inc. and the sale of shares of common stock owned indirectly by ING Group. Between October 2013 and March 2015, ING Group completed the sale of its remaining shares of common stock of Voya Financial, Inc. in a series of registered public offerings. VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc. Effective December 31, 2019, VRIAC’s sole shareholder, Voya Holdings, Inc., transferred ownership of Voya Institutional Plan Services, LLC (“VIPS”) and Voya Retirement Advisors, LLC (“VRA”) to VRIAC for no cash consideration. VIPS and VRA provide retirement recordkeeping and investment advisory services, respectively, and the transfer was made to more closely align recordkeeping and related activities of VRIAC’s retirement business. It also had the effect of reducing VRIAC's tax liability. This transaction was accounted for under the accounting guidance for transactions under common control which requires that financial statements reflect the transferred business for all prior periods as if the transfer occurred as of the beginning of the first period presented. As such, the Consolidated Financial Statements for the prior periods presented have been restated to reflect the transfer of VIPS and VRA to VRIAC as of January 1, 2017. The related impact to the previously reported Net income (loss) for the years ended December 31, 2018 and 2017 was a decrease in net income of $50 and $95 , respectively. In addition to these non-insurance subsidiaries, VRIAC also has the wholly-owned owned non-insurance subsidiary, Voya Financial Partners, LLC ("VFP"). On December 18, 2019, VRIAC’s ultimate parent, Voya Financial, entered into a Master Transaction Agreement (the “Resolution MTA”) with Resolution Life U.S. Holdings Inc. (“Resolution Life US”), pursuant to which Resolution Life US will acquire Security Life of Denver Insurance Company (“SLD”), Security Life of Denver International Limited (“SLDI”) and Roaring River II, Inc. ("RRII") including several subsidiaries of SLD. The transaction is expected to close by September 30, 2020 and is subject to conditions specified in the Resolution MTA, including the receipt of required regulatory approvals. Concurrently with the sale, SLD will enter into reinsurance agreements with Reliastar Life Insurance Company ("RLI"), ReliaStar Life Insurance Company of New York (“RLNY”), and VRIAC, each of which is a direct or indirect wholly owned subsidiary of Voya Financial. Pursuant to these agreements, RLI and VRIAC will reinsure to SLD a 100% quota share, and RLNY will reinsure to SLD a 75% quota share, of their respective individual life insurance and annuities businesses. RLI, RLNY, and VRIAC will remain subsidiaries of Voya Financial. We currently expect that these reinsurance transactions will be carried out on a coinsurance basis, with SLD’s reinsurance obligations collateralized by assets in trust. The reinsurance agreements along with the sale of the legal entities noted above (referred to as the "Individual Life Transaction") will result in the disposition of substantially all of Voya Financial's life insurance and legacy non-retirement annuity businesses and related assets. Pursuant to the Individual Life Transaction, VRIAC's reserves related to legacy non-retirement annuity business as well as pension risk transfer products will be ceded to SLD and related assets will be transferred. On June 1, 2018, VRIAC's ultimate parent, Voya Financial, consummated a series of transactions (collectively, the "2018 Transaction'') pursuant to a Master Transaction Agreement dated December 20, 2017 (the "2018 MTA") with VA Capital Company LLC ("VA Capital") and Athene Holding Ltd. ("Athene"). As part of the 2018 Transaction, VA Capital's wholly owned subsidiary Venerable Holdings Inc. ("Venerable") acquired certain of Voya Financial's assets, including all of the shares of capital stock of Voya Insurance and Annuity Company ("VIAC"), the Company's Iowa-domiciled insurance affiliate, as well as the membership interests of DSL, the Company's former broker-dealer subsidiary. Following the closing of the 2018 Transaction, VRIAC acquired a 9.99% equity interest in VA Capital. The Company offers qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as nonqualified deferred compensation plans and related services. The Company's products are offered primarily to public and private school systems, higher education institutions, hospitals and healthcare facilities, not-for-profit organizations, state and local governments, small to mid-sized corporations and individuals. The Company also provides stable value investment options, including separate account guaranteed investment contracts (e.g., GICs) and synthetic GICs, to institutional clients. Pension risk transfer group annuity solutions were previously offered to institutional plan sponsors who needed to transfer their defined benefit plan obligations to the Company. The Company discontinued sales of these solutions in late 2016 to better align business activities to the Company's priorities. This business will be transferred as part of the Individual Life Transaction described above. The Company's products are generally distributed through independent brokers and advisors, third-party administrators, consultants, and representatives associated with Voya Financial's broker-dealer and investment advisor, Voya Financial Advisors, Inc. ("VFA"). Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. The Company's products also include programs offered to qualified plans and nonqualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where the Company may or may not be providing other employer sponsored products and services. The Company has one operating segment. Basis of Presentation The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, VFP, VIPS, VRA and DSL (prior to June 1, 2018). Intercompany transactions and balances have been eliminated. Significant Accounting Policies Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. The Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates: • Reserves for future policy benefits; • Deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA"); • Valuation of investments and derivatives; • Impairments; • Income taxes; and • Contingencies. Fair Value Measurement The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or nonperformance risk, including the Company's own credit risk. The estimate of fair value is the price that would be received to sell an asset or transfer a liability ("exit price") in an orderly transaction between market participants in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability. The Company uses a number of valuation sources to determine the fair values of its financial assets and liabilities, including quoted market prices, third-party commercial pricing services, third-party brokers, industry-standard, vendor-provided software that models the value based on market observable inputs, and other internal modeling techniques based on projected cash flows. Investments The accounting policies for the Company's principal investments are as follows: Fixed Maturities and Equity Securities : Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2016-01 "Financial Instruments-Overall (ASC Subtopic 825-10):Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") (See the Adoption of New Pronouncements section below). As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) ("AOCI"). The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the fair value option ("FVO"). Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in DAC, VOBA and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Consolidated Balance Sheets. The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Purchases and sales of fixed maturities and equity securities, excluding private placements, are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out ("FIFO") basis. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. Such dividends and interest income are recorded in Net investment income in the Consolidated Statements of Operations. Included within fixed maturities are loan-backed securities, including residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single-class and multi-class mortgage-backed securities ("MBS") and ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis. Short-term Investments : Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. These investments are stated at fair value. Assets Held in Separate Accounts : Assets held in separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities. Mortgage Loans on Real Estate : The Company's mortgage loans on real estate are all commercial mortgage loans, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan, discounted at the loan's original purchase yield, or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Property obtained from foreclosed mortgage loans is recorded in Other investments on the Consolidated Balance Sheets. Mortgage loans are evaluated by the Company's investment professionals, including an appraisal of loan-specific credit quality, property characteristics and market trends. Loan performance is continuously monitored on a loan-specific basis throughout the year. The Company's review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt. Mortgages are rated for the purpose of quantifying the level of risk. Those loans with higher risk are placed on a watch list and are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. Commercial loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. Factors considered may include conversations with the borrower, loss of major tenant, bankruptcy of borrower or major tenant, decreased property cash flow, number of days past due, or various other circumstances. Based on an assessment as to the collectability of the principal, a determination is made either to apply against the book value or apply according to the contractual terms of the loan. Funds recovered in excess of book value would then be applied to recover expenses, impairments, and then interest. Accrual of interest resumes after factors resulting in doubts about collectability have improved. The Company records an allowance for probable losses incurred on non-impaired loans on an aggregate basis, rather than specifically identified probable losses incurred by individual loan. Policy Loans : Policy loans are carried at an amount equal to the unpaid balance. Interest income on such loans is recorded as earned in Net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are collateralized by the cash surrender value of the associated insurance contracts. Any unpaid principal or interest on the loan is deducted from the account value or the death benefit prior to settlement of the policy. Limited Partnerships/Corporations : The Company uses the equity method of accounting for investments in limited partnership interests, which consists primarily of private equities and hedge funds. Generally, the Company records its share of earnings using a lag methodology, relying on the most recent financial information available, generally not to exceed three months. The Company's earnings from limited partnership interests accounted for under the equity method are recorded in Net investment income. Securities Lending : The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions, through a lending agent, for short periods of time. The Company has the right to approve any institution with whom the lending agent transacts on its behalf. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in short-term liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. Impairments The Company evaluates its available-for-sale general account investments quarterly to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. This evaluation process entails considerable judgment and estimation. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer's financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes and changes in ratings of the security. An extended and severe unrealized loss position on a fixed maturity may not have any impact on: (a) the ability of the issuer to service all scheduled interest and principal payments and (b) the evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. When assessing the Company's intent to sell a security, or if it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance the investment portfolio and sales of investments to meet cash flow or capital needs. When the Company has determined it has the intent to sell, or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, and the fair value has declined below amortized cost ("intent impairment"), the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, but the Company has determined that there has been an other-than-temporary decline in fair value below the amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected ("credit impairment") and the amount related to other factors ("noncredit impairment"). The credit impairment is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss). The Company uses the following methodology and significant inputs to determine the amount of the OTTI credit loss: • When determining collectability and the period over which the value is expected to recover for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company applies the same considerations utilized in its overall impairment evaluation process, which incorporates information regarding the specific security, the industry and geographic area in which the issuer operates and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from the Company's best estimates of likely scenario-based outcomes, after giving consideration to a variety of variables that includes, but is not limited to: general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain structured securities, such as subprime, Alt-A, non-agency RMBS, CMBS and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; loan-to-value ratios; debt service coverage ratios; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, the Company considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process, which incorporates available information and the Company's best estimate of scenario-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates; and the overall macroeconomic conditions. • The Company performs a discounted cash flow analysis comparing the current amortized cost of a security to the present value of future cash flows expected to be received, including estimated defaults and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to impairment. In periods subsequent to the recognition of the credit related impairment components of OTTI on a fixed maturity, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into Net investment income over the remaining term of the fixed maturity in a prospective manner based on the amount and timing of estimated future cash flows. Derivatives The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. The Company enters into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index or pool. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its annuity products. Derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (a) a hedge of the exposure to changes in the estimated fair value of a recognized asset or liability or an identified portion thereof that is attributable to a particular risk ("fair value hedge") or (b) a hedge of a forecasted transaction or of the variability of cash flows that is attributable to interest rate risk to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. • Fair Value Hedge : For derivative instruments that are designated and qualify as a fair value hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the Consolidated Statements of Operations as impacted by the hedged item. • Cash Flow Hedge : For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is reported as a component of AOCI. Those amounts are subsequently reclassified to earnings when the hedged item affects earnings, and are reported in the same line item in the Consolidated Statements of Operations as impacted by the hedged item. When hedge accounting is discontinued because it is determined that the derivative is no longer expected to be highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with subsequent changes in estimated fair value recognized currently in Other net realized capital gains (losses). The carrying value of the hedged asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in Other comprehensive income (loss) related to discontinued cash flow hedges are released into the Consolidated Statements of Operations when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date, or within two months of that date, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with changes in estimated fair value recognized currently in Other net realized capital gains (losses). Derivative gains and losses recorded in Other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in Other net realized capital gains (losses). The Company also has investments in certain fixed maturities and has issued certain annuity products that contain embedded derivatives for which fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. In addition, the Company has entered into coinsurance with funds withheld reinsurance arrangements, accounted for under the deposit method, that contain embedded derivatives, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives within the reinsurance agreements are reported in Other liabilities on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Cash and cash equivalents are stated at fair value. Deferred Policy Acquisition Costs and Value of Business Acquired DAC represents policy acquisition costs that have been capitalized and are subject to amortization and interest. Capitalized costs are incremental, direct costs of contract acquisition and certain other costs related directly to successful acquisition activities. Such costs consist principally of commissions, underwriting, sales and contract issuance and processing e |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2019 (1) Loan-to-Value Ratios: 0% - 50% $ 359 $ 12 $ 9 $ — $ — $ 380 8.1 % >50% - 60% 1,090 45 10 28 — 1,173 25.2 % >60% - 70% 1,774 432 253 93 — 2,552 54.7 % >70% - 80% 282 84 74 69 — 509 10.9 % >80% and above 30 14 — 6 — 50 1.1 % Total $ 3,535 $ 587 $ 346 $ 196 $ — $ 4,664 100.0 % (1) Balances do not include collective valuation allowance for losses. Recorded Investment Debt Service Coverage Ratios > 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2018 (1) Loan-to-Value Ratios: 0% - 50% $ 284 $ 24 $ 23 $ — $ — $ 331 6.7 % >50% - 60% 1,133 40 11 — — 1,184 24.1 % >60% - 70% 2,070 328 503 34 26 2,961 60.2 % >70% - 80% 213 87 66 19 4 389 7.9 % >80% and above 18 5 10 — 21 54 1.1 % Total $ 3,718 $ 484 $ 613 $ 53 $ 51 $ 4,919 100.0 % (1) Balances do not include collective valuation allowance for losses. Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated: December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by U.S. Region: Pacific $ 944 20.2 % $ 994 20.2 % South Atlantic 966 20.7 % 1,011 20.5 % Middle Atlantic 1,019 21.9 % 1,039 21.2 % West South Central 537 11.5 % 566 11.5 % Mountain 442 9.5 % 458 9.3 % East North Central 383 8.2 % 465 9.5 % New England 84 1.8 % 75 1.5 % West North Central 212 4.5 % 258 5.2 % East South Central 77 1.7 % 53 1.1 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by Property Type: Retail $ 1,198 25.7 % $ 1,335 27.2 % Industrial 1,216 26.2 % 1,323 26.9 % Apartments 1,185 25.4 % 1,104 22.4 % Office 697 14.9 % 791 16.1 % Hotel/Motel 127 2.7 % 111 2.3 % Mixed Use 44 0.9 % 46 0.9 % Other 197 4.2 % 209 4.2 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % Net Investment Income The following table summarizes Net investment income for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities $ 1,432 $ 1,363 $ 1,302 Equity securities 6 5 4 Mortgage loans on real estate 224 220 211 Policy loans 7 9 10 Short-term investments and cash equivalents 3 3 1 Other 91 95 60 Gross investment income 1,763 1,695 1,588 Less: investment expenses 74 72 68 Net investment income $ 1,689 $ 1,623 $ 1,520 As of December 31, 2019 and 2018 , the Company had $0 and $1 , respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Consolidated Statements of Operations. Net Realized Capital Gains (Losses) Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Net realized capital gains (losses) also include changes in fair value of equity securities.The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology. Net realized capital gains (losses) were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities, available-for-sale, including securities pledged $ 11 $ (69 ) $ (29 ) Fixed maturities, at fair value option (47 ) (227 ) (226 ) Equity securities (16 ) (4 ) — Derivatives (82 ) (36 ) 9 Embedded derivatives - fixed maturities 2 (4 ) (5 ) Guaranteed benefit derivatives (11 ) 94 55 Other investments (1 ) 4 (4 ) Net realized capital gains (losses) $ (144 ) $ (242 ) $ (200 ) For the year s ended December 31, 2019 and 2018 , the change in fair value of equity securities still held as of December 31, 2019 and 2018 was $(16) and $(4) , respectively. Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Proceeds on sales $ 2,418 $ 2,498 $ 2,916 Gross gains 30 14 30 Gross losses 25 50 39" id="sjs-B4">Investments Fixed Maturities Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019 : Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value OTTI (3)(4) Fixed maturities: U.S. Treasuries $ 565 $ 129 $ 3 $ — $ 691 $ — U.S. Government agencies and authorities 19 — — — 19 — State, municipalities and political subdivisions 747 68 — — 815 — U.S. corporate public securities 7,103 941 13 — 8,031 — U.S. corporate private securities 3,776 306 16 — 4,066 — Foreign corporate public securities and foreign governments (1) 2,417 265 3 — 2,679 — Foreign corporate private securities (1) 3,171 205 1 — 3,375 — Residential mortgage-backed securities 3,685 125 11 11 3,810 2 Commercial mortgage-backed securities 2,381 122 3 — 2,500 — Other asset-backed securities 1,472 15 13 — 1,474 1 Total fixed maturities, including securities pledged 25,336 2,176 63 11 27,460 3 Less: Securities pledged 749 85 6 — 828 — Total fixed maturities $ 24,587 $ 2,091 $ 57 $ 11 $ 26,632 $ 3 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) Represents OTTI reported as a component of Other comprehensive income (loss). (4) Amount excludes $194 of net unrealized gains on impaired available-for-sale securities. Available-for-sale and FVO fixed maturities were as follows as of December 31, 2018 : Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value OTTI (3)(4) Fixed maturities: U.S. Treasuries $ 651 $ 87 $ — $ — $ 738 $ — U.S. Government agencies and authorities — — — — — — State, municipalities and political subdivisions 754 18 8 — 764 — U.S. corporate public securities 7,908 288 181 — 8,015 — U.S. corporate private securities 3,686 73 106 — 3,653 — Foreign corporate public securities and foreign governments (1) 2,551 69 80 — 2,540 — Foreign corporate private securities (1) 3,235 37 97 — 3,175 — Residential mortgage-backed securities 2,966 93 32 9 3,036 3 Commercial mortgage-backed securities 1,917 16 28 — 1,905 — Other asset-backed securities 1,230 6 28 — 1,208 2 Total fixed maturities, including securities pledged 24,898 687 560 9 25,034 5 Less: Securities pledged 867 45 30 — 882 — Total fixed maturities $ 24,031 $ 642 $ 530 $ 9 $ 24,152 $ 5 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) Represents OTTI reported as a component of Other comprehensive income (loss). (4) Amount excludes $137 of net unrealized gains on impaired available-for-sale securities. The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2019 , are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date. Amortized Fair Due to mature: One year or less $ 607 $ 615 After one year through five years 3,564 3,728 After five years through ten years 5,672 6,108 After ten years 7,955 9,225 Mortgage-backed securities 6,066 6,310 Other asset-backed securities 1,472 1,474 Fixed maturities, including securities pledged $ 25,336 $ 27,460 The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. As of December 31, 2019 and 2018 , the Company did no t have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company's consolidated Shareholder's equity. The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated: Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Fair Value December 31, 2019 Communications $ 1,002 $ 156 $ — $ 1,158 Financial 2,650 302 — 2,952 Industrial and other companies 7,053 667 11 7,709 Energy 1,675 185 18 1,842 Utilities 2,913 294 1 3,206 Transportation 856 78 2 932 Total $ 16,149 $ 1,682 $ 32 $ 17,799 December 31, 2018 Communications $ 1,139 $ 55 $ 21 $ 1,173 Financial 2,707 101 47 2,761 Industrial and other companies 7,604 152 214 7,542 Energy 1,884 55 81 1,858 Utilities 2,974 80 74 2,980 Transportation 729 14 17 726 Total $ 17,037 $ 457 $ 454 $ 17,040 The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of December 31, 2019 and 2018 , approximately 48.4% and 52.5% , respectively, of the Company's CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs. Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions. Repurchase Agreements As of December 31, 2019 and 2018 , the Company did no t have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements. Securities Lending As of December 31, 2019 and 2018 , the fair value of loaned securities was $715 and $759 , respectively, and is included in Securities pledged on the Consolidated Balance Sheets. If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of December 31, 2019 and 2018 , cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $650 and $719 , respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Consolidated Balance Sheets. As of December 31, 2019 and 2018 , liabilities to return collateral of $650 and $719 , respectively, are included in Payables under securities loan agreements, including collateral held, on the Consolidated Balance Sheets. The Company accepts non-cash collateral in the form of securities. The securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of December 31, 2019 and 2018 , the fair value of securities retained as collateral by the lending agent on the Company’s behalf was $91 and $67 , respectively. The following table presents borrowings under securities lending transactions by asset class pledged for the dates indicated: December 31, 2019 (1)(2) December 31, 2018 (1)(2) U.S. Treasuries $ 109 $ 92 U.S. corporate public securities 447 523 Foreign corporate public securities and foreign governments 185 170 Equity Securities — 1 Payables under securities loan agreements $ 741 $ 786 (1) As of December 31, 2019 and December 31, 2018 , borrowings under securities lending transactions include cash collateral of $650 and $719 , respectively. (2) As of December 31, 2019 and December 31, 2018 , borrowings under securities lending transactions include non-cash collateral of $91 and $67 , respectively. The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program. Variable Interest Entities The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions, or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company's financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity's economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company's exposure to loss. The carrying value of the investments in VIEs was $738 and $583 as of December 31, 2019 and 2018 , respectively; these investments are included in Limited partnerships/corporations on the Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Consolidated Statements of Operations. Securitizations The Company invests in various tranches of securitization entities, including RMBS, CMBS and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and will not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO for which changes in fair value are reflected in Other net realized gains (losses) in the Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. Unrealized Capital Losses Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2019 : Twelve Months or Less More Than Twelve Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ 68 $ 3 $ 12 $ — * $ 80 $ 3 U.S. Government, agencies and authorities 18 — * — — 18 — * State, municipalities and political subdivisions 21 — * — — 21 — * U.S. corporate public securities 97 3 131 10 228 13 U.S. corporate private securities 75 — * 134 16 209 16 Foreign corporate public securities and foreign governments 6 — * 53 3 59 3 Foreign corporate private securities 21 — * 56 1 77 1 Residential mortgage-backed 535 6 139 5 674 11 Commercial mortgage-backed 331 3 18 — * 349 3 Other asset-backed 217 2 500 11 717 13 Total $ 1,389 $ 17 $ 1,043 $ 46 $ 2,432 $ 63 Total number of securities in an unrealized loss position 289 278 567 *Less than $1. Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2018 : Twelve Months or Less More Than Twelve Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ — $ — $ 15 $ — $ 15 $ — * State, municipalities and political subdivisions 191 3 88 5 279 8 U.S. corporate public securities 3,060 131 535 50 3,595 181 U.S. corporate private securities 1,502 40 579 66 2,081 106 Foreign corporate public securities and foreign governments 1,159 54 169 26 1,328 80 Foreign corporate private securities 1,504 77 221 20 1,725 97 Residential mortgage-backed 560 11 412 21 972 32 Commercial mortgage-backed 865 16 312 12 1,177 28 Other asset-backed 892 27 61 1 953 28 Total $ 9,733 $ 359 $ 2,392 $ 201 $ 12,125 $ 560 Total number of securities in an unrealized loss position 1,894 550 2,444 *Less than $1. Based on the Company's quarterly evaluation of its securities in a unrealized loss position, described below, the Company concluded that these securities were not other-than-temporarily impaired as of December 31, 2019 . The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. On a quarterly basis, the Company evaluates its available-for-sale investment portfolio to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. All available-for-sale securities with fair values less than amortized cost are included in the Company’s evaluation. Generally, for non-structured securities, management considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same consideration utilized in its overall impairment evaluation process, which incorporates available information and the Company’s best estimate of scenario based outcomes regarding the specific security and issuer. The Company also considers quality and amount of any credit enhancement; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates; and the overall macroeconomic conditions. For structured securities, such as non-agency RMBS, CMBS, and ABS, the Company evaluates other-than-temporary impairments based on actual and projected cash flows, after considering the quality and updated loan-to-value ratios, reflecting current home prices of the underlying collateral, forecasted loss severity, the payment priority in the tranche and any credit enhancement within the structure. In assessing credit impairment, the Company performs discounted cash flow analysis comparing the current amortized cost of a security to the present value of the expected future cash flows, including estimated defaults, and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to the impairment. See the Business, Basis of Presentation and Significant Accounting Policies Note for the policy used to evaluate whether the investments are other-than-temporarily impaired. Gross unrealized capital losses on fixed maturities, including securities pledged, decreased $497 from $560 to $63 for the year ended December 31, 2019 . The decrease in gross unrealized capital losses was primarily due to declining interest rates and tightening credit spreads. At December 31, 2019 , $7 of the total $63 of gross unrealized losses were from 5 available-for-sale fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for 12 months or greater. Evaluating Securities for Other-Than-Temporary Impairments The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired. The following table identifies the Company's impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: Year Ended December 31, 2019 2018 2017 Impairment No. of Securities Impairment No. of Securities Impairment No. of Securities State municipalities, and political subdivisions $ — * 6 $ — — $ — — U.S. corporate public securities 11 25 6 2 — * 3 U.S. corporate private securities 1 16 — — — — Foreign corporate public securities and foreign governments (1) 3 15 2 3 2 3 Foreign corporate private securities (1) 18 11 9 1 9 2 Residential mortgage-backed 4 71 3 58 1 17 Commercial mortgage-backed — * 18 — * 1 — * 1 Other asset-backed 3 73 — * 1 — — Total $ 40 235 $ 20 66 $ 12 26 Credit Impairments $ 20 $ 14 $ 12 Intent Impairments $ 20 $ 6 $ — (1) Primarily U.S. dollar denominated. *Less than $1. The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company's previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses. The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated: Year Ended December 31, 2019 2018 2017 Balance at January 1 $ 5 $ 16 $ 9 Additional credit impairments: On securities not previously impaired — — 9 On securities previously impaired — 1 — Reductions: Securities intent impaired — 12 — Increase in cash flows — — — Securities sold, matured, prepaid or paid down 1 — 2 Balance at December 31 $ 4 $ 5 $ 16 Troubled Debt Restructuring The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. For the year ended December 31, 2019 , the Company had one new commercial mortgage loan troubled debt restructuring with a pre-modification carrying value of $2 and post-modification carrying value of $ 1 . For year ended December 31, 2019 , the Company had one new private placement troubled debt restructuring with a pre-modification cost basis of $ 74 and post-modification carrying value of $ 38 . As of December 31, 2018 , the Company did no t have any new commercial mortgage loan troubled debt restructuring and had no private placement troubled debt restructuring. As of December 31, 2019 and 2018 , the Company did no t have any private placements modified in a troubled debt restructuring with a subsequent payment default. As of December 31, 2019, the company had one commercial mortgage loan modified in a troubled debt restructuring with a subsequent payment default. As of December 31, 2018, the Company did no t have any commercial mortgage loans modified in a troubled debt restructuring with a subsequent payment default. Mortgage Loans on Real Estate The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific credit quality, property characteristics and market trends. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk. The following table summarizes the Company's investment in mortgage loans as of the dates indicated: December 31, 2019 December 31, 2018 Impaired Non Impaired Total Impaired Non Impaired Total Commercial mortgage loans $ 4 $ 4,660 $ 4,664 $ 4 $ 4,915 $ 4,919 Collective valuation allowance for losses — — — N/A (1 ) (1 ) Total net commercial mortgage loans $ 4 $ 4,660 $ 4,664 $ 4 $ 4,914 $ 4,918 N/A - Not Applicable There were two impairments taken of $3 on the mortgage loan portfolio for the year ended December 31, 2019 . There were no impairments taken on the mortgage loan portfolio for the year ended December 31, 2018 . The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: December 31, 2019 December 31, 2018 Collective valuation allowance for losses, balance at January 1 $ 1 $ 1 Addition to (reduction of) allowance for losses (1 ) — Collective valuation allowance for losses, end of period $ — $ 1 The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: December 31, 2019 December 31, 2018 Impaired loans without allowances for losses $ 4 $ 4 Less: Allowances for losses on impaired loans — — Impaired loans, net $ 4 $ 4 Unpaid principal balance of impaired loans $ 5 $ 5 As of December 31, 2019 and 2018 , the Company did not have any impaired loans with allowances for losses. Commercial loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. As of December 31, 2019 and 2018 , the Company had no loan greater than 60 days in arrears and there were no mortgage loans in the Company's portfolio in process of foreclosure. The Company foreclosed on two loans during the year ended December 31, 2019 with a carrying value of $6 . The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated: Year Ended December 31, 2019 2018 2017 Impaired loans, average investment during the period (amortized cost) (1) $ 9 $ 4 $ 4 Interest income recognized on impaired loans, on an accrual basis (1) 1 — — Interest income recognized on impaired loans, on a cash basis (1) 1 — — Interest income recognized on troubled debt restructured loans, on an accrual basis — — — (1) Includes amounts for Troubled debt restructured loans. Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. The following tables present the LTV and DSC ratios as of the dates indicated: Recorded Investment Debt Service Coverage Ratios > 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2019 (1) Loan-to-Value Ratios: 0% - 50% $ 359 $ 12 $ 9 $ — $ — $ 380 8.1 % >50% - 60% 1,090 45 10 28 — 1,173 25.2 % >60% - 70% 1,774 432 253 93 — 2,552 54.7 % >70% - 80% 282 84 74 69 — 509 10.9 % >80% and above 30 14 — 6 — 50 1.1 % Total $ 3,535 $ 587 $ 346 $ 196 $ — $ 4,664 100.0 % (1) Balances do not include collective valuation allowance for losses. Recorded Investment Debt Service Coverage Ratios > 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2018 (1) Loan-to-Value Ratios: 0% - 50% $ 284 $ 24 $ 23 $ — $ — $ 331 6.7 % >50% - 60% 1,133 40 11 — — 1,184 24.1 % >60% - 70% 2,070 328 503 34 26 2,961 60.2 % >70% - 80% 213 87 66 19 4 389 7.9 % >80% and above 18 5 10 — 21 54 1.1 % Total $ 3,718 $ 484 $ 613 $ 53 $ 51 $ 4,919 100.0 % (1) Balances do not include collective valuation allowance for losses. Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated: December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by U.S. Region: Pacific $ 944 20.2 % $ 994 20.2 % South Atlantic 966 20.7 % 1,011 20.5 % Middle Atlantic 1,019 21.9 % 1,039 21.2 % West South Central 537 11.5 % 566 11.5 % Mountain 442 9.5 % 458 9.3 % East North Central 383 8.2 % 465 9.5 % New England 84 1.8 % 75 1.5 % West North Central 212 4.5 % 258 5.2 % East South Central 77 1.7 % 53 1.1 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by Property Type: Retail $ 1,198 25.7 % $ 1,335 27.2 % Industrial 1,216 26.2 % 1,323 26.9 % Apartments 1,185 25.4 % 1,104 22.4 % Office 697 14.9 % 791 16.1 % Hotel/Motel 127 2.7 % 111 2.3 % Mixed Use 44 0.9 % 46 0.9 % Other 197 4.2 % 209 4.2 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % Net Investment Income The following table summarizes Net investment income for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities $ 1,432 $ 1,363 $ 1,302 Equity securities 6 5 4 Mortgage loans on real estate 224 220 211 Policy loans 7 9 10 Short-term investments and cash equivalents 3 3 1 Other 91 95 60 Gross investment income 1,763 1,695 1,588 Less: investment expenses 74 72 68 Net investment income $ 1,689 $ 1,623 $ 1,520 As of December 31, 2019 and 2018 , the Company had $0 and $1 , respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Consolidated Statements of Operations. Net Realized Capital Gains (Losses) Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Net realized capital gains (losses) also include changes in fair value of equity securities.The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology. Net realized capital gains (losses) were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities, available-for-sale, including securities pledged $ 11 $ (69 ) $ (29 ) Fixed maturities, at fair value option (47 ) (227 ) (226 ) Equity securities (16 ) (4 ) — Derivatives (82 ) (36 ) 9 Embedded derivatives - fixed maturities 2 (4 ) (5 ) Guaranteed benefit derivatives (11 ) 94 55 Other investments (1 ) 4 (4 ) Net realized capital gains (losses) $ (144 ) $ (242 ) $ (200 ) For the year s ended December 31, 2019 and 2018 , the change in fair value of equity securities still held as of December 31, 2019 and 2018 was $(16) and $(4) , respectively. Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Proceeds on sales $ 2,418 $ 2,498 $ 2,916 Gross gains 30 14 30 Gross losses 25 50 39 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into the following types of derivatives: Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships. Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships. Currency forwards: The Company utilizes currency forward contracts to hedge currency exposure related to invested assets. The Company utilizes these contracts in non-qualifying hedging relationships. Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward contracts in non-qualifying hedging relationships. Futures: The Company uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships. Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships. Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads. Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives. The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rules related to the variation margin payments, the Company is required to adjust the derivative balances with the variation margin payments related to its cleared derivatives executed through CME. The notional amounts and fair values of derivatives were as follows as of the dates indicated: December 31, 2019 December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives: Qualifying for hedge accounting (1 ) Cash flow hedges: Interest rate contracts $ 23 $ — $ — $ 35 $ — $ — Foreign exchange contracts 652 10 18 620 10 20 Derivatives: Non-qualifying for hedge accounting (1) Interest rate contracts 18,640 210 261 19,280 117 76 Foreign exchange contracts 54 — 1 12 — — Equity contracts 63 4 3 98 1 1 Credit contracts 182 — 2 201 — 2 Embedded derivatives and Managed custody guarantees: Within fixed maturity investments N/A 11 — N/A 9 — Within products N/A — 33 N/A — 15 Within reinsurance agreements N/A — 23 N/A — (80 ) Total $ 235 $ 341 $ 137 $ 34 (1) Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. N/A - Not Applicable Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of December 31, 2019 and 2018 . The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815. Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts are presented in the tables below as of the dates indicated: December 31, 2019 Notional Amount Asset Fair Value Liability Fair Value Credit contracts $ 182 $ — $ 2 Equity contracts 63 4 3 Foreign exchange contracts 706 10 19 Interest rate contracts 17,621 210 261 224 285 Counterparty netting (1) (217 ) (217 ) Cash collateral netting (1) (6 ) (58 ) Securities collateral netting (1) — (5 ) Net receivables/payables $ 1 $ 5 (1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements. December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Credit contracts $ 201 $ — $ 2 Equity contracts 98 1 1 Foreign exchange contracts 632 10 20 Interest rate contracts 17,478 117 76 128 99 Counterparty netting (1) (88 ) (88 ) Cash collateral netting (1) (37 ) (2 ) Securities collateral netting (1) — (9 ) Net receivables/payables $ 3 $ — (1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements. Collateral Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2019 , the Company held $7 and delivered $55 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2018 , the Company held $17 and $21 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of December 31, 2019 , the Company delivered $113 of securities and held no securities as collateral. As of December 31, 2018 , the Company delivered $123 of securities and held no securities as collateral. The location and effect of derivatives qualifying for hedge accounting on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income are as follows for the period indicated: Interest Rate Contracts Foreign Exchange Contracts Derivatives: Qualifying for hedge accounting Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net Investment Income Net Investment Income Year Ended December 31, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income $ 2 $ — Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income — 10 The location and amount of gain (loss) recognized in the Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the period indicated: Year Ended December 31, 2019 Net Investment Income Other net realized capital gains/(losses) Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded $ 1,689 $ (101 ) Derivatives: Qualifying for hedge accounting Cash flow hedges: Foreign exchange contracts: Gain (loss) reclassified from accumulated other comprehensive income into income 10 — The location and effect of derivatives not designated as hedging instruments on the Consolidated Statements of Operations are as follows for the periods indicated: Location of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31, 2019 2018 2017 Derivatives: Non-qualifying for hedge accounting Interest rate contracts Other net realized capital gains (losses) $ (85 ) $ (44 ) $ (7 ) Foreign exchange contracts Other net realized capital gains (losses) 1 1 (3 ) Equity contracts Other net realized capital gains (losses) 1 — 1 Credit contracts Other net realized capital gains (losses) 1 (1 ) 5 Embedded derivatives and Managed custody guarantees: Within fixed maturity investments Other net realized capital gains (losses) 2 (4 ) (5 ) Within products Other net realized capital gains (losses) (11 ) 94 55 Within reinsurance agreements Policyholder benefits (102 ) 58 (22 ) Total $ (193 ) $ 104 $ 24 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : Level 1 Level 2 Level 3 Total Assets: Fixed maturities, including securities pledged: U.S. Treasuries $ 536 $ 155 $ — $ 691 U.S. Government agencies and authorities — 19 — 19 State, municipalities and political subdivisions — 815 — 815 U.S. corporate public securities — 7,984 47 8,031 U.S. corporate private securities — 3,064 1,002 4,066 Foreign corporate public securities and foreign governments (1) — 2,679 — 2,679 Foreign corporate private securities (1) — 3,185 190 3,375 Residential mortgage-backed securities — 3,794 16 3,810 Commercial mortgage-backed securities — 2,500 — 2,500 Other asset-backed securities — 1,426 48 1,474 Total fixed maturities, including securities pledged 536 25,621 1,303 27,460 Equity securities 17 — 63 80 Derivatives: Interest rate contracts 1 209 — 210 Foreign exchange contracts — 10 — 10 Equity contracts — 4 — 4 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,429 — — 1,429 Assets held in separate accounts 72,448 6,150 115 78,713 Total assets $ 74,431 $ 31,994 $ 1,481 $ 107,906 Percentage of Level to total 69 % 30 % 1 % 100 % Liabilities: Derivatives: Guaranteed benefit derivatives: FIA $ — $ — $ 11 $ 11 Stabilizer and MCGs — — 22 22 Other derivatives: Interest rate contracts — 261 — 261 Foreign exchange contracts — 19 — 19 Equity contracts — 3 — 3 Credit contracts — 2 — 2 Embedded derivative on reinsurance — 23 — 23 Total liabilities $ — $ 308 $ 33 $ 341 (1) Primarily U.S. dollar denominated. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : Level 1 Level 2 Level 3 Total Assets: Fixed maturities, including securities pledged: U.S. Treasuries $ 679 $ 59 $ — $ 738 U.S. Government agencies and authorities — — — — State, municipalities and political subdivisions — 764 — 764 U.S. corporate public securities — 7,987 28 8,015 U.S. corporate private securities — 2,882 771 3,653 Foreign corporate public securities and foreign governments (1) — 2,540 — 2,540 Foreign corporate private securities (1) — 3,051 124 3,175 Residential mortgage-backed securities — 3,026 10 3,036 Commercial mortgage-backed securities — 1,893 12 1,905 Other asset-backed securities — 1,114 94 1,208 Total fixed maturities, including securities pledged 679 23,316 1,039 25,034 Equity securities, available-for-sale 7 — 50 57 Derivatives: Interest rate contracts — 117 — 117 Foreign exchange contracts — 10 — 10 Equity contracts — 1 — 1 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,207 — — 1,207 Assets held in separate accounts 61,457 5,805 61 67,323 Total assets $ 63,350 $ 29,249 $ 1,150 $ 93,749 Percentage of Level to total 68 % 31 % 1 % 100 % Liabilities: Derivatives: Guaranteed benefit derivatives: FIA $ — $ — $ 11 $ 11 Stabilizer and MCGs — — 4 4 Other derivatives: Interest rate contracts — 76 — 76 Foreign exchange contracts — 20 — 20 Equity contracts — 1 — 1 Credit contracts — 2 — 2 Embedded derivative on reinsurance — (80 ) — (80 ) Total liabilities $ — $ 19 $ 15 $ 34 (1) Primarily U.S. dollar denominated. Valuation of Financial Assets and Liabilities at Fair Value Certain assets and liabilities are measured at estimated fair value on the Company's Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell 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 exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows: U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve. U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings. U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields. U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities. RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security. Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Equity securities : Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers. Derivatives : Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2. Guaranteed benefit derivatives : The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy. The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities. The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit spreads, adjusted to reflect the credit quality of the Company, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates of policyholder claims. The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies. Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management. Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2. Transfers in and out of Level 1 and 2 There were no securities transferred between Level 1 and Level 2 for the years ended December 31, 2019 and 2018 . The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. Level 3 Financial Instruments The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below. The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated: Year Ended December 31, 2019 Fair Value as of January 1 Total Realized/Unrealized Gains (Losses) Included in: Purchases Issuances Sales Settlements Transfers into Level 3 (3) Transfers out of Level 3 (3) Fair Value as of December 31 Change in Unrealized Gains (Losses) Included in Earnings (4) Net Income OCI Fixed maturities, including securities pledged: U.S. Corporate public securities $ 28 $ — $ 3 $ — $ — $ — $ (7 ) $ 23 $ — $ 47 $ — U.S. Corporate private securities 771 (1 ) 62 246 — (14 ) (61 ) 8 (9 ) 1,002 (1 ) Foreign corporate private securities (1) 124 (17 ) 31 108 — (56 ) — — — 190 1 Residential mortgage-backed securities 10 (3 ) — 9 — — — — — 16 (4 ) Commercial mortgage-backed securities 12 — — — — — — — (12 ) — — Other asset-backed securities 94 — — — — — (2 ) — (44 ) 48 — Total fixed maturities, including securities pledged 1,039 (21 ) 96 363 — (70 ) (70 ) 31 (65 ) 1,303 (4 ) Equity securities 50 (16 ) — 29 — — — — — 63 (16 ) Derivatives: Guaranteed benefit derivatives: Stabilizer and MCGs (2) (4 ) (16 ) — — (2 ) — — — — (22 ) — FIA (2) (11 ) 5 — — (5 ) — — — — (11 ) — Assets held in separate accounts (5) 61 4 — 79 — (2 ) — 3 (30 ) 115 — (1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. (4) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. (5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company. The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated: Year Ended December 31, 2018 Fair Value as of January 1 Total Realized/Unrealized Gains (Losses) Included in: Purchases Issuances Sales Settlements Transfers into Level 3 (3) Transfers out of Level 3 (3) Fair Value as of December 31 Change in Unrealized Gains (Losses) Included in Earnings (4) Net Income OCI Fixed maturities, including securities pledged: U.S. Corporate public securities $ 26 $ — $ — $ 22 $ — $ (5 ) $ — $ — $ (15 ) $ 28 $ — U.S. Corporate private securities 642 — (31 ) 184 — (4 ) (32 ) 20 (8 ) 771 — Foreign corporate private securities (1) 92 (9 ) 14 93 — (56 ) (10 ) — — 124 (9 ) Residential mortgage-backed securities 21 (5 ) — 41 — (40 ) — — (7 ) 10 (5 ) Commercial mortgage-backed securities 7 — — 13 — — (1 ) — (7 ) 12 — Other asset-backed securities 43 — (2 ) 56 — — (4 ) 22 (21 ) 94 — Total fixed maturities, including securities pledged 831 (14 ) (19 ) 409 — (105 ) (47 ) 42 (58 ) 1,039 (14 ) Equity securities, available-for-sale 50 (4 ) — 4 — — — — — 50 (4 ) Derivatives: Guaranteed benefit derivatives: Stabilizer and MCGs (2) (97 ) 96 — — (3 ) — — — — (4 ) — FIA (2) (20 ) (2 ) — — 2 — 9 — — (11 ) — Assets held in separate accounts (5) 11 — — 67 — (6 ) — — (11 ) 61 — (1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. (4) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. (5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company. For the years ended December 31, 2019 and 2018 , the transfers in and out of Level 3 for fixed maturities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate. Significant Unobservable Inputs The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices. Other Financial Instruments The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Consolidated Balance Sheets. ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturities, including securities pledged $ 27,460 $ 27,460 $ 25,034 $ 25,034 Equity securities 80 80 57 57 Mortgage loans on real estate 4,664 4,912 4,918 4,983 Policy loans 205 205 210 210 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,429 1,429 1,207 1,207 Derivatives 224 224 128 128 Short-term loan to affiliate 69 69 — — Other investments 43 43 40 40 Assets held in separate accounts 78,713 78,713 67,323 67,323 Liabilities: Investment contract liabilities: Funding agreements without fixed maturities and deferred annuities (1) 26,337 32,697 26,068 29,108 Funding agreements with fixed maturities 877 876 658 652 Supplementary contracts, immediate annuities and other 312 384 333 354 Deposit liabilities 76 152 77 122 Derivatives: Guaranteed benefit derivatives: FIA 11 11 11 11 Stabilizer and MCGs 22 22 4 4 Other derivatives 285 285 99 99 Short-term debt (2) 1 1 1 1 Long-term debt (2) 4 4 4 4 Embedded derivatives on reinsurance 23 23 (80 ) (80 ) (1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above. (2) Included in Other Liabilities on the Consolidated Balance Sheets. The following table presents the classification of financial instruments which are not carried at fair value on the Consolidated Balance Sheets: Financial Instrument Classification Mortgage loans on real estate Level 3 Policy loans Level 2 Short-term loan to affiliate Level 2 Other investments Level 2 Funding agreements without fixed maturities and deferred annuities Level 3 Funding agreements with fixed maturities Level 2 Supplementary contracts, immediate annuities and other Level 3 Deposit liabilities Level 3 Short-term debt and Long-term debt Level 2 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Value of Business Acquired | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired The following table presents a rollforward of DAC and VOBA for the periods indicated: DAC VOBA Total Balance at January 1, 2017 $ 477 $ 537 $ 1,014 Deferrals of commissions and expenses 75 5 80 Amortization: Amortization, excluding unlocking (76 ) (83 ) (159 ) Unlocking (1) (61 ) (93 ) (154 ) Interest accrued 37 43 (2 ) 80 Net amortization included in the Consolidated Statements of Operations (100 ) (133 ) (233 ) Change in unrealized capital gains/losses on available-for-sale securities (67 ) (42 ) (109 ) Balance as of December 31, 2017 385 367 752 Deferrals of commissions and expenses 55 6 61 Amortization: Amortization, excluding unlocking (75 ) (72 ) (147 ) Unlocking (1) (26 ) 13 (13 ) Interest accrued 35 39 (2 ) 74 Net amortization included in the Consolidated Statements of Operations (66 ) (20 ) (86 ) Change in unrealized capital gains/losses on available-for-sale securities 162 198 360 Balance as of December 31, 2018 536 551 1,087 Deferrals of commissions and expenses 43 6 49 Amortization: Amortization, excluding unlocking (72 ) (66 ) (138 ) Unlocking (1) 2 (2 ) — Interest accrued 35 38 (2 ) 73 Net amortization included in the Consolidated Statements of Operations (35 ) (30 ) (65 ) Change in unrealized capital gains/losses on available-for-sale securities (256 ) (222 ) (478 ) Balance as of December 31, 2019 $ 288 $ 305 $ 593 (1) DAC/VOBA unlocking includes the impact of annual review of assumptions which typically occurs in the third quarter; and retrospective and prospective unlocking. Additionally, the 2018 amounts include unfavorable unlocking of DAC and VOBA of $25 and $26 respectively, associated with an update to assumptions related to customer consents of changes to guaranteed minimum interest rate provisions. The 2017 amounts include unfavorable unlocking for DAC and VOBA of $80 and $140 , respectively, associated with consent acceptances received from customers and expected future acceptances of customer consents to changes related to guaranteed minimum interest rate provisions of certain retirement plan contracts with fixed investment options. (2) Interest accrued at the following rates for VOBA: 5.5% to 7.0% during 2019 , 2018 and 2017 . The estimated amount of VOBA amortization expense, net of interest, during the next five years is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results. Year Amount 2020 $ 18 2021 16 2022 14 2023 14 2024 14 |
Guaranteed Benefit Features
Guaranteed Benefit Features | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Guaranteed Benefit Features | Guaranteed Benefit Features The Company calculates an additional liability for certain GMDBs and other minimum guarantees in order to recognize the expected value of these benefits in excess of the projected account balance over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used to adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. As of December 31, 2019 and 2018 , the account value for the separate account contracts with guaranteed minimum benefits was $40.0 billion and $37.9 billion , respectively. The additional liability recognized related to minimum guarantees as of December 31, 2019 and 2018 was $26 and $11 , respectively. The aggregate fair value of fixed income securities and equity securities, including mutual funds, supporting separate accounts with additional insurance benefits and minimum investment return guarantees as of December 31, 2019 and 2018 was $8.2 billion and $8.6 billion , respectively. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance As of December 31, 2019 , the Company has reinsurance treaties with 6 unaffiliated reinsurers covering a significant portion of the mortality risks and guaranteed death benefits under its variable contracts. As of December 31, 2019 , the Company had an agreement with one of its affiliates, Security Life of Denver International ("SLDI"), which is accounted for under the deposit method of accounting. Refer to the Related Party Transactions Note for further detail. On October 1, 1998, the Company disposed of its individual life insurance business under an indemnity reinsurance arrangement with a subsidiary of Lincoln for $1.0 billion in cash. Under the agreement, the Lincoln subsidiary contractually assumed from the Company certain policyholder liabilities and obligations, although the Company remains obligated to contract owners. The Lincoln subsidiary established a trust to secure its obligations to the Company under the reinsurance agreement. As of December 31, 2019 and 2018 , the Company had $1.3 billion and $1.4 billion , respectively, related to Reinsurance recoverable from the subsidiary of Lincoln. Premiums receivable and reinsurance recoverable was comprised of the following as of the dates indicated: December 31, 2019 2018 Reserves ceded and claims recoverable $ 1,304 $ 1,409 Premiums receivable, net — — Total $ 1,304 $ 1,409 For the years ended December 31, 2019 , 2018 and 2017 , premiums, net of reinsurance were $31 , $41 and $48 |
Capital Contributions, Dividend
Capital Contributions, Dividends and Statutory Information | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Contributions, Dividends and Statutory Information | Capital Contributions, Dividends and Statutory Information Connecticut insurance law imposes restrictions on a Connecticut insurance company's ability to pay dividends to its parent. These restrictions are based in part on the prior year's statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval. Dividends in larger amounts, or extraordinary dividends, are subject to approval by the Connecticut Insurance Commissioner. Under Connecticut insurance law, an extraordinary dividend or distribution is defined as a dividend or distribution that, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (1) ten percent ( 10% ) of VRIAC's earned statutory surplus at the prior year end or (2) VRIAC's prior year statutory net gain from operations. Connecticut law also prohibits a Connecticut insurer from declaring or paying a dividend except out of its earned surplus unless prior insurance regulatory approval is obtained. During the year ended December 31, 2019 , VRIAC declared ordinary dividends to its Parent in the aggregate amount of $396 , of which $270 was paid on April 18, 2019 and $126 was paid on May 28, 2019. During the year ended December 31, 2018 , VRIAC paid an ordinary dividend in the amount of $126 to its Parent. On March 27, 2019, VFP paid a $20 dividend to VRIAC, its parent; on June 26, 2019, VFP paid a $20 dividend to VRIAC; on September 27, 2019, VFP paid a $20 dividend to VRIAC; and on December 18, 2019, VFP paid a $20 dividend to VRIAC. During the year ended December 31, 2018 , VFP paid dividends of $90 to VRIAC. On May 25, 2018, DSL, which was a subsidiary of VRIAC at the time, paid a $49 dividend to its then parent, VRIAC. During the years ended December 31, 2019 and 2018 , the Company received capital contributions of $57 and $55 from its Parent, respectively. The Company is subject to minimum risk-based capital ("RBC") requirements established by the Department. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital ("TAC"), as defined by the National Association of Insurance Commissioners ("NAIC"), to RBC requirements, as defined by the NAIC. The Company exceeded the minimum RBC requirements that would require any regulatory or corrective action for all periods presented herein. The Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Department. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Certain assets that are not admitted under statutory accounting principles are charged directly to surplus. Depending on the regulations of the Department, the entire amount or a portion of an insurance company's asset balance can be non-admitted depending on specific rules regarding admissibility. The most significant non-admitted assets of the Company are typically a portion of deferred tax assets in excess of prescribed thresholds. Statutory net income was $325 , $377 and $195 , for the years ended December 31, 2019 , 2018 and 2017 , respectively. Statutory capital and surplus was $2.0 billion as of December 31, 2019 and 2018 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Shareholder's equity included the following components of AOCI as of the dates indicated. December 31, 2019 2018 2017 Fixed maturities, net of OTTI $ 2,113 $ 127 $ 1,451 Equity securities — — 15 Derivatives 117 140 124 DAC/VOBA and Sales inducements adjustments on available-for-sale securities (551 ) (73 ) (433 ) Premium deficiency reserve adjustment (211 ) (51 ) (115 ) Other — — 5 Unrealized capital gains (losses), before tax 1,468 143 1,047 Deferred income tax asset (liability) (180 ) (39 ) (234 ) Unrealized capital gains (losses), after tax 1,288 104 813 Pension and other postretirement benefits liability, net of tax 4 4 5 AOCI $ 1,292 $ 108 $ 818 (1) Gains and losses reported in Accumulated Other Comprehensive Income (AOCI) from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of December 31, 2019, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $23 . Changes in AOCI, including the reclassification adjustments recognized in the Consolidated Statements of Operations were as follows for the periods indicated: Year Ended December 31, 2019 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ 1,995 $ (419 ) $ 1,576 Other — — — OTTI 1 — 1 Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations (11 ) 2 (9 ) DAC/VOBA and Sales inducements (479 ) (1) 100 (379 ) Premium deficiency reserve adjustment (160 ) 33 (127 ) Change in unrealized gains/losses on available-for-sale securities 1,346 (284 ) 1,062 Derivatives: Derivatives 1 (2) — 1 Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (23 ) 5 (18 ) Change in unrealized gains/losses on derivatives (22 ) 5 (17 ) Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (1 ) (3) 3 2 Change in pension and other postretirement benefits liability (1 ) 3 2 Change in Other comprehensive income (loss) $ 1,323 $ (276 ) $ 1,047 (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. Year Ended December 31, 2018 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ (1,401 ) $ 299 (4) $ (1,102 ) Other (5 ) 1 (4 ) OTTI 8 (2 ) 6 Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations 69 (14 ) 55 DAC/VOBA and Sales inducements 360 (1) (76 ) 284 Premium deficiency reserve adjustment 64 (13 ) 51 Change in unrealized gains/losses on available-for-sale securities (905 ) 195 (710 ) Derivatives: Derivatives 40 (2) (8 ) 32 Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (24 ) 5 (19 ) Change in unrealized gains/losses on derivatives 16 (3 ) 13 Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (1 ) (3) — (1 ) Change in pension and other postretirement benefits liability (1 ) — (1 ) Change in Other comprehensive income (loss) $ (890 ) $ 192 $ (698 ) (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. (4) Amount includes $9 valuation allowance. See the Income Taxes Note these Consolidated Financial Statements for additional information. Year Ended December 31, 2017 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ 564 $ (190 ) $ 374 Other 5 (2 ) 3 OTTI (4 ) 1 (3 ) Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations 29 (10 ) 19 DAC/VOBA and Sales inducements (109 ) (1) 42 (67 ) Premium deficiency reserve adjustment (25 ) 9 (16 ) Change in unrealized gains/losses on available-for-sale securities 460 (150 ) 310 Derivatives: Derivatives (53 ) (2) 19 (34 ) Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (24 ) 8 (16 ) Change in unrealized gains/losses on derivatives (77 ) 27 (50 ) Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (2 ) (3) 1 (1 ) Change in pension and other postretirement benefits liability (2 ) 1 (1 ) Change in Other comprehensive income (loss) $ 381 $ (122 ) $ 259 (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) consisted of the following for the periods indicated: Year Ended December 31, 2019 2018 2017 Current tax expense (benefit): Federal $ 9 $ 3 $ (6 ) Total current tax expense (benefit) 9 3 (6 ) Deferred tax expense (benefit): Federal 23 58 (95 ) Total deferred tax expense (benefit) 23 58 (95 ) Total income tax expense (benefit) $ 32 $ 61 $ (101 ) Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated: Year Ended December 31, 2019 2018 2017 Income (loss) before income taxes $ 332 $ 506 $ 14 Tax rate 21.0 % 21.0 % 35.0 % Income tax expense (benefit) at federal statutory rate 70 106 5 Tax effect of: Dividends received deduction (35 ) (49 ) (36 ) Valuation allowance — 9 (5 ) Tax Attribute (4 ) — 5 Effect of Tax Reform — — — (71 ) Other 1 (5 ) 1 Income tax expense (benefit) $ 32 $ 61 $ (101 ) Effective tax rate 9.6 % 12.1 % (721.4 )% On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform"). Tax Reform made broad changes to U.S. federal tax law, including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) changing the computations of the dividends received deduction, tax reserves, and deferred acquisition costs; (3) eliminating the net operating loss (“NOL”) carryback and limiting the NOL carryforward deduction to 80% of taxable income for losses arising in taxable years beginning after December 31, 2017; and (4) changing how alternative minimum tax (AMT) credits can be realized. Tax Reform eliminated the corporate AMT and allows the AMT credit carryforward to be refunded over the next 4 years. Any refundable corporate AMT credit is not subject to the sequestration requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. Temporary Differences The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below. December 31, 2019 2018 Deferred tax assets Insurance reserves $ 107 $ 74 Investments 23 79 Compensation and benefits 57 58 Other assets 34 34 Total gross assets 221 245 Deferred tax liabilities Net unrealized investment (gains) losses (424 ) (45 ) Deferred policy acquisition costs (101 ) (205 ) Total gross liabilities (525 ) (250 ) Net deferred income tax asset (liability) $ (304 ) $ (5 ) Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2019 and 2018 , the Company had no valuation allowance. However, the application of intra-period tax allocation rules to benefits associated with capital deferred tax assets resulted in a valuation allowance as of December 31, 2019 and 2018 of $128 in continuing operations, offset by a corresponding benefit in Other comprehensive income. For the year ended December 31, 2019, the application of the intra-period tax allocation rules to capital deferred assets did not result in changes to the valuation allowance within continuing operations or Other comprehensive income. For the year ended December 31, 2018, the application of the intra-period tax allocation rules to capital deferred assets resulted in an increase of $9 in the valuation allowance within continuing operations, offset by a benefit of $9 within Other comprehensive income. For the year ended December 31, 2017 , the decrease in the valuation allowance was $5 , all of which was allocated to continuing operations. Tax Sharing Agreement As of December 31, 2019 and 2018 , the Company had a receivable from Voya Financial of $9 and $32 , respectively, for federal income taxes under the intercompany tax sharing agreement. The results of the Company's operations are included in the consolidated tax return of Voya Financial. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of Voya Financial's consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. If the Company instead were to follow a separate taxpayer approach without any exceptions, there would be no impact to income tax expense (benefit) for the periods indicated above. However, any current tax benefit related to the Company's tax attributes realized by virtue of its inclusion in the consolidated tax return of Voya Financial would have been recorded directly to equity rather than income. Under the tax sharing agreement, Voya Financial will pay the Company for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated. Unrecognized Tax Benefits The Company had no unrecognized tax benefits as of December 31, 2019 and December 31, 2018 . Interest and Penalties The Company recognizes accrued interest and penalties related to unrecognized tax benefits in current income taxes and Income tax expense on the Consolidated Balance Sheets and the Consolidated Statements of Operations, respectively. The Company had no accrued interest as of December 31, 2019 and December 31, 2018 . Tax Regulatory Matters For the tax years 2017 through 2020, Voya Financial, Inc. participates in the IRS Compliance Assurance Process (CAP), which is a continuous audit program provided by the IRS. The IRS finalized the audit of Voya Financial, Inc. for the periods ended December 31, 2017 and December 31, 2018. For the periods ended December 31, 2019 and December 31, 2020, the IRS has determined that Voya Financial, Inc. would be in the Compliance Maintenance Bridge (Bridge) phase of CAP. In the Bridge phase, the IRS does not intend to conduct any review or provide any letters of assurance for the tax year. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Defined Benefit Plan Voya Services Company sponsors the Voya Retirement Plan (the "Retirement Plan"). Substantially all employees of Voya Services Company and its affiliates (excluding certain employees) are eligible to participate, including the Company's employees other than Company agents. The Retirement Plan is a tax qualified defined benefit plan, the benefits of which are guaranteed (within certain specified legal limits) by the Pension Benefit Guaranty Corporation (“PBGC”). Beginning January 1, 2012, the Retirement Plan adopted a cash balance pension formula instead of a final average pay ("FAP") formula, allowing all eligible employees to participate in the Retirement Plan. Participants will earn an annual credit equal to 4% of eligible compensation. Interest is credited monthly based on a 30 -year U.S. Treasury securities bond rate published by the Internal Revenue Service in the preceding August of each year. The accrued vested cash pension balance benefit is portable; participants can take it if they leave the Company. The costs allocated to the Company for its employees' participation in the Retirement Plan were $11 , $11 and $12 for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in Operating expenses in the Consolidated Statements of Operations. Defined Contribution Plan Voya Services Company sponsors the Voya Savings Plan (the "Savings Plan"). Substantially all employees of Voya Services Company and its affiliates (excluding certain employees, including but not limited to Career Agents) are eligible to participate, including the Company's employees other than Company agents. Career Agents are certain, full-time insurance salespeople who have entered into a career agent agreement with the Company and certain other individuals who meet specified eligibility criteria ("Career Agents"). The Savings Plan is a tax qualified defined contribution plan. Savings Plan benefits are not guaranteed by the PBGC. The Savings Plan allows eligible participants to defer into the Savings Plan a specified percentage of eligible compensation on a pre-tax basis. Voya Services Company matches such pre-tax contributions, up to a maximum of 6% of eligible compensation. Matching contributions are subject to a 4 -year graded vesting schedule. Contributions made to the Savings Plan are subject to certain limits imposed by applicable law. The costs allocated to the Company for the Savings Plan were $15 , $15 and $16 , for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in Operating expenses in the Consolidated Statements of Operations. Non-Qualified Retirement Plans The Company, in conjunction with Voya Services Company, offers certain eligible employees (other than Career Agents) a Supplemental Executive Retirement Plan and an Excess Plan (collectively, the "SERPs"). Benefit accruals under Aetna Financial Services SERPs ceased, effective as of December 31, 2001 and participants began accruing benefits under Voya Services SERPs. Benefits under the SERPs are determined based on an eligible employee's years of service and average annual compensation for the highest five years during the last ten years of employment. Effective January 1, 2012, the Supplemental Executive Retirement Plan was amended to coordinate with the amendment of the Retirement Plan from its current final average pay formula to a cash balance formula. The Company, in conjunction with Voya Services Company, sponsors the Pension Plan for Certain Producers of Voya Retirement Insurance and Annuity Company (the "Agents Non-Qualified Plan"). This plan covers Career Agents. The Agents Non-Qualified Plan was frozen effective January 1, 2002. In connection with the termination, all benefit accruals ceased and all accrued benefits were frozen. The SERPs and Agents Non-Qualified Plan are non-qualified defined benefit pension plans, which means all the SERPs benefits are payable from the general assets of the Company and Agents Non-Qualified Plan benefits are payable from the general assets of the Company and Voya Services Company. These non-qualified defined benefit pension plans are not guaranteed by the PBGC. Obligations and Funded Status The following table summarizes the benefit obligations for the SERPs and Agents Non-Qualified Plan as of December 31, 2019 and 2018 : Year Ended December 31, 2019 2018 Change in benefit obligation: Benefit obligation, January 1 $ 80 $ 88 Interest cost 3 3 Benefits paid (5 ) (7 ) Actuarial (gains) losses on obligation 4 (4 ) Benefit obligation, December 31 $ 82 $ 80 Amounts recognized on the Consolidated Balance Sheets in Other liabilities and in AOCI were as follows as of December 31, 2019 and 2018 : December 31, 2019 2018 Accrued benefit cost $ (82 ) $ (80 ) Accumulated other comprehensive income (loss): Prior service cost (credit) — — Net amount recognized $ (82 ) $ (80 ) Assumptions The discount rate used in the measurement of the December 31, 2019 and 2018 benefit obligation for the SERPs and Agents Non-Qualified Plan, were as follows: 2019 2018 Discount rate 3.36 % 4.46 % In determining the discount rate assumption, the Company utilizes current market information provided by its plan actuaries, including a discounted cash flow analysis of the Company's pension obligation and general movements in the current market environment. The discount rate modeling process involves selecting a portfolio of high quality, noncallable bonds that will match the cash flows of the SERPs and Agents Non-Qualified Plan. The weighted-average discount rate used in calculating the net pension cost was as follows: 2019 2018 2017 Discount rate 4.46 % 3.85 % 4.55 % Since the benefit plans of the Company are unfunded, an assumption for return on plan assets is not required. Net Periodic Benefit Costs Net periodic benefit costs for the SERPs and Agents Non-Qualified Plan were as follows for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Interest cost $ 3 $ 3 $ 4 Amortization of prior service cost (credit) — (1 ) (1 ) Net (gain) loss recognition 4 (4 ) 1 Net periodic (benefit) cost $ 7 $ (2 ) $ 4 Cash Flows The following table summarizes the expected benefit payments related to the SERPs and Agents Non-Qualified Plan for the years indicated: 2020 $ 6 2021 6 2022 6 2023 6 2024 5 2025-2029 25 In 2020 , the Company is expected to contribute $6 to the SERPs and Agents Non-Qualified Plan. Share Based Compensation Plans Certain employees of the Company participate in the 2013, 2014 and 2019 Omnibus Employee Incentive Plans ("the Omnibus Plans") sponsored by Voya Financial. The Omnibus Plans each permit the granting of a wide range of equity-based awards, including restricted stock units ("RSUs"), performance share units ("PSUs"), and stock options. The Company was allocated compensation expense from Voya Financial of $31 , $29 and $30 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company recognized tax benefits of $7 , $6 and $11 for the years ended 2019 , 2018 and 2017 , respectively. All excess tax benefits and tax deficiencies related to share-based compensation are reported in net income. Other Benefit Plans In addition, the Company, in conjunction with Voya Services Company, sponsors the following benefit plans: • The Voya 401(k) Plan for VRIAC Agents, which allows participants to defer a specified percentage of eligible compensation on a pre-tax basis. Effective January 1, 2006, the Company match equals 60% of a participant's pre-tax deferral contribution, with a maximum of 6% of the participant's eligible pay. A request for a determination letter on the qualified status of the Voya 401(k) Plan for VRIAC Agents was filed with the IRS on January 1, 2014. A favorable determination letter was received dated August 28, 2014. • The Producers' Incentive Savings Plan, which allows participants to defer up to a specified portion of their eligible compensation on a pre-tax basis. The Company matches such pre-tax contributions at specified amounts. • The Producers' Deferred Compensation Plan, which allows participants to defer up to a specified portion of their eligible compensation on a pre-tax basis. • Certain health care and life insurance benefits for retired employees and their eligible dependents. The postretirement health care plan is contributory, with retiree contribution levels adjusted annually and the Company subsidizes a portion of the monthly per-participant premium. Prior to April 1, 2017, coverage for Medicare eligible retirees was provided through a fully insured Medicare Advantage plan. Effective April 1, 2017, the fully insured Medicare Advantage Plan was replaced with access to individual coverage through a private exchange. The Company's premium subsidy ended and was replaced with a monthly HRA contribution. The Company continues to offer access to medical coverage until retirees become eligible for Medicare. The life insurance plan provides a flat amount of noncontributory coverage and optional contributory coverage. • The Voya Financial Deferred Compensation Savings Plan, which is a non-qualified deferred compensation plan that includes a 401(k) excess component. The benefit charges incurred by the Company related to these plans were immaterial for the years ended December 31, 2019 , 2018 , and 2017 . |
Financing Agreements
Financing Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Agreements | Financing Agreements Windsor Property Loan On June 16, 2007, the State of Connecticut acting on behalf of the Department of Economic and Community Development ("DECD") loaned VRIAC $10 (the "DECD Loan") in connection with the development of a corporate office facility located at One Orange Way, Windsor, Connecticut that serves as the principal executive offices of the Company (the "Windsor Property"). As of December 31, 2019 and 2018 , the amount of the loan outstanding was $4 , which is reflected in Other liabilities on the Consolidated Balance Sheets. In August 2017, the loan agreement between VRIAC and DECD was amended and $5 in cash was transferred into the cash deposit account as cash collateral. VRIAC's monthly payments of principal and interest are processed out of the cash deposit account. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases All of the Company's expenses for leased and subleased office properties are paid for by an affiliate and allocated back to the Company, as all remaining operating leases were executed by Voya Services Company as of December 31, 2008, which resulted in the Company no longer being party to any operating leases. For the years ended December 31, 2019 , 2018 and 2017 , rent expense for leases was $5 , $5 and $5 , respectively. Commitments Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. As of December 31, 2019 the Company had off-balance sheet commitments to acquire mortgage loans of $94 and purchase limited partnerships and private placement investments of $502 . Restricted Assets The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreement, letter of credit ("LOC") and derivative transactions as described further in this note. The components of the fair value of the restricted assets were as follows as of the dates indicated: December 31, 2019 2018 Fixed maturity collateral pledged to FHLB (1) $ 1,087 $ 771 FHLB restricted stock (2) 44 40 Other fixed maturities-state deposits 14 13 Cash and cash equivalents 5 5 Securities pledged (3) 828 882 Total restricted assets $ 1,978 $ 1,711 (1) Included in Fixed maturities, available for sale, at fair value, on the Consolidated Balance sheets. (2) Included in Other investments on the Consolidated Balance sheets. (3) Includes the fair value of loaned securities of $715 and $759 as of December 31, 2019 and 2018 , respectively. In addition, as of December 31, 2019 and 2018 , the Company delivered securities as collateral of $113 and $123 , respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Consolidated Balance Sheets. Federal Home Loan Bank Funding On January 18, 2018, the Company became a member of the Federal Home Loan Bank of Boston (“FHLB”). The Company is required to pledge collateral to back funding agreements issued to the FHLB. As of December 31, 2019 , the Company had $877 in non-putable funding agreements, which are included in Future policy benefits and contract owner account balances on the Consolidated Balance sheets. As of December 31, 2019 , assets with a market value of approximately $1,087 collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available for sale, at fair value on the Consolidated Balance sheets. Litigation, Regulatory Matters and Loss Contingencies Litigation, regulatory and other loss contingencies arise in connection with 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, both in the ordinary course and otherwise. 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 negligence, breach of contract, fraud, violation of regulation or statute, breach of fiduciary duty, negligent misrepresentation, failure to supervise, elder abuse and other torts. 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, 2019, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, no t material to the Company. 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. Litigation includes Goetz v. Voya Financial and Voya Retirement Insurance and Annuity Company (USDC District of Delaware, No. 1:17-cv-1289) (filed September 8, 2017), a putative class action in which plaintiff, a participant in a 401(k) plan, seeks to represent other participants in the plan as well as a class of similarly situated plans that “contract with [Voya] for recordkeeping and other services.” Plaintiff alleges that “Voya” breached its fiduciary duty to the plan and other plan participants by charging unreasonable and excessive recordkeeping fees, and that “Voya” distributed materially false and misleading 404a-5 administrative and fund fee disclosures to conceal its excessive fees. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously. Finally, industry wide, life insurers continue to be exposed to class action litigation related to the cost of insurance rates and periodic deductions from cash value. Common allegations include that insurance companies have breached the terms of their universal life insurance policies by establishing or increasing the cost of insurance rates using cost factors not permitted by the contract, thereby unjustly enriching themselves. This litigation is generally known as cost of insurance litigation. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Operating Agreements VRIAC has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: • Investment Advisory agreement with Voya Investment Management LLC ("VIM"), an affiliate, in which VIM provides asset management, administrative and accounting services for VRIAC's general account. VRIAC incurs a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2019 , 2018 and 2017 , expenses were incurred in the amounts of $68 , $65 and $64 , respectively. • Services agreement with Voya Services Company for administrative, management, financial and information technology services, dated January 1, 2001 and amended effective January 1, 2002. For the years ended December 31, 2019 , 2018 and 2017 , expenses were incurred in the amounts of $431 , $363 and $347 , respectively. • Amended and Restated Services agreement between VRIAC and its U.S. insurance company affiliates and other affiliates for administrative, management, financial and information technology services, dated as of April 1, 2015. For the years ended December 31, 2019 , 2018 and 2017 , expenses related to the agreement were incurred in the amount of $12 , $16 and $54 , respectively. • Intercompany agreement with VIM, as amended pursuant to which VIM agreed, effective January 1, 2010, to pay the Company, on a monthly basis, a portion of the revenues VIM earns as investment adviser to certain U.S. registered investment companies that are investment options under certain of the Company's variable insurance products. For the years ended December 31, 2019 , 2018 and 2017 , revenue under the VIM intercompany agreement was $59 , $63 and $55 , respectively. • Variable annuity, fixed insurance and mutual fund products issued by VRIAC are sold by Voya Financial Advisors, an affiliate of VRIAC. For the years ended December 31, 2019 , 2018 and 2017 commission expenses incurred by VRIAC were $82 , $79 and $77 , respectively. Management and service contracts and all cost sharing arrangements with other affiliated companies are allocated in accordance with the Company's expense and cost allocation methods. Revenues and expenses recorded as a result of transactions and agreements with affiliates may not be the same as those incurred if the Company was not a wholly owned subsidiary of its Parent. As disclosed in the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements, DSL was divested as part of the 2018 Transaction. DSL had certain agreements whereby it generated revenues and expenses with affiliated entities, as follows: • Underwriting and distribution agreements for variable insurance and mutual fund products with affiliated companies including VRIAC. For the years ended December 31, 2018 and 2017 , commissions were collected in the amount of $69 and $170 , respectively. Such commissions were, in turn, paid to broker-dealers. • Intercompany agreements with affiliated companies related to investment advisory and other related services. The investment advisory agreement was terminated in the second quarter of 2017. For the years ended December 31, 2018 and 2017 , expenses under these intercompany agreements were $26 and $83 , respectively. • Administrative and advisory services agreements with VIL and VIM, affiliated companies, in which DSL received certain services for a fee. These agreements were terminated in the second quarter of 2017. For the year ended December 31, 2017 , expenses were incurred in the amount $23 . Reinsurance Agreements The Company has entered into the following agreement with an affiliate that is accounted for under the deposit method. As of December 31, 2019 and 2018 , the Company had deposit assets of $36 and $37 , respectively, and deposit liabilities of $76 and $77 , respectively, related to this agreement. Deposit assets and liabilities are included in Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. Effective December 31, 2012, the Company entered into an automatic reinsurance agreement with its affiliate, SLDI, to manage the reserve and capital requirements in connection with a portion of its deferred annuities business. Under the terms of the agreement, the Company reinsures to SLDI, on an indemnity reinsurance basis, a quota share of its liabilities on certain contracts. The quota share percentage with respect to the contracts that are delivered or issued for delivery in the State of New York is 90% and the quota share percentage with respect to the contracts that are delivered or issued for delivery outside of the State of New York is 100% . Additionally, VRIAC entered in 2014 into a coinsurance agreement with Langhorne I, LLC ("Langhorne"), an affiliated captive reinsurance company, to manage reserve and capital requirements in connection with a portion of its Stabilizer and Managed Custody Guarantee business. Effective January 1, 2018, the Company recaptured the coinsurance agreement and recorded a $74 pre-tax gain on the recapture which was reported in Operating expenses in the Consolidated Statement of Operations for the year ended December 31, 2018. Investment Advisory and Other Fees DSL was retained by Voya Investors Trust, an affiliate, pursuant to a management agreement to provide advisory, management, administrative and other services to Voya Investors Trust. DSL entered into an administrative services subcontract with VIL, an affiliate, pursuant to which VIL, provided certain management, administrative and other services to Voya Investors Trust and was compensated a portion of the fees received by DSL under the management agreement. In addition, DSL was the investment advisor of Voya Partners, Inc., an affiliate. DSL and Voya Partners, Inc. had an investment advisory agreement, whereby DSL had overall responsibility to provide portfolio management services for Voya Partners, Inc and was paid a monthly fee. For the years ended December 31, 2018 and 2017 , revenue received by DSL under these agreements (exclusive of fees paid to affiliates) was $27 and $179 , respectively. The investment advisory agreements were terminated in the second quarter of 2017. VFP acts as a distributor of insurance products issued by its affiliates, which may in turn invest in mutual funds products issued by certain of its affiliates. For each of the years ended December 31, 2019 , 2018 and 2017 , distribution revenues received by VFP related to affiliated mutual fund products were $27 . Financing Agreements Reciprocal Loan Agreement The Company maintains a reciprocal loan agreement with Voya Financial, an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which became effective in June 2001 and expires on April 1, 2021, either party can borrow from the other up to 3.0% of the Company's statutory admitted assets as of the preceding December 31. During the years ended December 31, 2019 , 2018 , and 2017 , interest on any borrowing by either the Company or Voya Financial was charged at a rate based on the prevailing market rate for similar third-party borrowings for securities. Under this agreement, the Company incurred and earned immaterial interest expense and interest income for the years ended December 31, 2019 , 2018 and 2017 . Interest expense and income are included in Operating expenses and Net investment income, respectively, in the Consolidated Statements of Operations. As of December 31, 2019 , the Company had an outstanding receivable of $69 and no outstanding payable with Voya Financial under the reciprocal loan agreement. As of December 31, 2018 , the Company did no t have any outstanding receivable/payable with Voya Financial under the reciprocal loan agreement. Note with Affiliate On December 29, 2004, VIAC issued a surplus note in the principal amount of $175 (the "Note") scheduled to mature on December 29, 2034, to VRIAC. The Note bears interest at a rate of 6.26% per year. Interest is scheduled to be paid semi-annually in arrears on June 29 and December 29 of each year, commencing on June 29, 2005. For the year ended December 31, 2019 , the company earned no affiliate interest income on this note. Interest income was $5 and $11 for the years ended December 31, 2018 and 2017 , respectively. As of June 1, 2018, VIAC ceased to be an affiliate of the Company following the closing of the 2018 Transaction as disclosed in the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements. The investment in surplus notes is reported in Fixed maturities, available-for-sale on the Company's Consolidated Balance Sheet as of December 31, 2019 and 2018. |
Schedule I. Summary of Investme
Schedule I. Summary of Investments | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I Summary of Investments - Other Than Investments in Affiliates | Voya Retirement Insurance and Annuity Company (A wholly owned subsidiary of Voya Holdings Inc.) Schedule I Summary of Investments – Other than Investments in Affiliates As of December 31, 2019 (In millions) Type of Investments Cost Fair Value Amount Shown on Consolidated Balance Sheets Fixed maturities U.S. Treasuries $ 565 $ 691 $ 691 U.S. Government agencies and authorities 19 19 19 State, municipalities and political subdivisions 747 815 815 U.S. corporate public securities 7,103 8,031 8,031 U.S. corporate private securities 3,776 4,066 4,066 Foreign corporate public securities and foreign governments (1) 2,417 2,679 2,679 Foreign corporate private securities (1) 3,171 3,375 3,375 Residential mortgage-backed securities 3,685 3,810 3,810 Commercial mortgage-backed securities 2,381 2,500 2,500 Other asset-backed securities 1,472 1,474 1,474 Total fixed maturities, including securities pledged 25,336 27,460 27,460 Equity securities — — 80 Mortgage loans on real estate 4,664 4,912 4,664 Policy loans 205 205 205 Limited partnerships/corporations 738 738 738 Derivatives 31 224 224 Other investments 43 43 43 Total investments $ 31,017 $ 33,582 $ 33,414 (1) Primarily U.S. dollar denominated. |
Schedule IV - Reinsurance Infor
Schedule IV - Reinsurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance Information | Voya Retirement Insurance and Annuity Company and Subsidiaries (A wholly owned subsidiary of Voya Holdings Inc.) Schedule IV Reinsurance Years Ended December 31, 2019 , 2018 and 2017 (In millions) Gross Ceded Assumed Net Percentage of Assumed to Net Year Ended December 31, 2019 Life insurance in force $ 8,201 $ 8,410 $ 209 $ — NM** Premiums: Accident and health insurance — * — * — — * — % Annuity contracts 31 — — * 31 — % Total premiums $ 31 $ — * $ — * $ 31 — % Year Ended December 31, 2018 Life insurance in force $ 8,974 $ 9,202 $ 228 $ — NM** Premiums: Accident and health insurance — * — * — — * — % Annuity contracts 41 — — 41 — % Total premiums $ 41 $ — * $ — $ 41 — % Year Ended December 31, 2017 Life insurance in force $ 9,869 $ 10,116 $ 247 $ — NM** Premiums: Accident and health insurance — * — * — — * — % Annuity contracts 48 — — 48 — % Total premiums $ 48 $ — * $ — $ 48 — % * Less than $1 ** Not meaningful |
Business, Basis of Presentati_2
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, VFP, VIPS, VRA and DSL (prior to June 1, 2018). Intercompany transactions and balances have been eliminated. |
Estimates and Assumptions | Significant Accounting Policies Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. The Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates: • Reserves for future policy benefits; • Deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA"); • Valuation of investments and derivatives; • Impairments; • Income taxes; and • |
Fair Value Measurement | Fair Value Measurement Valuation of Financial Assets and Liabilities at Fair Value Certain assets and liabilities are measured at estimated fair value on the Company's Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell 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 exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below. For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows: U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve. U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings. U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields. U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities. RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security. Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Equity securities : Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers. Derivatives : Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2. Guaranteed benefit derivatives : The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy. The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities. The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit spreads, adjusted to reflect the credit quality of the Company, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates of policyholder claims. The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies. Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management. Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2. Transfers in and out of Level 1 and 2 There were no securities transferred between Level 1 and Level 2 for the years ended December 31, 2019 and 2018 . The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. Level 3 Financial Instruments The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below. |
Investments | Investments The accounting policies for the Company's principal investments are as follows: Fixed Maturities and Equity Securities : Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2016-01 "Financial Instruments-Overall (ASC Subtopic 825-10):Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") (See the Adoption of New Pronouncements section below). As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) ("AOCI"). The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the fair value option ("FVO"). Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in DAC, VOBA and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Consolidated Balance Sheets. The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Purchases and sales of fixed maturities and equity securities, excluding private placements, are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out ("FIFO") basis. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. Such dividends and interest income are recorded in Net investment income in the Consolidated Statements of Operations. Included within fixed maturities are loan-backed securities, including residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single-class and multi-class mortgage-backed securities ("MBS") and ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis. Short-term Investments : Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. These investments are stated at fair value. Assets Held in Separate Accounts : Assets held in separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities. Mortgage Loans on Real Estate : The Company's mortgage loans on real estate are all commercial mortgage loans, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan, discounted at the loan's original purchase yield, or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing a permanent write-down recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Property obtained from foreclosed mortgage loans is recorded in Other investments on the Consolidated Balance Sheets. Mortgage loans are evaluated by the Company's investment professionals, including an appraisal of loan-specific credit quality, property characteristics and market trends. Loan performance is continuously monitored on a loan-specific basis throughout the year. The Company's review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt. Mortgages are rated for the purpose of quantifying the level of risk. Those loans with higher risk are placed on a watch list and are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. Commercial loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. Factors considered may include conversations with the borrower, loss of major tenant, bankruptcy of borrower or major tenant, decreased property cash flow, number of days past due, or various other circumstances. Based on an assessment as to the collectability of the principal, a determination is made either to apply against the book value or apply according to the contractual terms of the loan. Funds recovered in excess of book value would then be applied to recover expenses, impairments, and then interest. Accrual of interest resumes after factors resulting in doubts about collectability have improved. The Company records an allowance for probable losses incurred on non-impaired loans on an aggregate basis, rather than specifically identified probable losses incurred by individual loan. Policy Loans : Policy loans are carried at an amount equal to the unpaid balance. Interest income on such loans is recorded as earned in Net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are collateralized by the cash surrender value of the associated insurance contracts. Any unpaid principal or interest on the loan is deducted from the account value or the death benefit prior to settlement of the policy. Limited Partnerships/Corporations : The Company uses the equity method of accounting for investments in limited partnership interests, which consists primarily of private equities and hedge funds. Generally, the Company records its share of earnings using a lag methodology, relying on the most recent financial information available, generally not to exceed three months. The Company's earnings from limited partnership interests accounted for under the equity method are recorded in Net investment income. Securities Lending : The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions, through a lending agent, for short periods of time. The Company has the right to approve any institution with whom the lending agent transacts on its behalf. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in short-term liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. Impairments The Company evaluates its available-for-sale general account investments quarterly to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. This evaluation process entails considerable judgment and estimation. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer's financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes and changes in ratings of the security. An extended and severe unrealized loss position on a fixed maturity may not have any impact on: (a) the ability of the issuer to service all scheduled interest and principal payments and (b) the evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. When assessing the Company's intent to sell a security, or if it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance the investment portfolio and sales of investments to meet cash flow or capital needs. When the Company has determined it has the intent to sell, or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, and the fair value has declined below amortized cost ("intent impairment"), the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, but the Company has determined that there has been an other-than-temporary decline in fair value below the amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected ("credit impairment") and the amount related to other factors ("noncredit impairment"). The credit impairment is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss). The Company uses the following methodology and significant inputs to determine the amount of the OTTI credit loss: • When determining collectability and the period over which the value is expected to recover for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company applies the same considerations utilized in its overall impairment evaluation process, which incorporates information regarding the specific security, the industry and geographic area in which the issuer operates and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from the Company's best estimates of likely scenario-based outcomes, after giving consideration to a variety of variables that includes, but is not limited to: general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain structured securities, such as subprime, Alt-A, non-agency RMBS, CMBS and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; loan-to-value ratios; debt service coverage ratios; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, the Company considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process, which incorporates available information and the Company's best estimate of scenario-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates; and the overall macroeconomic conditions. • The Company performs a discounted cash flow analysis comparing the current amortized cost of a security to the present value of future cash flows expected to be received, including estimated defaults and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to impairment. In periods subsequent to the recognition of the credit related impairment components of OTTI on a fixed maturity, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into Net investment income over the remaining term of the fixed maturity in a prospective manner based on the amount and timing of estimated future cash flows. |
Derivatives | Derivatives The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. The Company enters into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index or pool. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its annuity products. Derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (a) a hedge of the exposure to changes in the estimated fair value of a recognized asset or liability or an identified portion thereof that is attributable to a particular risk ("fair value hedge") or (b) a hedge of a forecasted transaction or of the variability of cash flows that is attributable to interest rate risk to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. • Fair Value Hedge : For derivative instruments that are designated and qualify as a fair value hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the Consolidated Statements of Operations as impacted by the hedged item. • Cash Flow Hedge : For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is reported as a component of AOCI. Those amounts are subsequently reclassified to earnings when the hedged item affects earnings, and are reported in the same line item in the Consolidated Statements of Operations as impacted by the hedged item. When hedge accounting is discontinued because it is determined that the derivative is no longer expected to be highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with subsequent changes in estimated fair value recognized currently in Other net realized capital gains (losses). The carrying value of the hedged asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in Other comprehensive income (loss) related to discontinued cash flow hedges are released into the Consolidated Statements of Operations when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date, or within two months of that date, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with changes in estimated fair value recognized currently in Other net realized capital gains (losses). Derivative gains and losses recorded in Other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in Other net realized capital gains (losses). The Company also has investments in certain fixed maturities and has issued certain annuity products that contain embedded derivatives for which fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. In addition, the Company has entered into coinsurance with funds withheld reinsurance arrangements, accounted for under the deposit method, that contain embedded derivatives, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives within the reinsurance agreements are reported in Other liabilities on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. 3. Derivative Financial Instruments The Company enters into the following types of derivatives: Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships. Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships. Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships. Currency forwards: The Company utilizes currency forward contracts to hedge currency exposure related to invested assets. The Company utilizes these contracts in non-qualifying hedging relationships. Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward contracts in non-qualifying hedging relationships. Futures: The Company uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships. Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships. Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads. Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives. The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rules related to the variation margin payments, the Company is required to adjust the derivative balances with the variation margin payments related to its cleared derivatives executed through CME. Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of December 31, 2019 and 2018 . The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Cash and cash equivalents are stated at fair value. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired DAC represents policy acquisition costs that have been capitalized and are subject to amortization and interest. Capitalized costs are incremental, direct costs of contract acquisition and certain other costs related directly to successful acquisition activities. Such costs consist principally of commissions, underwriting, sales and contract issuance and processing expenses directly related to the successful acquisition of new and renewal business. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. VOBA represents the outstanding value of in-force business acquired and is subject to amortization and interest. The value is based on the present value of estimated net cash flows embedded in the insurance contracts at the time of the acquisition and increased for subsequent deferrable expenses on purchased policies. DAC and VOBA are adjusted for the impact of unrealized capital gains (losses) on investments, as if such gains (losses) have been realized, with corresponding adjustments included in AOCI. Amortization Methodologies The Company amortizes DAC and VOBA related to fixed and variable deferred annuity contracts over the estimated lives of the contracts in relation to the emergence of estimated gross profits. Assumptions as to mortality, persistency, interest crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on the Company's experience and overall capital markets. At each valuation date, estimated gross profits are updated with actual gross profits, and the assumptions underlying future estimated gross profits are evaluated for continued reasonableness. Adjustments to estimated gross profits require that amortization rates be revised retroactively to the date of the contract issuance ("unlocking"). Recoverability testing is performed for current issue year products to determine if gross profits are sufficient to cover DAC and VOBA, estimated benefits and related expenses. In subsequent years, the Company performs testing to assess the recoverability of DAC and VOBA on an annual basis, or more frequently if circumstances indicate a potential loss recognition issue exists. If DAC or VOBA are not deemed recoverable from future gross profits, charges will be applied against DAC or VOBA balances before an additional reserve is established. Internal Replacements Contract owners may periodically exchange one contract for another, or make modifications to an existing contract. These transactions are identified as internal replacements. Internal replacements that are determined to result in substantially unchanged contracts are accounted for as continuations of the replaced contracts. Any costs associated with the issuance of the new contracts are considered maintenance costs and expensed as incurred. Unamortized DAC and VOBA related to the replaced contracts continue to be deferred and amortized in connection with the new contracts. Internal replacements that are determined to result in contracts that are substantially changed are accounted for as extinguishments of the replaced contracts, and any unamortized DAC and VOBA related to the replaced contracts are written off to Net amortization of Deferred policy acquisition costs and Value of business acquired in the Consolidated Statements of Operations. Assumptions Changes in assumptions can have a significant impact on DAC and VOBA balances, amortization rates, reserve levels, and results of operations. Assumptions are management's best estimate of future outcome. Several assumptions are considered significant in the estimation of gross profits associated with the Company's variable products. One significant assumption is the assumed return associated with the variable account performance. To reflect the volatility in the equity markets, this assumption involves a combination of near-term expectations and long-term assumptions regarding market performance. The overall return on the variable account is dependent on multiple factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds, as well as equity sector weightings. The Company uses a reversion to the mean approach, which assumes that the market returns over the entire mean reversion period are consistent with a long-term level of equity market appreciation. The Company monitors market events and only changes the assumption when sustained deviations are expected. This methodology incorporates a 9% long-term equity return assumption, a 14% cap and a five -year look-forward period. Other significant assumptions used in the estimation of gross profits for products with credited rates include interest rate spreads and credit losses. Estimated gross profits of variable annuity contracts are sensitive to estimated policyholder behavior assumptions, such as surrender, lapse and annuitization rates. |
Future Policy Benefits and Contract Owner Accounts | Future Policy Benefits and Contract Owner Account Balances Future Policy Benefits The Company establishes and carries actuarially-determined reserves that are calculated to meet its future obligations, including estimates of unpaid claims and claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The principal assumptions used to establish liabilities for future policy benefits are based on Company experience and periodically reviewed against industry standards. These assumptions include mortality, morbidity, policy lapse, contract renewal, payment of subsequent premiums or deposits by the contract owner, retirement, investment returns, inflation, benefit utilization and expenses. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. Reserves for payout contracts with life contingencies are equal to the present value of expected future payments. Assumptions as to interest rates, mortality and expenses are based on the Company's estimates of anticipated experience at the period the policy is sold or acquired, including a provision for adverse deviation. Such assumptions generally vary by annuity plan type, year of issue and policy duration. Interest rates used to calculate the present value of future benefits ranged from 2.7% to 6.6% . Although assumptions are "locked-in" upon the issuance of payout contracts with life contingencies, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are determined based on best estimate assumptions that exist at the time the premium deficiency reserve is established and do not include a provision for adverse deviation. Contract Owner Account Balances Contract owner account balances relate to investment-type contracts, as follows: • Account balances for funding agreements with fixed maturities are calculated using the amount deposited with the Company, less withdrawals, plus interest accrued to the ending valuation date. Interest on these contracts is accrued by a predetermined index, plus a spread or a fixed rate, established at the issue date of the contract. • Account balances for fixed annuities and payout contracts without life contingencies are equal to cumulative deposits, less charges and withdrawals, plus credited interest thereon. Credited interest rates vary by product and ranged up to 5.7% for the year 2019 , and 5.3% for the years 2018 and 2017 . Account balances for group immediate annuities without life contingent payouts are equal to the discounted value of the payment at the implied break-even rate. • For fixed-indexed annuity ("FIA"), the aggregate initial liability is equal to the deposit received, plus a bonus, if applicable, and is split into a host component and an embedded derivative component. Thereafter, the host liability accumulates at a set interest rate, and the embedded derivative liability is recognized at fair value. |
Product Guarantees and Additional Reserves | Product Guarantees and Additional Reserves The Company calculates additional reserve liabilities for certain variable annuity guaranteed benefits and variable funding products. The Company periodically evaluates its estimates and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations. GMDB : Reserves for annuity guaranteed minimum death benefits ("GMDB") are determined by estimating the value of expected benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. Expected experience is based on a range of scenarios. Assumptions used, such as the long-term equity market return, lapse rate and mortality, are consistent with assumptions used in estimating gross profits for the purpose of amortizing DAC. The assumptions of investment performance and volatility are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor's ("S&P") 500 Index. Reserves for GMDB are recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in reserves for GMDB are reported in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations. FIA : The Company issued FIA contracts that contain embedded derivatives that are measured at estimated fair value separately from the host contracts. Such embedded derivatives are recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value, that are not related to attributed fees or premiums collected or payments made, are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. The estimated fair value of the embedded derivative in the FIA contracts is based on the present value of the excess of interest payments to the contract owners over the growth in the minimum guaranteed contract value. The excess interest payments are determined as the excess of projected index driven benefits over the projected guaranteed benefits. The projection horizon is over the anticipated life of the related contracts, which takes into account best estimate actuarial assumptions, such as partial withdrawals, full surrenders, deaths, annuitizations and maturities. Stabilizer and MCG : Guaranteed credited rates give rise to an embedded derivative in the Stabilizer products and a stand-alone derivative for managed custody guarantee products ("MCG"). These derivatives are measured at estimated fair value and recorded in Future policy benefits and contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value, that are not related to attributed fees collected or payments made, are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. The estimated fair value of the Stabilizer embedded derivative and MCG stand-alone derivative is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. The liabilities for the FIA and Stabilizer embedded derivatives and the MCG stand-alone derivative (collectively, "guaranteed benefit derivatives") include a risk margin to capture uncertainties related to policyholder behavior assumptions. The margin represents additional compensation a market participant would require to assume these risks. The discount rate used to determine the fair value of the liabilities for FIA and Stabilizer embedded derivatives and the MCG stand-alone derivative includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). |
Separate Accounts | Separate Accounts Separate account assets and liabilities generally represent funds maintained to meet specific investment objectives of contract owners or participants who bear the investment risk, subject, in limited cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contract owners. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company or its affiliates. Separate account assets supporting variable options under variable annuity contracts are invested, as designated by the contract owner or participant under a contract, in shares of mutual funds that are managed by the Company, or its affiliates, or in other selected mutual funds not managed by the Company, or its affiliates. The Company reports separately, as assets and liabilities, investments held in the separate accounts and liabilities of separate accounts if: • Such separate accounts are legally recognized; • Assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; • Investments are directed by the contract owner or participant; and • All investment performance, net of contract fees and assessments, is passed through to the contract owner. The Company reports separate account assets that meet the above criteria at fair value on the Consolidated Balance Sheets based on the fair value of the underlying investments. Separate account liabilities equal separate account assets. Investment income and net realized and unrealized capital gains (losses) of the separate accounts, however, are not reflected in the Consolidated Statements of Operations, and the Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts. |
Repurchase Agreements | Repurchase Agreements The Company engages in dollar repurchase agreements with MBS ("dollar rolls") and repurchase agreements with other collateral types to increase its return on investments and improve liquidity. Such arrangements meet the requirements to be accounted for as financing arrangements. The Company enters into dollar roll transactions by selling existing MBS and concurrently entering into an agreement to repurchase similar securities within a short time frame at a lower price. Under repurchase agreements, the Company borrows cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledges collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to the Company, and the Company, in turn, repays the loan amount along with the additional agreed upon interest. The Company's policy requires that at all times during the term of the dollar roll and repurchase agreements that cash or other collateral types obtained is sufficient to allow the Company to fund substantially all of the cost of purchasing replacement assets. Cash received is generally invested in Short-term investments, with the offsetting obligation to repay the loan included within Payables under securities loan agreements, including collateral held on the Consolidated Balance Sheets. The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions is included in Securities pledged on the Consolidated Balance Sheets. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls and repurchase agreements are financially responsible and that the counterparty risk is minimal. |
Recognition of Insurance Revenue and Related Benefits | Recognition of Revenue Insurance Revenue and Related Benefits Premiums related to payouts contracts with life contingencies are recognized in Premiums in the Consolidated Statements of Operations when due from the contract owner. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded in Interest credited and other benefits to contract owners/policyholders in the Consolidated Statements of Operations when incurred. Amounts received as payment for investment-type, fixed annuities, payout contracts without life contingencies and FIA contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges and are reported in Fee income. Surrender charges are reported in Other revenue. In addition, the Company earns investment income from the investment of contract deposits in the Company's general account portfolio, which is reported in Net investment income in the Consolidated Statements of Operations. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are deferred and amortized into revenue over the expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances. Financial Services Revenue Revenue for various financial services is measured based on consideration specified in a contract with a customer and is recognized when the Company has satisfied a performance obligation. For advisory, recordkeeping and administration services of $405 and $422 for the years ended December 31, 2019 and 2018 , respectively, the Company recognizes revenue as services are provided, generally over time. For distribution and shareholder servicing revenue of $82 and $123 for the years ended December 31, 2019 and 2018 , respectively, the Company provides distribution services at a point in time and shareholder services over time. Contract terms are typically less than one year, and consideration is variable. For a description of principal activities from which the Company generates revenue, see the Business section above for further information. For the years ended December 31, 2019 and 2018 , such revenue represents approximately 19.7% and 22.9% respectively, of total revenue. For the years ended December 31, 2019 and 2018 , a portion of the revenue recognized in the current period from distribution services is related to performance obligations satisfied in previous periods. Revenue for various financial services is recorded in Fee income or Other revenue in the Consolidated Statements of Operations. Receivables of $97 and $95 are included in Other assets on the Consolidated Balance Sheets as of December 31, 2019 and 2018 , respectively. |
Income Tax | Income Taxes The Company uses certain assumptions and estimates in determining (a) the income taxes payable or refundable to/from Voya Financial for the current year, (b) the deferred income tax liabilities and assets for items recognized differently in its Consolidated Financial Statements from amounts shown on its income tax returns and (c) the federal income tax expense. Determining these amounts requires analysis and interpretation of current tax laws and regulations, including the loss limitation rules associated with change in control. Management exercises considerable judgment in evaluating the amount and timing of recognition of the resulting income tax liabilities and assets. These judgments and estimates are reevaluated on a periodic basis and as regulatory and business factors change. Items required by tax law to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent, such as the dividends received deduction, which is estimated using information from the prior period and current year results. Other differences are temporary, reversing over time, such as the valuation of insurance reserves, and create deferred tax assets and liabilities. The Company's deferred tax assets and liabilities resulting from temporary differences between financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. Deferred tax assets represent the tax benefit of future deductible temporary differences, net operating loss carryforwards and tax credit carryforwards. The Company evaluates and tests the recoverability of its deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: • The nature, frequency and severity of book income or losses in recent years; • The nature and character of the deferred tax assets and liabilities; • The recent cumulative book income (loss) position after adjustment for permanent differences; • Taxable income in prior carryback years; • Projected future taxable income, exclusive of reversing temporary differences and carryforwards; • Projected future reversals of existing temporary differences; • The length of time carryforwards can be utilized; • Prudent and feasible tax planning strategies the Company would employ to avoid a tax benefit from expiring unused; and • Tax rules that would impact the utilization of the deferred tax assets. In establishing unrecognized tax benefits, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. The Company also considers positions that have been reviewed and agreed to as part of an examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized in the Consolidated Financial Statements. Tax positions that meet this standard are recognized in the Consolidated Financial Statements. The Company measures the tax position as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate resolution with the tax authority that has full knowledge of all relevant information. |
Reinsurance | Reinsurance The Company utilizes reinsurance agreements in most aspects of its insurance business to reduce its exposure to large losses. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk. The Company reviews contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The assumptions used to account for long-duration reinsurance agreements are consistent with those used for the underlying contracts. Ceded Future policy benefits and contract owner account balances are reported gross on the Consolidated Balance Sheets. Long-duration : For reinsurance of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid and benefits received related to the underlying contracts is included in the expected net cost of reinsurance, which is recorded as a component of the reinsurance asset or liability. Any difference between actual and expected net cost of reinsurance is recognized in the current period and included as a component of profits used to amortize DAC. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in Other liabilities, and deposits made are included in Other assets on the Consolidated Balance Sheets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as Other revenues or Operating expenses in the Consolidated Statements of Operations, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through Other revenues or Other expenses, as appropriate. Accounting for reinsurance requires use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance. The Company also evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are recognized as assets on the Company's Consolidated Balance Sheets and are stated net of allowances for uncollectible reinsurance. Amounts currently recoverable and payable under reinsurance agreements are included in Premiums receivable and reinsurance recoverable and Other liabilities, respectively. Such assets and liabilities relating to reinsurance agreements with the same reinsurer are recorded net on the Consolidated Balance Sheets if a right of offset exists within the reinsurance agreement. Premiums, Fee income and Interest credited and other benefits to contract owners/policyholders are reported net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in Other revenue. The Company utilizes reinsurance agreements, accounted for under the deposit method, to manage reserve and capital requirements in connection with a portion of its deferred annuities business. The agreements contain embedded derivatives for which carrying value is estimated based on the change in the fair value of the assets supporting the funds withheld under the agreements. The Company currently has a significant concentration of ceded reinsurance with a subsidiary of Lincoln National Corporation ("Lincoln") arising from the disposition of its individual life insurance business. |
Employee Benefits Plans | Employee Benefits Plans The Company, in conjunction with Voya Services Company, sponsors non-qualified defined benefit pension plans covering eligible employees, sales representatives and other individuals. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in respect of non-qualified defined benefit pension plans is the present value of the projected pension benefit obligation ("PBO") at the balance sheet date, together with adjustments for unrecognized past service costs. This liability is included in Other liabilities on the Consolidated Balance Sheets. The PBO is defined as the actuarially calculated present value of vested and non-vested pension benefits accrued based on future salary levels. The Company recognizes the funded status of the PBO for pension plans on the Consolidated Balance Sheets. Net periodic benefit cost for the non-qualified defined benefit pension plans is determined using management estimates and actuarial assumptions to derive service cost and interest cost for a particular year. The obligations and expenses associated with these plans require use of assumptions, such as discount rate and rate of future compensation increases and healthcare cost trend rates, as well as assumptions regarding participant demographics, such as age of retirements, withdrawal rates and mortality. Management determines these assumptions based on a variety of factors, such as currently available market and industry data and expected benefit payout streams. Actual results could vary significantly from assumptions based on changes, such as economic and market conditions, demographics of participants in the plans and amendments to benefits provided under the plans. These differences may have a significant effect on the Company's Consolidated Financial Statements and liquidity. Actuarial gains (losses) are immediately recognized in Operating expenses in the Consolidated Statements of Operations. |
Contingencies | Contingencies A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Examples of loss contingencies include pending or threatened adverse litigation, threat of expropriation of assets and actual or possible claims and assessments. Amounts related to loss contingencies are accrued and recorded in Other liabilities on the Consolidated Balance Sheets if it is probable that a loss has been incurred and the amount can be reasonably estimated, based on the Company's best estimate of the ultimate outcome. |
Adoption of New Pronouncements and Future Adoption of Accounting Pronouncements | Adoption of New Pronouncements The following table provides a description of the Company's adoption of new ASUs issued by the Financial Accounting Standards Board and the impact of the adoption on the Company's financial statements. Standard Description of Requirements Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard, issued in February 2018, permits a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). Stranded tax effects arise because U.S. GAAP requires that the impact of a change in tax laws or rates on deferred tax liabilities and assets be reported in net income, even if related to items recognized within accumulated other comprehensive income. The amount of the reclassification would be based on the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate, applied to deferred tax liabilities and assets reported within accumulated other comprehensive income. January 1, 2019, with the change reported in the period of adoption. The impact to the January 1, 2019 Consolidated Balance Sheet was an increase to AOCI of $137, with a corresponding decrease to Retained earnings. The ASU did not have a material impact on the Company's results of operations, cash flows, or disclosures. Standard Description of Requirements Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities This standard, issued in August 2017, enables entities to better portray risk management activities in their financial statements, as follows: • Expands an entity's ability to hedge nonfinancial and financial risk components and reduces complexity in accounting for fair value hedges of interest rate risk, • Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item, and • Eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness, and modifies required disclosures. In October 2018, the FASB issued an amendment which expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting. January 1, 2019, using the modified retrospective method, with the exception of the presentation and disclosure requirements which were adopted prospectively. The adoption had no effect on the Company's financial condition, results of operations, or cash flows. The adoption resulted in a change to the Company's significant accounting policy described above. Other required disclosure changes have been included in Note 3, Derivative Financial Instruments. Standard Description of Requirements Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-02, Leases This standard, issued in February 2016, requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. The lease liability will be measured as the present value of the lease payments, and the asset will be based on the liability. For income statement purposes, expense recognition will depend on the lessee's classification of the lease as either finance, with a front-loaded amortization expense pattern similar to current capital leases, or operating, with a straight-line expense pattern similar to current operating leases. Lessor accounting will be similar to the current model, and lessors will be required to classify leases as operating, direct financing, or sales-type. ASU 2016-02 also replaces the sale-leaseback guidance to align with the new revenue recognition standard, addresses statement of operation and statement of cash flow classification, and requires additional disclosures for all leases. In addition, the FASB issued various amendments during 2018 to clarify and simplify the provisions and implementation guidance of ASU 2016-02. January 1, 2019 using the modified retrospective method. The adoption did not have a material impact on the Company's financial condition, results of operations, or cash flows. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities This standard, issued in January 2016, addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including requiring: • Equity investments (except those consolidated or accounted for under the equity method) to be measured at fair value with changes in fair value recognized in net income. • Elimination of the disclosure of methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost. January 1, 2018 using the modified retrospective method, except for certain provisions that were required to be applied using the prospective method. The impact to the January 1, 2018 Consolidated Balance Sheet was a $12 increase, net of tax, to Retained earnings (deficit) with a corresponding decrease of $12, net of tax, to AOCI to recognize the unrealized gain associated with Equity securities. The provisions that required prospective adoption had no effect on the Company's financial condition, results of operations, or cash flows. Under previous guidance, prior to January 1, 2018, Equity securities were classified as available for sale with changes in fair value recognized in Other comprehensive income. Standard Description of Requirements Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09, Revenue from Contracts with Customers This standard, issued in May 2014, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the entity satisfies a performance obligation under the contract. ASU 2014-09 also updated the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB issued various amendments during 2016 to clarify the provisions and implementation guidance of ASU 2014-09. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the guidance. January 1, 2018 using the modified retrospective method. The adoption had no impact on revenue recognition. However, the adoption resulted in a $95 increase in Other assets to capitalize costs to obtain and fulfill certain financial services contracts. This adjustment was offset by a related $19 increase in deferred tax liabilities, resulting in a net $76 increase to Retained earnings (deficit) on the Consolidated Balance Sheet as of January 1, 2018. In addition, disclosures have been updated to reflect accounting policy changes made as a result of the implementation of ASU 2014-09. (See the Significant Accounting Policies section.) Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. As of December 31, 2018, the adoption of ASU 2014-09 resulted in a $105 increase in Other assets, reduced by a related $22 decrease in Deferred income taxes, resulting in a net $83 increase to Retained earnings (deficit) on the Consolidated Balance Sheet. For the year ended December 31, 2018 , the adoption resulted in a $3 increase in Operating expenses on the Consolidated Statement of Operations and had no impact on Net cash provided by operating activities. Future Adoption of Accounting Pronouncements Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12, "Financial Services - Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts" ("ASU 2018-12"), which changes the measurement and disclosures of insurance liabilities and deferred acquisition costs for long-duration contracts issued by insurers. In November 2019, the FASB issued ASU 2019-09 to amend the effective date of ASU 2018-12 for public business entities that are required to file with the SEC to fiscal years beginning after December 15, 2021, including interim periods, with early adoption permitted. The Company is currently in the process of evaluating the provisions of ASU 2018-12. While it is not possible to estimate the expected impact of adoption at this time, the Company believes there is a reasonable possibility that implementation of ASU 2018-12 may result in a significant impact on Shareholders’ equity and future earnings patterns. In addition to requiring significantly expanded interim and annual disclosures regarding long-duration insurance contract assets and liabilities, ASU 2018-12's provisions include modifications to the accounting for such contracts in the following areas: ASU 2018-12 Subject Area Description of Requirements Transition Provisions Effect on the financial statements or other significant matters Assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited payment insurance contracts Requires insurers to review and, if necessary, update cash flow assumptions at least annually. The effect of updating cash flow assumptions will be measured on a retrospective catch-up basis and presented in the Statement of operations in the period in which the update is made. The rate used to discount the liability for future policy benefits will be required to be updated quarterly, with related changes in the liability recorded in Accumulated other comprehensive income. The discount rate will be based on an upper-medium grade fixed-income corporate instrument yield reflecting the duration characteristics of the relevant liabilities. Initial adoption is required to be reported using either a full retrospective or modified retrospective approach. Under either method, upon adoption the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. The application of periodic assumption updates for nonparticipating traditional and limited payment insurance contracts is significantly different from the current accounting approach for such liabilities, which is based on assumptions that are locked in at contract inception unless a premium deficiency occurs. Under the current accounting guidance, the liability discount rate is based on expected yields on the underlying investment portfolio held by the insurer. The implications of these requirements, including transition options, and related potential financial statement impacts are currently being evaluated. Measurement of market risk benefits Creates a new category of benefit features called market risk benefits, defined as features that protect contract holders from capital market risk and expose the insurers to that risk. Market risk benefits will be required to be measured at fair value, with changes in fair value recognized in the Statement of operations, except for changes in fair value attributable to changes in the instrument-specific credit risk, which will be recorded in Accumulated other comprehensive income. Full retrospective application is required. Upon adoption, any difference between the fair value and pre-adoption carrying value of market risk benefits not currently measured at fair value will be recorded to retained earnings. In addition, the cumulative effect of changes in instrument-specific credit risk will be reclassified from retained earnings to AOCI. Under the current accounting guidance, certain features that are expected to meet the definition of market risk benefits are accounted for as either insurance liabilities or embedded derivatives. The implications of these requirements and related potential financial statement impacts are currently being evaluated. Amortization of DAC and other balances Requires DAC (and other balances that refer to the DAC model, such as deferred sales inducement costs and unearned revenue liabilities) for all long-duration contracts to be measured on a constant level basis over the expected life of the contract. Initial adoption is required to be reported using either a full retrospective or modified retrospective approach. The method of transition applied for DAC and other balances must be consistent with the transition method selected for future policy benefit liabilities, as described above. This approach is intended to approximate straight-line amortization and cannot be based on revenue or profits as it is under the current accounting model. Related amounts in AOCI will be eliminated upon adoption. ASU 2018-12 did not change the existing accounting guidance related to VOBA and net cost of reinsurance, which allows, but does not require, insurers to amortize such balances on a basis consistent with DAC. The implications of these requirements, including transition options, and related potential financial statement impacts are currently being evaluated. The following table provides a description of future adoptions of other new accounting standards that may have an impact on the Company's financial statements when adopted: Standard Description of Requirements Effective date and transition provisions Effect on the financial statements or other significant matters ASU 2018-15, Implementation costs in a cloud computing arrangement that is a service contract This standard, issued in August 2018, requires a customer in a hosting arrangement that is a service contract to follow the guidance for internal-use software projects to determine which implementation costs to capitalize as an asset. Capitalized implementation costs are required to be expensed over the term of the hosting arrangement. In addition, a customer is required to apply the impairment and abandonment guidance for long-lived assets to the capitalized implementation costs. Balances related to capitalized implementation costs must be presented in the same financial statement line items as other hosting arrangement balances, and additional disclosures are required. January 1, 2020 with early adoption permitted. Initial adoption of ASU 2018-15 may be reported either on a prospective or retrospective basis. The Company intends to adopt ASU 2018-15 as of January 1, 2020 on a prospective basis. The Company does not expect ASU 2018-15 to have a material impact on the Company's financial condition, results of operations, or cash flows. ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans This standard, issued in August 2018, eliminates certain disclosure requirements that are no longer considered cost beneficial and requires new disclosures that are considered relevant. January 1, 2021 with early adoption permitted. Initial adoption of ASU 2018-14 is required to be reported on a retrospective basis for all periods presented. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2018-14. ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement This standard, issued in August 2018, simplifies certain disclosure requirements for fair value measurement. January 1, 2020 with early adoption permitted. The transition method varies by provision. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2018-13. ASU 2016-13, Measurement of Credit Losses on Financial Instruments This standard, issued in June 2016: • Introduces a new current expected credit loss ("CECL") model to measure impairment on certain types of financial instruments, • Requires an entity to estimate lifetime expected credit losses, under the new CECL model, based on relevant information about historical events, current conditions, and reasonable and supportable forecasts, • Modifies the impairment model for available-for-sale debt securities, and • Provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. In addition, the FASB issued various amendments during 2018 and 2019 to clarify the provisions of ASU 2016-13. January 1, 2020, including interim period, with early adoption permitted. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. The Company believes the adoption of this guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. The CECL requirements apply to financial assets held at amortized cost, the most significant of which, for the Company, are mortgage loans and reinsurance recoverable balances. Implementation efforts currently in progress include the finalization of CECL models and continuing analysis of model output, as well as development of related processes, controls, and disclosures. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Available-for-sale Securities Including Securities Pledged [Line Items] | |
Marketable Securities | Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019 : Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value OTTI (3)(4) Fixed maturities: U.S. Treasuries $ 565 $ 129 $ 3 $ — $ 691 $ — U.S. Government agencies and authorities 19 — — — 19 — State, municipalities and political subdivisions 747 68 — — 815 — U.S. corporate public securities 7,103 941 13 — 8,031 — U.S. corporate private securities 3,776 306 16 — 4,066 — Foreign corporate public securities and foreign governments (1) 2,417 265 3 — 2,679 — Foreign corporate private securities (1) 3,171 205 1 — 3,375 — Residential mortgage-backed securities 3,685 125 11 11 3,810 2 Commercial mortgage-backed securities 2,381 122 3 — 2,500 — Other asset-backed securities 1,472 15 13 — 1,474 1 Total fixed maturities, including securities pledged 25,336 2,176 63 11 27,460 3 Less: Securities pledged 749 85 6 — 828 — Total fixed maturities $ 24,587 $ 2,091 $ 57 $ 11 $ 26,632 $ 3 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) Represents OTTI reported as a component of Other comprehensive income (loss). (4) Amount excludes $194 of net unrealized gains on impaired available-for-sale securities. Available-for-sale and FVO fixed maturities were as follows as of December 31, 2018 : Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value OTTI (3)(4) Fixed maturities: U.S. Treasuries $ 651 $ 87 $ — $ — $ 738 $ — U.S. Government agencies and authorities — — — — — — State, municipalities and political subdivisions 754 18 8 — 764 — U.S. corporate public securities 7,908 288 181 — 8,015 — U.S. corporate private securities 3,686 73 106 — 3,653 — Foreign corporate public securities and foreign governments (1) 2,551 69 80 — 2,540 — Foreign corporate private securities (1) 3,235 37 97 — 3,175 — Residential mortgage-backed securities 2,966 93 32 9 3,036 3 Commercial mortgage-backed securities 1,917 16 28 — 1,905 — Other asset-backed securities 1,230 6 28 — 1,208 2 Total fixed maturities, including securities pledged 24,898 687 560 9 25,034 5 Less: Securities pledged 867 45 30 — 882 — Total fixed maturities $ 24,031 $ 642 $ 530 $ 9 $ 24,152 $ 5 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) Represents OTTI reported as a component of Other comprehensive income (loss). (4) Amount excludes $137 of net unrealized gains on impaired available-for-sale securities. |
Investments Classifed by Contractual Maturity Date | The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2019 , are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date. Amortized Fair Due to mature: One year or less $ 607 $ 615 After one year through five years 3,564 3,728 After five years through ten years 5,672 6,108 After ten years 7,955 9,225 Mortgage-backed securities 6,066 6,310 Other asset-backed securities 1,472 1,474 Fixed maturities, including securities pledged $ 25,336 $ 27,460 The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. As of December 31, 2019 and 2018 , the Company did no t have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company's consolidated Shareholder's equity. |
U.S. and Foreign Corporate Securities by Industry | The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated: Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Fair Value December 31, 2019 Communications $ 1,002 $ 156 $ — $ 1,158 Financial 2,650 302 — 2,952 Industrial and other companies 7,053 667 11 7,709 Energy 1,675 185 18 1,842 Utilities 2,913 294 1 3,206 Transportation 856 78 2 932 Total $ 16,149 $ 1,682 $ 32 $ 17,799 December 31, 2018 Communications $ 1,139 $ 55 $ 21 $ 1,173 Financial 2,707 101 47 2,761 Industrial and other companies 7,604 152 214 7,542 Energy 1,884 55 81 1,858 Utilities 2,974 80 74 2,980 Transportation 729 14 17 726 Total $ 17,037 $ 457 $ 454 $ 17,040 |
Schedule of Securities Borrowed Under Securities Lending Transactions | The following table presents borrowings under securities lending transactions by asset class pledged for the dates indicated: December 31, 2019 (1)(2) December 31, 2018 (1)(2) U.S. Treasuries $ 109 $ 92 U.S. corporate public securities 447 523 Foreign corporate public securities and foreign governments 185 170 Equity Securities — 1 Payables under securities loan agreements $ 741 $ 786 (1) As of December 31, 2019 and December 31, 2018 , borrowings under securities lending transactions include cash collateral of $650 and $719 , respectively. (2) As of December 31, 2019 and December 31, 2018 , borrowings under securities lending transactions include non-cash collateral of $91 and $67 , respectively. |
Schedule of Unrealized Loss on Investments | Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2019 : Twelve Months or Less More Than Twelve Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ 68 $ 3 $ 12 $ — * $ 80 $ 3 U.S. Government, agencies and authorities 18 — * — — 18 — * State, municipalities and political subdivisions 21 — * — — 21 — * U.S. corporate public securities 97 3 131 10 228 13 U.S. corporate private securities 75 — * 134 16 209 16 Foreign corporate public securities and foreign governments 6 — * 53 3 59 3 Foreign corporate private securities 21 — * 56 1 77 1 Residential mortgage-backed 535 6 139 5 674 11 Commercial mortgage-backed 331 3 18 — * 349 3 Other asset-backed 217 2 500 11 717 13 Total $ 1,389 $ 17 $ 1,043 $ 46 $ 2,432 $ 63 Total number of securities in an unrealized loss position 289 278 567 *Less than $1. Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2018 : Twelve Months or Less More Than Twelve Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Treasuries $ — $ — $ 15 $ — $ 15 $ — * State, municipalities and political subdivisions 191 3 88 5 279 8 U.S. corporate public securities 3,060 131 535 50 3,595 181 U.S. corporate private securities 1,502 40 579 66 2,081 106 Foreign corporate public securities and foreign governments 1,159 54 169 26 1,328 80 Foreign corporate private securities 1,504 77 221 20 1,725 97 Residential mortgage-backed 560 11 412 21 972 32 Commercial mortgage-backed 865 16 312 12 1,177 28 Other asset-backed 892 27 61 1 953 28 Total $ 9,733 $ 359 $ 2,392 $ 201 $ 12,125 $ 560 Total number of securities in an unrealized loss position 1,894 550 2,444 *Less than $1. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | Evaluating Securities for Other-Than-Temporary Impairments The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired. The following table identifies the Company's impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: Year Ended December 31, 2019 2018 2017 Impairment No. of Securities Impairment No. of Securities Impairment No. of Securities State municipalities, and political subdivisions $ — * 6 $ — — $ — — U.S. corporate public securities 11 25 6 2 — * 3 U.S. corporate private securities 1 16 — — — — Foreign corporate public securities and foreign governments (1) 3 15 2 3 2 3 Foreign corporate private securities (1) 18 11 9 1 9 2 Residential mortgage-backed 4 71 3 58 1 17 Commercial mortgage-backed — * 18 — * 1 — * 1 Other asset-backed 3 73 — * 1 — — Total $ 40 235 $ 20 66 $ 12 26 Credit Impairments $ 20 $ 14 $ 12 Intent Impairments $ 20 $ 6 $ — (1) Primarily U.S. dollar denominated. *Less than $1. The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company's previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses. The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated: Year Ended December 31, 2019 2018 2017 Balance at January 1 $ 5 $ 16 $ 9 Additional credit impairments: On securities not previously impaired — — 9 On securities previously impaired — 1 — Reductions: Securities intent impaired — 12 — Increase in cash flows — — — Securities sold, matured, prepaid or paid down 1 — 2 Balance at December 31 $ 4 $ 5 $ 16 |
Schedule of Mortgage Loans Real Estate and Valuation Allowance | The following table summarizes the Company's investment in mortgage loans as of the dates indicated: December 31, 2019 December 31, 2018 Impaired Non Impaired Total Impaired Non Impaired Total Commercial mortgage loans $ 4 $ 4,660 $ 4,664 $ 4 $ 4,915 $ 4,919 Collective valuation allowance for losses — — — N/A (1 ) (1 ) Total net commercial mortgage loans $ 4 $ 4,660 $ 4,664 $ 4 $ 4,914 $ 4,918 N/A - Not Applicable There were two impairments taken of $3 on the mortgage loan portfolio for the year ended December 31, 2019 . There were no impairments taken on the mortgage loan portfolio for the year ended December 31, 2018 . The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: December 31, 2019 December 31, 2018 Collective valuation allowance for losses, balance at January 1 $ 1 $ 1 Addition to (reduction of) allowance for losses (1 ) — Collective valuation allowance for losses, end of period $ — $ 1 |
Impaired Financing Receivables | The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated: December 31, 2019 December 31, 2018 Impaired loans without allowances for losses $ 4 $ 4 Less: Allowances for losses on impaired loans — — Impaired loans, net $ 4 $ 4 Unpaid principal balance of impaired loans $ 5 $ 5 As of December 31, 2019 and 2018 , the Company did not have any impaired loans with allowances for losses. The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated: Year Ended December 31, 2019 2018 2017 Impaired loans, average investment during the period (amortized cost) (1) $ 9 $ 4 $ 4 Interest income recognized on impaired loans, on an accrual basis (1) 1 — — Interest income recognized on impaired loans, on a cash basis (1) 1 — — Interest income recognized on troubled debt restructured loans, on an accrual basis — — — (1) Includes amounts for Troubled debt restructured loans. |
Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio | Recorded Investment Debt Service Coverage Ratios > 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2019 (1) Loan-to-Value Ratios: 0% - 50% $ 359 $ 12 $ 9 $ — $ — $ 380 8.1 % >50% - 60% 1,090 45 10 28 — 1,173 25.2 % >60% - 70% 1,774 432 253 93 — 2,552 54.7 % >70% - 80% 282 84 74 69 — 509 10.9 % >80% and above 30 14 — 6 — 50 1.1 % Total $ 3,535 $ 587 $ 346 $ 196 $ — $ 4,664 100.0 % (1) Balances do not include collective valuation allowance for losses. Recorded Investment Debt Service Coverage Ratios > 1.5x >1.25x - 1.5x >1.0x - 1.25x < 1.0x Commercial mortgage loans secured by land or construction loans Total % of Total December 31, 2018 (1) Loan-to-Value Ratios: 0% - 50% $ 284 $ 24 $ 23 $ — $ — $ 331 6.7 % >50% - 60% 1,133 40 11 — — 1,184 24.1 % >60% - 70% 2,070 328 503 34 26 2,961 60.2 % >70% - 80% 213 87 66 19 4 389 7.9 % >80% and above 18 5 10 — 21 54 1.1 % Total $ 3,718 $ 484 $ 613 $ 53 $ 51 $ 4,919 100.0 % (1) Balances do not include collective valuation allowance for losses. |
Mortgage Loans by Geographic Location of Collateral | Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated: December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by U.S. Region: Pacific $ 944 20.2 % $ 994 20.2 % South Atlantic 966 20.7 % 1,011 20.5 % Middle Atlantic 1,019 21.9 % 1,039 21.2 % West South Central 537 11.5 % 566 11.5 % Mountain 442 9.5 % 458 9.3 % East North Central 383 8.2 % 465 9.5 % New England 84 1.8 % 75 1.5 % West North Central 212 4.5 % 258 5.2 % East South Central 77 1.7 % 53 1.1 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % December 31, 2019 December 31, 2018 Gross Carrying Value % of Total Gross Carrying Value % of Total Commercial Mortgage Loans by Property Type: Retail $ 1,198 25.7 % $ 1,335 27.2 % Industrial 1,216 26.2 % 1,323 26.9 % Apartments 1,185 25.4 % 1,104 22.4 % Office 697 14.9 % 791 16.1 % Hotel/Motel 127 2.7 % 111 2.3 % Mixed Use 44 0.9 % 46 0.9 % Other 197 4.2 % 209 4.2 % Total Commercial mortgage loans $ 4,664 100.0 % $ 4,919 100.0 % |
Net Investment Income | The following table summarizes Net investment income for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities $ 1,432 $ 1,363 $ 1,302 Equity securities 6 5 4 Mortgage loans on real estate 224 220 211 Policy loans 7 9 10 Short-term investments and cash equivalents 3 3 1 Other 91 95 60 Gross investment income 1,763 1,695 1,588 Less: investment expenses 74 72 68 Net investment income $ 1,689 $ 1,623 $ 1,520 |
Realized Gain (Loss) on Investments | Net realized capital gains (losses) were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Fixed maturities, available-for-sale, including securities pledged $ 11 $ (69 ) $ (29 ) Fixed maturities, at fair value option (47 ) (227 ) (226 ) Equity securities (16 ) (4 ) — Derivatives (82 ) (36 ) 9 Embedded derivatives - fixed maturities 2 (4 ) (5 ) Guaranteed benefit derivatives (11 ) 94 55 Other investments (1 ) 4 (4 ) Net realized capital gains (losses) $ (144 ) $ (242 ) $ (200 ) For the year s ended December 31, 2019 and 2018 , the change in fair value of equity securities still held as of December 31, 2019 and 2018 was $(16) and $(4) , respectively. |
Gain (Loss) on Investments | Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax were as follows for the periods indicated: Year Ended December 31, 2019 2018 2017 Proceeds on sales $ 2,418 $ 2,498 $ 2,916 Gross gains 30 14 30 Gross losses 25 50 39 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The notional amounts and fair values of derivatives were as follows as of the dates indicated: December 31, 2019 December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Derivatives: Qualifying for hedge accounting (1 ) Cash flow hedges: Interest rate contracts $ 23 $ — $ — $ 35 $ — $ — Foreign exchange contracts 652 10 18 620 10 20 Derivatives: Non-qualifying for hedge accounting (1) Interest rate contracts 18,640 210 261 19,280 117 76 Foreign exchange contracts 54 — 1 12 — — Equity contracts 63 4 3 98 1 1 Credit contracts 182 — 2 201 — 2 Embedded derivatives and Managed custody guarantees: Within fixed maturity investments N/A 11 — N/A 9 — Within products N/A — 33 N/A — 15 Within reinsurance agreements N/A — 23 N/A — (80 ) Total $ 235 $ 341 $ 137 $ 34 (1) Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. N/A - Not Applicable |
Offsetting Assets and Liabilities | Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts are presented in the tables below as of the dates indicated: December 31, 2019 Notional Amount Asset Fair Value Liability Fair Value Credit contracts $ 182 $ — $ 2 Equity contracts 63 4 3 Foreign exchange contracts 706 10 19 Interest rate contracts 17,621 210 261 224 285 Counterparty netting (1) (217 ) (217 ) Cash collateral netting (1) (6 ) (58 ) Securities collateral netting (1) — (5 ) Net receivables/payables $ 1 $ 5 (1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements. December 31, 2018 Notional Amount Asset Fair Value Liability Fair Value Credit contracts $ 201 $ — $ 2 Equity contracts 98 1 1 Foreign exchange contracts 632 10 20 Interest rate contracts 17,478 117 76 128 99 Counterparty netting (1) (88 ) (88 ) Cash collateral netting (1) (37 ) (2 ) Securities collateral netting (1) — (9 ) Net receivables/payables $ 3 $ — (1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The location and effect of derivatives qualifying for hedge accounting on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income are as follows for the period indicated: Interest Rate Contracts Foreign Exchange Contracts Derivatives: Qualifying for hedge accounting Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net Investment Income Net Investment Income Year Ended December 31, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income $ 2 $ — Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income — 10 The location and amount of gain (loss) recognized in the Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the period indicated: Year Ended December 31, 2019 Net Investment Income Other net realized capital gains/(losses) Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded $ 1,689 $ (101 ) Derivatives: Qualifying for hedge accounting Cash flow hedges: Foreign exchange contracts: Gain (loss) reclassified from accumulated other comprehensive income into income 10 — The location and effect of derivatives not designated as hedging instruments on the Consolidated Statements of Operations are as follows for the periods indicated: Location of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31, 2019 2018 2017 Derivatives: Non-qualifying for hedge accounting Interest rate contracts Other net realized capital gains (losses) $ (85 ) $ (44 ) $ (7 ) Foreign exchange contracts Other net realized capital gains (losses) 1 1 (3 ) Equity contracts Other net realized capital gains (losses) 1 — 1 Credit contracts Other net realized capital gains (losses) 1 (1 ) 5 Embedded derivatives and Managed custody guarantees: Within fixed maturity investments Other net realized capital gains (losses) 2 (4 ) (5 ) Within products Other net realized capital gains (losses) (11 ) 94 55 Within reinsurance agreements Policyholder benefits (102 ) 58 (22 ) Total $ (193 ) $ 104 $ 24 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : Level 1 Level 2 Level 3 Total Assets: Fixed maturities, including securities pledged: U.S. Treasuries $ 536 $ 155 $ — $ 691 U.S. Government agencies and authorities — 19 — 19 State, municipalities and political subdivisions — 815 — 815 U.S. corporate public securities — 7,984 47 8,031 U.S. corporate private securities — 3,064 1,002 4,066 Foreign corporate public securities and foreign governments (1) — 2,679 — 2,679 Foreign corporate private securities (1) — 3,185 190 3,375 Residential mortgage-backed securities — 3,794 16 3,810 Commercial mortgage-backed securities — 2,500 — 2,500 Other asset-backed securities — 1,426 48 1,474 Total fixed maturities, including securities pledged 536 25,621 1,303 27,460 Equity securities 17 — 63 80 Derivatives: Interest rate contracts 1 209 — 210 Foreign exchange contracts — 10 — 10 Equity contracts — 4 — 4 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,429 — — 1,429 Assets held in separate accounts 72,448 6,150 115 78,713 Total assets $ 74,431 $ 31,994 $ 1,481 $ 107,906 Percentage of Level to total 69 % 30 % 1 % 100 % Liabilities: Derivatives: Guaranteed benefit derivatives: FIA $ — $ — $ 11 $ 11 Stabilizer and MCGs — — 22 22 Other derivatives: Interest rate contracts — 261 — 261 Foreign exchange contracts — 19 — 19 Equity contracts — 3 — 3 Credit contracts — 2 — 2 Embedded derivative on reinsurance — 23 — 23 Total liabilities $ — $ 308 $ 33 $ 341 (1) Primarily U.S. dollar denominated. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : Level 1 Level 2 Level 3 Total Assets: Fixed maturities, including securities pledged: U.S. Treasuries $ 679 $ 59 $ — $ 738 U.S. Government agencies and authorities — — — — State, municipalities and political subdivisions — 764 — 764 U.S. corporate public securities — 7,987 28 8,015 U.S. corporate private securities — 2,882 771 3,653 Foreign corporate public securities and foreign governments (1) — 2,540 — 2,540 Foreign corporate private securities (1) — 3,051 124 3,175 Residential mortgage-backed securities — 3,026 10 3,036 Commercial mortgage-backed securities — 1,893 12 1,905 Other asset-backed securities — 1,114 94 1,208 Total fixed maturities, including securities pledged 679 23,316 1,039 25,034 Equity securities, available-for-sale 7 — 50 57 Derivatives: Interest rate contracts — 117 — 117 Foreign exchange contracts — 10 — 10 Equity contracts — 1 — 1 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,207 — — 1,207 Assets held in separate accounts 61,457 5,805 61 67,323 Total assets $ 63,350 $ 29,249 $ 1,150 $ 93,749 Percentage of Level to total 68 % 31 % 1 % 100 % Liabilities: Derivatives: Guaranteed benefit derivatives: FIA $ — $ — $ 11 $ 11 Stabilizer and MCGs — — 4 4 Other derivatives: Interest rate contracts — 76 — 76 Foreign exchange contracts — 20 — 20 Equity contracts — 1 — 1 Credit contracts — 2 — 2 Embedded derivative on reinsurance — (80 ) — (80 ) Total liabilities $ — $ 19 $ 15 $ 34 (1) Primarily U.S. dollar denominated. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated: Year Ended December 31, 2019 Fair Value as of January 1 Total Realized/Unrealized Gains (Losses) Included in: Purchases Issuances Sales Settlements Transfers into Level 3 (3) Transfers out of Level 3 (3) Fair Value as of December 31 Change in Unrealized Gains (Losses) Included in Earnings (4) Net Income OCI Fixed maturities, including securities pledged: U.S. Corporate public securities $ 28 $ — $ 3 $ — $ — $ — $ (7 ) $ 23 $ — $ 47 $ — U.S. Corporate private securities 771 (1 ) 62 246 — (14 ) (61 ) 8 (9 ) 1,002 (1 ) Foreign corporate private securities (1) 124 (17 ) 31 108 — (56 ) — — — 190 1 Residential mortgage-backed securities 10 (3 ) — 9 — — — — — 16 (4 ) Commercial mortgage-backed securities 12 — — — — — — — (12 ) — — Other asset-backed securities 94 — — — — — (2 ) — (44 ) 48 — Total fixed maturities, including securities pledged 1,039 (21 ) 96 363 — (70 ) (70 ) 31 (65 ) 1,303 (4 ) Equity securities 50 (16 ) — 29 — — — — — 63 (16 ) Derivatives: Guaranteed benefit derivatives: Stabilizer and MCGs (2) (4 ) (16 ) — — (2 ) — — — — (22 ) — FIA (2) (11 ) 5 — — (5 ) — — — — (11 ) — Assets held in separate accounts (5) 61 4 — 79 — (2 ) — 3 (30 ) 115 — (1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. (4) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. (5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company. The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated: Year Ended December 31, 2018 Fair Value as of January 1 Total Realized/Unrealized Gains (Losses) Included in: Purchases Issuances Sales Settlements Transfers into Level 3 (3) Transfers out of Level 3 (3) Fair Value as of December 31 Change in Unrealized Gains (Losses) Included in Earnings (4) Net Income OCI Fixed maturities, including securities pledged: U.S. Corporate public securities $ 26 $ — $ — $ 22 $ — $ (5 ) $ — $ — $ (15 ) $ 28 $ — U.S. Corporate private securities 642 — (31 ) 184 — (4 ) (32 ) 20 (8 ) 771 — Foreign corporate private securities (1) 92 (9 ) 14 93 — (56 ) (10 ) — — 124 (9 ) Residential mortgage-backed securities 21 (5 ) — 41 — (40 ) — — (7 ) 10 (5 ) Commercial mortgage-backed securities 7 — — 13 — — (1 ) — (7 ) 12 — Other asset-backed securities 43 — (2 ) 56 — — (4 ) 22 (21 ) 94 — Total fixed maturities, including securities pledged 831 (14 ) (19 ) 409 — (105 ) (47 ) 42 (58 ) 1,039 (14 ) Equity securities, available-for-sale 50 (4 ) — 4 — — — — — 50 (4 ) Derivatives: Guaranteed benefit derivatives: Stabilizer and MCGs (2) (97 ) 96 — — (3 ) — — — — (4 ) — FIA (2) (20 ) (2 ) — — 2 — 9 — — (11 ) — Assets held in separate accounts (5) 11 — — 67 — (6 ) — — (11 ) 61 — (1) Primarily U.S. dollar denominated. (2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Consolidated Statements of Operations. (3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period. (4) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations. (5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company. |
Fair Value Inputs, Liabilities, Quantitative Information | |
Fair Value, by Balance Sheet Grouping | The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets: Fixed maturities, including securities pledged $ 27,460 $ 27,460 $ 25,034 $ 25,034 Equity securities 80 80 57 57 Mortgage loans on real estate 4,664 4,912 4,918 4,983 Policy loans 205 205 210 210 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,429 1,429 1,207 1,207 Derivatives 224 224 128 128 Short-term loan to affiliate 69 69 — — Other investments 43 43 40 40 Assets held in separate accounts 78,713 78,713 67,323 67,323 Liabilities: Investment contract liabilities: Funding agreements without fixed maturities and deferred annuities (1) 26,337 32,697 26,068 29,108 Funding agreements with fixed maturities 877 876 658 652 Supplementary contracts, immediate annuities and other 312 384 333 354 Deposit liabilities 76 152 77 122 Derivatives: Guaranteed benefit derivatives: FIA 11 11 11 11 Stabilizer and MCGs 22 22 4 4 Other derivatives 285 285 99 99 Short-term debt (2) 1 1 1 1 Long-term debt (2) 4 4 4 4 Embedded derivatives on reinsurance 23 23 (80 ) (80 ) (1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above. (2) Included in Other Liabilities on the Consolidated Balance Sheets. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs and Value of Business Acquired | The following table presents a rollforward of DAC and VOBA for the periods indicated: DAC VOBA Total Balance at January 1, 2017 $ 477 $ 537 $ 1,014 Deferrals of commissions and expenses 75 5 80 Amortization: Amortization, excluding unlocking (76 ) (83 ) (159 ) Unlocking (1) (61 ) (93 ) (154 ) Interest accrued 37 43 (2 ) 80 Net amortization included in the Consolidated Statements of Operations (100 ) (133 ) (233 ) Change in unrealized capital gains/losses on available-for-sale securities (67 ) (42 ) (109 ) Balance as of December 31, 2017 385 367 752 Deferrals of commissions and expenses 55 6 61 Amortization: Amortization, excluding unlocking (75 ) (72 ) (147 ) Unlocking (1) (26 ) 13 (13 ) Interest accrued 35 39 (2 ) 74 Net amortization included in the Consolidated Statements of Operations (66 ) (20 ) (86 ) Change in unrealized capital gains/losses on available-for-sale securities 162 198 360 Balance as of December 31, 2018 536 551 1,087 Deferrals of commissions and expenses 43 6 49 Amortization: Amortization, excluding unlocking (72 ) (66 ) (138 ) Unlocking (1) 2 (2 ) — Interest accrued 35 38 (2 ) 73 Net amortization included in the Consolidated Statements of Operations (35 ) (30 ) (65 ) Change in unrealized capital gains/losses on available-for-sale securities (256 ) (222 ) (478 ) Balance as of December 31, 2019 $ 288 $ 305 $ 593 (1) DAC/VOBA unlocking includes the impact of annual review of assumptions which typically occurs in the third quarter; and retrospective and prospective unlocking. Additionally, the 2018 amounts include unfavorable unlocking of DAC and VOBA of $25 and $26 respectively, associated with an update to assumptions related to customer consents of changes to guaranteed minimum interest rate provisions. The 2017 amounts include unfavorable unlocking for DAC and VOBA of $80 and $140 , respectively, associated with consent acceptances received from customers and expected future acceptances of customer consents to changes related to guaranteed minimum interest rate provisions of certain retirement plan contracts with fixed investment options. (2) Interest accrued at the following rates for VOBA: 5.5% to 7.0% during 2019 , 2018 and 2017 . |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination | The estimated amount of VOBA amortization expense, net of interest, during the next five years is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results. Year Amount 2020 $ 18 2021 16 2022 14 2023 14 2024 14 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of Reinsurance Recoverable | Premiums receivable and reinsurance recoverable was comprised of the following as of the dates indicated: December 31, 2019 2018 Reserves ceded and claims recoverable $ 1,304 $ 1,409 Premiums receivable, net — — Total $ 1,304 $ 1,409 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Shareholder's equity included the following components of AOCI as of the dates indicated. December 31, 2019 2018 2017 Fixed maturities, net of OTTI $ 2,113 $ 127 $ 1,451 Equity securities — — 15 Derivatives 117 140 124 DAC/VOBA and Sales inducements adjustments on available-for-sale securities (551 ) (73 ) (433 ) Premium deficiency reserve adjustment (211 ) (51 ) (115 ) Other — — 5 Unrealized capital gains (losses), before tax 1,468 143 1,047 Deferred income tax asset (liability) (180 ) (39 ) (234 ) Unrealized capital gains (losses), after tax 1,288 104 813 Pension and other postretirement benefits liability, net of tax 4 4 5 AOCI $ 1,292 $ 108 $ 818 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Changes in AOCI, including the reclassification adjustments recognized in the Consolidated Statements of Operations were as follows for the periods indicated: Year Ended December 31, 2019 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ 1,995 $ (419 ) $ 1,576 Other — — — OTTI 1 — 1 Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations (11 ) 2 (9 ) DAC/VOBA and Sales inducements (479 ) (1) 100 (379 ) Premium deficiency reserve adjustment (160 ) 33 (127 ) Change in unrealized gains/losses on available-for-sale securities 1,346 (284 ) 1,062 Derivatives: Derivatives 1 (2) — 1 Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (23 ) 5 (18 ) Change in unrealized gains/losses on derivatives (22 ) 5 (17 ) Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (1 ) (3) 3 2 Change in pension and other postretirement benefits liability (1 ) 3 2 Change in Other comprehensive income (loss) $ 1,323 $ (276 ) $ 1,047 (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. Year Ended December 31, 2018 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ (1,401 ) $ 299 (4) $ (1,102 ) Other (5 ) 1 (4 ) OTTI 8 (2 ) 6 Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations 69 (14 ) 55 DAC/VOBA and Sales inducements 360 (1) (76 ) 284 Premium deficiency reserve adjustment 64 (13 ) 51 Change in unrealized gains/losses on available-for-sale securities (905 ) 195 (710 ) Derivatives: Derivatives 40 (2) (8 ) 32 Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (24 ) 5 (19 ) Change in unrealized gains/losses on derivatives 16 (3 ) 13 Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (1 ) (3) — (1 ) Change in pension and other postretirement benefits liability (1 ) — (1 ) Change in Other comprehensive income (loss) $ (890 ) $ 192 $ (698 ) (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. (4) Amount includes $9 valuation allowance. See the Income Taxes Note these Consolidated Financial Statements for additional information. Year Ended December 31, 2017 Before-Tax Amount Income Tax After-Tax Amount Available-for-sale securities: Fixed maturities $ 564 $ (190 ) $ 374 Other 5 (2 ) 3 OTTI (4 ) 1 (3 ) Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations 29 (10 ) 19 DAC/VOBA and Sales inducements (109 ) (1) 42 (67 ) Premium deficiency reserve adjustment (25 ) 9 (16 ) Change in unrealized gains/losses on available-for-sale securities 460 (150 ) 310 Derivatives: Derivatives (53 ) (2) 19 (34 ) Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations (24 ) 8 (16 ) Change in unrealized gains/losses on derivatives (77 ) 27 (50 ) Pension and other postretirement benefits liability: Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations (2 ) (3) 1 (1 ) Change in pension and other postretirement benefits liability (2 ) 1 (1 ) Change in Other comprehensive income (loss) $ 381 $ (122 ) $ 259 (1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information. (2) See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information. (3) See the Benefit Plans Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following for the periods indicated: Year Ended December 31, 2019 2018 2017 Current tax expense (benefit): Federal $ 9 $ 3 $ (6 ) Total current tax expense (benefit) 9 3 (6 ) Deferred tax expense (benefit): Federal 23 58 (95 ) Total deferred tax expense (benefit) 23 58 (95 ) Total income tax expense (benefit) $ 32 $ 61 $ (101 ) |
Schedule of Effective Income Tax Rate Reconciliation | Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated: Year Ended December 31, 2019 2018 2017 Income (loss) before income taxes $ 332 $ 506 $ 14 Tax rate 21.0 % 21.0 % 35.0 % Income tax expense (benefit) at federal statutory rate 70 106 5 Tax effect of: Dividends received deduction (35 ) (49 ) (36 ) Valuation allowance — 9 (5 ) Tax Attribute (4 ) — 5 Effect of Tax Reform — — — (71 ) Other 1 (5 ) 1 Income tax expense (benefit) $ 32 $ 61 $ (101 ) Effective tax rate 9.6 % 12.1 % (721.4 )% |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below. December 31, 2019 2018 Deferred tax assets Insurance reserves $ 107 $ 74 Investments 23 79 Compensation and benefits 57 58 Other assets 34 34 Total gross assets 221 245 Deferred tax liabilities Net unrealized investment (gains) losses (424 ) (45 ) Deferred policy acquisition costs (101 ) (205 ) Total gross liabilities (525 ) (250 ) Net deferred income tax asset (liability) $ (304 ) $ (5 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table summarizes the benefit obligations for the SERPs and Agents Non-Qualified Plan as of December 31, 2019 and 2018 : Year Ended December 31, 2019 2018 Change in benefit obligation: Benefit obligation, January 1 $ 80 $ 88 Interest cost 3 3 Benefits paid (5 ) (7 ) Actuarial (gains) losses on obligation 4 (4 ) Benefit obligation, December 31 $ 82 $ 80 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets in Other liabilities and in AOCI were as follows as of December 31, 2019 and 2018 : December 31, 2019 2018 Accrued benefit cost $ (82 ) $ (80 ) Accumulated other comprehensive income (loss): Prior service cost (credit) — — Net amount recognized $ (82 ) $ (80 ) |
Schedule of Weighted Average Assumptions Used | The weighted-average discount rate used in calculating the net pension cost was as follows: 2019 2018 2017 Discount rate 4.46 % 3.85 % 4.55 % The discount rate used in the measurement of the December 31, 2019 and 2018 benefit obligation for the SERPs and Agents Non-Qualified Plan, were as follows: 2019 2018 Discount rate 3.36 % 4.46 % |
Schedule of Net Periodic Benefit Costs | Net Periodic Benefit Costs Net periodic benefit costs for the SERPs and Agents Non-Qualified Plan were as follows for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Interest cost $ 3 $ 3 $ 4 Amortization of prior service cost (credit) — (1 ) (1 ) Net (gain) loss recognition 4 (4 ) 1 Net periodic (benefit) cost $ 7 $ (2 ) $ 4 |
Schedule of Expected Benefit Payments | Cash Flows The following table summarizes the expected benefit payments related to the SERPs and Agents Non-Qualified Plan for the years indicated: 2020 $ 6 2021 6 2022 6 2023 6 2024 5 2025-2029 25 In 2020 , the Company is expected to contribute $6 to the SERPs and Agents Non-Qualified Plan. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Restricted Assets | The components of the fair value of the restricted assets were as follows as of the dates indicated: December 31, 2019 2018 Fixed maturity collateral pledged to FHLB (1) $ 1,087 $ 771 FHLB restricted stock (2) 44 40 Other fixed maturities-state deposits 14 13 Cash and cash equivalents 5 5 Securities pledged (3) 828 882 Total restricted assets $ 1,978 $ 1,711 (1) Included in Fixed maturities, available for sale, at fair value, on the Consolidated Balance sheets. (2) Included in Other investments on the Consolidated Balance sheets. (3) |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Item Effected [Line Items] | |||||
Impact to previously reported net income | $ 50 | $ 95 | |||
Revenue from contract with customer excluding assessed tax percentage | 19.70% | 22.90% | |||
Number of operating segments | segment | 1 | ||||
Rate required of collateral as a percent of market value of loans securities | 102.00% | ||||
Accounting Standards Update 2016-01 | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||||
Accounting Standards Update 2016-01 | Retained Earnings, Unappropriated | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 12 | ||||
Accounting Standards Update 2016-01 | Retained Earnings (Deficit) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 12 | ||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (12) | ||||
Accounting Standards Update 2014-09 | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 76 | ||||
Accounts Receivable, after Allowance for Credit Loss | $ 97 | $ 95 | |||
Accounting Standards Update 2014-09 | Retained Earnings (Deficit) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 76 | ||||
Accounting Standards Update 2014-09 | Accumulated Other Comprehensive Income (Loss) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | ||||
Adjustment for adoption of ASU 2018-02 | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | ||||
Adjustment for adoption of ASU 2018-02 | Retained Earnings, Unappropriated | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (137) | ||||
Adjustment for adoption of ASU 2018-02 | Retained Earnings (Deficit) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (137) | ||||
Adjustment for adoption of ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
Item Effected [Line Items] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 137 | $ 137 | |||
Discontinued Operations, Held-for-sale | Directed Services LLC (DSL) | |||||
Item Effected [Line Items] | |||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest after Disposal | 9.99% |
Business, Basis of Presentati_4
Business, Basis of Presentation and Significant Accounting Policies Assumptions and Yields (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Products | |||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |||
Long-term equity return assumptions rate | 9.00% | ||
Variable products, assumptions, lookforward period | 5 years | ||
Investment Contract | |||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |||
Credited interest rate maximum on fixed annuities and payout contracts without life contingencies | 5.70% | 5.30% | 5.30% |
Minimum | Future Policy Benefits and Claims Reserves | |||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |||
Future policy benefits, assumptions, discount rate | 2.70% | ||
Maximum | Variable Products | |||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |||
Long-term equity return assumptions rate | 14.00% | ||
Maximum | Future Policy Benefits and Claims Reserves | |||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | |||
Future policy benefits, assumptions, discount rate | 6.60% |
Business, Basis of Presentati_5
Business, Basis of Presentation and Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Capitalized Contract Cost, Impairment Loss | $ 0 | |||
Capitalized Contract Cost, Amortization | 23 | $ 22 | ||
Capitalized Contract Cost, Net | $ 109 | $ 105 | ||
Revenue from contract with customer excluding assessed tax percentage | 19.70% | 22.90% | ||
Other assets | $ 255 | $ 331 | ||
Retained earnings (deficit) | 275 | 508 | ||
Operating expenses | 1,056 | 894 | $ 1,022 | |
Net Cash Provided by (Used in) Operating Activities | 1,363 | 1,223 | $ 964 | |
Recordkeeping & administration | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 405 | 422 | ||
Distribution & shareholder servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 82 | 123 | ||
Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts Receivable, after Allowance for Credit Loss | $ 97 | 95 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 76 | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Other assets | 105 | 95 | ||
Deferred Income Tax Liabilities, Net | (22) | (19) | ||
Retained earnings (deficit) | 83 | |||
Operating expenses | 3 | |||
Net Cash Provided by (Used in) Operating Activities | $ 0 | |||
Retained Earnings (Deficit) | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 76 |
Investments - Fixed Maturities
Investments - Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Securities pledged, Amortized Cost | $ 749 | $ 867 |
U.S. Treasuries | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 565 | 651 |
Gross Unrealized Capital Gains | 129 | 87 |
Gross Unrealized Capital Losses | 3 | 0 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 691 | 738 |
OTTI | 0 | 0 |
U.S. Government agencies and authorities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 19 | 0 |
Gross Unrealized Capital Gains | 0 | 0 |
Gross Unrealized Capital Losses | 0 | 0 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 19 | 0 |
OTTI | 0 | 0 |
State, municipalities and political subdivisions | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 747 | 754 |
Gross Unrealized Capital Gains | 68 | 18 |
Gross Unrealized Capital Losses | 0 | 8 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 815 | 764 |
OTTI | 0 | 0 |
U.S. corporate public securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 7,103 | 7,908 |
Gross Unrealized Capital Gains | 941 | 288 |
Gross Unrealized Capital Losses | 13 | 181 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 8,031 | 8,015 |
OTTI | 0 | 0 |
U.S. corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 3,776 | 3,686 |
Gross Unrealized Capital Gains | 306 | 73 |
Gross Unrealized Capital Losses | 16 | 106 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 4,066 | 3,653 |
OTTI | 0 | 0 |
Foreign corporate public securities and foreign governments | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 2,417 | 2,551 |
Gross Unrealized Capital Gains | 265 | 69 |
Gross Unrealized Capital Losses | 3 | 80 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 2,679 | 2,540 |
OTTI | 0 | 0 |
Foreign corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 3,171 | 3,235 |
Gross Unrealized Capital Gains | 205 | 37 |
Gross Unrealized Capital Losses | 1 | 97 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 3,375 | 3,175 |
OTTI | 0 | 0 |
Residential mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 3,685 | 2,966 |
Gross Unrealized Capital Gains | 125 | 93 |
Gross Unrealized Capital Losses | 11 | 32 |
Embedded Derivatives | (11) | (9) |
Fixed maturities including securities pledged, Fair Value | 3,810 | 3,036 |
OTTI | 2 | 3 |
Commercial mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 2,381 | 1,917 |
Gross Unrealized Capital Gains | 122 | 16 |
Gross Unrealized Capital Losses | 3 | 28 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 2,500 | 1,905 |
OTTI | 0 | 0 |
Other asset-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 1,472 | 1,230 |
Gross Unrealized Capital Gains | 15 | 6 |
Gross Unrealized Capital Losses | 13 | 28 |
Embedded Derivatives | 0 | 0 |
Fixed maturities including securities pledged, Fair Value | 1,474 | 1,208 |
OTTI | 1 | 2 |
Fixed maturities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 25,336 | 24,898 |
Total fixed maturities, less securities pledged, Amortized Cost | 24,587 | 24,031 |
Gross Unrealized Capital Gains | 2,176 | 687 |
Total fixed maturities, less securities pledged, Gross Unrealized Capital Gains | 2,091 | 642 |
Gross Unrealized Capital Losses | 63 | 560 |
Total fixed maturities, less securities pledged, Gross Unrealized Capital Losses | 57 | 530 |
Embedded Derivatives | (11) | (9) |
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
Total fixed maturities, less securities pledged, Fair Value | 26,632 | 24,152 |
OTTI | 3 | 5 |
Impaired | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Net unrealized gains on impaired available-for-sale securities | 194 | 137 |
Collateral Pledged | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Securities pledged, Gross Unrealized Capital Losses | 828 | 882 |
Collateral Pledged | Fixed maturities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Securities pledged, Amortized Cost | 749 | 867 |
Securities pledged, Gross Unrealized Capital Gains | 85 | 45 |
Securities pledged, Gross Unrealized Capital Losses | 6 | 30 |
Embedded Derivatives | 0 | 0 |
Securities pledged, Gross Unrealized Capital Losses | 828 | 882 |
OTTI | $ 0 | $ 0 |
Investments - Debt Maturities (
Investments - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
One year or less, Amortized cost | $ 607 | |
One year or less, Fair value | 615 | |
After one year through five years, Amortized Cost | 3,564 | |
After one year through five years, Fair Value | 3,728 | |
After five years through ten years, Amortized Cost | 5,672 | |
After five years through ten years, Fair Value | 6,108 | |
After ten years, Amortized Cost | 7,955 | |
After ten years, Fair Value | 9,225 | |
Amortized Cost | 25,336 | $ 24,898 |
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
Mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 6,066 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 6,310 | |
Other asset-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 1,472 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,474 | |
Amortized Cost | 1,472 | 1,230 |
Fixed maturities including securities pledged, Fair Value | $ 1,474 | $ 1,208 |
Investments - Composition of US
Investments - Composition of US and Foreign Corporate Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Total | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | $ 16,149 | $ 17,037 |
Gross Unrealized Capital Gains | 1,682 | 457 |
Gross Unrealized Capital Losses | 32 | 454 |
Fair Value | 17,799 | 17,040 |
Communications | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 1,002 | 1,139 |
Gross Unrealized Capital Gains | 156 | 55 |
Gross Unrealized Capital Losses | 0 | 21 |
Fair Value | 1,158 | 1,173 |
Financial | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 2,650 | 2,707 |
Gross Unrealized Capital Gains | 302 | 101 |
Gross Unrealized Capital Losses | 0 | 47 |
Fair Value | 2,952 | 2,761 |
Industrial and other companies | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 7,053 | 7,604 |
Gross Unrealized Capital Gains | 667 | 152 |
Gross Unrealized Capital Losses | 11 | 214 |
Fair Value | 7,709 | 7,542 |
Energy | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 1,675 | 1,884 |
Gross Unrealized Capital Gains | 185 | 55 |
Gross Unrealized Capital Losses | 18 | 81 |
Fair Value | 1,842 | 1,858 |
Utilities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 2,913 | 2,974 |
Gross Unrealized Capital Gains | 294 | 80 |
Gross Unrealized Capital Losses | 1 | 74 |
Fair Value | 3,206 | 2,980 |
Transportation | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Amortized Cost | 856 | 729 |
Gross Unrealized Capital Gains | 78 | 14 |
Gross Unrealized Capital Losses | 2 | 17 |
Fair Value | $ 932 | $ 726 |
Investments - Fixed Maturitie_2
Investments - Fixed Maturities and Equity Securities, Repurchase Agreement, Securities Lending, VIEs (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Securities received as collateral | $ 91,000,000 | $ 67,000,000 |
Payables under securities loan agreements, including collateral held | 865,000,000 | 827,000,000 |
Collateralized loan obligations | ||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 738,000,000 | 583,000,000 |
Securities pledged | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Fair value of loaned securities | 715,000,000 | 759,000,000 |
Short-term investments | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Securities received as collateral | 650,000,000 | 719,000,000 |
Payables under securities loan agreement, including collateral held | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | $ 650,000,000 | $ 719,000,000 |
Mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Percentage collateralized of mortgage backed securities including interest-only strip or principal-only strip | 48.40% | 52.50% |
U.S. Treasuries | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | $ 109,000,000 | $ 92,000,000 |
U.S. corporate public securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | 447,000,000 | 523,000,000 |
Foreign corporate public securities and foreign governments | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | 185,000,000 | 170,000,000 |
Equity securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | 0 | 1,000,000 |
Payables under securities loan agreements | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Payables under securities loan agreements, including collateral held | $ 741,000,000 | $ 786,000,000 |
Investments - Unrealized Capita
Investments - Unrealized Capital Losses (Details) $ in Millions | Dec. 31, 2019USD ($)securities | Dec. 31, 2018USD ($)securities |
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,389 | $ 9,733 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 17 | 359 |
More Than Twelve Months Below Amortized Cost, Fair Value | 1,043 | 2,392 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 46 | 201 |
Total Fair Value | 2,432 | 12,125 |
Total Unrealized Capital Losses | $ 63 | $ 560 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities | 567,000,000 | 2,444 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Positions | securities | 289,000,000 | 1,894 |
More than twelve months below amortized cost, Number of Securities | securities | 278,000,000 | 550 |
U.S. Treasuries | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 68 | $ 0 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 3 | 0 |
More Than Twelve Months Below Amortized Cost, Fair Value | 12 | 15 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 0 |
Total Fair Value | 80 | 15 |
Total Unrealized Capital Losses | 3 | 0 |
U.S. Government agencies and authorities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Six Months or Less Below Amortized Cost, Fair Value | 18 | |
Six Months or Less Below Amortized Cost, Unrealized Capital Loss | 0 | |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position More than Twelve Months, Fair Value | 0 | |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position More than Twelve Months Accumulated Loss | 0 | |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position, Fair Value | 18 | |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
State, municipalities and political subdivisions | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 21 | 191 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 0 | 3 |
More Than Twelve Months Below Amortized Cost, Fair Value | 0 | 88 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 5 |
Total Fair Value | 21 | 279 |
Total Unrealized Capital Losses | 0 | 8 |
U.S. corporate public securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 97 | 3,060 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 3 | 131 |
More Than Twelve Months Below Amortized Cost, Fair Value | 131 | 535 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 10 | 50 |
Total Fair Value | 228 | 3,595 |
Total Unrealized Capital Losses | 13 | 181 |
U.S. corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 75 | 1,502 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 0 | 40 |
More Than Twelve Months Below Amortized Cost, Fair Value | 134 | 579 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 16 | 66 |
Total Fair Value | 209 | 2,081 |
Total Unrealized Capital Losses | 16 | 106 |
Foreign corporate public securities and foreign governments | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6 | 1,159 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 0 | 54 |
More Than Twelve Months Below Amortized Cost, Fair Value | 53 | 169 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 3 | 26 |
Total Fair Value | 59 | 1,328 |
Total Unrealized Capital Losses | 3 | 80 |
Foreign corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 21 | 1,504 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 0 | 77 |
More Than Twelve Months Below Amortized Cost, Fair Value | 56 | 221 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 1 | 20 |
Total Fair Value | 77 | 1,725 |
Total Unrealized Capital Losses | 1 | 97 |
Residential mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 535 | 560 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 6 | 11 |
More Than Twelve Months Below Amortized Cost, Fair Value | 139 | 412 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 5 | 21 |
Total Fair Value | 674 | 972 |
Total Unrealized Capital Losses | 11 | 32 |
Commercial mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 331 | 865 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 3 | 16 |
More Than Twelve Months Below Amortized Cost, Fair Value | 18 | 312 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 12 |
Total Fair Value | 349 | 1,177 |
Total Unrealized Capital Losses | 3 | 28 |
Other asset-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 217 | 892 |
Available-for-sale Securities, Including Securities Pledged, Continuous Unrealized Loss Position Twelve Months or Less, Accumulated Loss | 2 | 27 |
More Than Twelve Months Below Amortized Cost, Fair Value | 500 | 61 |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 11 | 1 |
Total Fair Value | 717 | 953 |
Total Unrealized Capital Losses | 13 | $ 28 |
Fair value decline below amortized cost greater than 20% | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Total Unrealized Capital Losses | $ 7 | |
More than twelve months below amortized cost, Number of Securities | securities | 5 |
Investments - Unrealized Capi_2
Investments - Unrealized Capital Losses 1 (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)securities | Dec. 31, 2018USD ($)securities | |
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
Available For Sale Securities Change in Loss Position | $ 497 | |
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | $ 46 | $ 201 |
More than twelve months below amortized cost, Number of Securities | securities | 278,000,000 | 550 |
Total Unrealized Capital Losses | $ 63 | $ 560 |
Number of Securities | securities | 567,000,000 | 2,444 |
Fair value decline below amortized cost greater than 20% | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More than twelve months below amortized cost, Number of Securities | securities | 5 | |
Total Unrealized Capital Losses | $ 7 | |
U.S. Treasuries | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | $ 0 |
Total Unrealized Capital Losses | 3 | 0 |
State, municipalities and political subdivisions | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 5 |
Total Unrealized Capital Losses | 0 | 8 |
U.S. corporate public securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 10 | 50 |
Total Unrealized Capital Losses | 13 | 181 |
U.S. corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 16 | 66 |
Total Unrealized Capital Losses | 16 | 106 |
Foreign corporate public securities and foreign governments | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 3 | 26 |
Total Unrealized Capital Losses | 3 | 80 |
Foreign corporate private securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 1 | 20 |
Total Unrealized Capital Losses | 1 | 97 |
Residential mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 5 | 21 |
Total Unrealized Capital Losses | 11 | 32 |
Commercial mortgage-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 0 | 12 |
Total Unrealized Capital Losses | 3 | 28 |
Other asset-backed securities | ||
Available-for-sale Securities Including Securities Pledged [Line Items] | ||
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss | 11 | 1 |
Total Unrealized Capital Losses | $ 13 | $ 28 |
Investments - OTTI (Details)
Investments - OTTI (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)securities | Dec. 31, 2018USD ($)securities | Dec. 31, 2017USD ($)securities | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 40 | $ 20 | $ 12 |
No. of Securities | securities | 235 | 66 | 26 |
Credit Impairments | $ 20 | $ 14 | $ 12 |
Intent Impairments | 20 | 6 | 0 |
State, municipalities and political subdivisions | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 0 | $ 0 | $ 0 |
No. of Securities | securities | 6 | 0 | 0 |
U.S. corporate public securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 11 | $ 6 | $ 0 |
No. of Securities | securities | 25 | 2 | 3 |
U.S. corporate private securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 1 | $ 0 | $ 0 |
No. of Securities | securities | 16 | 0 | 0 |
Foreign corporate public securities and foreign governments | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 3 | $ 2 | $ 2 |
No. of Securities | securities | 15 | 3 | 3 |
Foreign corporate private securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 18 | $ 9 | $ 9 |
No. of Securities | securities | 11 | 1 | 2 |
Residential mortgage-backed securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 4 | $ 3 | $ 1 |
No. of Securities | securities | 71 | 58 | 17 |
Commercial mortgage-backed securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 0 | $ 0 | $ 0 |
No. of Securities | securities | 18 | 1 | 1 |
Other asset-backed securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairment | $ 3 | $ 0 | $ 0 |
No. of Securities | securities | 73 | 1 | 0 |
Investments - OTTI OCI (Details
Investments - OTTI OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Document Period End Date | Dec. 31, 2019 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning | $ 5 | $ 16 | $ 9 |
Additional Credit Impairments [Abstract] | |||
On securities not previously impaired | 0 | 0 | 9 |
On securities previously impaired | 0 | 1 | 0 |
Reductions [Abstract] | |||
Securities intent impaired | 0 | 12 | 0 |
Increase in cash flows | 0 | 0 | 0 |
Securities sold, matured, prepaid, or paid down | 1 | 0 | 2 |
Balance, ending | $ 4 | $ 5 | $ 16 |
Investments - Troubled Debt Res
Investments - Troubled Debt Restructuring (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018loan | |
Commercial portfolio segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | loan | 1 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ | $ 2 | |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ | $ 1 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | loan | 1 | 0 |
Private Placement | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | loan | 1 | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ | $ 74 | |
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ | $ 38 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | loan | 0 | 0 |
Investments - Mortgage Loans (D
Investments - Mortgage Loans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum loan to value ratio generally allowed | 75.00% | |||
Commercial mortgage loans | $ 4,664,000,000 | $ 4,919,000,000 | ||
Collective valuation allowance for losses | 0 | (1,000,000) | ||
Total net commercial mortgage loans | 4,664,000,000 | 4,918,000,000 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 40,000,000 | 20,000,000 | $ 12,000,000 | |
Mortgage loans in process of foreclosure | 0 | |||
Impaired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans | 4,000,000 | 4,000,000 | ||
Total net commercial mortgage loans | 4,000,000 | 4,000,000 | ||
Not Impaired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans | 4,660,000,000 | 4,915,000,000 | ||
Collective valuation allowance for losses | 0 | (1,000,000) | ||
Total net commercial mortgage loans | 4,660,000,000 | 4,914,000,000 | ||
Mortgage loans on real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impairments on mortgage loans | 2 | 0 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 3,000,000 | |||
Financial Asset, 60 to 89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in arrears | $ 0 | $ 0 |
Investments - Allowance for Loa
Investments - Allowance for Loan Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Collective valuation allowance for losses, balance at January 1 | $ 1 | $ 1 |
Addition to (reduction of) allowance for losses | (1) | 0 |
Collective valuation allowance for losses, end of period | $ 0 | $ 1 |
Investments - Impaired Loans (D
Investments - Impaired Loans (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired loans without valuation allowances | $ 4,000,000 | $ 4,000,000 | ||
Less: Allowances for losses on impaired loans | 0 | 0 | ||
Impaired loans, net | 4,000,000 | 4,000,000 | ||
Unpaid principal balance of impaired loans | $ 5,000,000 | 5,000,000 | ||
Mortgage loans in process of foreclosure | 0 | |||
Mortgage Loans Number of Foreclosures | 2 | |||
Mortgage Loans Foreclosed Carrying Amount | $ 6,000,000 | |||
Impaired Financing Receivable, Average Recorded Investment | 9,000,000 | 4,000,000 | $ 4,000,000 | |
Interest income recognized on impaired loans, on an accrual basis | 1,000,000 | 0 | 0 | |
Interest income recognized on impaired loans, on a cash basis | 1,000,000 | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 0 | 0 | $ 0 | |
Financial Asset, 60 to 89 Days Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in arrears | $ 0 | $ 0 |
Investments - Loans by Loan to
Investments - Loans by Loan to Value Ratio and Debt Service Coverage Ratio (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Benchmark loan to value ratio, greater than indicates unpaid loan amount exceeds underlying collateral | 100.00% | |
Benchmark debt service coverage ratio, less than indicates property's operations income is less than debt payments | 100.00% | |
Commercial mortgage loans | $ 4,664 | $ 4,919 |
Loans, Loan-to-value ratio, Percent of total Loans | 100.00% | 100.00% |
1.5x | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Commercial mortgage loans | $ 3,535 | $ 3,718 |
Loans Receivable, Debt Service Coverage Ratio, Minimum | 150.00% | 150.00% |
1.25x - 1.5x | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Commercial mortgage loans | $ 587 | $ 484 |
Loans Receivable, Debt Service Coverage Ratio, Minimum | 125.00% | 125.00% |
Loans Receivable, Debt Service Coverage Ratio, Maximum | 150.00% | 150.00% |
1.0x - 1.25x | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Commercial mortgage loans | $ 346 | $ 613 |
Loans Receivable, Debt Service Coverage Ratio, Minimum | 100.00% | 100.00% |
Loans Receivable, Debt Service Coverage Ratio, Maximum | 125.00% | 125.00% |
1.0x | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Commercial mortgage loans | $ 196 | $ 53 |
Loans Receivable, Debt Service Coverage Ratio, Minimum | 0.00% | 0.00% |
Loans Receivable, Debt Service Coverage Ratio, Maximum | 100.00% | 100.00% |
Commercial Loan | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Commercial mortgage loans | $ 0 | $ 51 |
0% - 50% | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Loan to Value Ratio, minimum | 0.00% | 0.00% |
Loan to Value Ratio, maximum | 50.00% | 50.00% |
50% - 60% | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Loan to Value Ratio, minimum | 50.00% | 50.00% |
Loan to Value Ratio, maximum | 60.00% | 60.00% |
60% - 70% | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Loan to Value Ratio, minimum | 60.00% | 60.00% |
Loan to Value Ratio, maximum | 70.00% | 70.00% |
70% - 80% | ||
Schedule of Loans by Loan to Value Ratio [Line Items] | ||
Loan to Value Ratio, minimum | 70.00% | 70.00% |
Loan to Value Ratio, maximum | 80.00% | 80.00% |
Investments - Loans by U.S. Reg
Investments - Loans by U.S. Region (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 4,664 | $ 4,919 |
% of Total | 100.00% | 100.00% |
Pacific | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 944 | $ 994 |
% of Total | 20.20% | 20.20% |
South Atlantic | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 966 | $ 1,011 |
% of Total | 20.70% | 20.50% |
Middle Atlantic | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 1,019 | $ 1,039 |
% of Total | 21.90% | 21.20% |
West South Central | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 537 | $ 566 |
% of Total | 11.50% | 11.50% |
Mountain | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 442 | $ 458 |
% of Total | 9.50% | 9.30% |
East North Central | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 383 | $ 465 |
% of Total | 8.20% | 9.50% |
New England | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 84 | $ 75 |
% of Total | 1.80% | 1.50% |
West North Central | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 212 | $ 258 |
% of Total | 4.50% | 5.20% |
East South Central | ||
Open Option Contracts Written [Line Items] | ||
Commercial mortgage loans | $ 77 | $ 53 |
% of Total | 1.70% | 1.10% |
Investments - Loans by Property
Investments - Loans by Property Type (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 4,664 | $ 4,919 |
% of Total | 100.00% | 100.00% |
Retail | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 1,198 | $ 1,335 |
% of Total | 25.70% | 27.20% |
Industrial | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 1,216 | $ 1,323 |
% of Total | 26.20% | 26.90% |
Apartments | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 1,185 | $ 1,104 |
% of Total | 25.40% | 22.40% |
Office | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 697 | $ 791 |
% of Total | 14.90% | 16.10% |
Hotel/Motel | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 127 | $ 111 |
% of Total | 2.70% | 2.30% |
Mixed Use | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 44 | $ 46 |
% of Total | 0.90% | 0.90% |
Other | ||
Investment Holdings [Line Items] | ||
Commercial mortgage loans | $ 197 | $ 209 |
% of Total | 4.20% | 4.20% |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 1,763 | $ 1,695 | $ 1,588 |
Less: investment expenses | 74 | 72 | 68 |
Net investment income | 1,689 | 1,623 | 1,520 |
Fixed maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 1,432 | 1,363 | 1,302 |
Financing Receivable, Nonaccrual | 0 | 1 | |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 6 | 5 | 4 |
Mortgage loans on real estate | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 224 | 220 | 211 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 7 | 9 | 10 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 3 | 3 | 1 |
Other | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 91 | $ 95 | $ 60 |
Investments - Net Realized Capi
Investments - Net Realized Capital Gains (Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | $ (144,000,000) | $ (242,000,000) | $ (200,000,000) |
Equity Securities, Securities Still Held, Change in Fair Value Recognized through the Income Statement | (16,000,000) | (4,000,000) | |
Proceeds from sale of investments | |||
Proceeds on sales | 2,418,000,000 | 2,498,000,000 | 2,916,000,000 |
Gross gains | 30,000,000 | 14,000,000 | 30,000,000 |
Gross losses | 25,000,000 | 50,000,000 | 39,000,000 |
Fixed maturities | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | 2,000,000 | (4,000,000) | (5,000,000) |
Guaranteed benefit derivatives | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | (11,000,000) | 94,000,000 | 55,000,000 |
Derivatives | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | (82,000,000) | (36,000,000) | 9,000,000 |
Other investments | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | (1,000,000) | 4,000,000 | (4,000,000) |
Fixed maturities, available-for-sale, including securities pledged | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | 11,000,000 | (69,000,000) | (29,000,000) |
Fixed maturities, at fair value using the fair value option | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | (47,000,000) | (227,000,000) | (226,000,000) |
Equity securities | |||
Available-for-sale Securities Including Securities Pledged [Line Items] | |||
Realized capital gains (losses) | $ (16,000,000) | $ (4,000,000) | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional and Fair Values (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | $ 235 | $ 137 |
Liability Fair Value | 341 | 34 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 17,621 | 17,478 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 706 | 632 |
Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 63 | 98 |
Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 182 | 201 |
Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 23 | 35 |
Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 652 | 620 |
Designated as Hedging Instrument | Derivatives | Cash flow hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | 0 | 0 |
Designated as Hedging Instrument | Derivatives | Cash flow hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 10 | 10 |
Liability Fair Value | 18 | 20 |
Not Designated as Hedging Instrument | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 18,640 | 19,280 |
Not Designated as Hedging Instrument | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 54 | 12 |
Not Designated as Hedging Instrument | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 63 | 98 |
Not Designated as Hedging Instrument | Fixed maturities | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 11 | 9 |
Liability Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Within products | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | 33 | 15 |
Not Designated as Hedging Instrument | Within reinsurance agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | 23 | (80) |
Not Designated as Hedging Instrument | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 182 | 201 |
Not Designated as Hedging Instrument | Derivatives | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 210 | 117 |
Liability Fair Value | 261 | 76 |
Not Designated as Hedging Instrument | Derivatives | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | 1 | 0 |
Not Designated as Hedging Instrument | Derivatives | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 4 | 1 |
Liability Fair Value | 3 | 1 |
Not Designated as Hedging Instrument | Derivatives | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | $ 2 | $ 2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets and liabilities [Line Items] | ||
Asset Fair Value | $ 224 | $ 128 |
Liability Fair Value | 285 | 99 |
Counterparty netting, Assets | (217) | (88) |
Counterparty netting, Liabilities | (217) | (88) |
Cash collateral netting, Assets | (6) | (37) |
Cash collateral netting, Liabilities | (58) | (2) |
Securities collateral netting, Assets | 0 | 0 |
Securities collateral netting, Liabilities | (5) | (9) |
Net receivables | 1 | 3 |
Net payables | 5 | 0 |
Equity contracts | ||
Offsetting Assets and liabilities [Line Items] | ||
Notional Amount | 63 | 98 |
Asset Fair Value | 4 | 1 |
Liability Fair Value | 3 | 1 |
Foreign exchange contracts | ||
Offsetting Assets and liabilities [Line Items] | ||
Notional Amount | 706 | 632 |
Asset Fair Value | 10 | 10 |
Liability Fair Value | 19 | 20 |
Interest rate contracts | ||
Offsetting Assets and liabilities [Line Items] | ||
Notional Amount | 17,621 | 17,478 |
Asset Fair Value | 210 | 117 |
Liability Fair Value | 261 | 76 |
Credit contracts | ||
Offsetting Assets and liabilities [Line Items] | ||
Notional Amount | 182 | 201 |
Asset Fair Value | 0 | 0 |
Liability Fair Value | $ 2 | $ 2 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Net Realized Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (193) | $ 104 | $ 24 |
Net investment income | 1,689 | 1,623 | 1,520 |
Other net realized capital gains (losses) | (101) | (222) | (188) |
Other Comprehensive Income (Loss) | Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | ||
Other Comprehensive Income (Loss) | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | ||
Investment Income | Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | ||
Investment Income | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 10 | ||
Net realized gains (losses) on derivatives | 10 | ||
Other Net Realized Capital Gains (Losses) | Fixed maturities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | (4) | (5) |
Other Net Realized Capital Gains (Losses) | Within products | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (11) | 94 | 55 |
Other Net Realized Capital Gains (Losses) | Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Net realized gains (losses) on derivatives | 0 | ||
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (85) | (44) | (7) |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Foreign exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | (3) |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Equity contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 0 | 1 |
Other Net Realized Capital Gains (Losses) | Not Designated as Hedging Instrument | Credit contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | (1) | 5 |
Interest Credited and Other Benefits to Contract Owners | Within reinsurance agreements | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (102) | $ 58 | $ (22) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Collateral and Credit Default Swaps (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | $ 235 | $ 137 |
Liability Fair Value | 341 | 34 |
Securities pledged | ||
Derivatives, Fair Value [Line Items] | ||
Net cash collateral | 0 | 0 |
Fair value of securities delivered as collateral | 113 | 123 |
Over the Counter | Payables under securities loan agreement, including collateral held | ||
Derivatives, Fair Value [Line Items] | ||
Net cash collateral | 7 | 17 |
Exchange Cleared | Payables under securities loan agreement, including collateral held | ||
Derivatives, Fair Value [Line Items] | ||
Net cash collateral | 55 | 21 |
Credit contracts | Not Designated as Hedging Instrument | Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Fair Value | 0 | 0 |
Liability Fair Value | $ 2 | $ 2 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Vaue Measurement (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivatives | $ 224 | $ 128 |
Assets held in separate accounts | 78,713 | 67,323 |
Liabilities: | ||
Derivatives | 285 | 99 |
Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
Cash, Cash Equivalents, and Short-term Investments | 1,429 | 1,207 |
Assets held in separate accounts | 78,713 | 67,323 |
Total assets, fair value | $ 107,906 | $ 93,749 |
Percentage of Level to total | 100.00% | 100.00% |
Liabilities: | ||
Total liabilities, fair value | $ 341 | $ 34 |
Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 536 | 679 |
Cash, Cash Equivalents, and Short-term Investments | 1,429 | 1,207 |
Assets held in separate accounts | 72,448 | 61,457 |
Total assets, fair value | $ 74,431 | $ 63,350 |
Percentage of Level to total | 69.00% | 68.00% |
Liabilities: | ||
Total liabilities, fair value | $ 0 | $ 0 |
Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 25,621 | 23,316 |
Cash, Cash Equivalents, and Short-term Investments | 0 | 0 |
Assets held in separate accounts | 6,150 | 5,805 |
Total assets, fair value | $ 31,994 | $ 29,249 |
Percentage of Level to total | 30.00% | 31.00% |
Liabilities: | ||
Total liabilities, fair value | $ 308 | $ 19 |
Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 1,303 | 1,039 |
Cash, Cash Equivalents, and Short-term Investments | 0 | 0 |
Assets held in separate accounts | 115 | 61 |
Total assets, fair value | $ 1,481 | $ 1,150 |
Percentage of Level to total | 1.00% | 1.00% |
Liabilities: | ||
Total liabilities, fair value | $ 33 | $ 15 |
Fixed maturities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
U.S. Treasuries | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 691 | 738 |
U.S. Treasuries | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 691 | 738 |
U.S. Treasuries | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 536 | 679 |
U.S. Treasuries | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 155 | 59 |
U.S. Treasuries | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
U.S. Government agencies and authorities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 19 | 0 |
U.S. Government agencies and authorities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 19 | 0 |
U.S. Government agencies and authorities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
U.S. Government agencies and authorities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 19 | 0 |
U.S. Government agencies and authorities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
State, municipalities and political subdivisions | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 815 | 764 |
State, municipalities and political subdivisions | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 815 | 764 |
State, municipalities and political subdivisions | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
State, municipalities and political subdivisions | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 815 | 764 |
State, municipalities and political subdivisions | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
U.S. corporate public securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 8,031 | 8,015 |
U.S. corporate public securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 8,031 | 8,015 |
U.S. corporate public securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
U.S. corporate public securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 7,984 | 7,987 |
U.S. corporate public securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 47 | 28 |
U.S. corporate private securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 4,066 | 3,653 |
U.S. corporate private securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 4,066 | 3,653 |
U.S. corporate private securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
U.S. corporate private securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,064 | 2,882 |
U.S. corporate private securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 1,002 | 771 |
Foreign corporate public securities and foreign governments | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,679 | 2,540 |
Foreign corporate public securities and foreign governments | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,679 | 2,540 |
Foreign corporate public securities and foreign governments | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Foreign corporate public securities and foreign governments | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,679 | 2,540 |
Foreign corporate public securities and foreign governments | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Foreign corporate private securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,375 | 3,175 |
Foreign corporate private securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,375 | 3,175 |
Foreign corporate private securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Foreign corporate private securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,185 | 3,051 |
Foreign corporate private securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 190 | 124 |
Residential mortgage-backed securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,810 | 3,036 |
Residential mortgage-backed securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,810 | 3,036 |
Residential mortgage-backed securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Residential mortgage-backed securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 3,794 | 3,026 |
Residential mortgage-backed securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 16 | 10 |
Commercial mortgage-backed securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,500 | 1,905 |
Commercial mortgage-backed securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,500 | 1,905 |
Commercial mortgage-backed securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Commercial mortgage-backed securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 2,500 | 1,893 |
Commercial mortgage-backed securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 12 |
Other asset-backed securities | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 1,474 | 1,208 |
Other asset-backed securities | Assets measured on recurring basis | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 1,474 | 1,208 |
Other asset-backed securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 0 | 0 |
Other asset-backed securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 1,426 | 1,114 |
Other asset-backed securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Fixed maturities including securities pledged, Fair Value | 48 | 94 |
Equity securities | Assets measured on recurring basis | ||
Assets: | ||
Equity securities, available-for-sale | 80 | 57 |
Equity securities | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Equity securities, available-for-sale | 17 | 7 |
Equity securities | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Equity securities, available-for-sale | 0 | 0 |
Equity securities | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Equity securities, available-for-sale | 63 | 50 |
FIA | Assets measured on recurring basis | ||
Liabilities: | ||
Guaranteed benefit derivatives | 11 | 11 |
FIA | Assets measured on recurring basis | Level 1 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 0 | 0 |
FIA | Assets measured on recurring basis | Level 2 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 0 | 0 |
FIA | Assets measured on recurring basis | Level 3 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 11 | 11 |
Stabilizer and MCGs | Assets measured on recurring basis | ||
Liabilities: | ||
Guaranteed benefit derivatives | 22 | 4 |
Stabilizer and MCGs | Assets measured on recurring basis | Level 1 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 0 | 0 |
Stabilizer and MCGs | Assets measured on recurring basis | Level 2 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 0 | 0 |
Stabilizer and MCGs | Assets measured on recurring basis | Level 3 | ||
Liabilities: | ||
Guaranteed benefit derivatives | 22 | 4 |
Interest rate contracts | Assets measured on recurring basis | ||
Assets: | ||
Derivatives | 210 | 117 |
Liabilities: | ||
Derivatives | 261 | 76 |
Interest rate contracts | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Derivatives | 1 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Interest rate contracts | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Derivatives | 209 | 117 |
Liabilities: | ||
Derivatives | 261 | 76 |
Interest rate contracts | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Foreign exchange contracts | Assets measured on recurring basis | ||
Assets: | ||
Derivatives | 10 | 10 |
Liabilities: | ||
Derivatives | 19 | 20 |
Foreign exchange contracts | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Foreign exchange contracts | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Derivatives | 10 | 10 |
Liabilities: | ||
Derivatives | 19 | 20 |
Foreign exchange contracts | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Equity contracts | Assets measured on recurring basis | ||
Assets: | ||
Derivatives | 4 | 1 |
Liabilities: | ||
Derivatives | 3 | 1 |
Equity contracts | Assets measured on recurring basis | Level 1 | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Equity contracts | Assets measured on recurring basis | Level 2 | ||
Assets: | ||
Derivatives | 4 | 1 |
Liabilities: | ||
Derivatives | 3 | 1 |
Equity contracts | Assets measured on recurring basis | Level 3 | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Embedded derivative on reinsurance | Assets measured on recurring basis | ||
Liabilities: | ||
Embedded derivative on reinsurance | 23 | (80) |
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 1 | ||
Liabilities: | ||
Embedded derivative on reinsurance | 0 | 0 |
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 2 | ||
Liabilities: | ||
Embedded derivative on reinsurance | 23 | (80) |
Embedded derivative on reinsurance | Assets measured on recurring basis | Level 3 | ||
Liabilities: | ||
Embedded derivative on reinsurance | 0 | 0 |
Credit contracts | Assets measured on recurring basis | ||
Liabilities: | ||
Derivatives | 2 | 2 |
Credit contracts | Assets measured on recurring basis | Level 1 | ||
Liabilities: | ||
Derivatives | 0 | 0 |
Credit contracts | Assets measured on recurring basis | Level 2 | ||
Liabilities: | ||
Derivatives | 2 | 2 |
Credit contracts | Assets measured on recurring basis | Level 3 | ||
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Financial Instruments (Details) - Assets measured on recurring basis - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. corporate public securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | $ 28 | $ 26 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 3 | 0 |
Purchases | 0 | 22 |
Issuances | 0 | 0 |
Sales | 0 | (5) |
Settlements | (7) | 0 |
Transfers in to Level 3 | 23 | 0 |
Transfers out of Level 3 | 0 | (15) |
Assets, Fair Value, ending balance | 47 | 28 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | 0 | 0 |
U.S. corporate private securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 771 | 642 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (1) | 0 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 62 | (31) |
Purchases | 246 | 184 |
Issuances | 0 | 0 |
Sales | (14) | (4) |
Settlements | (61) | (32) |
Transfers in to Level 3 | 8 | 20 |
Transfers out of Level 3 | (9) | (8) |
Assets, Fair Value, ending balance | 1,002 | 771 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | (1) | 0 |
Foreign corporate private securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 124 | 92 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (17) | (9) |
Total Realized/Unrealized Gains (Losses) Included in OCI | 31 | 14 |
Purchases | 108 | 93 |
Issuances | 0 | 0 |
Sales | (56) | (56) |
Settlements | 0 | (10) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets, Fair Value, ending balance | 190 | 124 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | 1 | (9) |
Residential mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 10 | 21 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (3) | (5) |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 9 | 41 |
Issuances | 0 | 0 |
Sales | 0 | (40) |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (7) |
Assets, Fair Value, ending balance | 16 | 10 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | (4) | (5) |
Commercial mortgage-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 12 | 7 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 0 | 13 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (1) |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | (12) | (7) |
Assets, Fair Value, ending balance | 0 | 12 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | 0 | 0 |
Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 94 | 43 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 0 | 0 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | (2) |
Purchases | 0 | 56 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | (2) | (4) |
Transfers in to Level 3 | 0 | 22 |
Transfers out of Level 3 | (44) | (21) |
Assets, Fair Value, ending balance | 48 | 94 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | 0 | 0 |
Fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 1,039 | 831 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (21) | (14) |
Total Realized/Unrealized Gains (Losses) Included in OCI | 96 | (19) |
Purchases | 363 | 409 |
Issuances | 0 | 0 |
Sales | (70) | (105) |
Settlements | (70) | (47) |
Transfers in to Level 3 | 31 | 42 |
Transfers out of Level 3 | (65) | (58) |
Assets, Fair Value, ending balance | 1,303 | 1,039 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | (4) | (14) |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 50 | 50 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (16) | (4) |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 29 | 4 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets, Fair Value, ending balance | 63 | 50 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | (16) | (4) |
Stabilizer and MCGs | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Derivatives, beginning balance | (4) | (97) |
Total Realized/Unrealized Gains (Losses) Included in Net Income | (16) | 96 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issues | (2) | (3) |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, Derivatives, ending balance | (22) | (4) |
Guaranteed benefit derivatives, Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
FIA | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Derivatives, beginning balance | (11) | (20) |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 5 | (2) |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Issues | (5) | 2 |
Sales | 0 | 0 |
Settlements | 0 | 9 |
Transfers in to Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, Derivatives, ending balance | (11) | (11) |
Guaranteed benefit derivatives, Change in Unrealized Gains (Losses) Included in Earnings | 0 | 0 |
Separate Accounts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Assets, Fair Value, beginning balance | 61 | 11 |
Total Realized/Unrealized Gains (Losses) Included in Net Income | 4 | 0 |
Total Realized/Unrealized Gains (Losses) Included in OCI | 0 | 0 |
Purchases | 79 | 67 |
Issuances | 0 | 0 |
Sales | (2) | (6) |
Settlements | 0 | 0 |
Transfers in to Level 3 | 3 | 0 |
Transfers out of Level 3 | (30) | (11) |
Assets, Fair Value, ending balance | 115 | 61 |
Change in Unrealized Gains (Losses) Included in Earnings(4) | $ 0 | $ 0 |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | $ 224 | $ 128 |
Other investments | 43 | 40 |
Assets held in separate accounts | 78,713 | 67,323 |
Derivatives liabilities | 285 | 99 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
Equity securities, available-for-sale | 80 | 57 |
Cash, Cash Equivalents, and Short-term Investments | 1,429 | 1,207 |
Derivative assets | 224 | 128 |
Short-term loan to affiliate | 69 | 0 |
Other investments | 43 | 40 |
Assets held in separate accounts | 78,713 | 67,323 |
Deposit liabilities | 76 | 77 |
Derivatives liabilities | 285 | 99 |
Short-term Debt | 1 | 1 |
Long-term debt, fair value | 4 | 4 |
Carrying Value | Embedded derivative on reinsurance | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Embedded derivative on reinsurance | 23 | (80) |
Carrying Value | Funding agreements without fixed maturities and deferred annuities(1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 26,337 | 26,068 |
Carrying Value | Funding agreements with a Fixed Maturity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 877 | 658 |
Carrying Value | Supplementary Contracts and Immediate Annuities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 312 | 333 |
Carrying Value | FIA | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 11 | 11 |
Carrying Value | Stabilizer and MCGs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 22 | 4 |
Carrying Value | Mortgage loans on real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | 4,664 | 4,918 |
Carrying Value | Policy loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | 205 | 210 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturities including securities pledged, Fair Value | 27,460 | 25,034 |
Equity securities, available-for-sale | 80 | 57 |
Cash, Cash Equivalents, and Short-term Investments | 1,429 | 1,207 |
Derivative assets | 224 | 128 |
Short-term loan to affiliate | 69 | 0 |
Other investments | 43 | 40 |
Assets held in separate accounts | 78,713 | 67,323 |
Deposit liabilities | 152 | 122 |
Derivatives liabilities | 285 | 99 |
Short-term Debt | 1 | 1 |
Long-term debt, fair value | 4 | 4 |
Fair Value | Embedded derivative on reinsurance | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Embedded derivative on reinsurance | 23 | (80) |
Fair Value | Funding agreements without fixed maturities and deferred annuities(1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 32,697 | 29,108 |
Fair Value | Funding agreements with a Fixed Maturity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 876 | 652 |
Fair Value | Supplementary Contracts and Immediate Annuities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 384 | 354 |
Fair Value | FIA | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 11 | 11 |
Fair Value | Stabilizer and MCGs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 22 | 4 |
Fair Value | Mortgage loans on real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | 4,912 | 4,983 |
Fair Value | Policy loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans | $ 205 | $ 210 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Value of Business Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning balance | $ 536 | $ 385 | $ 477 |
Deferrals of commissions and expenses | 43 | 55 | 75 |
Amortization, excluding unlocking | (72) | (75) | (76) |
Unlocking (1) | 2 | (26) | (61) |
Interest accrued | 35 | 35 | 37 |
Amortization: | |||
Net amortization included in the Consolidated Statements of Operations | (35) | (66) | (100) |
Change in unrealized capital gains/losses on available-for-sale securities | (256) | 162 | (67) |
Ending balance | 288 | 536 | 385 |
Movement Analysis Of Value of Business Acquired VOBA [Roll Forward] | |||
Beginning balance | 551 | 367 | 537 |
Deferrals of commissions and expenses | 6 | 6 | 5 |
Amortization, excluding unlocking | (66) | (72) | (83) |
Unlocking (1) | (2) | 13 | (93) |
Interest accrued | 38 | 39 | 43 |
Net amortization included in the Consolidated Statements of Operations | (30) | (20) | (133) |
Change in unrealized capital gains/losses on available-for-sale securities | (222) | 198 | (42) |
Ending balance | 305 | 551 | 367 |
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward] | |||
Beginning balance | 1,087 | 752 | 1,014 |
Deferrals of commissions and expenses | 49 | 61 | 80 |
Amortization, excluding unlocking | (138) | (147) | (159) |
Unlocking (1) | 0 | (13) | (154) |
Interest accrued | 73 | 74 | 80 |
Net amortization included in the Consolidated Statements of Operations | (65) | (86) | (233) |
Change in unrealized capital gains/losses on available-for-sale securities | (478) | 360 | (109) |
Ending balance | 593 | 1,087 | 752 |
Estimated amount of VOBA amortization expense, net of interest: | |||
2020 | 18 | ||
2021 | 16 | ||
2022 | 14 | ||
2023 | 14 | ||
2024 | $ 14 | ||
Guaranteed Minimum Interest Rates | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Unlocking (1) | (25) | (80) | |
Movement Analysis Of Value of Business Acquired VOBA [Roll Forward] | |||
Unlocking (1) | $ (26) | $ (140) | |
Minimum | |||
Deferred Policy Acquisition Cost and Value of Business Acquired [Line Items] | |||
Interest Accrual Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 5.50% | 5.50% | 5.50% |
Maximum | |||
Deferred Policy Acquisition Cost and Value of Business Acquired [Line Items] | |||
Interest Accrual Rate Associated with Amortization Method of Present Value of Future Insurance Profits | 7.00% | 7.00% | 7.00% |
Guaranteed Benefit Features (De
Guaranteed Benefit Features (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | ||
Guaranteed minimum benefits | $ 40,000 | $ 37,900 |
Additional liability recognized | 26 | 11 |
Aggregate fair value of securities supporting separate accounts | $ 8,200 | $ 8,600 |
- Reinsurance (Details)
- Reinsurance (Details) $ in Millions | Oct. 02, 1998USD ($) | Dec. 31, 2019USD ($)affiliatereinsurer | Dec. 31, 2018USD ($) |
Effects of Reinsurance [Line Items] | |||
Reinsurance treaties, number of affiliates | affiliate | 1 | ||
Premiums receivable and reinsurance recoverable | $ 1,304 | $ 1,409 | |
Security Life of Denver International Limited and Langhorne I, LLC | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance treaties, number of affiliates | affiliate | 1 | ||
Unaffiliated Reinsurers | |||
Effects of Reinsurance [Line Items] | |||
Number of outstanding reinsurance agreements | reinsurer | 6 | ||
Lincoln National Corporation, Subsidiary | |||
Effects of Reinsurance [Line Items] | |||
Proceeds from disposal of life insurance business | $ 1,000 | ||
Premiums receivable and reinsurance recoverable | $ 1,300 | $ 1,400 |
Reinsurance - Net Receivables (
Reinsurance - Net Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||
Reserves ceded and claims recoverable | $ 1,304 | $ 1,409 |
Premiums receivable, net | 0 | 0 |
Total | $ 1,304 | $ 1,409 |
Reinsurance - Premiums (Details
Reinsurance - Premiums (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Premiums, net of reinsurance | $ 31 | $ 41 | $ 48 |
Capital Contributions, Divide_2
Capital Contributions, Dividends and Statutory Information (Details) - USD ($) $ in Millions | Dec. 18, 2019 | Sep. 27, 2019 | Jun. 26, 2019 | May 28, 2019 | Apr. 18, 2019 | Mar. 27, 2019 | May 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends Payable [Line Items] | ||||||||||
Percentage threshold of dividends paid in previous twelve months to earned statutory surplus of prior year end, requiring approval of payment of dividends if exceeded | 10.00% | |||||||||
Proceeds from Contributions from Parent | $ 57 | $ 55 | $ 12 | |||||||
Statutory net income (loss) | 325 | 377 | $ 195 | |||||||
Statutory capital and surplus | 2,000 | 2,000 | ||||||||
Voya Financial Partners, LLC (VFP) | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends paid to parent company | $ 20 | $ 20 | $ 20 | $ 20 | 90 | |||||
Directed Services LLC (DSL) | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends paid to parent company | $ 49 | |||||||||
Parent Company | ||||||||||
Dividends Payable [Line Items] | ||||||||||
Dividends paid to parent company | $ 126 | $ 270 | 396 | 126 | ||||||
Proceeds from Contributions from Parent | $ 57 | $ 55 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Derivatives | $ 117 | $ 140 | $ 124 |
DAC/VOBA and Sales inducements adjustments on available-for-sale securities | (551) | (73) | (433) |
Premium deficiency reserve adjustment | (211) | (51) | (115) |
Other | 0 | 0 | 5 |
Unrealized capital gains (losses), before tax | 1,468 | 143 | 1,047 |
Deferred income tax asset (liability) | (180) | (39) | (234) |
Unrealized capital gains (losses), after tax | 1,288 | 104 | 813 |
Pension and other postretirement benefits liability, net of tax | 4 | 4 | 5 |
AOCI | 1,292 | 108 | 818 |
Fixed maturities | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Fixed maturities, net of OTTI | 2,113 | 127 | 1,451 |
Equity securities | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Equity securities | 0 | $ 0 | $ 15 |
Other Contract | |||
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification from AOCI, Current Period, before Tax, Attributable to Parent | $ 23 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI, including Reclassification Adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components Of Accumulated Other Comprehensive Income Loss [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 0 | $ 9 | $ (5) |
Available-for-sale securities, Before-Tax Amount: | |||
Net unrealized gains/losses on securities | 1,995 | ||
Other | 0 | (5) | 5 |
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (11) | 69 | 29 |
DAC/VOBA and Sales inducements | (479) | 360 | (109) |
Premium deficiency reserve adjustment | (160) | 64 | (25) |
Change in unrealized gains/losses on available-for-sale securities | 1,346 | (905) | 460 |
Available-for-sale securities, Income Tax: | |||
Net unrealized gains/losses on securities | (419) | ||
Other | 0 | 1 | (2) |
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | 2 | (14) | (10) |
DAC/VOBA and Sales inducements | 100 | (76) | 42 |
Premium deficiency reserve adjustment | 33 | (13) | 9 |
Change in unrealized gains/losses on available-for-sale securities | (284) | 195 | (150) |
Available-for-sale securities, After-Tax Amount: | |||
Net unrealized gains/losses on securities | 1,576 | ||
Other | 0 | (4) | 3 |
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations | (9) | 55 | 19 |
DAC/VOBA and Sales inducements | (379) | 284 | (67) |
Premium deficiency reserve adjustment | (127) | 51 | (16) |
Change in unrealized gains/losses on available-for-sale securities | 1,062 | (710) | 310 |
Derivatives, Before-Tax Amount: | |||
Derivatives | 1 | 40 | (53) |
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | (23) | (24) | (24) |
Change in unrealized gains/losses on derivatives | (22) | 16 | (77) |
Derivatives, Income Tax: | |||
Derivatives | 0 | (8) | 19 |
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | 5 | 5 | 8 |
Change in unrealized gains/losses on derivatives | 5 | (3) | 27 |
Derivatives, After-Tax Amount: | |||
Derivatives | 1 | 32 | (34) |
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations | (18) | (19) | (16) |
Change in unrealized gains/losses on derivatives | (17) | 13 | (50) |
OTTI: | |||
Other-than-temporary impairments | 1 | 8 | (4) |
Change in OTTI, Income Tax | 0 | (2) | 1 |
Change in OTTI, After-Tax Amount | 1 | 6 | (3) |
Pension and other post-employment benefit liability, Before-Tax Amount: | |||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | (1) | (1) | (2) |
Change in pension and other postretirement benefits liability | (1) | (1) | (2) |
Other comprehensive income (loss), before tax | 1,323 | (890) | 381 |
Pension and other post-employment benefit liability, Income Tax: | |||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | 3 | 0 | 1 |
Change in pension and other postretirement benefits liability | 3 | 0 | 1 |
Other comprehensive income (loss) | (276) | 192 | (122) |
Pension and other post-employment benefit liability, After-Tax Amount: | |||
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations | 2 | (1) | (1) |
Change in pension and other postretirement benefits liability | 2 | (1) | (1) |
Other comprehensive income (loss), after tax | 1,047 | (698) | 259 |
Fixed maturities | |||
Available-for-sale securities, Before-Tax Amount: | |||
Net unrealized gains/losses on securities | (1,401) | 564 | |
Available-for-sale securities, Income Tax: | |||
Net unrealized gains/losses on securities | 299 | (190) | |
Available-for-sale securities, After-Tax Amount: | |||
Net unrealized gains/losses on securities | (1,102) | 374 | |
Deferred Tax Asset, Capital Loss Carryforward | |||
Pension and other post-employment benefit liability, After-Tax Amount: | |||
Increase (decrease) in valuation allowance | $ 0 | $ 9 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense (benefit): | |||
Federal | $ 9 | $ 3 | $ (6) |
Total current tax expense (benefit) | 9 | 3 | (6) |
Deferred tax expense (benefit): | |||
Federal | 23 | 58 | (95) |
Total deferred tax expense (benefit) | 23 | 58 | (95) |
Income tax expense (benefit) | $ 32 | $ 61 | $ (101) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 332 | $ 506 | $ 14 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Tax rate | 21.00% | 21.00% | 35.00% |
Income tax expense (benefit) at federal statutory rate | $ 70 | $ 106 | $ 5 |
Dividends received deduction | (35) | (49) | (36) |
Valuation allowance | 0 | 9 | (5) |
Tax credit | (4) | 0 | 5 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | 0 | (71) |
Other | 1 | (5) | 1 |
Income tax expense (benefit) | $ 32 | $ 61 | $ (101) |
Effective tax rate | 9.60% | 12.10% | (721.40%) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | |||
Insurance reserves | $ 107 | $ 74 | |
Investments | 23 | 79 | |
Compensation and benefits | 57 | 58 | |
Other assets | 34 | 34 | |
Total gross assets | 221 | 245 | |
Net unrealized investment (gains) losses | (424) | (45) | |
Deferred policy acquisition costs | (101) | (205) | |
Total gross liabilities | (525) | (250) | |
Net deferred income tax asset (liability) | (304) | (5) | |
SEC Schedule, 12-09, Valuation Allowance, Operating Loss Carryforward | |||
Valuation Allowance [Line Items] | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 0 | 9 | $ (5) |
Deferred Tax Asset, Capital Loss Carryforward | |||
Valuation Allowance [Line Items] | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0 | $ 9 | $ 0 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | |||
Valuation allowance, deferred tax assets | $ 0 | $ 0 | |
Tax valuation allowance allocated to Net income (loss) | |||
Valuation Allowance [Line Items] | |||
Valuation allowance, deferred tax assets | 128 | 128 | |
Increase (decrease) in valuation allowance | 0 | 9 | $ (5) |
Deferred Tax Asset, Capital Loss Carryforward | |||
Valuation Allowance [Line Items] | |||
Valuation allowance, deferred tax assets | 128 | 128 | |
Increase (decrease) in valuation allowance | $ 0 | $ 9 | $ 0 |
Income Taxes - Tax Sharing Agre
Income Taxes - Tax Sharing Agreement (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Valuation allowance, deferred tax assets | $ 0 | $ 0 |
Income taxes receivable | 9 | 32 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 |
Voya Financial, Inc. | ||
Related Party Transaction [Line Items] | ||
Income taxes receivable | $ 9 | $ 32 |
Benefit Plans - Defined Benefit
Benefit Plans - Defined Benefit Plans (Details) - Qualified plan - Pension plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Annual credit earned by participants due to transition from old formula to new formula, percentage of annual pay | 4.00% | ||
Operating expenses | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Costs allocated to the Company for employees' participation in the Retirement Plan | $ 11 | $ 11 | $ 12 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, cost allocated | $ 15 | $ 15 | $ 16 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Award vesting period | 4 years | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company match, percentage of participant's eligible compensation | 6.00% |
Benefit Plans - Non-Qualified R
Benefit Plans - Non-Qualified Retirement Plans (Details) - Nonqualified plan - Pension plan | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Non-Qualified Retirement Plans [Abstract] | |
Non-qualified retirement plan, number of years of highest average annual compensation used to determine benefits | 5 years |
Maximum | |
Non-Qualified Retirement Plans [Abstract] | |
Non-qualified retirement plan, number of years of highest average annual compensation used to determine benefits | 10 years |
Benefit Plans - Obligations and
Benefit Plans - Obligations and Funded Status (Details) - Nonqualified plan - Pension plan - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Benefit Obligation [Roll Forward] | |||||
Benefit obligation | $ 80 | $ 88 | |||
Interest cost | 3 | 3 | $ 4 | ||
Benefits paid | (5) | (7) | |||
Actuarial (gains) losses on obligation | 4 | (4) | |||
Benefit obligation | 82 | 80 | 88 | ||
Amounts Recognized in Consolidated Balance Sheets [Abstract] | |||||
Accrued benefit cost | $ (82) | $ (88) | $ (88) | $ (82) | $ (80) |
Accumulated other comprehensive income: | |||||
Prior service cost | 0 | 0 | |||
Net amount recognized | $ (82) | $ (80) |
Benefit Plans - Assumptions (De
Benefit Plans - Assumptions (Details) - Nonqualified plan - Pension plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.36% | 4.46% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.46% | 3.85% | 4.55% |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Costs (Details) - Nonqualified plan - Pension plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Periodic Benefit Costs [Abstract] | |||
Interest cost | $ 3 | $ 3 | $ 4 |
Amortization of prior service cost (credit) | 0 | (1) | (1) |
Net (gain) loss recognition | 4 | (4) | 1 |
Net periodic benefit cost | $ 7 | $ (2) | $ 4 |
Benefit Plans - Expected Future
Benefit Plans - Expected Future Benefit Payments (Details) - Pension plan - Nonqualified plan $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, 2020 | $ 6 |
Defined Benefit Plan, Expected Future Benefit Payment, 2021 | 6 |
Defined Benefit Plan, Expected Future Benefit Payment, 2022 | 6 |
Defined Benefit Plan, Expected Future Benefit Payment, 2023 | 6 |
Defined Benefit Plan, Expected Future Benefit Payment, 2024 | 5 |
Defined Benefit Plan, Expected Future Benefit Payment, 2025-2029 | 25 |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 6 |
Benefit Plans - Stock Option an
Benefit Plans - Stock Option and Share Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Option and Share Plans [Abstract] | |||
Allocated stock option and share plan expenses | $ 31 | $ 29 | $ 30 |
Tax benefit from allocated stock option and share plan expenses | $ 7 | $ 6 | $ 11 |
ING 401(k) Plan for VRIAC Agents | |||
Stock Option and Share Plans [Abstract] | |||
Maximum annual contribution per employee | 60.00% | ||
Company match, percentage of participant's eligible compensation | 6.00% |
Financing Agreements (Details)
Financing Agreements (Details) - Loans Payable - One Point Zero Percent Windsor Property Loan - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 01, 2017 | Jun. 16, 2007 |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 10 | |||
Long-term Debt | $ 4 | $ 5 | ||
Debt Instrument, Collateral Amount | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Rent expense | $ 5 | $ 5 | $ 5 |
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | 1,087 | $ 771 | |
Loan Purchase Commitments | |||
Loss Contingencies [Line Items] | |||
Long-term Purchase Commitment, Amount | 94 | ||
Investment Purchase Commitment | |||
Loss Contingencies [Line Items] | |||
Long-term Purchase Commitment, Amount | 502 | ||
Federal Home Loan Bank of Boston | Line of Credit | |||
Loss Contingencies [Line Items] | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 877 | ||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | $ 1,087 |
Commitments and Contingencies_2
Commitments and Contingencies - Restricted Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | $ 1,087 | $ 771 |
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure | 44 | 40 |
Debt Securities, Trading, Restricted | 14 | 13 |
Restricted Cash and Cash Equivalents | 5 | 5 |
Total restricted assets | 1,978 | 1,711 |
Securities pledged | ||
Loss Contingencies [Line Items] | ||
Fair value of loaned securities | 715 | 759 |
Fair value of securities delivered as collateral | $ 113 | $ 123 |
Related Party Transactions - Op
Related Party Transactions - Operating Agreements and Investment Advisory and Other Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Earning related to agreements | $ 877 | $ 875 | $ 857 |
Short-term loan to affiliate | 69 | 0 | |
Voya Investment Management LLC | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 68 | 65 | 64 |
Earning related to agreements | 59 | 63 | 55 |
Voya Services Company | |||
Related Party Transaction [Line Items] | |||
Asset management, administrative and accounting services fees | 431 | 363 | 347 |
US Insurance Company and Affiliates | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 12 | 16 | 54 |
Voya Financial Advisors, Inc | |||
Related Party Transaction [Line Items] | |||
Commission expenses incurred | 82 | 79 | 77 |
Voya Insurance and Annuity Company (VIAC) and ReliaStar Life Insurance Company of New York (RLNY), and Affiliated Companies | DSL | |||
Related Party Transaction [Line Items] | |||
Commissions collected | 0 | 69 | 170 |
VIAC, VIPS, ReliaStar Life Insurance Company and Security Life of Denver Insurance Company | DSL | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 0 | 26 | 83 |
Voya Investments, LLC and Voya Investment Management, LLC, and Affiliated Companies | DSL | |||
Related Party Transaction [Line Items] | |||
Asset management, administrative and accounting services fees | 0 | 0 | 23 |
Affiliated entity | Voya Financial Partners, LLC (VFP) | |||
Related Party Transaction [Line Items] | |||
Distribution revenues | 27 | 27 | 27 |
Affiliated entity | DSL | |||
Related Party Transaction [Line Items] | |||
Earning related to agreements | $ 0 | $ 27 | $ 179 |
Related Party Transactions - Re
Related Party Transactions - Reinsurance Agreements (Details) $ in Millions | Jan. 01, 2018USD ($) | Dec. 31, 2019USD ($)affiliate | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |||
Reinsurance treaties, number of affiliates | affiliate | 1 | ||
Affiliated entity | |||
Related Party Transaction [Line Items] | |||
Deposit receivable | $ 36 | $ 37 | |
Deposit Liability, Current | $ 76 | $ 77 | |
Pre-tax Gain on Recapture | $ 74 | ||
Affiliated entity | SLDI | |||
Related Party Transaction [Line Items] | |||
Quota share of liability with reinsurer, percentage | 100.00% | ||
Affiliated entity | SLDI | State of New York | |||
Related Party Transaction [Line Items] | |||
Quota share of liability with reinsurer, percentage | 90.00% |
Related Party Transactions - Fi
Related Party Transactions - Financing Agreements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 29, 2004 | |
Related Party Transaction [Line Items] | ||||
Short-term loan to affiliate | $ 69,000,000 | $ 0 | ||
Due to Related Parties | $ 95,000,000 | 81,000,000 | ||
Affiliated entity | Reciprocal Loan Agreement | Voya Financial, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity, percentage | 3.00% | |||
Short-term loan to affiliate | $ 69,000,000 | 0 | ||
Due to Related Parties | 0 | 0 | ||
Affiliated entity | Surplus Notes | Voya Insurance and Annuity Company (VIAC) | ||||
Related Party Transaction [Line Items] | ||||
Interest income, related party | $ 0 | $ 5,000,000 | $ 11,000,000 | |
Debt Instrument, Face Amount | $ 175,000,000 | |||
Annual interest rate on loan | 6.26% |
Schedule I. Summary of Invest_2
Schedule I. Summary of Investments (Details) $ in Millions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 31,017 |
Fair Value | 33,582 |
Amount Shown on Consolidated Balance Sheets | 33,414 |
U.S. Treasuries | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 565 |
Fair Value | 691 |
Amount Shown on Consolidated Balance Sheets | 691 |
U.S. Government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 19 |
Fair Value | 19 |
Amount Shown on Consolidated Balance Sheets | 19 |
State, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 747 |
Fair Value | 815 |
Amount Shown on Consolidated Balance Sheets | 815 |
U.S. corporate public securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 7,103 |
Fair Value | 8,031 |
Amount Shown on Consolidated Balance Sheets | 8,031 |
U.S. corporate private securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,776 |
Fair Value | 4,066 |
Amount Shown on Consolidated Balance Sheets | 4,066 |
Foreign corporate public securities and foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,417 |
Fair Value | 2,679 |
Amount Shown on Consolidated Balance Sheets | 2,679 |
Foreign corporate private securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,171 |
Fair Value | 3,375 |
Amount Shown on Consolidated Balance Sheets | 3,375 |
Residential mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,685 |
Fair Value | 3,810 |
Amount Shown on Consolidated Balance Sheets | 3,810 |
Commercial mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,381 |
Fair Value | 2,500 |
Amount Shown on Consolidated Balance Sheets | 2,500 |
Other asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,472 |
Fair Value | 1,474 |
Amount Shown on Consolidated Balance Sheets | 1,474 |
Total fixed maturities, including securities pledged | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 25,336 |
Fair Value | 27,460 |
Amount Shown on Consolidated Balance Sheets | 27,460 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 0 |
Fair Value | 0 |
Amount Shown on Consolidated Balance Sheets | 80 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,664 |
Fair Value | 4,912 |
Amount Shown on Consolidated Balance Sheets | 4,664 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 205 |
Fair Value | 205 |
Amount Shown on Consolidated Balance Sheets | 205 |
Limited partnerships/corporations | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 738 |
Fair Value | 738 |
Amount Shown on Consolidated Balance Sheets | 738 |
Derivatives | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 31 |
Fair Value | 224 |
Amount Shown on Consolidated Balance Sheets | 224 |
Other investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 43 |
Fair Value | 43 |
Amount Shown on Consolidated Balance Sheets | $ 43 |
Schedule IV - Reinsurance Inf_2
Schedule IV - Reinsurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Life insurance in force, gross | $ 8,201 | $ 8,974 | $ 9,869 |
Life insurance in force, ceded | 8,410 | 9,202 | 10,116 |
Life insurance in force, assumed | 209 | 228 | 247 |
Life insurance in force, net | 0 | 0 | 0 |
Total premiums, gross | 31 | 41 | 48 |
Total premiums, ceded | 0 | 0 | 0 |
Total premiums, assumed | 0 | 0 | 0 |
Total premiums, net | $ 31 | $ 41 | $ 48 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Accident and health insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total premiums, gross | $ 0 | $ 0 | $ 0 |
Total premiums, ceded | 0 | 0 | 0 |
Total premiums, assumed | 0 | 0 | 0 |
Total premiums, net | $ 0 | $ 0 | $ 0 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Annuities | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Total premiums, gross | $ 31 | $ 41 | $ 48 |
Total premiums, ceded | 0 | 0 | 0 |
Total premiums, assumed | 0 | 0 | 0 |
Total premiums, net | $ 31 | $ 41 | $ 48 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Uncategorized Items - vriac2019
Label | Element | Value |
Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 54,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 50,000,000 |
Loans Receivable, Loan to Value Ratio, Minimum | vriac_LoansReceivableLoanToValueRatioMinimum | 80.00% |
Loans Receivable, Loan to Value Ratio, Minimum | vriac_LoansReceivableLoanToValueRatioMinimum | 80.00% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 1.10% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 1.10% |
Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 2,552,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 2,961,000,000 |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 54.70% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 60.20% |
Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 1,173,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 1,184,000,000 |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 24.10% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 25.20% |
Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 509,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 389,000,000 |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 10.90% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 7.90% |
Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 380,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 331,000,000 |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 8.10% |
Loans, Loan-to-value ratio, Percent of total Loans | vriac_LoansLoantovalueratioPercentoftotalLoans | 6.70% |
Commercial Loan [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | $ 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 21,000,000 |
Commercial Loan [Member] | Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 26,000,000 |
Commercial Loan [Member] | Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Commercial Loan [Member] | Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 4,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Commercial Loan [Member] | Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Loans Receivable, Debt Service Coverage Ratio, Range Three [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 10,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Three [Member] | Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 503,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 253,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Three [Member] | Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 10,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 11,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Three [Member] | Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 74,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 66,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Three [Member] | Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 9,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 23,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Four [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 6,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Four [Member] | Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 34,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 93,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Four [Member] | Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 28,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Four [Member] | Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 69,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 19,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Four [Member] | Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 0 |
Loans Receivable, Debt Service Coverage Ratio, Range Two [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 14,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 5,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Two [Member] | Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 432,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 328,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Two [Member] | Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 45,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 40,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Two [Member] | Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 87,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 84,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range Two [Member] | Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 24,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 12,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range One [Member] | Debt-to-Value Ratio, 80 to 100 Percent [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 30,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 18,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range One [Member] | Loans Receivable, Loan to Value Ratio, Range Three [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 2,070,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 1,774,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range One [Member] | Loans Receivable, Loan to Value Ratio, Range Two [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 1,133,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 1,090,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range One [Member] | Loans Receivable, Loan to Value Ratio, Range Four [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 213,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 282,000,000 |
Loans Receivable, Debt Service Coverage Ratio, Range One [Member] | Loans Receivable, Loan to Value Ratio, Range One [Member] | ||
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 284,000,000 |
Financing Receivable, before Allowance for Credit Loss | us-gaap_NotesReceivableGross | 359,000,000 |
Accounting Standards Update 2014-09 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | Common Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-01 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-01 [Member] | Common Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |