Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Billions | Feb. 20, 2019 | Dec. 31, 2018 | Jun. 29, 2018 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity Registrant Name | HARTFORD FINANCIAL SERVICES GROUP INC/DE | ||
Entity Public Float | $ 18 | ||
Entity Common Stock, Shares Outstanding | 359,470,401 | ||
Entity Listing, Par Value Per Share | $ 0.01 | ||
Entity Central Index Key | 874,766 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Earned premiums | $ 15,869 | $ 14,141 | $ 13,697 |
Fee income | 1,313 | 1,168 | 1,041 |
Net investment income | 1,780 | 1,603 | 1,577 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairment (“OTTI”) losses | (7) | (15) | (35) |
OTTI losses recognized in other comprehensive income | 6 | 7 | 8 |
Net OTTI losses recognized in earnings | (1) | (8) | (27) |
Other net realized capital gains (losses) | (111) | 173 | (83) |
Total net realized capital gains (losses) | (112) | 165 | (110) |
Other revenues | 105 | 85 | 86 |
Total revenues | 18,955 | 17,162 | 16,291 |
Benefits, losses and expenses | |||
Benefits, losses and loss adjustment expenses | 11,165 | 10,174 | 9,961 |
Amortization of deferred policy acquisition costs (DAC) | 1,384 | 1,372 | 1,377 |
Insurance operating costs and other expenses | 4,281 | 4,563 | 3,525 |
Loss on extinguishment of debt | (6) | 0 | 0 |
Loss on reinsurance transaction | 0 | 0 | 650 |
Interest expense | 298 | 316 | 327 |
Amortization of other intangible assets | 68 | 14 | 4 |
Total benefits, losses and expenses | 17,202 | 16,439 | 15,844 |
Income from continuing operations before income taxes | 1,753 | 723 | 447 |
Income tax expense (benefit) | 268 | 985 | (166) |
Income (loss) from continuing operations, net of tax | 1,485 | (262) | 613 |
Income (loss) from discontinued operations, net of tax | 322 | (2,869) | 283 |
Net income (loss) | 1,807 | (3,131) | 896 |
Preferred stock dividends | 6 | 0 | 0 |
Net income (loss) available to common stockholders | $ 1,801 | $ (3,131) | $ 896 |
Earnings per common share | |||
Income (loss) from continuing operations Basic | $ 4.13 | $ (0.72) | $ 1.58 |
Income (loss) from continuing operations Diluted | 4.06 | (0.72) | 1.55 |
Net income (loss) Basic | 5.03 | (8.61) | 2.31 |
Net income (loss) Diluted | $ 4.95 | $ (8.61) | $ 2.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,807 | $ (3,131) | $ 896 |
Other comprehensive income (loss): | |||
Changes in net unrealized gain on securities | (2,180) | 655 | (3) |
Changes in OTTI losses recognized in other comprehensive income | (1) | 0 | 4 |
Changes in net gain on cash flow hedging instruments | (25) | (58) | (54) |
Changes in foreign currency translation adjustments | (8) | 28 | 61 |
Changes in pension and other postretirement plan adjustments | (23) | 375 | (16) |
OCI, net of tax | (2,237) | 1,000 | (8) |
Comprehensive income (loss) | $ (430) | $ (2,131) | $ 888 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $35,603 and $35,612) | $ 35,652 | $ 36,964 |
Fixed maturities, at fair value using the fair value option | 22 | 41 |
Equity securities, at fair value | 1,214 | 0 |
Equity securities, available-for-sale, at fair value (cost of $0 and $907) | 0 | 1,012 |
Mortgage loans (net of allowances for loan losses of $1 and $1) | 3,704 | 3,175 |
Limited partnerships and other alternative investments | 1,723 | 1,588 |
Other investments | 192 | 96 |
Short-term investments | 4,283 | 2,270 |
Total investments | 46,790 | 45,146 |
Cash | 121 | 180 |
Premiums receivable and agents’ balances, net | 3,995 | 3,910 |
Reinsurance recoverables, net | 4,357 | 4,061 |
Deferred policy acquisition costs | 670 | 650 |
Deferred income taxes, net | 1,248 | 1,164 |
Goodwill | 1,290 | 1,290 |
Property and equipment, net | 1,006 | 1,034 |
Other intangible assets, net | 657 | 659 |
Other assets | 2,173 | 2,230 |
Assets held for sale | 0 | 164,936 |
Total assets | 62,307 | 225,260 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 33,029 | 32,287 |
Reserve for future policy benefits | 642 | 713 |
Other policyholder funds and benefits payable | 767 | 816 |
Unearned premiums | 5,282 | 5,322 |
Short-term debt | 413 | 320 |
Long-term debt | 4,265 | 4,678 |
Other liabilities | 4,808 | 5,188 |
Liabilities held for sale | 0 | 162,442 |
Total liabilities | 49,206 | 211,766 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Equity | ||
Preferred stock, $0.01 par value — 50,000,000 shares authorized, 13,800 shares issued as of December 31, 2018, aggregate liquidation preference of $345 | 334 | 0 |
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at December 31, 2018 and December 31, 2017 | 4 | 4 |
Additional paid-in capital | 4,378 | 4,379 |
Retained earnings | 11,055 | 9,642 |
Treasury stock, at cost — 25,772,238 and 28,088,186 shares | (1,091) | (1,194) |
Accumulated other comprehensive income (loss), net of tax | (1,579) | 663 |
Total stockholders' equity | 13,101 | 13,494 |
Total liabilities and stockholders’ equity | $ 62,307 | $ 225,260 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities, available-for-sale, at fair value, amortized cost | $ 35,603 | $ 35,612 |
Equity securities, available-for-sale, at fair value, cost | 0 | 907 |
Mortgage loans, allowances for loan losses | $ 1 | $ 1 |
Preferred Stock, Shares Issued | 13,800,000 | 0 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0 |
Preferred Stock, Shares Authorized | 50,000,000 | 0 |
Preferred Stock, Liquidation Preference, Value | $ 345 | $ 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 384,923,222 | 384,923,222 |
Treasury stock (in shares) | 25,772,238 | 28,088,186 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Preferred Stock, end of period | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Income (Loss), net of tax |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes, net of tax | $ 0 | $ 0 | |||||
Adjusted balance beginning of period | 12,550 | (329) | |||||
Beginning balance at Dec. 31, 2015 | $ 0 | $ 8,973 | 12,550 | $ (3,557) | (329) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive and stock compensation plans | (143) | ||||||
Stock-based compensation plans expense | 74 | ||||||
Tax benefit on employee stock options and share-based awards | 5 | ||||||
Issuance of shares for warrant exercise | (16) | 16 | |||||
Treasury stock retired | 3,646 | 3,647 | |||||
Net income (loss) | $ 896 | 896 | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (332) | ||||||
Treasury stock acquired | (1,330) | ||||||
Issuance of shares under incentive and stock compensation plans | 153 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (54) | ||||||
Total other comprehensive income (loss) | (8) | ||||||
Ending balance at Dec. 31, 2016 | $ 16,903 | $ 0 | $ 4 | 5,247 | 13,114 | (1,125) | (337) |
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2015 | 401,821,000 | ||||||
Common Shares Outstanding | |||||||
Treasury stock acquired | (30,782,000) | ||||||
Issuance of shares under incentive and stock compensation plans | 3,766,000 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (1,243,000) | ||||||
Issuance of shares for warrant exercise | 387,000 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2016 | 373,949,000 | ||||||
Preferred Shares Outstanding, beginning of period at Dec. 31, 2015 | 0 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2016 | 0 | ||||||
Preferred Shares Outstanding | |||||||
Cash dividends declared per common share | $ 0.86 | ||||||
Issuance of preferred stock | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | 0 | 0 | |||||
Adjusted balance beginning of period | 13,114 | (337) | |||||
Issuance of preferred shares | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | (76) | ||||||
Stock-based compensation plans expense | 104 | ||||||
Tax benefit on employee stock options and share-based awards | 0 | ||||||
Issuance of shares for warrant exercise | (67) | 67 | |||||
Treasury stock retired | 829 | 829 | |||||
Net income (loss) | $ (3,131) | (3,131) | |||||
Dividends declared on preferred stock | 0 | 0 | |||||
Dividends declared on common stock | (341) | ||||||
Treasury stock acquired | (1,028) | ||||||
Issuance of shares under incentive and stock compensation plans | 100 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (37) | ||||||
Total other comprehensive income (loss) | 1,000 | ||||||
Ending balance at Dec. 31, 2017 | $ 13,494 | $ 0 | $ 4 | 4,379 | 9,642 | (1,194) | 663 |
Common Shares Outstanding | |||||||
Treasury stock acquired | (20,218,000) | ||||||
Issuance of shares under incentive and stock compensation plans | 2,301,000 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (747,000) | ||||||
Issuance of shares for warrant exercise | 1,550,000 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2017 | 356,835,000 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2017 | 0 | ||||||
Preferred Shares Outstanding | |||||||
Cash dividends declared per common share | $ 0.94 | ||||||
Issuance of preferred stock | $ 0 | ||||||
Cumulative effect of accounting changes, net of tax | 5 | (5) | |||||
Adjusted balance beginning of period | 9,647 | 658 | |||||
Issuance of preferred shares | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | (110) | ||||||
Stock-based compensation plans expense | 123 | ||||||
Tax benefit on employee stock options and share-based awards | 0 | ||||||
Issuance of shares for warrant exercise | (14) | 14 | |||||
Treasury stock retired | 0 | 0 | |||||
Net income (loss) | $ 1,807 | 1,807 | |||||
Dividends declared on preferred stock | (6) | 6 | |||||
Dividends declared on common stock | (393) | ||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 132 | ||||||
Net shares acquired related to employee incentive and stock compensation plans | (43) | ||||||
Total other comprehensive income (loss) | (2,237) | ||||||
Ending balance at Dec. 31, 2018 | $ 13,101 | $ 334 | $ 4 | $ 4,378 | $ 11,055 | $ (1,091) | $ (1,579) |
Common Shares Outstanding | |||||||
Treasury stock acquired | 0 | ||||||
Issuance of shares under incentive and stock compensation plans | 2,856,000 | ||||||
Return of shares under incentive and stock compensation plans to treasury stock | (849,000) | ||||||
Issuance of shares for warrant exercise | 309,000 | ||||||
Common Shares Outstanding, end of period at Dec. 31, 2018 | 359,151,000 | ||||||
Preferred Shares Outstanding, end of period at Dec. 31, 2018 | 13,800,000 | ||||||
Preferred Shares Outstanding | |||||||
Cash dividends declared per common share | $ 1.10 | ||||||
Issuance of preferred stock | $ 334 | ||||||
Issuance of preferred shares | 13,800,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income (loss) | $ 1,807 | $ (3,131) | $ 896 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Net realized capital losses (gains) | 165 | (111) | 187 |
Amortization of deferred policy acquisition costs | 1,442 | 1,417 | 1,523 |
Additions to deferred policy acquisition costs | (1,404) | (1,383) | (1,390) |
Depreciation and amortization | 467 | 399 | 398 |
Pension settlement expense | 0 | 747 | 0 |
Loss on extinguishment of debt | (6) | 0 | 0 |
Loss (gain) on sale of business | (202) | 3,257 | 81 |
Other operating activities, net | 408 | 408 | 178 |
Change in assets and liabilities: | |||
Decrease (increase) in reinsurance recoverables | (323) | (935) | 272 |
Increase (decrease) in accrued and deferred income taxes | (103) | 170 | (250) |
Impact of tax reform on accrued and deferred income taxes | 0 | 877 | 0 |
Increase (decrease) in insurance liabilities | 493 | 1,648 | 322 |
Net change in other assets and other liabilities | 87 | (1,177) | (151) |
Cash provided by operating activities | 2,843 | 2,186 | 2,066 |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 24,700 | 31,646 | 24,486 |
Fixed maturities, fair value option | 23 | 148 | 238 |
Proceeds from Sale and Maturity of Marketable Securities | 1,230 | 0 | 0 |
Equity securities, available-for-sale | 0 | 810 | 709 |
Mortgage loans | 483 | 734 | 647 |
Partnerships | 433 | 274 | 779 |
Payments for the purchase of: | |||
Fixed maturities, available-for-sale | (23,173) | (30,923) | (21,844) |
Fixed maturities, fair value option | 0 | (94) | |
Payments to Acquire Marketable Securities | (1,500) | 0 | 0 |
Equity securities, available-for-sale | 0 | (638) | (662) |
Mortgage loans | (983) | (1,096) | (717) |
Partnerships | (481) | (509) | (441) |
Net payments for derivatives | (224) | (314) | (247) |
Net additions to property and equipment | (122) | (250) | (224) |
Net (payments for) short-term investments | (3,460) | (144) | (1,377) |
Other investing activities, net | (3) | 21 | (129) |
Proceeds from businesses sold, net of cash transferred | 1,115 | 222 | 0 |
Amounts paid for business acquired, net of cash acquired | 0 | (1,423) | (175) |
Net cash provided by (used for) investing activities | (1,962) | (1,442) | 949 |
Financing Activities | |||
Deposits and other additions to investment and universal life-type contracts | 1,814 | 4,602 | 4,186 |
Withdrawals and other deductions from investment and universal life-type contracts | (9,210) | (13,562) | (14,790) |
Net transfers from separate accounts related to investment and universal life-type contracts | 6,949 | 7,969 | 9,822 |
Repayments at maturity or settlement of consumer notes | (2) | (13) | (17) |
Net increase (decrease) in securities loaned or sold under agreements to repurchase | (621) | 1,320 | 188 |
Repayment of debt | (826) | (416) | (275) |
Proceeds from the issuance of debt | 490 | 500 | 0 |
Proceeds from Issuance of Redeemable Preferred Stock | 334 | 0 | 0 |
Net issuance (return) of shares under incentive and stock compensation plans | (16) | (10) | 9 |
Treasury stock acquired | (1,028) | (1,330) | |
Dividends paid on common stock | (379) | (341) | (334) |
Net cash used for financing activities | (1,467) | (979) | (2,541) |
Foreign exchange rate effect on cash | (10) | 70 | (40) |
Net increase (decrease) in cash, including cash classified as assets held for sale | (596) | (165) | 434 |
Less: Net increase (decrease) in cash classified as assets held for sale | (537) | (17) | 249 |
Net increase (decrease) in cash, including cash classified as assets held for sale | (59) | (148) | 185 |
Cash — beginning of period | 180 | 328 | 143 |
Cash — end of period | 121 | 180 | 328 |
Supplemental Disclosure of Cash Flow Information | |||
Income tax received (paid) | 9 | 6 | (130) |
Interest paid | $ 292 | $ 322 | $ 336 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1 . BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States (collectively, “The Hartford”, the “Company”, “we” or “our”). On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in late March or April 2019, subject to customary closing conditions, including receipt of regulatory approvals. On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, for its life and annuity operating subsidiaries. On November 1, 2017, Hartford Life and Accident Insurance Company ("HLA"), a wholly owned subsidiary of the Company, completed the acquisition of Aetna's U.S. group life and disability business through a reinsurance transaction. On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries. On July 29, 2016, the Company completed the acquisition of Northern Homelands Company, the holding company of Maxum Specialty Insurance Group (collectively "Maxum"). On July 29, 2016, the Company completed the acquisition of Lattice Strategies LLC ("Lattice"). For further discussion of these transactions, see Note 2 - Business Acquisitions and Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities. Consolidation The Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. Discontinued Operations The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. Use of Estimates 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular: • Distribution costs within the Hartford Funds segment that were previously netted against fee income are presented gross in insurance operating costs and other expenses. Refer to the "Revenue Recognition" passage within the "Adoption of New Accounting Standards" section below for further information. Adoption of New Accounting Standards Stock Compensation On January 1, 2017 the Company adopted new stock compensation guidance issued by the Financial Accounting Standards Board ("FASB") on a prospective basis. The updated guidance requires the excess tax benefit or tax deficiency on vesting or settlement of stock-based awards to be recognized in earnings as an income tax benefit or expense, respectively, instead of as an adjustment to additional paid-in capital. The new guidance also requires the related cash flows to be presented in operating activities instead of in financing activities. The amount of excess tax benefit or tax deficiency realized on vesting or settlement of awards depends upon the difference between the market value of awards at vesting or settlement and the grant date fair value recognized through compensation expense. The excess tax benefit or tax deficiency is a discrete item in the reporting period in which it occurs and is not considered in determining the annual estimated effective tax rate for interim reporting. The excess tax benefit recognized in earnings for the year ended December 31, 2018 and 2017 was $5 and $15 , respectively, and the excess tax benefit recognized in additional paid-in capital for the year ended December 31, 2016 was $5 . Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings On January 1, 2018, the Company adopted the FASB's new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193 , net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings. Financial Instruments- Recognition and Measurement On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on fixed maturities, available-for-sale that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available-for-sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83 , after tax, related to equity securities having a fair value of $1.0 billion . In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Hartford Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $188 and $184 for the years ended December 31, 2017 , and 2016 , respectively, that were previously netted against fee income to insurance operating costs and other expenses. Information about the nature, amount, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance follows. Revenue from Non-Insurance Contracts with Customers Year ended December 31, Revenue Line Item 2018 2017 2016 Commercial Lines Installment billing fees Fee income $ 34 $ 37 $ 39 Personal Lines Installment billing fees Fee income 40 44 39 Insurance servicing revenues Other revenues 84 85 86 Group Benefits Administrative services Fee income 175 91 75 Hartford Funds Advisor, distribution and other management fees Fee income 947 897 797 Other fees Fee income 85 95 88 Corporate Investment management and other fees Fee income 32 4 3 Transition service revenues Other revenues 21 — — Total revenues subject to updated guidance $ 1,418 $ 1,253 $ 1,127 Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection. Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms. Group Benefits products earn fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly. Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hartford Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly. Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the new holding company of the life and annuity business the Company sold in May 2018. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity business that will be provided for a period up to twenty-four months from the May 31, 2018 sale date. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly. Future Adoption of New Accounting Standards Hedging Activities The FASB issued updated guidance on hedge accounting. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness will be reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness will be recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses will remain in AOCI. Under current accounting, total hedge ineffectiveness is reported separately in realized gains and losses apart from the hedged transaction. The Company will adopt the guidance effective January 1, 2019 through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on open cash flow hedges from retained earnings to AOCI. The adoption will not affect the Company’s financial position or cash flows or have a material effect on net income. Goodwill The FASB issued updated guidance on testing goodwill for impairment. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under existing guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company expects to adopt the updated guidance January 1, 2020 on a prospective basis as required, although earlier adoption is permitted. While the Company would not have recognized a goodwill impairment loss for the years presented, the impact of the adoption will depend on the estimated fair value of the Company’s reporting units compared to the carrying value at adoption. Financial Instruments - Credit Losses The FASB issued updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance will replace the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value, which will initially result in the recognition of greater allowances for losses. The allowance will be an estimate of credit losses expected over the life of financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables. Credit losses on fixed maturities AFS carried at fair value will continue to be measured like other-than-temporary impairments ("OTTI"); however, the losses will be recognized through an allowance and no longer as an adjustment to the cost basis. Recoveries of impairments on fixed maturities AFS will be recognized as reversals of valuation allowances and no longer accreted as investment income through an adjustment to the investment yield. The allowance on fixed maturities AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase. The Company will adopt the guidance effective January 1, 2020, through a cumulative-effect adjustment to retained earnings for the change in the allowance for credit losses for financial instruments carried at other than fair value. No allowance will be recognized at adoption for fixed maturities AFS; rather, their cost basis will be evaluated for an allowance for credit losses prospectively. The Company has not yet determined the effect on the Company’s consolidated financial statements and the ultimate impact of the adoption will depend on the composition of the financial instruments and market conditions at the adoption date. Significant implementation matters yet to be addressed include estimating lifetime expected losses on financial instruments carried at other than fair value, determining the impact of valuation allowances on net investment income from fixed maturities AFS, and updating our investment accounting system functionality to maintain adjustable valuation allowances on fixed maturities AFS, subject to a fair value floor. Leases The FASB issued updated guidance on lease accounting. Under the new guidance, effective January 1, 2019, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Under guidance effective through December 31, 2018, future minimum lease payments on operating leases are commitments that are not recognized as liabilities on the balance sheet. Under the new guidance, leases will be classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease will be a financing lease and the Company will recognize amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease will be an operating lease and the lease costs will be recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less will also be expensed over the lease term but will not be recognized on the balance sheet. The Company will adopt the guidance as of the January 1, 2019, effective date with no change to comparative periods and record a lease payment obligation of approximately $160 for outstanding leases and a right of use asset of approximately $150 , which is net of $10 in lease incentives received. The Hartford will elect to apply the package of practical expedients and not reassess expired or existing contracts that are or contain leases; all operating leases will remain classified as operating leases on adoption; and initial direct costs on existing leases will not be reassessed to determine if deferred costs should be written-off or recorded on adoption. The adoption will not impact net income or cash flows. Reserve for Future Policy Benefits The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities with total future policy benefit reserves of $642 as of December 31, 2018 . Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2021, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements. Significant Accounting Policies The Company’s significant accounting policies are as follows: Revenue Recognition Property and casualty insurance premiums are earned on a pro rata basis over the policy period and include accruals for ultimate premium revenue anticipated under auditable and retrospectively rated policies. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force. An estimated allowance for doubtful accounts is recorded on the basis of periodic evaluations of balances due from insureds, management’s experience and current economic conditions. The Company charges off any balances that are determined to be uncollectible. The allowance for doubtful accounts included in premiums receivable and agents’ balances in the Consolidated Balance Sheets was $135 and $132 as of December 31, 2018 and 2017 , respectively. Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts. Revenue from non-insurance contracts with customers is discussed above in "Adoption of New Accounting Standards, Revenue Recognition." Dividends to Policyholders Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Net written premiums for participating property and casualty insurance policies represented 10% , 10% and 9% of total net written premiums for the years ended December 31, 2018 , 2017 and 2016 , respectively. Participating dividends to property and casualty policyholders were $23 , $35 and $15 for the years ended December 31, 2018 , 2017 and 2016 , respectively. There were no additional amounts of income allocated to participating policyholders. Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as available-for-sale ("AFS") and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Effective January 1, 2018, equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Fixed maturities for which the Company elected the fair value option are classified as FVO, generally certain securities that contain embedded credit derivatives, and are carried at fair value with changes in value recorded in realized capital gains and losses. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds on a one-month delay. Accordingly, income for the years ended December 31, 2018 , 2017 , and 2016 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of investments of consolidated investment funds and derivative instruments which are carried at fair value. The Company has provided seed money for investment funds and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in fixed maturities, FVO, equity securities, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes as well as ineffectiveness on derivatives that qualify for hedge accounting treatment. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s impairment and mortgage loan valuation allowance policies as discussed in Note 6 - Investments of Notes to Consolidated Financial Statements. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. Net Investment Income Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments are impaired and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2018 , 2017 and 2016 . Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchang |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions | 2 . BUSINESS ACQUISITIONS Aetna Group Insurance On November 1, 2017, The Hartford acquired Aetna's U.S. group life and disability business through a reinsurance transaction for total consideration of $ 1.452 billion , comprised of cash of $ 1.450 billion and share-based awards of $ 2 , and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. The acquisition enables the Company to increase its market share in the group life and disability industry. In 2018, The Hartford and Aetna agreed on the final assets acquired and liabilities assumed as of the acquisition date and The Hartford finalized its provisional estimates with a final cash settlement within the one year measurement period allowed under U.S. GAAP ("GAAP"). As a result, in the third quarter of 2018 , The Hartford recorded additional assets and liabilities at fair value of $ 80 and $ 80 , respectively, with no change in goodwill. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017) Measurement Period Adjustments As Adjusted Value as of November 1, 2017 Assets Cash and invested assets $ 3,360 $ 45 $ 3,405 Premiums receivable 96 7 103 Deferred income taxes, net 56 13 69 Other intangible assets 629 — 629 Property and equipment 68 — 68 Reinsurance recoverables — 31 31 Other assets 16 (16 ) — Total Assets Acquired 4,225 80 4,305 Liabilities Unpaid losses and loss adjustment expenses 2,833 71 2,904 Reserve for future policy benefits payable 346 1 347 Other policyholder funds and benefits payable 245 1 246 Unearned premiums 3 1 4 Other liabilities 69 6 75 Total Liabilities Assumed 3,496 80 3,576 Net identifiable assets acquired 729 — 729 Goodwill [1] 723 — 723 Net Assets Acquired $ 1,452 $ — $ 1,452 [1] Approximately $ 610 is deductible for income tax purposes. The effect of measurement period adjustments on the Consolidated Statements of Operations for the year ended December 31, 2018 was immaterial and was determined as if the accounting had been completed as of the acquisition date. Intangible Assets Recorded in Connection with the Acquisition Asset Amount Estimated Useful Life Value of in-force contracts $ 23 1 year Customer relationships 590 15 years Marketing agreement with Aetna 16 15 years Total $ 629 The value of in-force contracts represents the estimated profits relating to the unexpired contracts in force at the acquisition date through expiry of the contracts. The value of customer relationships was estimated using net cash flows expected to come from the renewals of in-force contracts acquired less costs to service the related policies. The value of the marketing agreement with Aetna was estimated using net cash flows expected to come from incremental new business written during the three -year duration of the agreement, less costs to service the related contracts. The value for each of the identifiable intangible assets was estimated using a discounted cash flow method. Significant inputs to the valuation models include estimates of expected premiums, persistency rates, investment returns, claim costs, expenses and discount rates based on a weighted average cost of capital. Property and equipment represents an internally developed integrated absence management software acquired that was valued based on estimated replacement cost. The software is amortized over 5 years on a straight-line basis. Unpaid losses and loss adjustment expenses acquired were recorded at estimated fair value equal to the present value of expected future unpaid loss and loss adjustment expense payments discounted using the net investment yield estimated as of the acquisition date plus a risk margin. The fair value adjustment for the risk margin is amortized over 12 years based on the payout pattern of losses and loss expenses as estimated as of the acquisition date. The revenues and earnings of the business acquired are included in the Company's Consolidated Statements of Operations in the Group Benefits reporting segment and were $ 370 and $( 37 ) in the year of acquisition, respectively. The $ 723 of goodwill recognized is largely attributable to the acquired employee workforce, expected expense synergies, economies of scale, and tax benefits not included within the value of identifiable intangibles. Goodwill is allocated to the Company's Group Benefits reporting segment. The Company recognized $ 17 of acquisition related costs in the year of acquisition. These costs are included in insurance operating costs and other expenses in the Consolidated Statement of Operations. The following table presents supplemental pro forma amounts of revenue and net income for the Company in 2016 and 2017 as though the business was acquired on January 1, 2016. Pro Forma Results (Unaudited) Twelve months ended December 31, 2017 [1] Twelve months ended December 31, 2016 [1] Total Revenue $ 18,899 $ 18,348 Net Income $ (3,077 ) $ 953 [1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy. Maxum On July 29, 2016, the Company acquired 100% of the outstanding shares of Northern Homelands Company, the holding company of Maxum Specialty Insurance Group headquartered in Alpharetta, Georgia in a cash transaction for approximately $ 169 . The acquisition adds excess and surplus lines capability to the Company's small commercial line of business. Maxum is maintaining its brand and limited wholesale distribution model. Maxum's revenues and earnings since the acquisition date are included in the Company's Consolidated Statements of Operations in the Commercial Lines reporting segment. Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of July 29, 2016 Assets Cash and investments (including cash of $12) $ 274 Reinsurance recoverables 113 Intangible assets [1] 11 Other assets 79 Total assets acquired 477 Liabilities Unpaid losses 235 Unearned premiums 77 Other liabilities 34 Total liabilities assumed 346 Net identifiable assets acquired 131 Goodwill [2] 38 Net assets acquired $ 169 [1] Comprised of indefinite lived intangibles of $ 4 related to state insurance licenses acquired and other intangibles of $ 7 related to agency distribution relationships of Maxum which are amortized over 10 years. [2] Non-deductible for income tax purposes. The goodwill recognized is attributable to expected growth from the opportunity to sell both existing products and excess and surplus lines coverage to a broader customer base and has been allocated to the small commercial reporting unit within the Commercial Lines reporting segment. The Company recognized $ 1 of acquisition related costs for the year ended December 31, 2016. These costs are included in insurance operating costs and other expenses in the Consolidated Statement of Operations. Lattice On July 29, 2016, an indirect wholly-owned subsidiary of the Company acquired 100% of the membership interests outstanding of Lattice Strategies LLC, an investment management firm and provider of strategic beta exchange-traded products ("ETP") with approximately $ 200 of assets under management ("AUM") at the acquisition date. Fair Value of the Consideration Transferred at the Acquisition Date Cash $ 19 Contingent consideration 23 Total $ 42 Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of July 29, 2016 Assets Intangible assets [1] $ 11 Cash 1 Total assets acquired 12 Liabilities Total liabilities assumed 1 Net identifiable assets acquired 11 Goodwill [2] 31 Net assets acquired $ 42 [1] Comprised of indefinite lived intangibles of $ 10 related to customer relationships and $ 1 of other intangibles, which are amortized over 5 to 8 years. [2] Deductible for federal income tax purposes. Lattice's revenues and earnings since the acquisition date are included in the Company's Consolidated Statements of Operations in the Hartford Funds reporting segment. In addition to the initial cash consideration, the Company is required to make future payments to the former owners of Lattice of up to $ 60 based upon growth in ETP AUM over four years beginning on the date of acquisition. The contingent consideration was measured at fair value at the acquisition date by projecting future ETP AUM and discounting expected payments back to the valuation date. The projected ETP AUM and risk-adjusted discount rate are significant unobservable inputs to fair value. The goodwill recognized is attributable to the fact that the acquisition of Lattice enables the Company to offer ETPs which are expected to be a significant source of future revenue and earnings growth. Goodwill is allocated to the Hartford Funds reporting segment. The Company recognized $ 1 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 3 . EARNINGS (LOSS) PER COMMON SHARE Computation of Basic and Diluted Earnings per Common Share For the years ended December 31, (In millions, except for per share data) 2018 2017 2016 Earnings Income (loss) from continuing operations, net of tax $ 1,485 $ (262 ) $ 613 Less: Preferred stock dividends 6 — — Income (loss) from continuing operations, net of tax, available to common stockholders 1,479 (262 ) 613 Income (loss) from discontinued operations, net of tax, available to common stockholders 322 (2,869 ) 283 Net income (loss) available to common stockholders 1,801 (3,131 ) 896 Shares Weighted average common shares outstanding, basic 358.4 363.7 387.7 Dilutive effect of warrants 1.9 — 3.6 Dilutive effect of stock-based awards under compensation plans 3.8 — 3.5 Weighted average common shares outstanding and dilutive potential common shares [1] 364.1 363.7 394.8 Earnings per common share Basic Income (loss) from continuing operations, net of tax, available to common stockholders $ 4.13 $ (0.72 ) $ 1.58 Income (loss) from discontinued operations, net of tax, available to common stockholders 0.90 (7.89 ) 0.73 Net income (loss) available to common stockholders $ 5.03 $ (8.61 ) $ 2.31 Diluted Income (loss) from continuing operations, net of tax, available to common stockholders $ 4.06 $ (0.72 ) $ 1.55 Income (loss) from discontinued operations, net of tax, available to common stockholders 0.89 (7.89 ) 0.72 Net income (loss) available to common stockholders $ 4.95 $ (8.61 ) $ 2.27 [1] For additional information, see Note 15 - Equity and Note 19 - Stock Compensation Plans of Notes to Consolidated Financial Statements. Basic earnings per common share is computed based on the weighted average number of common shares outstanding during the year. Diluted earnings per common share includes the dilutive effect of assumed exercise or issuance of warrants and stock-based awards under compensation plans. In periods where a loss from continuing operations available to common stockholders or net loss available to common stockholders is recognized, inclusion of incremental dilutive shares would be antidilutive. Due to the antidilutive impact, such shares are excluded from the diluted earnings per share calculation of income (loss) from continuing operations, net of tax, available to common stockholders and net income (loss) available to common stockholders in such periods. As a result, for the year ended December 31, 2017 , the Company was required to use basic weighted average common shares outstanding in the diluted calculations, since the inclusion of 4.3 million shares for stock compensation plans and 2.5 million shares for warrants would have been antidilutive to the calculations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 4 . SEGMENT INFORMATION The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty ("P&C") Other Operations, Group Benefits and Hartford Funds (previously referred to as "Mutual Funds"), as well as a Corporate category. The Company includes in the Corporate category discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold. For further discussion of continued involvement in the life and annuity business sold in May 2018, see Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. The Company’s reporting segments, as well as the Corporate category, are as follows: Commercial Lines Commercial Lines provides workers’ compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the U.S., along with a variety of customized insurance products and risk management services including professional liability, bond, surety, and specialty casualty coverages. Personal Lines Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Property & Casualty Other Operations Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental exposures. Group Benefits Group Benefits provides employers, associations and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health. Hartford Funds Hartford Funds offers investment products for retail and retirement accounts as well as ETPs and provides investment management and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support the variable annuity products within the life and annuity business sold in May 2018. Corporate The Company includes in the Corporate category investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution, discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold in May 2018. Financial Measures and Other Segment Information Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions. Revenues For the years ended December 31, 2018 2017 2016 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 3,341 $ 3,287 $ 3,187 Liability 653 604 585 Package business 1,364 1,301 1,249 Property 618 604 577 Professional liability 254 246 231 Bond 241 230 218 Automobile 610 630 643 Total Commercial Lines 7,081 6,902 6,690 Personal Lines Automobile 2,398 2,617 2,749 Homeowners 1,041 1,117 1,188 Total Personal Lines [1] 3,439 3,734 3,937 Property & Casualty Other Operations — — — Group Benefits Group disability 2,746 1,718 1,506 Group life 2,611 1,745 1,512 Other 241 214 205 Total Group Benefits 5,598 3,677 3,223 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 932 888 779 Talcott Resolution life and annuity separate accounts [3] 100 104 106 Total Hartford Funds [2] 1,032 992 885 Corporate 32 4 3 Total earned premiums and fee income 17,182 15,309 14,738 Total net investment income 1,780 1,603 1,577 Net realized capital gains (losses) (112 ) 165 (110 ) Other revenues 105 85 86 Total revenues $ 18,955 $ 17,162 $ 16,291 [1] For 2018 , 2017 and 2016 , AARP members accounted for earned premiums of $3.0 billion , $3.2 billion and $3.3 billion , respectively. [2] Excludes distribution costs of $188 and $184 for the years ended December 31, 2017 , and 2016 , respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses. [3] Represents revenues earned on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment. Net Income (Loss) For the years ended December 31, 2018 2017 2016 Commercial Lines $ 1,212 $ 865 $ 994 Personal Lines (32 ) (9 ) (9 ) Property & Casualty Other Operations 15 69 (529 ) Group Benefits 340 294 230 Hartford Funds 148 106 78 Corporate 124 (4,456 ) 132 Net income (loss) $ 1,807 $ (3,131 ) $ 896 Preferred stock dividends 6 — — Net income (loss) available to common stockholders $ 1,801 $ (3,131 ) $ 896 Net Investment Income For the years ended December 31, 2018 2017 2016 Commercial Lines $ 997 $ 949 $ 917 Personal Lines 155 141 135 Property & Casualty Other Operations 90 106 127 Group Benefits 474 381 366 Hartford Funds 5 3 1 Corporate 59 23 31 Net investment income $ 1,780 $ 1,603 $ 1,577 Amortization of Deferred Policy Acquisition Costs For the years ended December 31, 2018 2017 2016 Commercial Lines $ 1,048 $ 1,009 $ 973 Personal Lines 275 309 348 Group Benefits 45 33 31 Hartford Funds 16 21 24 Corporate — — 1 Total amortization of deferred policy acquisition costs $ 1,384 $ 1,372 $ 1,377 Amortization of Other Intangible Assets For the years ended December 31, 2018 2017 2016 Commercial Lines $ 4 $ 1 $ — Personal Lines 4 4 4 Group Benefits 60 9 — Total amortization of other intangible assets $ 68 $ 14 $ 4 Income Tax Expense (Benefit) For the years ended December 31, 2018 2017 2016 Commercial Lines $ 267 377 415 Personal Lines (19 ) 26 (23 ) Property & Casualty Other Operations (7 ) 24 (355 ) Group Benefits 84 38 83 Hartford Funds 38 63 43 Corporate (95 ) 457 (329 ) Total income tax expense (benefit) $ 268 $ 985 $ (166 ) Assets As of December 31, 2018 2017 Commercial Lines $ 31,693 $ 31,281 Personal Lines 6,180 6,251 Property & Casualty Other Operations 3,351 3,568 Group Benefits 14,114 14,478 Hartford Funds 583 547 Corporate 6,386 169,135 Total assets $ 62,307 $ 225,260 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . FAIR VALUE MEASUREMENTS The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework inclu des a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3. Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,276 $ — $ 1,266 $ 10 Collateralized loan obligations ("CLOs") 1,437 — 1,337 100 Commercial mortgage-backed securities ("CMBS") 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — Residential mortgage-backed securities ("RMBS") 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (2 ) — (2 ) — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,126 $ — $ 1,107 $ 19 Collateralized loan obligations ("CLOs") 1,260 — 1,165 95 Commercial mortgage-backed securities ("CMBS") 3,336 — 3,267 69 Corporate 12,804 — 12,284 520 Foreign government/government agencies 1,110 — 1,108 2 Municipal 12,485 — 12,468 17 Residential mortgage-backed securities ("RMBS") 3,044 — 1,814 1,230 U.S. Treasuries 1,799 333 1,466 — Total fixed maturities 36,964 333 34,679 1,952 Fixed maturities, FVO 41 — 41 — Equity securities, AFS 1,012 887 49 76 Derivative assets Credit derivatives 9 — 9 — Foreign exchange derivatives (1 ) — (1 ) — Equity derivatives 1 — — 1 Interest rate derivatives 1 — 1 — Total derivative assets [1] 10 — 9 1 Short-term investments 2,270 1,098 1,172 — Total assets accounted for at fair value on a recurring basis $ 40,297 $ 2,318 $ 35,950 $ 2,029 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (3 ) — (3 ) — Foreign exchange derivatives (13 ) — (13 ) — Interest rate derivatives (84 ) — (85 ) 1 Total derivative liabilities [2] (100 ) — (101 ) 1 Contingent consideration [3] (29 ) — — (29 ) Total liabilities accounted for at fair value on a recurring basis $ (129 ) $ — $ (101 ) $ (28 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives Valuation Techniques The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes. The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix. The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following: • Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services. • Daily comparison of OTC derivative market valuations to counterparty valuations. • Review of weekly price changes compared to published bond prices of a corporate bond index. • Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices. • Monthly validation of prices to a second source for securities in most sectors and for certain derivatives. In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short Term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates Not applicable Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease As of December 31, 2017 CMBS [3] $ 56 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 400 bps Decrease Corporate [4] 251 Discounted cash flows Spread 103 bps 1,000 bps 242 bps Decrease Municipal 17 Discounted cash flows Spread 192 bps 250 bps 219 bps Decrease RMBS [3] 1,215 Discounted cash flows Spread [6] 24 bps 351 bps 74 bps Decrease Constant prepayment rate [6] 1% 25% 6% Decrease [5] Constant default rate [6] —% 9% 4% Decrease Loss severity [6] —% 100% 66% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads. Significant Unobservable Inputs for Level 3 - Derivatives Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2018 Interest rate swaptions [3] 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options 3 Option model Equity volatility 19 % 21 % 20 % Increase As of December 31, 2017 Interest rate swaptions [3] 1 Option model Interest rate volatility 2 % 2 % 2 % Increase Equity options 1 Option model Equity volatility 18 % 22 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap. The tables above exclude securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. For the year ended December 31, 2018 , no The acquisition of Lattice Strategies LLC ("Lattice") on July 29, 2016 requires the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in exchange-traded products ("ETP") AUM over a period of four years beginning on the date of acquisition. The contingent consideration is measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout is discounted back to the valuation date using a risk-adjusted discount rate of 16.6% . The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value. The contingency period for ETP AUM growth ends July 29, 2020 and management adjusts the fair value of the contingent consideration when it revises its projection of ETP AUM for the acquired business. Before discounting to fair value, the Company has accrued consideration payable of $40 assuming ETP AUM for the acquired business grows to approximately $4 billion over the contingency period. This contingent consideration payable included $10 payable in the first quarter of 2019 given that ETP AUM reached $1 billion in the fourth quarter of 2018. Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 rollforward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements. Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 90 $ (5 ) $ (4 ) $ 12 $ (102 ) $ 10 CLOs 95 — — 330 — (13 ) — (312 ) 100 CMBS 69 (1 ) — 25 (14 ) (8 ) — (59 ) 12 Corporate 520 1 (18 ) 197 (36 ) (52 ) 31 (123 ) 520 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — (1 ) — (15 ) — RMBS 1,230 — (16 ) 273 (319 ) (52 ) 4 (200 ) 920 Total Fixed Maturities, AFS 1,952 — (35 ) 916 (374 ) (130 ) 47 (811 ) 1,565 Equity Securities, at fair value 76 29 — 12 — (40 ) — — 77 Derivatives, net [4] Equity 1 3 — 1 — (2 ) — — 3 Interest rate 1 — — — — — — — 1 Total Derivatives, net [4] 2 3 — 1 — (2 ) — — 4 Total Assets 2,030 32 (35 ) 929 (374 ) (172 ) 47 (811 ) 1,646 Liabilities Contingent Consideration [5] (29 ) (6 ) — — — — — — (35 ) Total Liabilities $ (29 ) $ (6 ) $ — $ — $ — $ — $ — $ — $ (35 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. [5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statement for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2017 Total realized/unrealized gains (losses) Fair value as of January 1, 2017 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2017 Assets Fixed Maturities, AFS ABS $ 45 $ — $ — $ 56 $ (6 ) $ (6 ) $ 27 $ (97 ) $ 19 CLOs 154 18 (13 ) 214 (101 ) (24 ) — (153 ) 95 CMBS 59 (2 ) — 76 (9 ) (10 ) — (45 ) 69 Corporate 514 1 19 232 (76 ) (157 ) 71 (84 ) 520 Foreign Govt./Govt. Agencies 47 — 3 12 (1 ) (2 ) — (57 ) 2 Municipal 46 4 1 1 — (35 ) — — 17 RMBS 1,261 — 36 209 (268 ) (7 ) — (1 ) 1,230 Total Fixed Maturities, AFS 2,126 21 46 800 (461 ) (241 ) 98 (437 ) 1,952 Fixed Maturities, FVO 11 — — 4 (2 ) (13 ) — — — Equity Securities, AFS 55 — (3 ) 24 — — — — 76 Derivatives, net [4] Equity — (4 ) — 5 — — — — 1 Interest rate 9 (8 ) — — — — — — 1 Other contracts 1 (1 ) — — — — — — — Total Derivatives, net [4] 10 (13 ) — 5 — — — — 2 Total Assets 2,202 8 43 833 (463 ) (254 ) 98 (437 ) 2,030 Liabilities Contingent Considerations [5] (25 ) (4 ) — — — — — — (29 ) Total Liabilities $ (25 ) $ (4 ) $ — $ — $ — $ — $ — $ — $ (29 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. [5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statement for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End December 31, 2018 2017 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Assets Fixed Maturities, AFS ABS $ — $ 1 $ — CMBS (1 ) 28 (2 ) Corporate — (42 ) — Municipal — 24 — RMBS — 17 — Total Fixed Maturities, AFS (1 ) 28 (2 ) Derivatives, net Equity 1 (5 ) Interest rate — — (7 ) Total Derivatives, net 1 — (12 ) Total Assets — 28 (14 ) Liabilities Contingent Consideration [4] (6 ) (4 ) Total Liabilities $ (6 ) $ — $ (4 ) [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Consolidated Statements of Comprehensive Income. [4] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements for discussion of the contingent consideration in connection with the acquisition of Lattice. Fair Value Option The Company has elected the fair value option for certain securities that contain embedded credit derivatives with underlying credit risk primarily related to residential real estate, and these securities are included within fixed maturities, FVO on the Consolidated Balance Sheets. The Company reports changes in the fair value of these securities in net realized capital gains and losses. As of December 31, 2018 and December 31, 2017 , the fair value of assets and liabilities using the fair value option was $22 and $41 , respectively, within the residential real estate sector. The Company also previously elected the fair value option for certain equity securities in order to align the accounting with total return swap contracts that hedged the risk associated with the investments. The swaps did not qualify for hedge accounting and the change in value of both the equity securities and the total return swaps were recorded in net realized capital gains and losses. These equity securities were classified within equity securities, AFS on the Consolidated Balance Sheets. Income earned from FVO securities was recorded in net investment income and changes in fair value were recorded in net realized capital gains and losses. For the year-ended December 31, 2018 , the realized capital gains (losses) related to the fair value of assets using the fair value option were $(1) within the residential real estate sector. For the year-ended December 31, 2017 , the income earned from FVO and the changes recorded in net realized capital gains (losses) were driven by corporate bond and equity securities of $(1) and $1 , respectively. For the year-ended December 31, 2016 the realized capital gains (losses) related to the fair value of assets using the fair value option were $5 and $(1) within the residential real estate and foreign government sectors. Financial Instruments Not Carried at Fair Value Financial Assets and Liabilities Not Carried at Fair Value December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 3,704 $ 3,746 Level 3 $ 3,175 $ 3,220 Liabilities Other policyholder funds and benefits payable Level 3 $ 774 $ 775 Level 3 $ 825 $ 827 Senior notes [1] Level 2 $ 3,589 $ 3,887 Level 2 $ 3,415 $ 4,054 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,052 Level 2 $ 1,583 $ 1,699 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | 6 . INVESTMENTS Net Investment Income For the years ended December 31, (Before tax) 2018 2017 2016 Fixed maturities [1] $ 1,459 $ 1,303 $ 1,319 Equity securities 32 24 22 Mortgage loans 141 124 116 Limited partnerships and other alternative investments 205 174 128 Other investments [2] 20 49 51 Investment expenses (77 ) (71 ) (59 ) Total net investment income $ 1,780 $ 1,603 $ 1,577 [1] Includes net investment income on short-term investments. [2] Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. Net Realized Capital Gains (Losses) For the years ended December 31, (Before tax) 2018 2017 2016 Gross gains on sales $ 114 $ 275 $ 222 Gross losses on sales (172 ) (113 ) (159 ) Equity securities [1] (48 ) — — Net OTTI losses recognized in earnings (1 ) (8 ) (27 ) Valuation allowances on mortgage loans — (1 ) — Transactional foreign currency revaluation 1 14 (78 ) Non-qualifying foreign currency derivatives 3 (14 ) 83 Other, net [2] (9 ) 12 (151 ) Net realized capital gains (losses) $ (112 ) $ 165 $ (110 ) [1] Effective January 1, 2018, with adoption of new accounting guidance for equity securities at fair value, includes all changes in fair value and trading gains and losses for equity securities. [2] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $(15) , $8 , and $(9) , respectively for 2018 , 2017 and 2016 . Also included for the year ended December 31, 2016, is a loss related to the write-down of investments in solar energy partnerships, which generated tax benefits, and a loss related to the sale of the Company's U.K. property and casualty run-off subsidiaries. Net realized capital gains (losses) from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains (losses) on sales and impairments previously reported as unrealized gains or losses in AOCI were $(80) , $152 , and $36 for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Effective January 1, 2018, with adoption of new accounting guidance for equity securities, the proceeds from sales of AFS securities no longer includes equity securities. The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of December 31, 2018 , was $(80) for the year-ended December 31, 2018 . Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI. Sales of AFS Securities For the years ended December 31, 2018 2017 2016 Fixed maturities, AFS Sale proceeds $ 21,327 $ 17,614 $ 9,984 Gross gains 90 204 196 Gross losses (169 ) (90 ) (138 ) Equity securities, AFS Sale proceeds $ 607 $ 359 Gross gains 69 26 Gross losses (23 ) (20 ) Sales of AFS securities in 2018 were primarily a result of duration and liquidity management as well as tactical changes to the portfolio as a result of changing market conditions. Recognition and Presentation of Other-Than-Temporary Impairments The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. The Company will also record an OTTI for those fixed maturities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security. Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security. For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales. For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. Prior to January 1, 2018, the Company recorded an OTTI for certain equity securities with debt-like characteristics if the Company intended to sell or it was more likely than not that the Company was required to sell the security before a recovery in value as well as for those equity securities for which the Company did not expect to recover the entire amortized cost basis. The Company also recorded an OTTI for equity securities where the decline in the fair value was deemed to be other-than-temporary. Impairments in Earnings by Type For the years ended December 31, 2018 2017 2016 Credit impairments $ 1 $ 2 $ 21 Impairments on equity securities 6 4 Intent-to-sell impairments — — 2 Total impairments $ 1 $ 8 $ 27 Cumulative Credit Impairments For the years ended December 31, (Before tax) 2018 2017 2016 Balance as of beginning of period $ (25 ) $ (110 ) $ (113 ) Additions for credit impairments recognized on [1]: Securities not previously impaired — (1 ) (16 ) Securities previously impaired (1 ) (1 ) (5 ) Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period 7 76 15 Securities due to an increase in expected cash flows — 11 9 Balance as of end of period $ (19 ) $ (25 ) $ (110 ) [1] These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. Available-for-Sale Securities AFS Securities by Type December 31, 2018 December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] ABS $ 1,272 $ 5 $ (1 ) $ 1,276 $ — $ 1,119 $ 9 $ (2 ) $ 1,126 $ — CLOs 1,455 2 (20 ) 1,437 — 1,257 3 — 1,260 — CMBS 3,581 35 (64 ) 3,552 (5 ) 3,304 58 (26 ) 3,336 (5 ) Corporate 13,696 148 (446 ) 13,398 — 12,370 490 (56 ) 12,804 — Foreign govt./govt. agencies 866 7 (26 ) 847 — 1,071 43 (4 ) 1,110 — Municipal 9,972 421 (47 ) 10,346 — 11,743 754 (12 ) 12,485 — RMBS 3,270 44 (35 ) 3,279 — 2,985 63 (4 ) 3,044 — U.S. Treasuries 1,491 41 (15 ) 1,517 — 1,763 46 (10 ) 1,799 — Total fixed maturities, AFS 35,603 703 (654 ) 35,652 (5 ) 35,612 1,466 (114 ) 36,964 (5 ) Equity securities, AFS [2] 907 121 (16 ) 1,012 — Total AFS securities $ 35,603 $ 703 $ (654 ) $ 35,652 $ (5 ) $ 36,519 $ 1,587 $ (130 ) $ 37,976 $ (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2018 and 2017 . [2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of December 31, 2018 . Fixed maturities, AFS, by Contractual Maturity Year December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 999 $ 1,002 $ 1,507 $ 1,513 Over one year through five years 5,786 5,791 5,007 5,119 Over five years through ten years 6,611 6,495 6,505 6,700 Over ten years 12,629 12,820 13,928 14,866 Subtotal 26,025 26,108 26,947 28,198 Mortgage-backed and asset-backed securities 9,578 9,544 8,665 8,766 Total fixed maturities, AFS $ 35,603 $ 35,652 $ 35,612 $ 36,964 Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. Concentration of Credit Risk The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity , other than the U.S. government and certain U.S. government agencies as of December 31, 2018 or December 31, 2017 . As of December 31, 2018 , other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the New York State Dormitory Authority , Commonwealth of Massachusetts and the New York City Transitional Finance Authority which each comprised less than 1% of total invested assets. As of December 31, 2017 , other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were New York City Transitional Finance Authority , New York State Dormitory Authority and the Commonwealth of Massachusetts which each comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2018 were the municipal securities , CMBS and the financial services sector which comprised approximately 22% , 8% and 7% , respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2017 were municipal securities, CMBS and RMBS which comprised approximately 28% , 7% and 7% , respectively, of total invested assets. Unrealized Losses on AFS Securities Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position $ 13,885 $ 13,514 $ (371 ) $ 5,272 $ 4,989 $ (283 ) $ 19,157 $ 18,503 $ (654 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 461 $ 460 $ (1 ) $ 30 $ 29 $ (1 ) $ 491 $ 489 $ (2 ) CLOs 359 359 — 1 1 — 360 360 — CMBS 1,178 1,167 (11 ) 243 228 (15 ) 1,421 1,395 (26 ) Corporate 2,322 2,302 (20 ) 1,064 1,028 (36 ) 3,386 3,330 (56 ) Foreign govt./govt. agencies 244 242 (2 ) 51 49 (2 ) 295 291 (4 ) Municipal 511 507 (4 ) 236 228 (8 ) 747 735 (12 ) RMBS 889 887 (2 ) 137 135 (2 ) 1,026 1,022 (4 ) U.S. Treasuries 658 652 (6 ) 254 250 (4 ) 912 902 (10 ) Total fixed maturities, AFS in an unrealized loss position 6,622 6,576 (46 ) 2,016 1,948 (68 ) 8,638 8,524 (114 ) Equity securities, AFS [1] 176 163 (13 ) 24 21 (3 ) 200 184 (16 ) Total securities in an unrealized loss position $ 6,798 $ 6,739 $ (59 ) $ 2,040 $ 1,969 $ (71 ) $ 8,838 $ 8,708 $ (130 ) [1] Effective January 1, 2018 , with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of December 31, 2018 . As of December 31, 2018 , AFS securities in an unrealized loss position consisted of 2,960 securities, primarily in the corporate and commercial real estate sectors, which were depressed primarily due to widening of credit spreads and an increase in interest rates since the securities were purchased. As of December 31, 2018 , 98% of these securities were depressed less than 20% of cost or amortized cost. The increase in unrealized losses during 2018 was primarily attributable to widening of credit spreads and higher interest rates . Most of the securities depressed for twelve months or more relate to corporate securities and structured securities with exposure to commercial real estate. Corporate securities and commercial real estate securities were primarily depressed because current market spreads are wider and interest rates are higher than at the securities' respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion. Mortgage Loans Mortgage Loan Valuation Allowances Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated fair value. The mortgage loan's estimated fair value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The Company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. As of December 31, 2018 and December 31, 2017 mortgage loans had an amortized cost and carrying value of $3.7 billion and $3.2 billion , respectively, with a valuation allowance of $1 for both periods. As of December 31, 2018 the carrying value of mortgage loans that had a valuation allowance was $23 . There were no mortgage loans held-for-sale as of both December 31, 2018 and December 31, 2017 . As of December 31, 2018 , the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract. The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial. Valuation Allowance Activity For the years ended December 31, 2018 2017 2016 Balance as of January 1 $ (1 ) $ — $ (4 ) Reversals/(Additions) — (1 ) — Deductions — — 4 Balance as of December 31 $ (1 ) $ (1 ) $ — The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 52% as of December 31, 2018 , while the weighted-average LTV ratio at origination of these loans was 61% . LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. As of December 31, 2018 and December 31, 2017 , the Company held no delinquent commercial mortgages loan past due by 90 days or more. Mortgage Loans Credit Quality December 31, 2018 December 31, 2017 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio Greater than 80% $ — 0.00x $ 18 1.27x 65% - 80% 386 1.60x 265 1.95x Less than 65% 3,318 2.59x 2,892 2.76x Total mortgage loans $ 3,704 2.49x $ 3,175 2.69x Mortgage Loans by Region December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 250 6.8 % $ 251 7.9 % Middle Atlantic 270 7.3 % 272 8.6 % Mountain 30 0.8 % 31 1.0 % New England 330 8.9 % 293 9.2 % Pacific 917 24.8 % 760 23.9 % South Atlantic 712 19.2 % 710 22.4 % West North Central 148 4.0 % 149 4.7 % West South Central 420 11.3 % 278 8.7 % Other [1] 627 16.9 % 431 13.6 % Total mortgage loans $ 3,704 100.0 % $ 3,175 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Industrial 1,108 29.9 % 817 25.7 % Multifamily 1,138 30.7 % 1,006 31.7 % Office 708 19.1 % 751 23.7 % Retail 392 10.6 % 367 11.5 % Single Family 82 2.2 % — — % Other 276 7.5 % 234 7.4 % Total mortgage loans $ 3,704 100.0 % $ 3,175 100.0 % Mortgage Servicing The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fees income over the period that services are performed. As of December 31, 2018 , under this program, the Company serviced mortgage loans with a total outstanding principal of $6.0 billion, of which $3.6 billion was serviced on behalf of third parties and $2.4 billion was retained and reported in total investments on the Company's Consolidated Balance Sheets. As of December 31, 2017 , the Company serviced mortgage loans with a total outstanding principal balance of $1.3 billion, of which $402 was serviced on behalf of third parties, $566 was retained and reported in total investments and $356 was reported in assets held for sale on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were zero as of December 31, 2018 and 2017 , because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans. Variable Interest Entities The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager. A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. Consolidated VIEs As of December 31, 2018 and December 31, 2017 , the Company did not hold any securities for which it is the primary beneficiary. Non-Consolidated VIEs The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2018 and 2017 is limited to the total carrying value of $1 billion and $920 , respectively, which are included in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets. As of December 31, 2018 and 2017 , the Company has outstanding commitments totaling $718 and $787 , respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, FVO, in the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. Securities Lending, Repurchase Agreements and Other Collateral Transactions The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements. Securities Lending Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements are continuous and do not have stated maturity dates and provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Consolidated Statements of Operations. Repurchase Agreements From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. These transactions have a remaining maturity of ninety days or less. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation. Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Consolidated Balance Sheets. From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short-term investments in the Company's Consolidated Balance Sheets. Securities Lending and Repurchase Agreements December 31, 2018 December 31, 2017 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 820 $ 922 Gross amount of associated liability for collateral received [1] $ 840 $ 945 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 72 $ 174 Gross amount of collateral pledged related to repurchase agreements [2] $ 73 $ 176 Gross amount of recognized receivables for reverse repurchase agreements $ 64 $ — [1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $ 3 and $ 0 million which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017 , respectively. [2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Consolidated Balance Sheets. Other Collateral Transactions The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of December 31, 2018 and December 31, 2017 , the fair value of securities on deposit was $ 2.2 billion and $2.5 billion , respectively. As of December 31, 2018 and December 31, 2017 , the Company pledged collateral of $47 and $104 , respectively, of U.S. government securities and government agency securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit. For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. Equity Method Investments The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, real estate funds, and private equity funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists of investments in insurer-owned life insurance accounted for at cash surrender value. The Company's investment in Hopmeadow Holdings LP is reported in other assets on the Company's Consolidated Balance Sheets and is accounted for under the equity method of accounting. For further discussion on Hopmeadow Holdings LP, refer to Sale of Life and Annuity Business within Note 20 - Business Dispositions and Discontinued Operations of Notes to the Consolidated Financial Statements. The Company recognized total equity method income of $214 , $168 , and $137 for the periods ended December 31, 2018 , 2017 and 2016 , respectively. Equity method income is reported in net investment income except amounts related to strategic investments classified in other assets are reported in other revenues. For investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2018 is limited to the total carrying value of $1.5 billion . In addition, the Company has outstanding commitments totaling $741 to fund limited partnership investments as of December 31, 2018 . The Company’s investments accounted for under the equity method are generally of a passive nature in that the Company does not take an active role in the management. In 2018 , aggregate investment income from investments accounted for under the equity method exceeded 10% of the Company’s pre-tax consolidated net income (loss). Accordingly, the Company is disclosing aggregated summarized financial data for the Company’s investments accounted for under the equity method. This aggregated summarized financial data does not represent the Company’s proportionate share of investees' assets or earnings. Aggregate total assets of the investees totaled $311 billion and $165.9 billion as of December 31, 2018 and 2017 , respectively. Aggregate total liabilities of the investees totaled $187.7 billion and $47.8 billion as o |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7 . DERIVATIVES The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to Consolidated Financial Statements. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities. Non-qualifying Strategies Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting. The non-qualifying strategies include: Credit Contracts Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. Interest Rate Swaps, Swaptions and Futures The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of December 31, 2018 and 2017 , the notional amount of interest rate swaps in offsetting relationships was $7.1 billion and $7.3 billion , respectively . Foreign Currency Swaps and Forwards The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company may at times enter into foreign currency forwards to hedge non-U.S. dollar denominated cash and, previously, equity securities. The Company previously entered into foreign currency forwards to hedge currency impacts on changes in equity of the U.K. property and casualty run-off subsidiaries that were sold in May 2017. For further information on the disposition, see Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. Equity Index Options The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company also enters into call options on equity securities to generate additional return. The Company previously entered into total return swaps to hedge equity risk of specific common stock investments which were accounted for using fair value option in order to align the accounting treatment within net realized capital gains (losses). The Company has not held these total return swaps since January 2016. Contingent Capital Facility Put Option The Company previously entered into a put option agreement that provided the Company the right to require a third-party trust to purchase, at any time, The Hartford’s junior subordinated notes in a maximum aggregate principal amount of $500 . On February 8, 2017 , The Hartford exercised the put option resulting in the issuance of $500 in junior subordinated notes with proceeds received on February 15, 2017 . Under the put option agreement, The Hartford had been paying premiums on a periodic basis and had agreed to reimburse the trust for certain fees and ordinary expenses. Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives [1] Liability Derivatives [1] Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Cash flow hedges Interest rate swaps $ 2,040 $ 2,190 $ 1 $ — $ 2 $ 1 $ (1 ) $ (1 ) Foreign currency swaps 153 153 (6 ) (13 ) 2 — (8 ) (13 ) Total cash flow hedges 2,193 2,343 (5 ) (13 ) 4 1 (9 ) (14 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,451 7,986 (62 ) (83 ) 8 7 (70 ) (90 ) Foreign exchange contracts Foreign currency swaps and forwards 287 213 (1 ) (1 ) — — (1 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 6 61 — 1 — 2 — (1 ) Credit derivatives that assume credit risk [2] 1,102 823 3 3 8 3 (5 ) — Credit derivatives in offsetting positions 41 1,046 — 2 6 11 (6 ) (9 ) Equity contracts Equity index swaps and options 211 258 4 1 5 1 (1 ) — Total non-qualifying strategies 10,098 10,387 (56 ) (77 ) 27 24 (83 ) (101 ) Total cash flow hedges and non-qualifying strategies $ 12,291 $ 12,730 $ (61 ) $ (90 ) $ 31 $ 25 $ (92 ) $ (115 ) Balance Sheet Location Fixed maturities, available-for-sale $ 153 $ 153 $ — $ — $ — $ — $ — $ — Other investments 9,864 9,957 7 10 23 16 (16 ) (6 ) Other liabilities 2,274 2,620 (68 ) (100 ) 8 9 (76 ) (109 ) Total derivatives $ 12,291 $ 12,730 $ (61 ) $ (90 ) $ 31 $ 25 $ (92 ) $ (115 ) [1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] The derivative instruments related to this strategy are held for other investment purposes. Offsetting of Derivative Assets/Liabilities The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP. Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) [1] Gross Amounts Offset in the Statement of Financial Position Derivative Assets [2] (Liabilities) [3] Accrued Interest and Cash Collateral (Received) [4] Pledged [3] Financial Collateral (Received) Pledged [5] Net Amount As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) As of December 31, 2017 Other investments $ 25 $ 22 $ 10 $ (7 ) $ 1 $ 2 Other liabilities $ (115 ) $ (10 ) $ (100 ) $ (5 ) $ (96 ) $ (9 ) [1] For amounts shown as of December 31, 2017, certain amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] Included in other investments in the Company's Consolidated Balance Sheets. [3] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [4] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [5] Excludes collateral associated with exchange-traded derivative instruments. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current period earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI on Derivative (Effective Portion) 2018 2017 2016 Interest rate swaps $ 5 $ 8 $ — Foreign currency swaps 7 (14 ) 1 Total $ 12 $ (6 ) $ 1 Gain Reclassified from AOCI into Income (Effective Portion) 2018 2017 2016 Interest rate swaps Net realized capital gain/(loss) $ 6 $ 5 $ 10 Net investment income 30 37 37 Total $ 36 $ 42 $ 47 During the years ended December 31, 2018 , 2017 , and 2016 the Company had no ineffectiveness recognized in income within net realized capital gains (losses). As of December 31, 2018 , the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $23 . This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows. During the years ended December 31, 2018 , 2017 , and 2016 , the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. Non-Qualifying Strategies For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) For the Year Ended December 31, 2018 2017 2016 Foreign exchange contracts Foreign currency swaps and forwards $ 3 $ (14 ) $ 83 Other non-qualifying derivatives Interest rate contracts Interest rate swaps, swaptions and futures (3 ) (5 ) 1 Credit contracts Credit derivatives that purchase credit protection — 28 (17 ) Credit derivatives that assume credit risk (14 ) (7 ) 28 Equity contracts Equity options 2 (7 ) (15 ) Other Contingent capital facility put option — (1 ) (6 ) Total other non-qualifying derivatives (15 ) 8 (9 ) Total [1] $ (12 ) $ (6 ) $ 74 [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to Consolidated Financial Statements. Credit Risk Assumed through Credit Derivatives The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 As of December 31, 2017 Single name credit default swaps Investment grade risk exposure $ 130 $ 3 5 years Corporate Credit/ A- $ — $ — Below investment grade risk exposure 9 — Less than 1 year Corporate Credit B 9 — Basket credit default swaps [4] Investment grade risk exposure 1,137 2 3 years Corporate Credit BBB+ 454 (2 ) Below investment grade risk exposure 27 2 3 years Corporate Credit B+ 27 — Investment grade risk exposure 13 (1 ) 5 years CMBS Credit A 3 — Below investment grade risk exposure 30 (6 ) Less than 1 year CMBS Credit CCC 30 7 Total [5] $ 1,346 $ — $ 523 $ 5 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements . of Notes to Consolidated Financial Statements. Derivative Collateral Arrangements The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2018 and 2017 , the Company pledged cash collateral with a fair value of $4 and $1 associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of December 31, 2018 and 2017 , the Company also pledged securities collateral associated with derivative instruments with a fair value of $67 and $ 101 , respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. In addition, as of December 31, 2018 and 2017 , the Company has also pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $89 and $96 , respectively, which are included within fixed maturities on the Company's Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities. As of December 31, 2018 and 2017 , the Company accepted cash collateral associated with derivative instruments of $9 and $11 , respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of December 31, 2018 and 2017 with a fair value of $5 and $2 , respectively, none of which the Company has the ability to sell or repledge. As of December 31, 2018 and 2017 , the Company had no repledged securities and did not sell any securities held as collateral . In addition, as of December 31, 2018 and 2017 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Reinsurance | 8 . REINSURANCE The Company cedes insurance risk to reinsurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include carefully selecting its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. On December 31, 2016, the Company entered into an asbestos and environmental adverse development cover (“ADC”) reinsurance agreement with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc. (“Berkshire”), to reduce uncertainty about potential adverse development of asbestos and environmental reserves. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss reserve development up to $1.5 billion above the Company’s existing net asbestos and environmental (“A&E”) reserves as of December 31, 2016 of approximately $1.7 billion . The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. As of December 31, 2016, other liabilities included $650 for the accrued reinsurance premium paid in January, 2017. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit. The ADC has been accounted for as retroactive reinsurance and the Company reported the $650 cost as a loss on reinsurance transaction in 2016 in the Consolidated Statements of Operations. For segment reporting, the loss on reinsurance was reported in Property and Casualty Other Operations. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. As of December 31, 2018 , the Company has incurred $523 in cumulative adverse development on asbestos and environmental reserves that have been ceded under the ADC treaty with NICO. Reinsurance Recoverables Reinsurance recoverables include balances due from reinsurance companies and are presented net of an allowance for uncollectible reinsurance. Reinsurance recoverables include an estimate of the amount of gross losses and loss adjustment expense reserves that may be ceded under the terms of the reinsurance agreements, including incurred but not reported unpaid losses. The Company’s estimate of losses and loss adjustment expense reserves ceded to reinsurers is based on assumptions that are consistent with those used in establishing the gross reserves for amounts the Company owes to its claimants. The Company estimates its ceded reinsurance recoverables based on the terms of any applicable facultative and treaty reinsurance, including an estimate of how incurred but not reported losses will ultimately be ceded under reinsurance agreements. Accordingly, the Company’s estimate of reinsurance recoverables is subject to similar risks and uncertainties as the estimate of the gross reserve for unpaid losses and loss adjustment expenses. Reinsurance Recoverables As of December 31, 2018 December 31, 2017 Property and Casualty Insurance Products Paid loss and loss adjustment expenses $ 127 $ 84 Unpaid loss and loss adjustment expenses 3,773 3,496 Gross reinsurance recoverables 3,900 3,580 Allowance for uncollectible reinsurance (126 ) (104 ) Net P&C reinsurance recoverables 3,774 3,476 Group Benefits net reinsurance recoverables [1] 251 236 Recoverable related to reserves in Corporate 332 349 Reinsurance recoverables, net $ 4,357 $ 4,061 [1] No allowance for uncollectible reinsurance was required as of December 31, 2018 and 2017 . The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The Company analyzes recent developments in commutation activity between reinsurers and cedants, recent trends in arbitration and litigation outcomes in disputes between reinsurers and cedants and the overall credit quality of the Company’s reinsurers. Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible. Where its contracts permit, the Company secures future claim obligations with various forms of collateral, including irrevocable letters of credit, secured trusts, funds held accounts and group-wide offsets. Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverables become due, it is possible that future adjustments to the Company’s reinsurance recoverables, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period. Insurance Revenues The effect of reinsurance on insurance revenues is as follows: Property and Casualty Insurance Revenue For the years ended December 31, Premiums Written 2018 2017 2016 Direct $ 10,784 $ 10,865 $ 10,906 Assumed 217 223 253 Ceded (593 ) (571 ) (591 ) Net $ 10,408 $ 10,517 $ 10,568 Premiums Earned Direct $ 10,824 $ 10,923 $ 10,871 Assumed 221 232 261 Ceded (599 ) (600 ) (583 ) Net $ 10,446 $ 10,555 $ 10,549 Ceded losses, which reduce losses and loss adjustment expenses incurred, were $661 , $901 and $388 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Group Benefits Revenue For the years ended December 31, 2018 2017 2016 Gross earned premiums, fees and other considerations $ 3,615 $ 3,281 $ 3,160 Reinsurance assumed 2,044 446 107 Reinsurance ceded (61 ) (50 ) (44 ) Net earned premiums, fees and other considerations $ 5,598 $ 3,677 $ 3,223 For its group benefits products, the Company reinsures certain of its risks to other reinsurers under yearly renewable term and coinsurance arrangements and variations thereto. Yearly renewable term and coinsurance arrangements result in passing a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate amount of the premiums less an |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | 9 . DEFERRED POLICY ACQUISITION COSTS Changes in the DAC Balance For the years ended December 31, 2018 2017 2016 Balance, beginning of period $ 650 $ 645 $ 636 Deferred costs 1,404 1,377 1,378 Amortization — DAC (1,384 ) (1,372 ) (1,377 ) Add: Maxum acquisition — — 8 Balance, end of period $ 670 $ 650 $ 645 |
Goodwill & Other Intangible Ass
Goodwill & Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill & Other Intangible Assets | 10 . GOODWILL & OTHER INTANGIBLE ASSETS Goodwill Carrying Value as of December 31, 2018 Commercial Lines Personal Lines Hartford Funds Group Benefits Corporate [1] Total Balance at December 31, 2016 $ 38 $ 119 $ 180 $ — $ 230 $ 567 Goodwill related to acquisitions [2] — — — 723 — 723 Balance at December 31, 2017 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions — — — — — — Balance at December 31, 2018 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 [1] The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2018, 2017, and 2016 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively. [2] For further discussion on goodwill related to the acquisition of Aetna's U.S. group life and disability business, refer to Note 2 - Business Acquisitions to Consolidated Financial Statements. The annual goodwill assessment for The Hartford's reporting units was completed as of October 31, 2018 , 2017 , and 2016 , which resulted in no write-downs of goodwill in the respective years then ended. In 2018 , all reporting units passed the first step of their annual impairment test with a significant margin. Other Intangible Assets As of December 31, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Expected Life Amortized Intangible Assets: Value of in-force contracts $ 23 $ (23 ) $ — $ 23 $ (3 ) $ 20 1 Customer relationships [1] 636 (49 ) 587 590 (6 ) 584 15 Marketing agreement with Aetna 16 (1 ) 15 16 — 16 15 Distribution Agreement 79 (56 ) 23 70 (52 ) 18 15 Agency relationships & Other [2] 21 (3 ) 18 9 (2 ) 7 13 Total Finite Life Intangibles 775 (132 ) 643 708 (63 ) 645 14 Total Indefinite Life Intangible Assets 14 — 14 14 — 14 Total Other Intangible Assets $ 789 $ (132 ) $ 657 $ 722 $ (63 ) $ 659 [1] On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $ 46 which will be amortized over 10 years . [2] On December 1, 2018, the Company acquired Y-Risk LLC and recorded an agency relationships intangible asset of $ 12 which will be amortized over 15 years . Expected Pre-tax Amortization Expense For the years ended December 31, 2019 $ 53 2020 $ 53 2021 $ 53 2022 $ 52 2023 $ 47 |
Reserve for Unpaid Losses and L
Reserve for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserve for Unpaid Losses and Loss Adjustment Expenses | 11 . RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2018 2017 2016 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 23,775 $ 22,545 $ 22,568 Reinsurance and other recoverables 3,957 3,488 3,625 Beginning liabilities for unpaid losses and loss adjustment expenses, net 19,818 19,057 18,943 Add: Maxum acquisition — — 122 Provision for unpaid losses and loss adjustment expenses Current accident year 7,107 7,381 6,990 Prior accident year development (167 ) (41 ) 457 Total provision for unpaid losses and loss adjustment expenses 6,940 7,340 7,447 Less: payments Current accident year 2,452 2,751 2,749 Prior accident years 3,954 3,828 4,219 Total payments 6,406 6,579 6,968 Less: net reserves transferred to liabilities held for sale — — 487 Ending liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Reinsurance and other recoverables 4,232 3,957 3,488 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2018 2017 2016 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,387 $ 1,504 Less: amount of discount 388 410 483 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 977 $ 1,021 Discount accretion included in losses and loss adjustment expenses $ 40 $ 30 $ 29 Weighted average discount rate 2.98 % 3.06 % 3.11 % Range of discount rates 1.77 % - 14.15 % 1.77 % - 14.15 % 1.77 % - 14.15 % The current accident year benefit from discounting property and casualty insurance product reserves was $12 in 2018 , $15 in 2017 and $27 in 2016 . Reserves are discounted at rates in effect at the time claims were incurred, ranging from 1.77% for accident year 2012 to 14.15% for accident year 1981. The reserves recorded for the Company’s property and casualty insurance products at December 31, 2018 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows. Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2018 2017 2016 Workers’ compensation $ (164 ) $ (79 ) $ (119 ) Workers’ compensation discount accretion 40 28 28 General liability 52 11 65 Package business (26 ) (25 ) 65 Commercial property (12 ) (8 ) 1 Professional liability (12 ) 1 (37 ) Bond 2 32 (8 ) Automobile liability - Commercial Lines (15 ) 17 57 Automobile liability - Personal Lines (18 ) — 160 Homeowners (25 ) (14 ) (10 ) Net asbestos reserves — — 197 Net environmental reserves — — 71 Catastrophes (49 ) (16 ) (7 ) Uncollectible reinsurance 22 (15 ) (30 ) Other reserve re-estimates, net 38 27 24 Total prior accident year development $ (167 ) $ (41 ) $ 457 2018 re-estimates of prior accident year reserves • Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2014 and 2015, as claim severity has emerged favorably compared to previous reserve estimates. Also contributing was a reduction in estimated reserves for unallocated loss adjustment expense ("ULAE"). • General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in average claim severity, including from large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. • Package business reserves were reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year. • Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. • Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment. • Automobile liability reserves were reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims. • Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. • Asbestos and environmental reserves were unchanged as $238 of adverse development arising from the fourth quarter 2018 comprehensive annual review was offset by a $238 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. • Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 , resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850 . • Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years. • Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was principally driven by an increase in expected claim handling costs associated with asbestos and environmental and mass tort claims. 2017 re-estimates of prior accident year reserves • Workers’ compensation reserves were reduced in small commercial and middle market, given the continued emergence of favorable frequency, primarily for accident years 2013 to 2015, as well as a reduction in estimated reserves for unallocated loss adjustment expenses, partially offset by strengthening reserves for captive programs within specialty commercial. • General liability reserves were in creased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves. • Package business reserves were reduced for accident years 2013 and prior largely due to reducing the Company’s estimate of allocated loss adjustment expenses incurred to settle the claims. • Bond business reserves increased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably. • Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims • Asbestos and environmental reserves were unchanged as $ 285 of adverse development arising from the fourth quarter 2017 comprehensive annual review was offset by a $ 285 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. • Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire. • Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. 2016 re-estimates of prior accident year reserves • Workers' compensation reserves c onsider favorable emergence on reported losses for recent accident years as well as a partially offsetting adverse impact related to two recent Florida Supreme Court rulings that have increased the Company’s exposure to workers’ compensation claims in that state. The favorable emergence has been driven by lower frequency and, to a lesser extent, lower medical severity and management has placed additional weight on this favorable experience as it becomes more credible. • General liability reserves in creased for accident years 2012 - 2015 primarily due to higher severity losses incurred on a class of business that insures service and maintenance contractors and increased for accident years 2008 and 2010 primarily due to indemnity losses and legal costs associated with a litigated claim. • Package business reserves increased due to higher than expected severity on liability claims, principally for accident years 2013 - 2015. Severity for these accident years has developed unfavorably and management has placed more weight on emerged experience. • Professional liability reserves d ecreased for claims made years 2008 - 2013, primarily for large accounts, including on non-securities class action cases. Claim costs have emerged favorably as these years have matured and management has placed more weight on the emerged experience. • Automobile liability reserves increas ed due to increases in both commercial lines automobile and personal lines automobile. Commercial automobile liability reserves incre ased, predominately for the 2015 accident year, primarily due to increased frequency of large claims. Personal automobile liability reserves increas ed, primarily related to increased bodily injury frequency and severity for the 2015 accident year, including for uninsured and under-insured motorist claims, and increased bodily injury severity for the 2014 accident year. Increases in automobile liability loss costs were across both the direct and agency distribution channels. • Asbestos and environmental reserves were increased during the period as a result of the second quarter 2016 comprehensive annual review. • Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2018 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles [1] Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,685 $ (10,965 ) $ 2,316 $ 341 $ (372 ) $ 10,005 $ 2,160 $ 12,165 General liability 3,605 (1,840 ) 417 94 — 2,276 234 2,510 Package business 6,600 (5,128 ) 43 94 — 1,609 44 1,653 Commercial property 3,124 (2,763 ) 14 9 — 384 41 425 Commercial automobile liability 3,442 (2,604 ) 17 23 — 878 43 921 Commercial automobile physical damage 221 (210 ) 2 — — 13 — 13 Professional liability 1,491 (973 ) 41 19 — 578 306 884 Bond 598 (356 ) 28 20 — 290 12 302 Personal automobile liability 12,262 (10,703 ) 21 72 — 1,652 25 1,677 Personal automobile physical damage 1,752 (1,716 ) 1 3 — 40 — 40 Homeowners 7,714 (7,110 ) 2 36 — 642 83 725 Other ongoing business 197 (1 ) (16 ) 180 297 477 Asbestos and environmental [2] 1,254 — — 1,254 1,032 2,286 Other operations [2] 413 138 — 551 (45 ) 506 Total P&C $ 59,494 $ (44,368 ) $ 4,766 $ 848 $ (388 ) $ 20,352 $ 4,232 $ 24,584 [1] Amounts represent reserves for claims that were incurred more than ten years ago for long-tail lines and more than three years ago for short-tail lines. [2] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The following loss triangles present historical loss development for incurred and paid claims by accident year. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. IBNR reserves shown in loss triangles include reserve for incurred but not reported claims as well as reserves for expected development on reported claims. Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,462 $ 1,455 $ 1,478 $ 1,493 $ 1,504 $ 1,504 $ 1,519 $ 1,529 $ 1,522 $ 1,534 $ 168 135,804 2010 1,560 1,775 1,814 1,858 1,857 1,882 1,881 1,878 1,892 236 156,747 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 342 177,819 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 385 171,219 2013 2,020 1,981 1,920 1,883 1,861 1,861 451 151,153 2014 1,869 1,838 1,789 1,761 1,713 532 125,840 2015 1,873 1,835 1,801 1,724 613 113,493 2016 1,772 1,772 1,780 787 111,190 2017 1,862 1,869 1,061 109,982 2018 1,916 1,363 109,842 Total $ 18,685 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 265 $ 587 $ 792 $ 937 $ 1,042 $ 1,115 $ 1,170 $ 1,208 $ 1,242 $ 1,263 2010 316 709 970 1,154 1,287 1,374 1,439 1,489 1,522 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 2012 359 809 1,106 1,313 1,436 1,529 1,587 2013 304 675 917 1,071 1,175 1,260 2014 275 598 811 960 1,041 2015 261 576 778 909 2016 255 579 779 2017 261 575 2018 283 Total $ 10,965 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 382 $ 398 $ 394 $ 382 $ 359 $ 348 $ 347 $ 346 $ 341 $ 351 $ 39 20,714 2010 355 362 352 355 343 345 376 377 393 46 18,949 2011 353 343 323 316 315 320 318 326 52 16,854 2012 321 315 310 295 304 298 304 69 11,761 2013 318 321 332 352 344 352 80 9,906 2014 317 318 336 342 351 112 10,358 2015 316 346 345 364 164 10,805 2016 352 351 380 241 11,960 2017 363 385 289 10,965 2018 399 352 10,023 Total $ 3,605 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 22 $ 63 $ 124 $ 181 $ 227 $ 256 $ 277 $ 287 $ 297 $ 304 2010 14 51 115 181 224 259 314 331 337 2011 11 47 93 154 198 234 252 264 2012 8 39 75 124 167 198 215 2013 7 35 95 152 207 242 2014 11 31 88 142 195 2015 7 32 80 139 2016 8 32 79 2017 12 48 2018 17 Total $ 1,840 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 587 $ 584 $ 584 $ 572 $ 578 $ 577 $ 576 $ 576 $ 574 $ 569 $ 15 50,413 2010 657 662 654 652 652 651 653 651 649 19 52,410 2011 810 792 790 800 808 814 813 812 31 60,967 2012 736 725 728 731 736 735 739 39 59,715 2013 579 565 573 585 586 592 46 43,415 2014 566 578 601 602 603 70 42,928 2015 582 588 585 583 94 41,678 2016 655 638 632 170 43,129 2017 695 702 257 44,709 2018 719 335 38,034 Total $ 6,600 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 227 $ 351 $ 411 $ 463 $ 503 $ 527 $ 539 $ 547 $ 550 $ 551 2010 270 414 487 539 570 601 613 618 625 2011 377 555 621 684 727 748 762 772 2012 286 486 560 616 652 673 687 2013 225 339 414 467 504 522 2014 226 345 416 468 507 2015 212 332 383 445 2016 225 353 410 2017 235 372 2018 237 Total $ 5,128 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 267 $ 264 $ 259 $ 258 $ 251 $ 257 $ 257 $ 257 $ 257 $ 258 $ — 28,286 2010 286 283 279 282 284 284 284 284 284 — 28,515 2011 357 356 356 362 361 360 359 359 — 29,110 2012 329 301 301 305 306 305 305 1 25,789 2013 234 218 219 220 216 215 — 20,289 2014 268 260 262 264 263 — 19,758 2015 264 264 268 270 — 19,061 2016 328 331 327 5 19,945 2017 515 440 62 20,703 2018 403 86 17,839 Total $ 3,124 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 179 $ 247 $ 252 $ 256 $ 256 $ 257 $ 257 $ 257 $ 257 $ 257 2010 198 266 276 281 283 284 284 284 284 2011 231 332 350 355 358 359 360 360 2012 171 279 294 300 304 303 303 2013 157 208 216 218 215 215 2014 168 243 258 264 262 2015 172 239 255 265 2016 188 285 310 2017 210 334 2018 173 Total $ 2,763 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 306 $ 292 $ 287 $ 287 $ 297 $ 301 $ 302 $ 302 $ 302 $ 302 $ — 38,703 2010 277 280 296 319 323 328 327 324 322 4 38,153 2011 272 310 356 356 366 365 362 362 4 39,293 2012 311 376 390 401 394 390 387 6 35,999 2013 309 314 329 336 335 333 18 31,918 2014 306 314 328 333 337 23 29,260 2015 302 353 368 351 43 28,079 2016 372 380 376 90 28,154 2017 346 358 165 24,587 2018 314 205 20,675 Total $ 3,442 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 56 $ 115 $ 175 $ 237 $ 274 $ 291 $ 298 $ 300 $ 301 $ 301 2010 55 125 188 252 289 300 308 313 316 2011 62 133 211 273 315 339 348 352 2012 65 142 233 306 345 358 371 2013 61 128 199 255 289 306 2014 58 129 195 249 295 2015 61 141 204 264 2016 62 140 222 2017 55 123 2018 54 Total $ 2,604 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 79 $ 78 $ 78 $ — 26,367 2017 85 81 3 24,275 2018 62 2 19,167 Total $ 221 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 71 $ 78 $ 77 2017 74 79 2018 54 Total $ 210 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 254 $ 251 $ 244 $ 266 $ 257 $ 263 $ 255 $ 257 $ 257 $ 259 $ 20 5,115 2010 202 211 212 205 201 200 195 199 192 22 4,894 2011 226 228 232 226 219 219 220 215 38 4,708 2012 174 172 168 149 146 144 139 18 3,734 2013 136 136 123 110 103 99 27 2,791 2014 116 123 118 114 109 33 2,891 2015 104 113 113 114 32 2,957 2016 106 106 125 71 3,133 2017 107 113 75 3,111 2018 126 107 2,971 Total $ 1,491 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 17 $ 69 $ 127 $ 177 $ 194 $ 226 $ 225 $ 226 $ 235 $ 238 2010 22 62 103 137 148 157 162 166 169 2011 11 57 100 128 163 170 173 176 2012 11 41 60 89 97 107 109 2013 4 19 31 39 55 66 2014 4 21 40 64 72 2015 4 23 49 63 2016 4 25 46 2017 6 26 2018 8 Total $ 973 Bond Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 71 $ 71 $ 69 $ 58 $ 57 $ 51 $ 49 $ 49 $ 49 $ 49 $ 5 3,321 2010 71 75 80 79 73 69 70 90 71 3 2,674 2011 72 76 76 75 70 70 69 69 9 2,134 2012 69 69 60 53 48 48 43 9 1,720 2013 63 58 54 48 48 38 18 1,456 2014 69 65 65 66 58 13 1,373 2015 65 65 62 59 23 1,368 2016 59 59 58 37 1,272 2017 61 88 38 1,204 2018 65 59 1,040 Total $ 598 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 9 $ 32 $ 45 $ 46 $ 44 $ 43 $ 44 $ 44 $ 44 $ 43 2010 13 46 59 58 59 63 66 66 67 2011 12 39 51 56 57 59 59 59 2012 12 25 26 24 25 25 33 2013 3 9 17 18 18 18 2014 18 31 40 43 42 2015 9 19 23 31 2016 2 11 13 2017 5 45 2018 5 Total $ 356 Personal Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,351 $ 1,305 $ 1,280 $ 1,255 $ 1,256 $ 1,260 $ 1,259 $ 1,257 $ 1,257 $ 1,257 $ 3 254,555 2010 1,346 1,321 1,293 1,287 1,282 1,275 1,265 1,265 1,264 3 248,944 2011 1,181 1,170 1,180 1,173 1,166 1,154 1,154 1,153 5 221,886 2012 1,141 1,149 1,146 1,142 1,133 1,130 1,130 7 210,750 2013 1,131 1,145 1,144 1,153 1,152 1,153 8 205,462 2014 1,146 1,153 1,198 1,200 1,199 15 208,942 2015 1,195 1,340 1,338 1,330 38 216,707 2016 1,407 1,402 1,393 103 215,126 2017 1,277 1,275 276 185,716 2018 1,108 510 146,845 Total $ 12,262 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 492 $ 888 $ 1,083 $ 1,171 $ 1,223 $ 1,240 $ 1,246 $ 1,250 $ 1,251 $ 1,251 2010 496 915 1,108 1,202 1,239 1,251 1,256 1,258 1,260 2011 447 826 1,006 1,088 1,126 1,140 1,145 1,146 2012 441 818 986 1,067 1,104 1,114 1,120 2013 442 816 1,002 1,091 1,121 1,135 2014 430 843 1,032 1,125 1,165 2015 475 935 1,142 1,243 2016 505 968 1,188 2017 441 836 2018 359 Total $ 10,703 Personal Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 665 $ 656 $ 655 $ 3 406,588 2017 598 588 (3 ) 361,857 2018 509 3 288,993 Total $ 1,752 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 634 $ 653 $ 651 2017 574 591 2018 474 Total $ 1,716 Homeowners Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 757 $ 777 $ 776 $ 772 $ 772 $ 772 $ 772 $ 769 $ 768 $ 768 $ — 149,799 2010 838 850 838 840 840 840 836 834 834 — 161,590 2011 955 920 919 916 914 911 908 907 — 179,389 2012 774 741 741 741 739 738 738 1 142,828 2013 673 638 637 634 632 630 1 113,518 2014 710 707 702 700 698 1 121,863 2015 690 703 690 684 3 119,888 2016 669 673 663 7 119,441 2017 866 889 45 123,426 2018 903 89 94,946 Total $ 7,714 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 559 $ 727 $ 749 $ 759 $ 763 $ 765 $ 766 $ 766 $ 767 $ 767 2010 599 789 815 825 829 832 833 833 834 2011 709 871 891 899 903 905 908 907 2012 547 696 719 727 731 734 735 2013 467 590 611 622 626 627 2014 526 663 684 691 695 2015 487 645 665 674 2016 481 621 640 2017 538 747 2018 484 Total $ 7,110 Property and casualty reserves, including IBNR reserves The Company estimates ultimate losses and allocated loss adjustment expenses by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for allocated and unallocated loss adjustment expenses are generally established separate from the reserves for losses. Reserves for losses are set by line of business within the reporting segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses. The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. While actuarial methods used and judgments change depending on the age of the accident year, in 2018, there were no new methods or types of judgments introduced or changes in how those methods and judgments were applied. The reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates. For both short-tail and long-tail lines of business, an expected loss ratio is used to record initial reserves. This expected loss ratio is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year is initially recorded as the product of the expected loss ratio for the period, earned premium for the period and the proportion of losses expected to be reported in future calendar periods for the current accident period. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the expected loss ratio for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, IBNR amounts in the above loss development triangles are negative due to anticipated salvage and subrogation recoveries on paid losses. As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the expected loss ratio method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the expected loss ratio and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as the “actuarial indication”. Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the expected loss ratio method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. For most lines, reserves for allocated loss adjustment expenses ("ALAE", or those expenses related to specific claims) are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. Reserves for unallocated loss adjustment expenses ("ULAE") are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses. In the final step of the reserve review process, senior reserving actuaries and senior management apply their judgment to determine the appropriate level of reserves considering the actuarial indications and other factors not contemplated in the actuarial indications. Those factors include, but are not limited to, the assessed reliability of key loss trends and assumptions used in the current actuarial indications, the maturity of the accident year, pertinent trends observed over the recent past, the level of volatility within a particular line of business, and the improvement or deterioration of actuarial indications. Cumulative number of reported claims For property and casualty, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Sim |
Reserve for Future Policy Benef
Reserve for Future Policy Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Future Policy Benefits | 11 . RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses For the years ended December 31, 2018 2017 2016 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 23,775 $ 22,545 $ 22,568 Reinsurance and other recoverables 3,957 3,488 3,625 Beginning liabilities for unpaid losses and loss adjustment expenses, net 19,818 19,057 18,943 Add: Maxum acquisition — — 122 Provision for unpaid losses and loss adjustment expenses Current accident year 7,107 7,381 6,990 Prior accident year development (167 ) (41 ) 457 Total provision for unpaid losses and loss adjustment expenses 6,940 7,340 7,447 Less: payments Current accident year 2,452 2,751 2,749 Prior accident years 3,954 3,828 4,219 Total payments 6,406 6,579 6,968 Less: net reserves transferred to liabilities held for sale — — 487 Ending liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Reinsurance and other recoverables 4,232 3,957 3,488 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2018 2017 2016 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,387 $ 1,504 Less: amount of discount 388 410 483 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 977 $ 1,021 Discount accretion included in losses and loss adjustment expenses $ 40 $ 30 $ 29 Weighted average discount rate 2.98 % 3.06 % 3.11 % Range of discount rates 1.77 % - 14.15 % 1.77 % - 14.15 % 1.77 % - 14.15 % The current accident year benefit from discounting property and casualty insurance product reserves was $12 in 2018 , $15 in 2017 and $27 in 2016 . Reserves are discounted at rates in effect at the time claims were incurred, ranging from 1.77% for accident year 2012 to 14.15% for accident year 1981. The reserves recorded for the Company’s property and casualty insurance products at December 31, 2018 represent the Company’s best estimate of its ultimate liability for losses and loss adjustment expenses related to losses covered by policies written by the Company. However, because of the significant uncertainties surrounding reserves it is possible that management’s estimate of the ultimate liabilities for these claims may change and that the required adjustment to recorded reserves could exceed the currently recorded reserves by an amount that could be material to the Company’s results of operations or cash flows. Losses and loss adjustment expenses are also impacted by trends including frequency and severity as well as changes in the legislative and regulatory environment. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty in the ultimate settlement of the liabilities gross of reinsurance include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. In the case of the reserves for environmental exposures before reinsurance, factors contributing to the high degree of uncertainty in gross reserves include expanding theories of liabilities and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2018 2017 2016 Workers’ compensation $ (164 ) $ (79 ) $ (119 ) Workers’ compensation discount accretion 40 28 28 General liability 52 11 65 Package business (26 ) (25 ) 65 Commercial property (12 ) (8 ) 1 Professional liability (12 ) 1 (37 ) Bond 2 32 (8 ) Automobile liability - Commercial Lines (15 ) 17 57 Automobile liability - Personal Lines (18 ) — 160 Homeowners (25 ) (14 ) (10 ) Net asbestos reserves — — 197 Net environmental reserves — — 71 Catastrophes (49 ) (16 ) (7 ) Uncollectible reinsurance 22 (15 ) (30 ) Other reserve re-estimates, net 38 27 24 Total prior accident year development $ (167 ) $ (41 ) $ 457 2018 re-estimates of prior accident year reserves • Workers’ compensation reserves were reduced in small commercial and middle market, primarily for accident years 2014 and 2015, as claim severity has emerged favorably compared to previous reserve estimates. Also contributing was a reduction in estimated reserves for unallocated loss adjustment expense ("ULAE"). • General liability reserves were increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in average claim severity, including from large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims. • Package business reserves were reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year. • Commercial property reserves were r educed, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year. • Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment. • Automobile liability reserves were reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims. • Homeowners reserves were reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils. • Asbestos and environmental reserves were unchanged as $238 of adverse development arising from the fourth quarter 2018 comprehensive annual review was offset by a $238 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. • Catastrophe reserves were r educed, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 , resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850 . • Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years. • Other reserve re-estimates, net, primarily represents an increase in ULAE reserves in Property & Casualty Other Operations that was principally driven by an increase in expected claim handling costs associated with asbestos and environmental and mass tort claims. 2017 re-estimates of prior accident year reserves • Workers’ compensation reserves were reduced in small commercial and middle market, given the continued emergence of favorable frequency, primarily for accident years 2013 to 2015, as well as a reduction in estimated reserves for unallocated loss adjustment expenses, partially offset by strengthening reserves for captive programs within specialty commercial. • General liability reserves were in creased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves. • Package business reserves were reduced for accident years 2013 and prior largely due to reducing the Company’s estimate of allocated loss adjustment expenses incurred to settle the claims. • Bond business reserves increased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably. • Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims • Asbestos and environmental reserves were unchanged as $ 285 of adverse development arising from the fourth quarter 2017 comprehensive annual review was offset by a $ 285 recoverable from NICO. For additional information related to the adverse development cover with NICO, see Note 8 - Reinsurance and Note 14 - Commitments and Contingencies of Notes to Consolidated Financial Statements. • Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire. • Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. 2016 re-estimates of prior accident year reserves • Workers' compensation reserves c onsider favorable emergence on reported losses for recent accident years as well as a partially offsetting adverse impact related to two recent Florida Supreme Court rulings that have increased the Company’s exposure to workers’ compensation claims in that state. The favorable emergence has been driven by lower frequency and, to a lesser extent, lower medical severity and management has placed additional weight on this favorable experience as it becomes more credible. • General liability reserves in creased for accident years 2012 - 2015 primarily due to higher severity losses incurred on a class of business that insures service and maintenance contractors and increased for accident years 2008 and 2010 primarily due to indemnity losses and legal costs associated with a litigated claim. • Package business reserves increased due to higher than expected severity on liability claims, principally for accident years 2013 - 2015. Severity for these accident years has developed unfavorably and management has placed more weight on emerged experience. • Professional liability reserves d ecreased for claims made years 2008 - 2013, primarily for large accounts, including on non-securities class action cases. Claim costs have emerged favorably as these years have matured and management has placed more weight on the emerged experience. • Automobile liability reserves increas ed due to increases in both commercial lines automobile and personal lines automobile. Commercial automobile liability reserves incre ased, predominately for the 2015 accident year, primarily due to increased frequency of large claims. Personal automobile liability reserves increas ed, primarily related to increased bodily injury frequency and severity for the 2015 accident year, including for uninsured and under-insured motorist claims, and increased bodily injury severity for the 2014 accident year. Increases in automobile liability loss costs were across both the direct and agency distribution channels. • Asbestos and environmental reserves were increased during the period as a result of the second quarter 2016 comprehensive annual review. • Uncollectible reinsurance reserves decr eased as a result of giving greater weight to favorable collectibility experience in recent calendar periods in estimating future collections. Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2018 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles [1] Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,685 $ (10,965 ) $ 2,316 $ 341 $ (372 ) $ 10,005 $ 2,160 $ 12,165 General liability 3,605 (1,840 ) 417 94 — 2,276 234 2,510 Package business 6,600 (5,128 ) 43 94 — 1,609 44 1,653 Commercial property 3,124 (2,763 ) 14 9 — 384 41 425 Commercial automobile liability 3,442 (2,604 ) 17 23 — 878 43 921 Commercial automobile physical damage 221 (210 ) 2 — — 13 — 13 Professional liability 1,491 (973 ) 41 19 — 578 306 884 Bond 598 (356 ) 28 20 — 290 12 302 Personal automobile liability 12,262 (10,703 ) 21 72 — 1,652 25 1,677 Personal automobile physical damage 1,752 (1,716 ) 1 3 — 40 — 40 Homeowners 7,714 (7,110 ) 2 36 — 642 83 725 Other ongoing business 197 (1 ) (16 ) 180 297 477 Asbestos and environmental [2] 1,254 — — 1,254 1,032 2,286 Other operations [2] 413 138 — 551 (45 ) 506 Total P&C $ 59,494 $ (44,368 ) $ 4,766 $ 848 $ (388 ) $ 20,352 $ 4,232 $ 24,584 [1] Amounts represent reserves for claims that were incurred more than ten years ago for long-tail lines and more than three years ago for short-tail lines. [2] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. The reserve lines in the above table and the loss triangles that follow represent the significant lines of business for which the Company regularly reviews the appropriateness of reserve levels. These reserve lines differ from the reserve lines reported on a statutory basis, as prescribed by the National Association of Insurance Commissioners ("NAIC"). The following loss triangles present historical loss development for incurred and paid claims by accident year. Triangles are limited to the number of years for which claims incurred typically remain outstanding, not exceeding ten years. Short-tail lines, which represent claims generally expected to be paid within a few years, have three years of claim development displayed. IBNR reserves shown in loss triangles include reserve for incurred but not reported claims as well as reserves for expected development on reported claims. Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,462 $ 1,455 $ 1,478 $ 1,493 $ 1,504 $ 1,504 $ 1,519 $ 1,529 $ 1,522 $ 1,534 $ 168 135,804 2010 1,560 1,775 1,814 1,858 1,857 1,882 1,881 1,878 1,892 236 156,747 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 342 177,819 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 385 171,219 2013 2,020 1,981 1,920 1,883 1,861 1,861 451 151,153 2014 1,869 1,838 1,789 1,761 1,713 532 125,840 2015 1,873 1,835 1,801 1,724 613 113,493 2016 1,772 1,772 1,780 787 111,190 2017 1,862 1,869 1,061 109,982 2018 1,916 1,363 109,842 Total $ 18,685 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 265 $ 587 $ 792 $ 937 $ 1,042 $ 1,115 $ 1,170 $ 1,208 $ 1,242 $ 1,263 2010 316 709 970 1,154 1,287 1,374 1,439 1,489 1,522 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 2012 359 809 1,106 1,313 1,436 1,529 1,587 2013 304 675 917 1,071 1,175 1,260 2014 275 598 811 960 1,041 2015 261 576 778 909 2016 255 579 779 2017 261 575 2018 283 Total $ 10,965 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 382 $ 398 $ 394 $ 382 $ 359 $ 348 $ 347 $ 346 $ 341 $ 351 $ 39 20,714 2010 355 362 352 355 343 345 376 377 393 46 18,949 2011 353 343 323 316 315 320 318 326 52 16,854 2012 321 315 310 295 304 298 304 69 11,761 2013 318 321 332 352 344 352 80 9,906 2014 317 318 336 342 351 112 10,358 2015 316 346 345 364 164 10,805 2016 352 351 380 241 11,960 2017 363 385 289 10,965 2018 399 352 10,023 Total $ 3,605 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 22 $ 63 $ 124 $ 181 $ 227 $ 256 $ 277 $ 287 $ 297 $ 304 2010 14 51 115 181 224 259 314 331 337 2011 11 47 93 154 198 234 252 264 2012 8 39 75 124 167 198 215 2013 7 35 95 152 207 242 2014 11 31 88 142 195 2015 7 32 80 139 2016 8 32 79 2017 12 48 2018 17 Total $ 1,840 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 587 $ 584 $ 584 $ 572 $ 578 $ 577 $ 576 $ 576 $ 574 $ 569 $ 15 50,413 2010 657 662 654 652 652 651 653 651 649 19 52,410 2011 810 792 790 800 808 814 813 812 31 60,967 2012 736 725 728 731 736 735 739 39 59,715 2013 579 565 573 585 586 592 46 43,415 2014 566 578 601 602 603 70 42,928 2015 582 588 585 583 94 41,678 2016 655 638 632 170 43,129 2017 695 702 257 44,709 2018 719 335 38,034 Total $ 6,600 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 227 $ 351 $ 411 $ 463 $ 503 $ 527 $ 539 $ 547 $ 550 $ 551 2010 270 414 487 539 570 601 613 618 625 2011 377 555 621 684 727 748 762 772 2012 286 486 560 616 652 673 687 2013 225 339 414 467 504 522 2014 226 345 416 468 507 2015 212 332 383 445 2016 225 353 410 2017 235 372 2018 237 Total $ 5,128 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 267 $ 264 $ 259 $ 258 $ 251 $ 257 $ 257 $ 257 $ 257 $ 258 $ — 28,286 2010 286 283 279 282 284 284 284 284 284 — 28,515 2011 357 356 356 362 361 360 359 359 — 29,110 2012 329 301 301 305 306 305 305 1 25,789 2013 234 218 219 220 216 215 — 20,289 2014 268 260 262 264 263 — 19,758 2015 264 264 268 270 — 19,061 2016 328 331 327 5 19,945 2017 515 440 62 20,703 2018 403 86 17,839 Total $ 3,124 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 179 $ 247 $ 252 $ 256 $ 256 $ 257 $ 257 $ 257 $ 257 $ 257 2010 198 266 276 281 283 284 284 284 284 2011 231 332 350 355 358 359 360 360 2012 171 279 294 300 304 303 303 2013 157 208 216 218 215 215 2014 168 243 258 264 262 2015 172 239 255 265 2016 188 285 310 2017 210 334 2018 173 Total $ 2,763 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 306 $ 292 $ 287 $ 287 $ 297 $ 301 $ 302 $ 302 $ 302 $ 302 $ — 38,703 2010 277 280 296 319 323 328 327 324 322 4 38,153 2011 272 310 356 356 366 365 362 362 4 39,293 2012 311 376 390 401 394 390 387 6 35,999 2013 309 314 329 336 335 333 18 31,918 2014 306 314 328 333 337 23 29,260 2015 302 353 368 351 43 28,079 2016 372 380 376 90 28,154 2017 346 358 165 24,587 2018 314 205 20,675 Total $ 3,442 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 56 $ 115 $ 175 $ 237 $ 274 $ 291 $ 298 $ 300 $ 301 $ 301 2010 55 125 188 252 289 300 308 313 316 2011 62 133 211 273 315 339 348 352 2012 65 142 233 306 345 358 371 2013 61 128 199 255 289 306 2014 58 129 195 249 295 2015 61 141 204 264 2016 62 140 222 2017 55 123 2018 54 Total $ 2,604 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 79 $ 78 $ 78 $ — 26,367 2017 85 81 3 24,275 2018 62 2 19,167 Total $ 221 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 71 $ 78 $ 77 2017 74 79 2018 54 Total $ 210 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 254 $ 251 $ 244 $ 266 $ 257 $ 263 $ 255 $ 257 $ 257 $ 259 $ 20 5,115 2010 202 211 212 205 201 200 195 199 192 22 4,894 2011 226 228 232 226 219 219 220 215 38 4,708 2012 174 172 168 149 146 144 139 18 3,734 2013 136 136 123 110 103 99 27 2,791 2014 116 123 118 114 109 33 2,891 2015 104 113 113 114 32 2,957 2016 106 106 125 71 3,133 2017 107 113 75 3,111 2018 126 107 2,971 Total $ 1,491 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 17 $ 69 $ 127 $ 177 $ 194 $ 226 $ 225 $ 226 $ 235 $ 238 2010 22 62 103 137 148 157 162 166 169 2011 11 57 100 128 163 170 173 176 2012 11 41 60 89 97 107 109 2013 4 19 31 39 55 66 2014 4 21 40 64 72 2015 4 23 49 63 2016 4 25 46 2017 6 26 2018 8 Total $ 973 Bond Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 71 $ 71 $ 69 $ 58 $ 57 $ 51 $ 49 $ 49 $ 49 $ 49 $ 5 3,321 2010 71 75 80 79 73 69 70 90 71 3 2,674 2011 72 76 76 75 70 70 69 69 9 2,134 2012 69 69 60 53 48 48 43 9 1,720 2013 63 58 54 48 48 38 18 1,456 2014 69 65 65 66 58 13 1,373 2015 65 65 62 59 23 1,368 2016 59 59 58 37 1,272 2017 61 88 38 1,204 2018 65 59 1,040 Total $ 598 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 9 $ 32 $ 45 $ 46 $ 44 $ 43 $ 44 $ 44 $ 44 $ 43 2010 13 46 59 58 59 63 66 66 67 2011 12 39 51 56 57 59 59 59 2012 12 25 26 24 25 25 33 2013 3 9 17 18 18 18 2014 18 31 40 43 42 2015 9 19 23 31 2016 2 11 13 2017 5 45 2018 5 Total $ 356 Personal Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,351 $ 1,305 $ 1,280 $ 1,255 $ 1,256 $ 1,260 $ 1,259 $ 1,257 $ 1,257 $ 1,257 $ 3 254,555 2010 1,346 1,321 1,293 1,287 1,282 1,275 1,265 1,265 1,264 3 248,944 2011 1,181 1,170 1,180 1,173 1,166 1,154 1,154 1,153 5 221,886 2012 1,141 1,149 1,146 1,142 1,133 1,130 1,130 7 210,750 2013 1,131 1,145 1,144 1,153 1,152 1,153 8 205,462 2014 1,146 1,153 1,198 1,200 1,199 15 208,942 2015 1,195 1,340 1,338 1,330 38 216,707 2016 1,407 1,402 1,393 103 215,126 2017 1,277 1,275 276 185,716 2018 1,108 510 146,845 Total $ 12,262 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 492 $ 888 $ 1,083 $ 1,171 $ 1,223 $ 1,240 $ 1,246 $ 1,250 $ 1,251 $ 1,251 2010 496 915 1,108 1,202 1,239 1,251 1,256 1,258 1,260 2011 447 826 1,006 1,088 1,126 1,140 1,145 1,146 2012 441 818 986 1,067 1,104 1,114 1,120 2013 442 816 1,002 1,091 1,121 1,135 2014 430 843 1,032 1,125 1,165 2015 475 935 1,142 1,243 2016 505 968 1,188 2017 441 836 2018 359 Total $ 10,703 Personal Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 665 $ 656 $ 655 $ 3 406,588 2017 598 588 (3 ) 361,857 2018 509 3 288,993 Total $ 1,752 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 634 $ 653 $ 651 2017 574 591 2018 474 Total $ 1,716 Homeowners Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 757 $ 777 $ 776 $ 772 $ 772 $ 772 $ 772 $ 769 $ 768 $ 768 $ — 149,799 2010 838 850 838 840 840 840 836 834 834 — 161,590 2011 955 920 919 916 914 911 908 907 — 179,389 2012 774 741 741 741 739 738 738 1 142,828 2013 673 638 637 634 632 630 1 113,518 2014 710 707 702 700 698 1 121,863 2015 690 703 690 684 3 119,888 2016 669 673 663 7 119,441 2017 866 889 45 123,426 2018 903 89 94,946 Total $ 7,714 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 559 $ 727 $ 749 $ 759 $ 763 $ 765 $ 766 $ 766 $ 767 $ 767 2010 599 789 815 825 829 832 833 833 834 2011 709 871 891 899 903 905 908 907 2012 547 696 719 727 731 734 735 2013 467 590 611 622 626 627 2014 526 663 684 691 695 2015 487 645 665 674 2016 481 621 640 2017 538 747 2018 484 Total $ 7,110 Property and casualty reserves, including IBNR reserves The Company estimates ultimate losses and allocated loss adjustment expenses by accident year. IBNR represents the excess of estimated ultimate loss reserves over case reserves. The process to estimate ultimate losses and loss adjustment expenses is an integral part of the Company's reserve setting. Reserves for allocated and unallocated loss adjustment expenses are generally established separate from the reserves for losses. Reserves for losses are set by line of business within the reporting segments. Case reserves are established by a claims handler on each individual claim and are adjusted as new information becomes known during the course of handling the claim. Lines of business for which reported losses emerge over a long period of time are referred to as long-tail lines of business. Lines of business for which reported losses emerge more quickly are referred to as short-tail lines of business. The Company’s shortest tail lines of business are homeowners, commercial property and automobile physical damage. The longest tail lines of business include workers’ compensation, general liability and professional liability. For short-tail lines of business, emergence of paid loss and case reserves is credible and likely indicative of ultimate losses. For long-tail lines of business, emergence of paid losses and case reserves is less credible in the early periods after a given accident year and, accordingly, may not be indicative of ultimate losses. The Company’s reserving actuaries regularly review reserves for both current and prior accident years using the most current claim data. A variety of actuarial methods and judgments are used for most lines of business to arrive at selections of estimated ultimate losses and loss adjustment expenses. While actuarial methods used and judgments change depending on the age of the accident year, in 2018, there were no new methods or types of judgments introduced or changes in how those methods and judgments were applied. The reserve selections incorporate input, as appropriate, from claims personnel, pricing actuaries and operating management about reported loss cost trends and other factors that could affect the reserve estimates. For both short-tail and long-tail lines of business, an expected loss ratio is used to record initial reserves. This expected loss ratio is determined by starting with the average loss ratio of recent prior accident years and adjusting that ratio for the effect of expected changes to earned pricing, loss frequency and severity, mix of business, ceded reinsurance and other factors. For short-tail lines, IBNR for the current accident year is initially recorded as the product of the expected loss ratio for the period, earned premium for the period and the proportion of losses expected to be reported in future calendar periods for the current accident period. For long-tailed lines, IBNR reserves for the current accident year are initially recorded as the product of the expected loss ratio for the period and the earned premium for the period, less reported losses for the period. For certain short-tailed lines of business, IBNR amounts in the above loss development triangles are negative due to anticipated salvage and subrogation recoveries on paid losses. As losses for a given accident year emerge or develop in subsequent periods, reserving actuaries use other methods to estimate ultimate unpaid losses in addition to the expected loss ratio method. These primarily include paid and reported loss development methods, frequency/severity techniques and the Bornhuetter-Ferguson method (a combination of the expected loss ratio and paid development or reported development method). Within any one line of business, the methods that are given more weight vary based primarily on the maturity of the accident year, the mix of business and the particular internal and external influences impacting the claims experience or the methods. The output of the reserve reviews are reserve estimates that are referred to as the “actuarial indication”. Paid development and reported development techniques are used for most lines of business though more weight is given to the reported development method for some of the long-tailed lines like general liability. In addition, for long-tailed lines of business, the Company relies on the expected loss ratio method for immature accident years. Frequency/severity techniques are used predominantly for professional liability and are also used for automobile liability. For most lines, reserves for allocated loss adjustment expenses ("ALAE", or those expenses related to specific claims) are analyzed using paid development techniques and an analysis of the relationship between ALAE and loss payments. Reserves for unallocated loss adjustment expenses ("ULAE") are determined using the expected cost per claim year and the anticipated claim closure pattern as well as the ratio of paid ULAE to paid losses. In the final step of the reserve review process, senior reserving actuaries and senior management apply their judgment to determine the appropriate level of reserves considering the actuarial indications and other factors not contemplated in the actuarial indications. Those factors include, but are not limited to, the assessed reliability of key loss trends and assumptions used in the current actuarial indications, the maturity of the accident year, pertinent trends observed over the recent past, the level of volatility within a particular line of business, and the improvement or deterioration of actuarial indications. Cumulative number of reported claims For property and casualty, claim counts represent the number of claim features on a reported claim where a claim feature is each separate coverage for each claimant affected by the claim event. For example, one car accident that results in two bodily injury claims and one automobile damage liability claim would be counted as three claims within the personal automobile liability triangle. Sim |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 13 . DEBT The Company’s long-term debt securities are issued by HFSG Holding Company, and are unsecured obligations of HFSG Holding Company, and rank on a parity with all other unsecured and unsubordinated indebtedness of HFSG Holding Company. Debt is carried net of discount and issuance cost. Interest expense on debt is included in the corporate category for segment reporting. Short-term and Long-term Debt by Issuance As of December 31, 2018 2017 Revolving Credit Facilities $ — $ — Senior Notes and Debentures 6.3% Notes, due 2018 — 320 6.0% Notes, due 2019 413 413 5.5% Notes, due 2020 500 500 5.125% Notes, due 2022 800 800 5.95% Notes, due 2036 300 300 6.625% Notes, due 2040 295 295 6.1% Notes, due 2041 409 409 6.625% Notes, due 2042 178 178 4.4% Notes, due 2048 500 — 4.3% Notes, due 2043 300 300 Junior Subordinated Debentures 7.875% Notes, due 2042 600 600 3 month Libor + 2.125% Notes, due 2067 [1] 500 500 8.125% Notes, due 2068 — 500 Total Notes and Debentures 4,795 5,115 Unamortized discount and debt issuance cost [2] (117 ) (117 ) Total Debt 4,678 4,998 Less: Current maturities 413 320 Long-Term Debt $ 4,265 $ 4,678 [1] In April 2017, the Company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for this debenture into fixed interest payments of approximately 4.39% . [2] The amount primarily consists of $78 and $79 as of December 31, 2018 and 2017 , respectively, on the 6.1% Notes, due 2041. The effective interest rate on the 6.1% senior notes due 2041 is 7.9% . The effective interest rate on the remaining notes does not differ materially from the stated rate. The Company incurred interest expense of $298 , $316 and $327 on debt for the years ended December 31, 2018 , 2017 and 2016 , respectively. Senior Notes On March 15, 2018, The Hartford issued $500 of 4.4% senior notes (" 4.4% Notes") due March 15, 2048 for net proceeds of approximately $490 , after deducting underwriting discounts and expenses from the offering. Interest is payable semi-annually in arrears on March 15 and September 15, commencing September 15, 2018. The Hartford, at its option, can redeem the 4.4% Notes at any time, in whole or in part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus 25 basis points, plus any accrued and unpaid interest, except the option of a make-whole payment is not applicable within the final six months before maturity. On March 15, 2018, The Hartford repaid at maturity the $320 principal amount of its 6.3% senior notes. Junior Subordinated Debentures Junior Subordinated Debentures by Issuance Issue 7.875% Debentures 3 Month Libor + 2.125% Face Value $ 600 $ 500 Interest Rate [1] 7.875 % [2] N/A [3] Call Date April 15, 2022 February 15, 2022 [4] Interest Rate Subsequent to Call Date [2] 3 Month Libor + 5.596% 3 Month Libor + 2.125% [5] Final Maturity April 15, 2042 February 12, 2067 [1] Interest rate in effect until call date. [2] Payable quarterly in arrears. [3] Debentures were issued on call date. [4] The original call date was February 15, 2017. Replacement Capital Covenant associated with the debenture prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022. [5] In April, 2017 the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the interest payments for the 3 month Libor + 2.125% debenture into fixed interest payments of approximately 4.39% . The debentures are unsecured, subordinated and junior in right of payment and upon liquidation to all of the Company’s existing and future senior indebtedness. In addition, the debentures are effectively subordinated to all of the Company’s subsidiaries’ existing and future indebtedness and other liabilities, including obligations to policyholders. The debentures do not limit the Company’s or the Company’s subsidiaries’ ability to incur additional debt, including debt that ranks senior in right of payment and upon liquidation to the debentures. The Company has the right to defer interest payments for up to a consecutive ten years without giving rise to an event of default. Deferred interest will continue to accrue and will accrue additional interest at the then applicable interest rate. If the Company defers interest payments, the Company generally may not make payments on or redeem or purchase any shares of its capital stock or any of its debt securities or guarantees that rank upon liquidation, dissolution or winding up equally with or junior to the debentures, subject to certain limited exceptions. On June 15, 2018, The Hartford redeemed $500 aggregate principal amount of its 8.125% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068. During the initial offering of the 8.125% debentures, the Company entered into a replacement capital covenant ("RCC"), and under the terms of the RCC, if the Company redeemed the 8.125% debentures at any time prior to June 15, 2048 it could only do so with the proceeds from the sale of certain qualifying replacement securities. The 3 month Libor plus 2.125% debentures issued February 15, 2017 are qualifying replacement securities within the definition of RCC. In connection with this redemption, the Company recognized a $6 loss on extinguishment of debt for unamortized deferred debt issuance costs. The 7.875% and 3 month Libor plus 2.125% debentures may be redeemed in whole prior to the call date upon certain tax or rating agency events, at a price equal to the greater of 100% of the principal amount being redeemed and the applicable make-whole amount plus any accrued and unpaid interest. The Company may elect to redeem the 7.875% and 3 month Libor plus 2.125% debentures in whole or in part on or after the call date for the principal amount being redeemed plus accrued and unpaid interest to the date of redemption. In connection with the offering of the three month LIBOR plus 2.125% debenture, the Company entered into a RCC for the benefit of holders of one or more designated series of the Company's indebtedness, initially the Company's 4.3% notes due 2043. Under the terms of the RCC, if the Company redeems the debenture any time prior to February 12, 2047 (or such earlier date on which the RCC terminates by its terms) it can only do so with the proceeds from the sale of certain qualifying replacement securities. The RCC also prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022. In April, 2017 the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for the 3 month Libor plus 2.125% debenture into fixed interest payments of approximately 4.39% . Long-Term Debt Long-term Debt Maturities (at par value) as of December 31, 2018 2019 - Current maturities $ 413 2020 $ 500 2021 $ — 2022 $ 800 2023 $ — Thereafter $ 3,082 Shelf Registrations On July 29, 2016, the Company filed with the Securities and Exchange Commission (the “SEC”) an automatic shelf registration statement (Registration No. 333-212778) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be offered: debt securities, junior subordinated debt securities, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and stock purchase units. In that The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement went effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three -year life of the registration statement. Revolving Credit Facilities On March 29, 2018, the Company entered into an amendment (the "Amendment") to its Five-Year Credit Agreement dated October 31, 2014. The Amendment reset the level of the Company's minimum consolidated net worth financial covenant to $9 billion , excluding AOCI, from its former $13.5 billion (where net worth was defined as stockholders' equity excluding AOCI and including junior subordinated debt), among other updates. Among other changes, under an amended and restated credit agreement that became effective in June 2018 after the closing of the sale of the Company's life and annuity business, the aggregate amount of principal of the credit facility decreased from $1 billion to $750 , including a reduction to the amount available for letters of credit from $250 to $100 , the maturity date was extended to March 29, 2023, and the liens covenant and certain other covenants were modified. Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth, excluding AOCI, of $9 billion , limit the ratio of senior debt to capitalization, excluding AOCI, at 35% and meet other customary covenants. The Credit Facility is for general corporate purposes. As of December 31, 2018 , no borrowings were outstanding, $3 in letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants Commercial Paper As of December 31, 2018 , the Hartford's maximum borrowings available under its commercial paper program was $750 and there was no commercial paper outstanding. The Company is dependent upon market conditions to access short-term financing through the issuance of commercial paper to investors. On July 19, 2018, the Board of Directors revised the Company's commercial paper issuance authorization from $1 billion to $750 to align the program with the Company's $750 five year revolving credit facility which became effective on June 11, 2018. Collateralized Advances with Federal Home Loan Bank of Boston In August 2018, the Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company (“HLA”), became members of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated balance sheets, The Hartford would present the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The Connecticut Department of Insurance (“CTDOI”) permits Hartford Fire and HLA to pledge up to $1.1 billion and $0.6 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2019. The pledge limit is determined annually based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively. As of December 31, 2018 , there were no |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14 . COMMITMENTS AND CONTINGENCIES Litigation The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties in the following discussion under the caption “Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford. The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others, and in addition to the matters in the following discussion, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company's results of operations or cash flows in particular quarterly or annual periods. Asbestos and Environmental Claims The Company continues to receive asbestos and environmental claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs. The Company wrote several different categories of insurance contracts that may cover asbestos and environmental claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages. Fourth, subsidiaries of the Company participated in the London Market, writing both direct insurance and assumed reinsurance business. Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures. In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers and unanticipated developments pertaining to the Company’s ability to recover reinsurance for asbestos and environmental claims. Management believes these issues are not likely to be resolved in the near future. In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured. The reporting pattern for assumed reinsurance claims, including those related to asbestos and environmental claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves. It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of asbestos and environmental claims. Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for asbestos and environmental exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential asbestos and environmental exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity. While the Company believes that its current asbestos and environmental reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford's consolidated operating results and liquidity. As of December 31, 2018 , the Company reported $ 1.1 billion of net asbestos reserves and $ 203 of net environmental reserves. While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity. Effective December 31, 2016, the Company entered into an A&E ADC reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reduce uncertainty about potential adverse development of asbestos and environmental reserves. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s existing net asbestos and environmental reserves as of December 31, 2016 of approximately $1.7 billion . The $650 reinsurance premium was placed into a collateral trust account as security for NICO’s claim payment obligations to the Company. Under retroactive reinsurance accounting, net adverse asbestos and environmental reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of asbestos and environmental claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. Furthermore, cumulative adverse development of asbestos and environmental claims could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these charges could be material to the Company’s consolidated operating results and liquidity. As of December 31, 2018 , the Company has incurred cumulative $523 in adverse development on asbestos and environmental reserves that have been ceded under the ADC treaty with NICO, leaving approximately $977 The total rental expense on operating leases was $56 , $57 , and $53 in 2018 , 2017 , and 2016 , respectively, which excludes sublease rental income of $4 , $3 , and $2 in 2018 , 2017 and 2016 , respectively. Future minimum lease commitments as of December 31, 2018 Operating Leases 2019 $ 44 2020 36 2021 25 2022 18 2023 16 Thereafter 34 Total minimum lease payments [1] $ 173 [1] Excludes expected future minimum sublease income of approximately $2 , $1 , $1 , $0 , $0 and $0 in 2019 , 2020 , 2021 , 2022 , 2023 and thereafter respectively. As of December 31, 2018 , the Company has outstanding commitments totaling $954 , of which $707 is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, $163 of the outstanding commitments relate to various funding obligations associated with private debt and equity securities. The remaining outstanding commitments of $84 relate to mortgage loans. Of the $954 in total outstanding commitments, $48 In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, the guaranty funds may assess its members to pay covered claims of the insolvent insurers. Assessments are based on each member's proportionat e share of written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of the premiums written per year depending on the state. Some states permit member insurers to recover assessments paid through surcharges on policyholders or through full or partial premium tax offsets, while other states permit recovery of assessments through the rate filing process. Liabilities for guaranty fund and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2018 and 2017 the liability balance was $97 and $113 , respectively. As of December 31, 2018 and 2017 amounts related to premium tax offsets of $2 and $6 Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2018 was $76 , of which the legal entities have posted collateral of $71 in the normal course of business. Based on derivative market values as of December 31, 2018 , a downgrade of one level below the current financial strength rates by either Moody’s or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of December 31, 2018 , a downgrade of two levels below the current financial strength ratings by either Moody’s or S&P would require an additional $7 In the ordinary course of selling businesses or entities to third parties, the Company has agreed to indemnify purchasers for losses arising subsequent to the closing due to breaches of representations and warranties with respect to the business or entity being sold or with respect to covenants and obligations of the Company and/or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees. The Hartford has guaranteed the obligations of certain life, accident and health and annuity contracts of the life and annuity business written by Hartford Life Insurance Company between 1990 and 1997 and written by Hartford Life and Annuity Insurance Company between 1993 and 2009. After the sale of this business in May 2018, the purchaser indemnified the Company for any liability arising under the guarantees. The guarantees have no limitation as to maximum potential future payments. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | 15 . EQUITY Capital Purchase Program ("CPP") Warrants As of December 31, 2018 and 2017 , respectively, the Company has 1.9 million and 2.2 million CPP warrants outstanding and exercisable. The CPP warrants were issued in 2009 as part of a program established by the U.S. Department of the Treasury under the Emergency Economic Stabilization Act of 2008. The CPP warrants expire in June 2019. CPP warrant exercises were 0.3 million , 1.8 million and 0.4 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The declaration of common stock dividends by the Company in excess of a threshold triggers a provision in the Company's warrant agreement with The Bank of New York Mellon resulting in adjustments to the CPP warrant exercise price and the number of shares deliverable for each warrant exercised (the “Warrant Share Number”). Accordingly, the CPP warrant exercise price was $8.836 , $8.999 and $9.126 and the Warrant Share Number was 1.1 , 1.0 and 1.0 as of December 31, 2018 , 2017 and 2016 , respectively. The exercise price will be settled by the Company withholding the number of common shares issuable upon exercise of the warrants equal to the value of the aggregate exercise price of the warrants so exercised determined by reference to the closing price of the Company's common stock on the trading day on which the warrants are exercised and notice is delivered to the warrant agent. Equity Repurchase Program During the year ended December 31, 2018, the Company did not repurchase any common shares. In February, 2019, the Company announced a 1.0 billion share repurchase authorization by the Board of Directors which is effective through December 31, 2020. Based on projected holding company resources, the Company expects to use a portion of the authorization in 2019 but anticipates using the majority of the program in 2020. Any repurchase of shares under the equity repurchase program is dependent on market conditions and other factors. Preferred Stock On November 6, 2018, the Company issued 13.8 million depositary shares each representing 1/1000 th interest in a share of the Company’s 6.0% Series G non-cumulative perpetual preferred stock (the “Preferred Stock”) with a liquidation preference of $25,000 per share (equivalent to $25.00 per depositary share), for net cash proceeds of $ 334 . The Preferred Stock is perpetual and has no maturity date. Dividends will be payable, if declared, quarterly in arrears on the 15th day of February, May, August and November of each year, commencing on February 15, 2019. If a dividend is not declared before the dividend payment date for any dividend period, The Hartford will have no obligation to pay dividends otherwise attributable to such dividend period. If a dividend is not declared and paid or made payable on all outstanding shares of the Preferred Stock for the latest completed dividend period, no dividends may be paid or declared on The Hartford’s common stock and The Hartford may not purchase, redeem, or otherwise acquire its common stock. The Preferred Stock is redeemable at the Company’s option in whole or in part, on or after November 15, 2023 at a redemption price of $25,000 per share, plus unpaid dividends attributable to the current dividend period . Prior to November 15, 2023, the Preferred Stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of (a) a rating agency event at a redemption price equal to $25,500 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a rating agency changes its criteria used to assign equity credit to securities like the Preferred Stock; or (b) a regulatory capital event at a redemption price equal to $25,000 per share, plus unpaid dividends attributable to the current dividend period in circumstances where a capital regulator such as a state insurance regulator changes or proposes to change capital adequacy rules. On December 13, 2018, The Hartford’s board of directors declared a dividend of $ 412.50 on each share of the Series G preferred stock (equivalent to $ 0.4125 per depository share) payable on February 15, 2019 The domestic insurance subsidiaries of The Hartford prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, predominately use interest rate and mortality assumptions prescribed by the NAIC for life benefit reserves, generally carry bonds at amortized cost, and present reinsurance assets and liabilities net of reinsurance. For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital". Life insurance subsidiaries include the Group Benefits insurance subsidiary and, for periods up until the sale date, the life and annuity business sold in May 2018. Statutory Net Income (Loss) For the years ended December 31, 2018 2017 2016 Group Benefits Insurance Subsidiary $ 390 $ (1,066 ) $ 208 Property and Casualty Insurance Subsidiaries 1,114 950 304 Life and annuity business sold in May, 2018 196 369 349 Total $ 1,700 $ 253 $ 861 Statutory Capital As of December 31, 2018 2017 Group Benefits Insurance Subsidiary $ 2,407 $ 2,029 Property and Casualty Insurance Subsidiaries 7,435 7,396 Total $ 9,842 $ 9,425 Regulatory Capital Requirements The Company's U.S. insurance companies' states of domicile impose risk-based capital (“RBC”) requirements. The requirements provide a means of measuring the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations based on its size and risk profile. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. All of the Company's operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. Similar to the RBC ratios that are employed by U.S. insurance regulators, regulatory authorities in the international jurisdictions in which the Company operates generally establish minimum solvency requirements for insurance companies. All of the Company's international insurance subsidiaries have capital levels in excess of the minimum levels required by the applicable regulatory authorities. Dividend Restrictions Dividends to the HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which The Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances more restrictive) limitations on the payment of dividends. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected earnings and capitalization of the subsidiaries, regulatory capital requirements and liquidity requirements of the individual operating company. Total dividends paid by P&C subsidiaries to HFSG holding company in 2018 were $3.1 billion . This includes extraordinary dividends of $3.0 billion , comprised of a $1.9 billion principal paydown on the intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company related to the life and annuity business sold in May 2018, $226 related to interest payments on the note and $900 to fund near-term obligations of the HFSG holding company. In addition, there was $50 of ordinary P&C dividends that were paid to HFSG holding company, and $110 of capital contributed by the HFSG holding company to a run-off P&C subsidiary. Excluding the interest payments on the intercompany note and dividends that were subsequently contributed to a P&C subsidiary, net dividends paid by P&C subsidiaries to HFSG holding company were $2.8 billion during 2018. Total net dividends received by HFSG holding company in 2018 were $2.9 billion , including the $2.8 billion from P&C subsidiaries and $119 from Hartford Funds during the year. There were no dividends received from Hartford Life and Accident in 2018 . Under the formula described above, in 2019, the Company’s property and casualty insurance subsidiaries are permitted to pay up to a maximum of approximately $1.2 billion in dividends to HFSG Holding Company without prior approval from the applicable insurance commissioner, though only $200 of this dividend capacity could be paid before the fourth quarter of 2019. In 2019, HFSG Holding Company does not anticipate receiving net dividends from its property and casualty insurance subsidiaries, as planned 2019 dividends were received in the fourth quarter 2018. The HFSG Holding Company generally expects to receive net dividends of $850 to $900 a year from its property and casualty insurance subsidiaries subject to the profitability of those subsidiaries and their capital needs. Hartford Life and Accident Insurance Company ("HLA") has $380 dividend capacity for 2019 and anticipates paying $250 to $300 dividends in 2019. There are no current restrictions on the HFSG Holding Company's ability to pay dividends to its stockholders. Restricted Net Assets The Company's insurance subsidiaries had net assets of $10.1 billion , determined in accordance with U.S. GAAP, that were restricted from payment to the HFSG Holding Company, without prior regulatory approval at December 31, 2018 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16 . INCOME TAXES Tax Reform 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 establishes new tax laws effective January 1, 2018, including, but not limited to, (1) reduction of the U.S. federal corporate income tax rate from 35% to 21%; (2) elimination of the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized, (3) limitations on the deductibility of certain executive compensation, (4) changes to the discounting of statutory reserves for tax purposes, and (5) limitations on net operating losses (NOLs) generated after December 31, 2017 though there is no impact to the Company’s current NOL carryforwards. Related to Tax Reform, the Company recorded a provisional net income tax expense of $ 877 in the period ending December 31, 2017. This net expense consisted of an $ 821 reduction of the Company’s deferred tax assets primarily due to the reduction in the U.S. federal corporate income tax rate and a $ 56 sequestration fee payable associated with refundable AMT credits. During 2018, the Company recorded income tax expense of $ 17 as measurement period adjustments related to Tax Reform due to the filing of the Company's 2017 federal income tax return and completion of the Aetna Group Benefits acquisition. In addition, the Company recorded an income tax benefit of $ 56 , reflecting the elimination of the sequestration fee payable. In total, the Company recorded a net income tax benefit from Tax Reform of $ 39 in 2018. As of December 31, 2018, the Company had AMT carryovers of $841 which are reflected as a current income tax receivable within Other Assets in the accompanying consolidated balance sheet. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be realized in 2022. Income Tax Expense The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions, as applicable. Income (loss) from continuing operations before income taxes included income from domestic operations of $1,753 , $704 and $521 for the years ended December 31, 2018 , 2017 and 2016 , and income (losses) from foreign operations of $0 , $19 and $(74) for the years ended December 31, 2018 , 2017 and 2016 . Income Tax Expense (Benefit) For the years ended December 31, 2018 2017 2016 Income Tax Expense (Benefit) Current - U.S. Federal $ (18 ) $ 116 $ 10 International — 1 — Total current (18 ) 117 10 Deferred - U.S. Federal 286 866 (173 ) International — 2 (3 ) Total deferred 286 868 (176 ) Total income tax expense (benefit) $ 268 $ 985 $ (166 ) Income Tax Rate Reconciliation For the years ended December 31, 2018 2017 2016 Tax provision at U.S. federal statutory rate [1] $ 368 $ 253 $ 157 Tax-exempt interest (66 ) (123 ) (124 ) Decrease in deferred tax valuation allowance — — (79 ) Executive Compensation 11 — — Stock-based compensation (5 ) (15 ) — Solar credits — — (79 ) Sale of the U.K. property & casualty run-off subsidiaries and foreign rate differential — 5 (37 ) Tax Reform (39 ) 877 — Other (1 ) (12 ) (4 ) Provision (benefit) for income taxes $ 268 $ 985 $ (166 ) [1] Due to the passage of Tax Reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively. In addition to the effect of tax-exempt interest, the Company's effective tax rate for the year ended December 31, 2018 reflects a federal income tax expense of $11 related to non-deductible executive compensation and a benefit of $ 5 related to a deduction for stock-based compensation that vested at a fair value per share greater than the fair value on the date of grant. Included in 2018 is a benefit of $ 39 related to Tax Reform, primarily due to the elimination of the sequestration fee on AMT credits. Included in 2017 is an expense of $ 877 due to the effects of Tax Reform, primarily due to the reduction in net deferred tax assets as a result of the reduction in the federal corporate income tax rate from 35% to 21%. Included in 2016 is a benefit of $79 due to the investment in solar energy partnerships. The total tax benefit from the transaction was $113 , which included the tax effects of the related financial statement realized loss from writing down the investment in partnerships. Also included in 2016 is a tax benefit primarily due to the sale of the Company's U.K. property and casualty run-off subsidiaries. The tax benefit of $37 relates to the difference between the tax basis and book basis of the Company's investment in the subsidiaries net of additional foreign tax rate differentials. The total estimated tax benefit recognized in 2016 related to the sale of the U.K. property and casualty run-off subsidiaries was $76 . For discussion of this transaction, see Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. Deferred Taxes Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The deferred tax assets and liabilities as of December 31, 2018 and 2017 shown in the table below reflect the lower corporate Federal income tax rate as a result of Tax Reform. Deferred tax balances for the year ended December 31, 2017 related to the life and annuity business sold in May 2018 are not included in the table below as they were included in assets held for sale as of December 31, 2017. In lieu of recording a benefit of the tax capital loss on the sale of the life and annuity business, the Company elected to retain tax net operating loss carryovers with an estimated benefit of $ 477 as of December 31, 2018. Deferred Tax Assets (Liabilities) As of December 31, 2018 2017 Deferred Tax Assets Loss reserves and tax discount $ 150 $ 104 Unearned premium reserve and other underwriting related reserves 355 352 Investment-related items 183 194 Employee benefits 287 313 General business credit carryover 1 3 Net operating loss carryover 521 710 Foreign tax credit carryover — 26 Other — 1 Total Deferred Tax Assets 1,497 1,703 Deferred Tax Liabilities Deferred acquisition costs (104 ) (103 ) Net unrealized gains on investments (7 ) (306 ) Other depreciable and amortizable assets (135 ) (130 ) Other (3 ) — Total Deferred Tax Liabilities (249 ) (539 ) Net Deferred Tax Asset $ 1,248 $ 1,164 A deferred tax valuation allowance has not been recorded because the Company believes the deferred tax assets will more likely than not be realized. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryovers, taxable income in open carry back years and other tax planning strategies. From time to time, tax planning strategies could include holding a portion of debt securities with market value losses until recovery, altering the level of tax exempt securities held, making investments which have specific tax characteristics, and business considerations such as asset-liability matching. Management views such tax planning strategies as prudent and feasible and would implement them, if necessary, to realize the deferred tax assets. As shown in the deferred tax assets (liabilities) table above, included in net deferred income taxes are the future tax benefits associated with U.S. net operating loss carryover and general business credit carryovers. Net operating loss carryovers, if unused, would expire between 2026 and 2036. General business credits would expire between 2026 and 2027. U.S. NOLs reflected above arose in taxable years prior to 2017 and are still subject to prior tax law which allows for carryback and limits the period over which carryforwards may be used to offset taxable income. Utilization of the Company's loss carryovers is dependent upon the generation of sufficient future taxable income. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits For the years ended December 31, 2018 2017 2016 Balance, beginning of period $ 9 $ 12 $ 12 Gross increases - tax positions in prior period 5 3 — Gross decreases - tax positions in prior period — — — Gross decreases - tax reform — (6 ) — Balance, end of period $ 14 $ 9 $ 12 The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In addition, for the year ended December 31, 2018 the Company recorded a receivable of $ 5 related to a tax indemnification agreement associated with the life and annuity business sold in May 2018. The receivable is separate from the tax liability and is classified as an other asset on the balance sheet. Other Tax Matters The federal audits have been completed through 2013, and the Company is not currently under examination for any open years. Management believes that adequate provision has been made in the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax related matters for all open tax years. The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The Company recognized no interest expense for the years ended December 31, 2018 , 2017 and 2016. The Company had no interest payable as of December 31, 2018 and 2017 |
Changes in and Reclassification
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) | 17 . CHANGES IN AND RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI, Net of Tax for the Year Ended December 31, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,245 ) — 8 (8 ) (61 ) (2,306 ) Amounts reclassified from AOCI 65 (1 ) (33 ) — 38 69 OCI, net of tax (2,180 ) (1 ) (25 ) (8 ) (23 ) (2,237 ) Ending balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, after tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further information. [2] The reduction in AOCI included the effect of removing $ 758 of AOCI from the balance sheet when the life and annuity business was sold in May 2018. Changes in AOCI, Net of Tax for the Year Ended December 31, 2017 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) OCI before reclassifications 857 — (8 ) 28 (146 ) 731 Amounts reclassified from AOCI (202 ) — (50 ) — 521 269 OCI, net of tax 655 — (58 ) 28 375 1,000 Ending balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Changes in AOCI, Net of Tax for the Year ended December 31, 2016 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,279 $ (7 ) $ 130 $ (55 ) $ (1,676 ) $ (329 ) OCI before reclassifications 83 1 (8 ) (37 ) (52 ) (13 ) Amounts reclassified from AOCI (86 ) 3 (46 ) 98 36 5 OCI, net of tax (3 ) 4 (54 ) 61 (16 ) (8 ) Ending balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) Reclassifications from AOCI AOCI Amount Reclassified from AOCI Affected Line Item in the Consolidated Statement of Operations For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 Net Unrealized Gain on Securities Available-for-sale securities $ (80 ) $ 152 $ 36 Net realized capital gains (losses) (80 ) 152 36 Total before tax (17 ) 53 13 Income tax expense (benefit) (2 ) 103 63 Income (loss) from discontinued operations, net of tax $ (65 ) $ 202 $ 86 Net income (loss) OTTI Losses in OCI Other than temporary impairments $ — $ — $ (2 ) Net realized capital gains (losses) — — (2 ) Total before tax — — (1 ) Income tax expense (benefit) 1 — (2 ) Income (loss) from discontinued operations, net of tax 1 — (3 ) Net income (loss) Net Gain on Cash Flow Hedging Instruments Interest rate swaps $ 6 $ 5 $ 10 Net realized capital gains (losses) Interest rate swaps 30 37 37 Net investment income 36 42 47 Total before tax 8 15 17 Income tax expense (benefit) $ 5 $ 23 $ 16 Income (loss) from discontinued operations, net of tax $ 33 $ 50 $ 46 Net income (loss) Foreign Currency Translation Adjustments Currency translation adjustments [1] $ — $ — $ (118 ) Net realized capital gains (losses) — — (118 ) Total before tax — — (20 ) Income tax expense (benefit) $ — $ — $ (98 ) Net income (loss) Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 7 $ 7 $ 6 Insurance operating costs and other expenses Amortization of actuarial loss (55 ) (61 ) (61 ) Insurance operating costs and other expenses Settlement loss — (747 ) — Insurance operating costs and other expenses (48 ) (801 ) (55 ) Total before tax (10 ) (280 ) (19 ) Income tax expense (benefit) (38 ) (521 ) (36 ) Net income (loss) Total amounts reclassified from AOCI $ (69 ) $ (269 ) $ (5 ) Net income (loss) [1] |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 18 . EMPLOYEE BENEFIT PLANS Investment and Savings Plan Substantially all U.S. employees of the Company are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in a variety of investments, including up to 10% in a fund consisting largely of common stock of The Hartford. The Company's contributions include a non-elective contribution of 2.0% of eligible compensation and a dollar-for-dollar matching contribution of up to 6.0% of eligible compensation contributed by the employee each pay period. The Company also maintains a non-qualified savings plan, The Hartford Excess Savings Plan, with the dollar-for-dollar matching contributions of employee compensation in excess of the amount that can be contributed under the tax-qualified Investment and Savings Plan. An employee's eligible compensation includes overtime and bonuses but for the Investment and Savings Plan and Excess Savings Plan combined, is limited to $1 annually. The total cost to The Hartford for these plans was approximately $134 , $113 and $115 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Additionally, The Hartford has established defined contribution pension plans for certain employees of the Company’s international subsidiaries. The cost to The Hartford for the years ended December 31, 2018 , 2017 and 2016 for these plans was immaterial. Post Retirement Benefit Plans Defined Benefit Pension Plan- The Company maintains The Hartford Retirement Plan for U.S. Employees, a U.S. qualified defined benefit pension plan (the “Plan”) that covers substantially all U.S. employees hired prior to January 1, 2013. The Company also maintains non-qualified pension plans to provide retirement benefits previously accrued that are in excess of Internal Revenue Code limitations. The Plan includes two benefit formulas, both of which are frozen: a final average pay formula (for which all accruals ceased as of December 31, 2008) and a cash balance formula for which benefit accruals ceased as of December 31, 2012, although interest will continue to accrue to existing cash balance formula account balances. Employees who were participants as of December 31, 2012 continue to earn vesting credit with respect to their frozen accrued benefits if they continue to work. The interest crediting rate on the cash balance plan is the greater of the average annual yield on 10-year U.S. Treasury Securities or 3.3% . The Hartford Excess Pension Plan II, the Company's non-qualified excess pension benefit plan for certain highly compensated employees, is also frozen. Group Retiree Health Plan- The Company provides certain health care and life insurance benefits for eligible retired employees. The Company’s contribution for health care benefits will depend upon the retiree’s date of retirement and years of service. In addition, the plan has a defined dollar cap for certain retirees which limits average Company contributions. The Hartford has prefunded a portion of the health care obligations through a trust fund where such prefunding can be accomplished on a tax effective basis. Beginning January 1, 2017, for retirees 65 and older who were participating in the Retiree PPO Medical Plan, the Company funds the cost of medical and dental health care benefits through contributions to a Health Reimbursement Account and covered individuals can access a variety of insurance plans from a health care exchange. Effective January 1, 2002, Company-subsidized retiree medical, retiree dental and retiree life insurance benefits were eliminated for employees with original hire dates with the Company on or after January 1, 2002. The Company also amended its postretirement medical, dental and life insurance coverage plans to no longer provide subsidized coverage for employees who retired on or after January 1, 2014. Assumptions Pursuant to accounting principles related to the Company’s pension and other postretirement obligations to employees under its various benefit plans, the Company is required to make a significant number of assumptions in order to calculate the related liabilities and expenses each period. The two economic assumptions that have the most impact on pension and other postretirement expense under the defined benefit pension plan and group retiree health plan are the discount rate and the expected long-term rate of return on plan assets. The assumed discount rates and yield curve is based on high-quality fixed income investments consistent with the maturity profile of the expected liability cash flows. Based on all available market and industry information, it was determined that 4.35% and 4.23% were the appropriate discount rates as of December 31, 2018 to calculate the Company’s pension and other postretirement obligations, respectively. The expected long-term rate of return considers the actual compound rates of return earned over various historical time periods. The Company also considers the investment volatility, duration and total returns for various time periods related to the characteristics of the pension obligation, which are influenced by the Company's workforce demographics. In addition, the Company considers long-term market return expectations for an investment mix that generally anticipates 60% fixed income securities and 40% non fixed income securities (global equities, hedge funds and private market alternatives) to derive an expected long-term rate of return. Based upon these analyses, management determined the long-term rate of return assumption to be 6.60% and 6.60% for the years ended December 31, 2018 and 2017 , respectively. To determine the Company's 2019 expense, the Company is currently assuming an expected long-term rate of return on plan assets of 6.45% and 6.00% for the Company's pension and other post retirement obligations, respectively. Weighted Average Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Discount rate 4.35 % 3.73 % 4.23 % 3.55 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans For the years ended December 31, 2018 2017 2016 Discount rate 3.73 % 4.22 % 4.25 % Expected long-term rate of return on plan assets 6.60 % 6.60 % 6.70 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Other Postretirement Plans For the years ended December 31, 2018 2017 2016 Discount rate 3.55 % 3.97 % 4.00 % Expected long-term rate of return on plan assets 6.60 % 6.60 % 6.60 % Assumed Health Care Cost Trend Rates For the years ended December 31, 2018 2017 2016 Pre-65 health care cost trend rate 6.50 % 6.75 % 6.90 % Post-65 health care cost trend rate N/A N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 5.00 % Year that the rate reaches the ultimate trend rate 2028 2028 2024 Obligations and Funded Status The following tables set forth a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status of the Company's defined benefit pension and postretirement health care and life insurance benefit plans. International plans represent an immaterial percentage of total pension assets, liabilities and expense and, for reporting purposes, are combined with domestic plans. Change in Benefit Obligation Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Benefit obligation — beginning of year $ 4,376 $ 5,650 $ 256 $ 272 Service cost 4 4 — — Interest cost 142 170 7 8 Plan participants’ contributions — — 11 11 Actuarial (gain) loss (6 ) 139 — 5 Settlements — (1,647 ) — — Changes in assumptions (329 ) 332 (11 ) 10 Benefits and expenses paid (186 ) (273 ) (45 ) (51 ) Retiree drug subsidy — — 2 1 Foreign exchange adjustment (1 ) 1 — — Benefit obligation — end of year $ 4,000 $ 4,376 $ 220 $ 256 Changes in assumptions in 2018 primarily included a $281 decrease in the benefit obligation for pension benefits as a result of an increase in the discount rate from 3.73% as of the December 31, 2017 valuation to 4.35% as of the December 31, 2018 valuation. Changes in assumptions in 2017 included a $350 increase in the benefit obligation for pension benefits as a result of a decline in the discount rate from 4.22% as of the December 31, 2016 valuation to 3.73% as of the December 31, 2017 valuation. The cash balance plan pension benefit obligation was $412 and $443 as of December 31, 2018 and 2017 , respectively. The interest crediting rate was 3.30% in 2018 , 2017 , and 2016 . On June 30, 2017, the Company transferred invested assets and cash from plan assets to purchase a group annuity contract that transferred approximately $ 1.6 billion of the Company's outstanding pension obligations related to certain U.S. retirees, terminated vested participants and beneficiaries. As a result of this transaction, the Company recognized a pre-tax settlement charge of $ 750 . The settlement charge was included in the corporate category for segment reporting. Change in Plan Assets Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Fair value of plan assets — beginning of year $ 3,592 $ 4,678 $ 114 $ 138 Actual return on plan assets (172 ) 549 (2 ) 11 Employer contributions 103 280 — — Benefits paid [1] (161 ) (248 ) (27 ) (35 ) Expenses paid (17 ) (21 ) — — Settlements — (1,647 ) — — Foreign exchange adjustment (1 ) 1 — — Fair value of plan assets — end of year $ 3,344 $ 3,592 $ 85 $ 114 Funded status — end of year $ (656 ) $ (784 ) $ (135 ) $ (142 ) [1] Other postretirement benefits paid represent non-key employee postretirement medical benefits paid from the Company's prefunded trust fund. The fair value of assets for pension benefits, and hence the funded status, presented in the table above excludes assets of $139 and $144 as of December 31, 2018 and 2017 , respectively, held in rabbi trusts and designated for the non-qualified pension plans. The assets do not qualify as plan assets; however, the assets are available to pay benefits for certain retired, terminated and active participants. Such assets are available to the Company’s general creditors in the event of insolvency. The rabbi trust assets consist of equity and fixed income investments. To the extent the fair value of these rabbi trusts were included in the table above, pension plan assets would have been $3,483 and $3,736 as of December 31, 2018 and 2017 , respectively, and the funded status of pension benefits would have been $( 517 )and $(640) as of December 31, 2018 and 2017 , respectively. Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31, 2018 2017 Projected benefit obligation $ 4,000 $ 4,376 Accumulated benefit obligation $ 4,000 $ 4,376 Fair value of plan assets $ 3,344 $ 3,592 Amounts Recognized in the Consolidated Balance Sheets Pension Benefits Other Postretirement Benefits As of December 31, 2018 2017 2018 2017 Other liabilities $ 656 $ 784 $ 135 $ 142 Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income (Loss) As a result of the pension settlement, in 2017, the Company recognized a pre-tax settlement charge of $ 750 ($ 488 after tax) and a reduction to stockholders' equity of $ 144 . In connection with this transaction, the Company made a contribution of $ 280 in September 2017 to the U.S. qualified pension plan in order to maintain the plan's pre-transaction funded status. Beginning with the first quarter of 2017, the Company adopted the full yield curve approach in the estimation of the interest cost component of net periodic benefit costs for its qualified and non-qualified pension plans and the postretirement benefit plan. The full yield curve approach applies the specific spot rates along the yield curve that are used in its determination of the projected benefit obligation at the beginning of the year. The change has been made to provide a better estimate of the interest cost component of net periodic benefit cost by better aligning projected benefit cash flows with corresponding spot rates on the yield curve rather than using a single weighted average discount rate derived from the yield curve as had been done historically. This change does not affect the measurement of the Company's total benefit obligations as the change in the interest cost in net income is completely offset in the actuarial (gain) loss reported for the period in other comprehensive income. The change reduced the before tax interest cost component of net periodic benefit cost by $ 32 for the year ended December 31, 2017. The discount rate being used to measure interest cost was 3.58% for the period from January 1, 2017 to June 30, 2017 and 3.37% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 3.55% for the non-qualified pension plan, and 3.13% for the postretirement benefit plan. Under the Company's historical estimation approach, the weighted average discount rate for the interest cost component would have been 4.22% for the period from January 1, 2017 to June 30, 2017 and 3.92% for the period from July 1, 2017 to December 31, 2017 for the qualified pension plan, 4.19% for the non-qualified pension plan and 3.97% for the postretirement benefit plan. The Company accounted for this change as a change in estimate, and accordingly, has recognized the effect prospectively beginning in 2017. Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2016 2018 2017 2016 Service cost $ 4 $ 4 $ 2 $ — $ — $ — Interest cost 142 170 237 7 8 11 Expected return on plan assets (227 ) (267 ) (311 ) (7 ) (8 ) (10 ) Amortization of prior service credit — — — (7 ) (7 ) (6 ) Amortization of actuarial loss 49 56 56 6 5 5 Settlements — 750 — — — — Net periodic cost (benefit) $ (32 ) $ 713 $ (16 ) $ (1 ) $ (2 ) $ — Amounts Recognized in Other Comprehensive Income (Loss) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2016 2018 2017 2016 Amortization of actuarial loss $ 49 $ 56 $ 56 $ 6 $ 5 $ 5 Settlement loss — 750 — — — — Amortization of prior service credit — — — (6 ) (7 ) (6 ) Net loss arising during the year (91 ) (209 ) (66 ) 3 (12 ) (4 ) Total $ (42 ) $ 597 $ (10 ) $ 3 $ (14 ) $ (5 ) Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost Pension Benefits Other Postretirement Benefits As of December 31, 2018 2017 2016 2018 2017 2016 Net loss $ (2,008 ) $ (1,966 ) $ (2,563 ) $ (120 ) $ (129 ) $ (122 ) Prior service credit — — — 72 78 85 Total $ (2,008 ) $ (1,966 ) $ (2,563 ) $ (48 ) $ (51 ) $ (37 ) The pension settlement transaction resulted in a decrease to unrecognized net loss of $ 750 in 2017. Plan Assets Investment Strategy and Target Allocation The overall investment strategy of the Plan is to maximize total investment returns to provide sufficient funding for present and anticipated future benefit obligations within the constraints of a prudent level of portfolio risk and diversification. With respect to asset management, the oversight responsibility of the Plan rests with The Hartford’s Pension Fund Trust and Investment Committee composed of individuals whose responsibilities include establishing overall objectives and the setting of investment policy; selecting appropriate investment options and ranges; reviewing the asset allocation mix and asset allocation targets on a regular basis; and monitoring performance to determine whether or not the rate of return objectives are being met and that policy and guidelines are being followed. The Company believes that the asset allocation decision will be the single most important factor determining the long-term performance of the Plan. Target Asset Allocation Pension Plans Other Postretirement Plans Minimum Maximum Minimum Maximum Equity securities 5 % 35 % 15 % 45 % Fixed income securities 50 % 70 % 55 % 85 % Alternative assets — % 45 % — % — % Divergent market performance among different asset classes may, from time to time, cause the asset allocation to deviate from the desired asset allocation ranges. The asset allocation mix is reviewed on a periodic basis. If it is determined that an asset allocation mix rebalancing is required, future portfolio additions and withdrawals will be used, as necessary, to bring the allocation within tactical ranges. The Plan invests in commingled funds and partnerships managed by unaffiliated managers to gain exposure to emerging markets, equity, hedge funds and other alternative investments. These portfolios encompass multiple asset classes reflecting the current needs of the Plan, the investment preferences and risk tolerance of the Plan and the desired degree of diversification. These asset classes include publicly traded equities, bonds and alternative investments and are made up of individual investments in cash and cash equivalents, equity securities, debt securities, asset-backed securities, mortgage loans and hedge funds. Hedge fund investments represent a diversified portfolio of partnership investments in a variety of strategies. In addition, the Company uses U.S. Treasury bond futures contracts and U.S. Treasury STRIPS in a duration overlay program to adjust the duration of Plan assets to better match the duration of the benefit obligation. Investment Valuation Pension Plan Assets at Fair Value as of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Short-term investments: $ 50 $ 60 $ — $ 110 Fixed Income Securities: Corporate — 1,663 14 1,677 RMBS — 62 1 63 U.S. Treasuries 10 120 — 130 Foreign government — 15 2 17 CMBS — 22 — 22 Other fixed income [1] — 52 1 53 Mortgage Loans — — 133 133 Equity Securities: Domestic 376 3 — 379 International 303 — — 303 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 739 $ 1,997 $ 151 $ 2,887 Other Investments, at net asset value [3]: Private Market Alternatives 272 Hedge funds 186 Total pension plan assets at fair value. $ 739 $ 1,997 $ 151 $ 3,345 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $1 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. [3] Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy. Pension Plan Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Short-term investments: $ 21 $ 168 $ — $ 189 Fixed Income Securities: Corporate — 1,549 14 1,563 RMBS — 28 2 30 U.S. Treasuries 3 74 — 77 Foreign government — 16 1 17 CMBS — 28 2 30 Other fixed income [1] — 97 2 99 Mortgage Loans — — 140 140 Equity Securities: Large-cap domestic 595 89 — 684 Mid-cap domestic 11 — — 11 International 343 — — 343 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 973 $ 2,049 $ 161 $ 3,183 Other Investments, at net asset value [3]: Private Market Alternatives 168 Hedge funds 212 Total pension plan assets at fair value. $ 973 $ 2,049 $ 161 $ 3,563 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $1 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $30 of interest receivable. [3] Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy. The tables below provide fair value level 3 rollforwards for the Pension Plan Assets for which significant unobservable inputs (Level 3) are used in the fair value measurement on a recurring basis. The Plan classifies the fair value of financial instruments within Level 3 if there are no observable markets for the instruments or, in the absence of active markets, if one or more of the significant inputs used to determine fair value are based on the Plan’s own assumptions. Therefore, the gains and losses in the tables below include changes in fair value due to both observable and unobservable factors. 2018 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2018 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 Realized gains,net — — — — — — Changes in unrealized gains (losses), net (1 ) — — (1 ) — (2 ) Purchases 5 — 1 — — 6 Settlements — — — — — — Sales (4 ) (1 ) — (6 ) (3 ) (14 ) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2018 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 [1] "Other" includes U.S. Treasuries, Other fixed income and CMBS investments. During the year ended December 31, 2018 , transfers into and (out) of Level 3 are primarily attributable to the appearance of or lack thereof of market observable information and the re-evaluation of the observability of pricing inputs. 2017 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2017 $ 13 $ 10 $ 1 $ 121 $ 22 $ 167 Realized gains,net — — — — 2 2 Changes in unrealized gains, net 2 — — 2 2 6 Purchases 11 1 — 17 7 36 Settlements — (5 ) — — (1 ) (6 ) Sales (12 ) (4 ) — — (19 ) (35 ) Transfers into Level 3 — — — — 2 2 Transfers out of Level 3 — — — — (11 ) (11 ) Fair Value as of December 31, 2017 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 [1]"Other" includes U.S. Treasuries, Other fixed income and CMBS investments. During the year ended December 31, 2017 , transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. There was less than $1 in Company common stock included in the Plan’s assets as of December 31, 2018 and 2017 . Other Postretirement Plan Assets at Fair Value as of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Short-term investments $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 19 — 19 RMBS — 15 — 15 U.S. Treasuries 6 13 — 19 Foreign government — 1 — 1 CMBS — 2 — 2 Other fixed income — 2 — 2 Equity Securities: Large-cap 23 — — 23 Total other postretirement plan assets at fair value [1] $ 33 $ 52 $ — $ 85 [1] Excludes approximately $1 of investment receivables net of investment payables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Other Postretirement Plan Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Short-term investments $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 25 — 25 RMBS — 17 — 17 U.S. Treasuries 1 25 — 26 Foreign government — 1 — 1 CMBS — 5 — 5 Other fixed income — 4 1 5 Equity Securities: Large-cap 30 — — 30 Total other postretirement plan assets at fair value [1] $ 35 $ 77 $ 1 $ 113 [1] Excludes approximately $0 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $1 of interest receivable. For other postretirement plan assets measured using significant unobservable inputs (level 3), the fair value for other fixed income securities decreased from $1 as of December 31, 2017 to $0 as of December 31, 2018 due to $1 in sales. For other postretirement plan level 3 assets, the fair value of corporate securities decreased from $1 as of December 31, 2016 to $0 as of December 31, 2017 due to $1 in purchases and $2 in sales. RMBS decreased from $1 to $0 due to $1 in settlements. Other fixed income remained at $1 from 2016 to 2017 due to $1 in purchases and $1 transfers out of level 3. There was no Company common stock included in the other postretirement benefit plan assets as of December 31, 2018 and 2017 . Concentration of Risk In order to minimize risk, the Plan maintains a listing of permissible and prohibited investments. In addition, the Plan has certain concentration limits and investment quality requirements imposed on permissible investment options. Permissible investments include U.S. equity, international equity, alternative asset and fixed income investments including derivative instruments. Permissible derivative instruments include futures contracts, options, swaps, currency forwards, caps or floors and may be used to control risk or enhance return but will not be used for leverage purposes. Securities specifically prohibited from purchase include, but are not limited to: shares or fixed income instruments issued by The Hartford, short sales of any type within long-only portfolios, non-derivative securities involving the use of margin, leveraged floaters and inverse floaters, including money market obligations, natural resource real properties such as oil, gas or timber and precious metals. Other than U.S. government and certain U.S. government agencies backed by the full faith and credit of the U.S. government, the Plan does not have any material exposure to any concentration risk of a single issuer. Cash Flows Company Contributions Employer Contributions Pension Benefits Other Postretirement Benefits 2018 $ 103 $ — 2017 $ 281 $ — In 2018 , the Company, at its discretion, made $101 in contributions to the U.S. qualified defined benefit pension plan. The Company does not have a 2019 required minimum funding contribution for the U.S. qualified defined benefit pension plan. The Company has not determined whether, and to what extent, contributions may be made to the U. S. qualified defined benefit pension plan in 2019 . The Company will monitor the funded status of the U.S. qualified defined benefit pension plan during 2019 to make this determination. Employer contributions in 2018 and 2017 were made in cash and did not include contributions of the Company’s common stock. Benefit Payments Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2018 Pension Benefits Other Postretirement Benefits 2019 $ 239 $ 27 2020 239 24 2021 246 22 2022 251 20 2023 250 18 2024 - 2028 1,263 67 Total $ 2,488 $ 178 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | 19 . STOCK COMPENSATION PLANS The Company's stock-based compensation plans are described below. Shares issued in satisfaction of stock-based compensation may be made available from authorized but unissued shares, shares held by the Company in treasury or from shares purchased in the open market. In 2018 , 2017 and 2016 , the Company issued shares from treasury in satisfaction of stock-based compensation. Stock-based compensation expense, included in insurance operating costs and other expenses in the consolidated statement of operations, was as follows: Stock-Based Compensation Expense For the years ended December 31, 2018 2017 2016 Stock-based compensation plans expense [1] $ 130 $ 116 $ 81 Income tax benefit (27 ) (41 ) (29 ) Excess tax benefit on awards vested, exercised and expired (5 ) (15 ) — Total stock-based compensation plans expense, after tax [2] $ 98 $ 60 $ 52 [1] The increase in stock-based compensation plans expense in 2018 and 2017 was largely due to a change made in 2017 to provide accelerated vesting of newly issued restricted stock unit and performance share awards to retirement eligible employees. [2] The increase in stock-based compensation plans expense, after-tax in 2018 is primarily related to the reduction of the U.S. federal corporate tax rate from 35% to 21%. The Company did not capitalize any cost of stock-based compensation. As of December 31, 2018 , the total compensation cost related to non-vested awards not yet recognized was $64 , which is expected to be recognized over a weighted average period of 1.9 years. In the second quarter of 2018, The Hartford modified the terms of the portion of its outstanding 2016 and 2017 performance share awards that are based on actual versus targeted return on equity over the performance period. The modification eliminated the benefit to return on equity that arose from the charge against earnings in 2017 driven by the effect of the lower corporate income tax rate on the carrying value of net deferred tax assets. This modification had no impact on compensation cost recognized over the vesting period since compensation cost based on the original performance share conditions is projected to be higher than what the cost would be based on the performance share conditions as modified. Stock Plan Future stock-based awards may be granted under The Hartford's 2014 Incentive Stock Plan (the "Incentive Stock Plan") other than the Subsidiary Stock Plan and the Employee Stock Purchase Plan described below. The Incentive Stock Plan provides for awards to be granted in the form of non-qualified or incentive stock options qualifying under Section 422 of the Internal Revenue Code, stock appreciation rights, performance shares, restricted stock or restricted stock units, or any other form of stock-based award. The maximum number of shares, subject to adjustments set forth in the Incentive Stock Plan, that may be issued to Company employees and third party service providers during the 10 -year duration of the Incentive Stock Plan is 12,000,000 shares. If any award under an earlier incentive stock plan is forfeited, terminated, surrendered, exchanged, expires unexercised, or is settled in cash in lieu of stock (including to effect tax withholding) or for the net issuance of a lesser number of shares than the number subject to the award, the shares of stock subject to such award (or the relevant portion thereof) shall be available for awards under the Incentive Stock Plan and such shares shall be added to the maximum limit. As of December 31, 2018 , there were 7,294,481 shares available for future issuance. The fair values of awards granted under the Incentive Stock Plan are measured as of the grant date and expensed ratably over the awards’ vesting periods, generally 3 years . For stock option awards to retirement-eligible employees the Company recognizes the expense over a period shorter than the stated vesting period because the employees receive accelerated vesting upon retirement and therefore the vesting period is considered non-substantive. Beginning with awards granted in 2017, employees with restricted stock units and performance shares receive accelerated vesting upon meeting certain retirement eligibility criteria. Stock Option Awards Under the Incentive Stock Plan, options granted have an exercise price at least equal to the market price of the Company’s common stock on the date of grant, and an option’s maximum term is not to exceed 10 years . Options generally become exercisable over a period of three years commencing one year from the date of grant. Certain other options become exercisable at the later of three years from the date of grant or upon specified market appreciation of the Company's common shares. The Company uses a hybrid lattice/Monte-Carlo based option valuation model (the “valuation model”) that incorporates the possibility of early exercise of options into the valuation. The valuation model also incorporates the Company’s historical termination and exercise experience to determine the option value. The valuation model incorporates ranges of assumptions for inputs, and those ranges are disclosed below. The term structure of volatility is generally constructed utilizing implied volatilities from exchange-traded options, CPP warrants related to the Company’s stock, historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model, and accommodates variations in employee preference and risk-tolerance by segregating the grantee pool into a series of behavioral cohorts and conducting a fair valuation for each cohort individually. The expected term of options granted is derived from the output of the option valuation model and represents, in a mathematical sense, the period of time that options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Constant Maturity Treasury yield curve in effect at the time of grant. Stock Options Valuation Assumptions For the years ended December 31, 2018 2017 2016 Expected dividend yield 1.8% 1.9% 2.0% Expected annualized spot volatility 20.8 % - 36.5% 21.8 % - 37.9% 27.3 % - 41.3% Weighted average annualized volatility 29.0% 29.5% 34.1% Risk-free spot rate 1.5 % - 2.9% 0.4 % - 2.4% 0.3 % - 1.8% Expected term 5.7 years 5.0 years 5.0 years Non-qualified Stock Option Activity Under the Incentive Stock Plan Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value For the year ended December 31, 2018 Outstanding at beginning of year 5,212 $ 37.25 Granted 876 $ 53.81 Exercised (571 ) $ 26.43 Forfeited — $ — Expired (27 ) $ 74.88 Outstanding at end of year 5,490 $ 40.84 6.1 years $ 32 Outstanding, fully vested and expected to vest 5,240 $ 42.79 6.1 years $ 30 Exercisable at end of year 3,737 $ 36.30 4.9 years $ 32 Aggregate intrinsic value represents the value of the Company's closing stock price on the last trading day of the period in excess of the exercise price multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value excludes the effect of stock options that have a zero or negative intrinsic value. The weighted average grant-date fair value per share of options granted during the years ended December 31, 2018 , 2017 , and 2016 was $14.04 , $12.38 and $12.14 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was $14 , $8 , and $1 , respectively. Share Awards Share awards granted under the Incentive Stock Plan and outstanding include restricted stock units and performance shares. Restricted Stock and Restricted Stock Units Restricted stock units are share equivalents that are credited with dividend equivalents. Dividend equivalents are accumulated and paid in incremental shares when the underlying units vest. Restricted stock are shares of The Hartford's common stock with restrictions as to transferability until vested. Restricted stock units and restricted stock awards are valued equal to the market price of the Company’s common stock on the date of grant. Generally, restricted stock units vest at the end of or over three years ; certain restricted stock units vest at the end of five years . Beginning in 2017, restricted stock units vest at the earlier of employees retirement eligibility date or three years . Equity awards granted to non-employee directors generally vest in one year and were made in the form of restricted stock units in 2018, 2017 and 2016. Performance Shares Performance shares become payable within a range of 0% to 200% of the number of shares initially granted based upon the attainment of specific performance goals achieved at the end of or over three years . While most performance shares vest at the end of or over three years , certain performance shares vest at the end of five years . Beginning in 2017, performance shares vest at the earlier of employees retirement eligibility date or three years. Performance share awards that are not dependent on market conditions are valued equal to the market price of the Company's common stock on the date of grant less a discount for the absence of dividends. Stock-compensation expense for these performance share awards without market conditions is based on a current estimate of the number of awards expected to vest based on the performance level achieved and, therefore, may change during the performance period as new estimates of performance are available. Other performance share awards or portions thereof have a market condition based upon the Company's total stockholder return relative to a group of peer companies within a period of three years from the date of grant. Stock compensation expense for these performance share awards is based on the number of awards expected to vest as estimated at the grant date and, therefore, does not change for changes in estimated performance. The Company uses a risk neutral Monte-Carlo valuation model that incorporates time to maturity, implied volatilities of the Company and the peer companies, and correlations between the Company and the peer companies and interest rates. Assumptions for Total Shareholder Return Performance Shares For the years ended December 31, 2018 2017 2016 Volatility of common stock 20.8% 20.3% 22.2% Average volatility of peer companies 17.0 % - 25.0% 15.0 % - 25.0% 15.0 % - 26.0% Average correlation coefficient of peer companies 54.0% 60.0% 56.0% Risk-free spot rate 2.4% 1.5% 1.0% Term 3.0 years 3.0 years 3.0 years Total Share Awards Non-vested Share Award Activity Under the Incentive Stock Plan Restricted Stock and Restricted Stock Units Performance Shares Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value Number of Shares (in thousands) Weighted-Average Grant date Fair Value Non-vested shares For the year ended December 31, 2018 Non-vested at beginning of year 4,444 $ 43.94 795 $ 45.16 Granted 1,359 $ 53.11 372 $ 50.26 Performance based adjustment 188 $ 43.59 Vested (1,721 ) $ 41.52 (539 ) $ 43.59 Forfeited (636 ) $ 46.07 (81 ) $ 44.45 Non-vested at end of year 3,446 $ 48.43 735 $ 49.56 The weighted average grant-date fair value per share of restricted stock units and restricted stock granted during the years ended December 31, 2018 , 2017 , and 2016 was $53.11 , $48.90 and $42.87 , respectively. The weighted average grant-date fair value per share of performance shares granted during the years ended December 31, 2018 , 2017 , and 2016 was $50.26 , $48.89 and $41.50 , respectively. The total fair value of shares vested during the years ended December 31, 2018 , 2017 and 2016 was $114 , $94 and $128 , respectively, based on actual or estimated performance factors. The Company did not make cash payments in settlement of stock compensation during the years ended December 31, 2018 , 2017 and 2016 . Subsidiary Stock Plan In 2013 the Company established a subsidiary stock-based compensation plan similar to The Hartford Incentive Stock Plan except that it awards non-public subsidiary stock as compensation. The Company recognized stock-based compensation plan expense of $9 , $9 and $7 in the years ended December 31, 2018 , 2017 and 2016 , respectively, for the subsidiary stock plan. Upon employee vesting of subsidiary stock, the Company recognizes a noncontrolling equity interest. Employees are restricted from selling vested subsidiary stock to anyone other than the Company and the Company has discretion on the amount of stock to repurchase. Therefore, the subsidiary stock is classified as equity because it is not mandatorily redeemable. For the year ended December 31, 2018 , the Company repurchased $4 in subsidiary stock. Employee Stock Purchase Plan The Company sponsors The Hartford Employee Stock Purchase Plan (“ESPP”). Under this plan, eligible employees of The Hartford purchase common stock of the Company at a discount rate of 5% of the market price per share on the last trading day of the offering period. Accordingly, the plan is a non-compensatory plan. Employees purchase a variable number of shares of stock through payroll deductions elected as of the beginning of the offering period. The Company may sell up to 15,400,000 shares of stock to eligible employees under the ESPP. As of December 31, 2018 , there were 4,297,972 shares available for future issuance. During the years ended December 31, 2018 , 2017 and 2016 , 219,661 shares, 204,533 shares, and 222,113 shares were sold, respectively. The weighted average per share fair value of the discount under the ESPP was $2.56 , $ 2.63 and $ 2.26 during the years ended December 31, 2018 , 2017 and 2016 , respectively. The fair value is estimated based on the 5% |
Business Dispositions and Disco
Business Dispositions and Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Dispositions and Discontinued Operations | 20 . BUSINESS DISPOSITIONS AND DISCONTINUED OPERATIONS Sale of U.K. business On May 10, 2017, the Company completed the sale of its U.K. property and casualty run-off subsidiaries, Hartford Financial Products International Limited and Downlands Liability Management Limited, in a cash transaction to Catalina Holdings U.K. Limited ("buyer"), for approximately $ 272 , net of transaction costs. The Company's U.K. property and casualty run-off subsidiaries are included in the P&C Other Operations reporting segment. Revenues and earnings are not material to the Company's consolidated results of operations for the years ended December 31, 2017 and 2016. The sale resulted in an after tax capital loss from the transaction of $ 5 on the sale for the year ended December 31, 2016. Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with the Sale Carrying Value as of Closing December 31, 2016 [2] Assets Cash and investments $ 669 $ 657 Reinsurance recoverables and other [1] 268 213 Total assets held for sale 937 870 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses 653 600 Other liabilities 12 11 Total liabilities held for sale $ 665 $ 611 [1] Includes intercompany reinsurance recoverables of $ 71 as of December 31, 2016, settled in cash at closing. [2] Classified as assets and liabilities held for sale. Sale of life and annuity business On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc. (HHI), completed the sale of its life and annuity business to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired Hartford Life, Inc. (HLI), and its life and annuity operating subsidiaries, for cash of approximately $ 1.4 billion after a pre-closing dividend to The Hartford of $ 300 . The Hartford received a 9.7 % ownership interest in the limited partnership, valued at a cost of $ 164 as of the sale date. In addition, as part of the terms of the sale agreement, The Hartford reduced its long-term debt by $ 142 because the debt, which was issued by HLI, was included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale were approximately $ 1.5 billion. The life and annuity operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale. The Company recognized a loss on sale within discontinued operations of approximately $ 3.3 billion in 2017 and a reduction in loss on sale of $ 202 in 2018. The reduction in loss on sale in 2018 primarily resulted from the reclassification to retained earnings of $ 193 of tax effects stranded in AOCI due to the accounting for Tax Reform and a $ 141 increase in estimated retained tax benefits, primarily net operating loss carryovers, partially offset by $ 104 of operating income from discontinued operations during the period up until the closing date and a reclassification of $ 10 of net unrealized capital gains from AOCI to retained earnings. See Note 1 - Adoption of New Accounting Standards within Basis of Presentation and Significant Accounting Policies , for additional information about the reclassifications from AOCI to retained earnings. The estimated amount of retained net operating loss carryovers depends on the estimated tax basis of the business sold which increased subsequent to the date the Company entered into the sale agreement. At closing, stockholders’ equity was further reduced for the amount of AOCI of the life and annuity business, which was approximately $ 758 , largely consisting of net unrealized gains on investments, net of shadow DAC. The AOCI balance was $ 1 billion as of December 31, 2017. Cash inflows and outflows from and to the life and annuity business after closing were immaterial to the overall inflows and outflows of the Company. Additionally, the revenues and expenses presented in continuing operations related to pre-disposal operations were immaterial. The Company will continue to manage invested assets of the life and annuity business sold in May 2018 for an initial term of five years and provide transition services for up to 24 months . The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP, which is accounted for under the equity method, in other assets in the Consolidated Balance Sheet. The Hartford recognizes its share of income in other revenues in the Consolidated Statement of Operations on a three month delay, when financial information from the investee becomes available. The Company recognized $ 8 of income for 2018. Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale Carrying Value as of Closing December 31, 2017 [2] Assets Cash and investments $ 27,058 $ 30,135 Reinsurance recoverables 20,718 20,785 Loss accrual [1] (3,044 ) (3,257 ) Other assets 2,907 1,439 Separate account assets 110,773 115,834 Total assets held for sale $ 158,412 $ 164,936 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses $ 14,308 $ 14,482 Other policyholder funds and benefits payable 28,680 29,228 Long-term debt 142 142 Other liabilities 2,222 2,756 Separate account liabilities 110,773 115,834 Total liabilities held for sale $ 156,125 $ 162,442 [1] Represents the estimated accrued loss on sale of the Company's life and annuity business. [2] Classified as assets and liabilities held for sale. Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations For the years ended December 31, 2018 2017 2016 Revenues Earned premiums $ 39 $ 106 $ 114 Fee income and other 382 912 931 Net investment income 519 1,289 1,384 Net realized capital losses (68 ) (53 ) (158 ) Total revenues 872 2,254 2,271 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 535 1,416 1,390 Amortization of DAC 58 45 146 Insurance operating costs and other expenses [1] 157 368 378 Total benefits, losses and expenses 750 1,829 1,914 Income before income taxes 122 425 357 Income tax expense (benefit) 2 37 74 Income from operations of discontinued operations, net of tax 120 388 283 Net realized capital gain (loss) on disposal, net of tax 202 (3,257 ) — Income (loss) from discontinued operations, net of tax $ 322 $ (2,869 ) $ 283 [1]Corporate allocated overhead has been included in continuing operations. Cash Flows from Discontinued Operations included in the Consolidated Statement of Cash Flows Year Ended December 31, 2018 2017 2016 Net cash provided by operating activities from discontinued operations $ 603 $ 797 $ 784 Net cash provided by investing activities from discontinued operations $ 463 $ 1,466 $ 864 Net cash used in financing activities from discontinued operations [1] $ (737 ) $ (884 ) $ (647 ) Cash paid for interest $ — $ 11 $ 11 [1] Excludes return of capital to parent of $619 , $1,396 , and $752 for 2018 , 2017 and 2016 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | 21 . QUARTERLY RESULTS (UNAUDITED) Current and Historical Quarterly Results of the Company Three months ended March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Revenues $ 4,691 $ 4,169 $ 4,789 $ 4,214 $ 4,842 $ 4,192 $ 4,633 $ 4,587 Benefits, losses and expenses 4,172 3,768 4,252 4,495 4,312 4,011 4,466 4,165 Income (loss) from continuing operations, net of tax 428 303 434 (152 ) 427 145 196 (558 ) Income (loss) from discontinued operations, net of tax 169 75 148 112 5 89 — (3,145 ) Net income (loss) $ 597 $ 378 $ 582 $ (40 ) $ 432 $ 234 $ 196 $ (3,703 ) Less: Preferred stock dividends — — — — — — 6 — Net income (loss) available to common stockholders $ 597 $ 378 $ 582 $ (40 ) $ 432 $ 234 $ 190 $ (3,703 ) Basic Income (loss) from continuing operations, net of tax, available to common stockholders per share $ 1.20 $ 0.82 $ 1.21 $ (0.42 ) $ 1.19 $ 0.40 $ 0.53 $ (1.56 ) Income (loss) from discontinued operations, net of tax per share $ 0.47 $ 0.20 $ 0.41 $ 0.31 $ 0.01 $ 0.25 $ — $ (8.81 ) Net income (loss) per common share available to common stockholders $ 1.67 $ 1.02 $ 1.62 $ (0.11 ) $ 1.20 $ 0.65 $ 0.53 $ (10.37 ) Diluted Income (loss) from continuing operations, net of tax, available to common stockholders per share $ 1.18 $ 0.80 $ 1.19 $ (0.42 ) $ 1.17 $ 0.40 $ 0.52 $ (1.56 ) Income (loss) from discontinued operations, net of tax per share $ 0.46 $ 0.20 $ 0.41 $ 0.31 $ 0.02 $ 0.24 $ — $ (8.81 ) Net income (loss) per common share available to common stockholders $ 1.64 $ 1.00 $ 1.60 $ (0.11 ) $ 1.19 $ 0.64 $ 0.52 $ (10.37 ) Weighted average common shares outstanding, basic 357.5 371.4 358.3 366.0 358.6 360.2 359.1 357.0 Weighted average shares outstanding and dilutive potential common shares [1] 363.9 378.6 364.2 366.0 364.1 367.0 364.0 357.0 [1] |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other Than Investments in Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other Than Investments in Affiliates | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE I SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN AFFILIATES (in millions) As of December 31, 2018 Type of Investment Cost Fair Value Amount at Fixed Maturities Bonds and notes U.S. government and government agencies and authorities (guaranteed and sponsored) $ 4,446 $ 4,430 $ 4,430 States, municipalities and political subdivisions 9,972 10,346 10,346 Foreign governments 866 847 847 Public utilities 2,017 1,991 1,991 All other corporate bonds 11,679 11,407 11,407 All other mortgage-backed and asset-backed securities 6,623 6,631 6,631 Total fixed maturities, available-for-sale 35,603 35,652 35,652 Fixed maturities, at fair value using fair value option 21 22 22 Total fixed maturities 35,624 35,674 35,674 Equity Securities Common stocks Industrial, miscellaneous and all other 1,170 1,170 1,170 Non-redeemable preferred stocks 44 44 44 Total equity securities, at fair value 1,214 1,214 1,214 Mortgage loans 3,704 3,746 3,704 Futures, options and miscellaneous 254 192 192 Short-term investments 4,282 4,283 4,283 Investments in partnerships and trusts 1,723 1,723 Total investments $ 46,802 $ 46,790 |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (Registrant) (In millions) As of December 31, Condensed Balance Sheets 2018 2017 Assets Fixed maturities, available-for-sale, at fair value $ 785 $ 637 Equity securities, at fair value 30 — Other investments 103 (1 ) Short-term investments 2,603 442 Cash 3 2 Investment in affiliates [1] 15,074 19,023 Deferred income taxes 992 693 Unamortized issue costs 3 1 Other assets 78 11 Total assets $ 19,671 $ 20,808 Liabilities and Stockholders’ Equity Net payable to affiliates $ 1,530 $ 1,598 Short-term debt (includes current maturities of long-term debt) 413 320 Long-term debt 4,265 4,678 Other liabilities 362 718 Total liabilities 6,570 7,314 Total stockholders’ equity 13,101 13,494 Total liabilities and stockholders’ equity $ 19,671 $ 20,808 [1]2017 includes amounts for the life and annuity business accounted for as held for sale and operating results for that business included in discontinued operations in the Consolidated Financial Statements. See Note 20 – Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued) (Registrant) (In millions) For the years ended December 31, Condensed Statements of Operations and Comprehensive Income 2018 2017 2016 Net investment income $ 41 $ 15 $ 21 Net realized capital gains (losses) 37 (1 ) (6 ) Total revenues 78 14 15 Interest expense 298 316 328 Loss on extinguishment of debt 6 — — Pension settlement — 750 — Other expense (income) (6 ) 1 9 Total expenses 298 1,067 337 Loss before income taxes and earnings of subsidiaries (220 ) (1,053 ) (322 ) Income tax expense (benefit) (630 ) 106 (117 ) Income (loss) before earnings of subsidiaries 410 (1,159 ) (205 ) Earnings (losses) of subsidiaries [1] 1,397 (1,972 ) 1,101 Net income (loss) 1,807 (3,131 ) 896 Other comprehensive income (loss) - parent company: Change in net gain/loss on cash-flow hedging instruments 8 2 — Change in net unrealized gain/loss on securities (271 ) 280 1 Change in pension and other postretirement plan adjustments (26 ) 107 (6 ) Other comprehensive income (loss), net of taxes before other comprehensive income of subsidiaries (289 ) 389 (5 ) Other comprehensive income (loss) of subsidiaries (1,948 ) 611 (3 ) Total other comprehensive income (loss) (2,237 ) 1,000 (8 ) Total comprehensive income (loss) $ (430 ) $ (2,131 ) $ 888 [1]2017 and 2016 include amounts for the life and annuity business accounted for as held for sale and operating results for that business included in discontinued operations in the Consolidated Financial Statements. See Note 20 – Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF THE HARTFORD FINANCIAL SERVICES GROUP, INC. (continued) (Registrant) (In millions) For the years ended December 31, Condensed Statements of Cash Flows 2018 2017 2016 Operating Activities Net income (loss) $ 1,807 $ (3,131 ) $ 896 Loss on extinguishment of debt 6 — — Equity in net loss (income) of subsidiaries (1,397 ) 1,972 (1,101 ) Change in operating assets and liabilities 2,362 3,220 1,634 Cash provided by operating activities 2,778 2,061 1,429 Investing Activities Net proceeds from (payments for) short-term investments (2,161 ) (121 ) 30 Net additions to property and equipment (69 ) — — Capital returned from (contributions to) subsidiaries (148 ) (633 ) 491 Cash provided by (used for) investing activities (2,378 ) (754 ) 521 Financing Activities Proceeds from issuance of debt 490 500 — Repayments of debt (826 ) (416 ) (275 ) Preferred stock issued, net of issuance costs 334 — — Treasury stock acquired — (1,028 ) (1,330 ) Net issuance (return of) shares under incentive and stock compensation plans (18 ) (20 ) (11 ) Dividends paid on common shares (379 ) (341 ) (334 ) Cash used for financing activities (399 ) (1,305 ) (1,950 ) Net increase in cash 1 2 — Cash — beginning of period 2 — — Cash — end of period $ 3 $ 2 $ — Supplemental Disclosure of Cash Flow Information Interest Paid $ 290 $ 312 $ 326 Dividends Received from Subsidiaries $ 3,115 $ 2,142 $ 1,320 |
Schedule III Supplementary Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III Supplementary Insurance Information | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (In millions) Segment Deferred Policy Acquisition Costs Unpaid Losses and Loss Adjustment Expenses Reserve for Future Policy Benefits Unearned Premiums Other Policyholder Funds and Benefits Payable As of December 31, 2018 Commercial Lines $ 495 $ 19,455 $ — $ 3,589 $ — Personal Lines 117 2,456 — 1,643 — Property & Casualty Other Operations — 2,673 — 7 — Group Benefits 52 8,445 427 43 455 Hartford Funds 6 — — — — Corporate — — 215 — 312 Consolidated $ 670 $ 33,029 $ 642 $ 5,282 $ 767 As of December 31, 2017 Commercial Lines $ 467 $ 18,893 $ — $ 3,504 $ — Personal Lines 127 2,294 — 1,768 — Property & Casualty Other Operations — 2,588 — 10 — Group Benefits 47 8,512 441 40 492 Hartford Funds 9 — — — — Corporate — — 272 — 324 Consolidated $ 650 $ 32,287 $ 713 $ 5,322 $ 816 THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (In millions) Segment Earned Premiums, Fee Income and Other Net Investment Income Benefits, Losses and Loss Adjustment Expenses Amortization of Deferred Policy Acquisition Costs Insurance Operating Costs and Other Expenses [1] Net Written Premiums [2] For the year December 31, 2018 Commercial Lines $ 7,081 $ 997 $ 4,112 $ 1,048 $ 1,396 $ 7,136 Personal Lines 3,523 155 2,763 275 684 3,276 Property & Casualty Other Operations — 90 65 — 13 (4 ) Group Benefits 5,598 474 4,214 45 1,342 — Hartford Funds 1,032 5 — 16 831 — Corporate 53 59 11 — 387 — Consolidated $ 17,287 $ 1,780 $ 11,165 $ 1,384 $ 4,653 $ 10,408 For the year December 31, 2017 Commercial Lines $ 6,902 $ 949 $ 4,322 $ 1,009 $ 1,381 $ 6,956 Personal Lines 3,819 141 3,000 309 649 3,561 Property & Casualty Other Operations — 106 18 — 9 — Group Benefits 3,677 381 2,803 33 924 — Hartford Funds 992 3 — 21 805 — Corporate 4 23 31 — 1,125 — Consolidated $ 15,394 $ 1,603 $ 10,174 $ 1,372 $ 4,893 $ 10,517 For the year December 31, 2016 Commercial Lines $ 6,690 $ 917 $ 3,994 $ 973 $ 1,244 $ 6,732 Personal Lines 4,023 135 3,175 348 669 3,837 Property & Casualty Other Operations — 127 278 — 663 (1 ) Group Benefits 3,223 366 2,514 31 776 — Hartford Funds 885 1 — 24 741 — Corporate 3 31 — 1 413 — Consolidated $ 14,824 $ 1,577 $ 9,961 $ 1,377 $ 4,506 $ 10,568 [1]includes interest expense, loss on extinguishment of debt, restructuring and other costs, reinsurance loss on disposition and amortization of intangible assets |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV Reinsurance | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE IV REINSURANCE (In millions) Gross Amount Ceded Amount Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net For the year ended December 31, 2018 Life insurance in-force $ 722,048 $ 16,674 $ 442,817 $ 1,148,191 39 % Insurance revenues Property and casualty insurance $ 10,824 $ 599 $ 221 $ 10,446 2 % Life insurance and annuities 1,551 22 1,082 2,611 41 % Accident and health insurance 2,064 39 962 2,987 32 % Total insurance revenues $ 14,439 $ 660 $ 2,265 $ 16,044 14 % For the year ended December 31, 2017 Life insurance in-force $ 700,860 $ 9,493 $ 301,573 $ 992,940 30 % Insurance revenues Property and casualty insurance $ 10,923 $ 600 $ 232 $ 10,555 2 % Life insurance and annuities 1,526 14 232 1,744 13 % Accident and health insurance 1,755 36 214 1,933 11 % Total insurance revenues $ 14,204 $ 650 $ 678 $ 14,232 5 % For the year ended December 31, 2016 Life insurance in-force $ 657,197 $ 7,919 $ 22,239 $ 671,517 3 % Insurance revenues Property and casualty insurance $ 10,871 $ 583 $ 261 $ 10,549 2 % Life insurance and annuities 1,471 11 52 1,512 3 % Accident and health insurance 1,689 33 55 1,711 3 % Total insurance revenues $ 14,031 $ 627 $ 368 $ 13,772 3 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance January 1, Increase (decrease) in Costs and Expenses Write-offs/ Payments/ Other Balance December 31, 2018 Allowance for doubtful accounts and other $ 132 $ 40 $ (37 ) $ 135 Allowance for uncollectible reinsurance 104 3 19 126 Valuation allowance on mortgage loans 1 — — 1 Valuation allowance for deferred taxes — — — — 2017 Allowance for doubtful accounts and other 137 42 (47 ) 132 Allowance for uncollectible reinsurance 165 4 (65 ) 104 Valuation allowance on mortgage loans — 1 — 1 Valuation allowance for deferred taxes — — — — 2016 Allowance for doubtful accounts and other $ 134 $ 39 $ (36 ) $ 137 Allowance for uncollectible reinsurance 266 3 (104 ) 165 Valuation allowance on mortgage loans 4 — (4 ) — Valuation allowance for deferred taxes 79 (79 ) — — |
Schedule VI Supplementary Infor
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations | THE HARTFORD FINANCIAL SERVICES GROUP, INC. SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY AND CASUALTY INSURANCE OPERATIONS (In millions) Discount Deducted From Liabilities [1] Losses and Loss Adjustment Expenses Incurred Related to: Paid Losses and Loss Adjustment Expenses Current Year Prior Year Years ended December 31, 2018 $ 388 $ 7,107 $ (167 ) $ 6,406 2017 $ 410 $ 7,381 $ (41 ) $ 6,579 2016 $ 483 $ 6,990 $ 457 $ 6,968 [1] Reserves for permanently disabled claimants have been discounted using the weighted average interest rates of 2.98% , 3.06% , and 3.11% for the years ended December 31, 2018 , 2017 , and 2016 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States (collectively, “The Hartford”, the “Company”, “we” or “our”). On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in late March or April 2019, subject to customary closing conditions, including receipt of regulatory approvals. On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, for its life and annuity operating subsidiaries. On November 1, 2017, Hartford Life and Accident Insurance Company ("HLA"), a wholly owned subsidiary of the Company, completed the acquisition of Aetna's U.S. group life and disability business through a reinsurance transaction. On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries. On July 29, 2016, the Company completed the acquisition of Northern Homelands Company, the holding company of Maxum Specialty Insurance Group (collectively "Maxum"). On July 29, 2016, the Company completed the acquisition of Lattice Strategies LLC ("Lattice"). For further discussion of these transactions, see Note 2 - Business Acquisitions and Note 20 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements. The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which differ materially from the accounting practices prescribed by various insurance regulatory authorities. |
Consolidation | ConsolidationThe Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated. |
Discontinued Operations | Discontinued OperationsThe results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations. |
Use of Estimates | Use of Estimates 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 the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular: • |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Stock Compensation On January 1, 2017 the Company adopted new stock compensation guidance issued by the Financial Accounting Standards Board ("FASB") on a prospective basis. The updated guidance requires the excess tax benefit or tax deficiency on vesting or settlement of stock-based awards to be recognized in earnings as an income tax benefit or expense, respectively, instead of as an adjustment to additional paid-in capital. The new guidance also requires the related cash flows to be presented in operating activities instead of in financing activities. The amount of excess tax benefit or tax deficiency realized on vesting or settlement of awards depends upon the difference between the market value of awards at vesting or settlement and the grant date fair value recognized through compensation expense. The excess tax benefit or tax deficiency is a discrete item in the reporting period in which it occurs and is not considered in determining the annual estimated effective tax rate for interim reporting. The excess tax benefit recognized in earnings for the year ended December 31, 2018 and 2017 was $5 and $15 , respectively, and the excess tax benefit recognized in additional paid-in capital for the year ended December 31, 2016 was $5 . Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings On January 1, 2018, the Company adopted the FASB's new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193 , net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings. Financial Instruments- Recognition and Measurement On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on fixed maturities, available-for-sale that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available-for-sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83 , after tax, related to equity securities having a fair value of $1.0 billion . In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses. Revenue Recognition On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Hartford Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $188 and $184 for the years ended December 31, 2017 , and 2016 , respectively, that were previously netted against fee income to insurance operating costs and other expenses. Information about the nature, amount, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance follows. Revenue from Non-Insurance Contracts with Customers Year ended December 31, Revenue Line Item 2018 2017 2016 Commercial Lines Installment billing fees Fee income $ 34 $ 37 $ 39 Personal Lines Installment billing fees Fee income 40 44 39 Insurance servicing revenues Other revenues 84 85 86 Group Benefits Administrative services Fee income 175 91 75 Hartford Funds Advisor, distribution and other management fees Fee income 947 897 797 Other fees Fee income 85 95 88 Corporate Investment management and other fees Fee income 32 4 3 Transition service revenues Other revenues 21 — — Total revenues subject to updated guidance $ 1,418 $ 1,253 $ 1,127 Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection. Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms. Group Benefits products earn fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly. Hartford Funds provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Hartford Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly. Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the new holding company of the life and annuity business the Company sold in May 2018. These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned. Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity business that will be provided for a period up to twenty-four months from the May 31, 2018 sale date. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly. Future Adoption of New Accounting Standards Hedging Activities The FASB issued updated guidance on hedge accounting. The updates allow hedge accounting for new types of interest rate hedges of financial instruments and simplify documentation requirements to qualify for hedge accounting. In addition, any gain or loss from hedge ineffectiveness will be reported in the same income statement line with the effective hedge results and the hedged transaction. For cash flow hedges, the ineffectiveness will be recognized in earnings only when the hedged transaction affects earnings; otherwise, the ineffectiveness gains or losses will remain in AOCI. Under current accounting, total hedge ineffectiveness is reported separately in realized gains and losses apart from the hedged transaction. The Company will adopt the guidance effective January 1, 2019 through a cumulative effect adjustment of less than $1 to reclassify cumulative ineffectiveness on open cash flow hedges from retained earnings to AOCI. The adoption will not affect the Company’s financial position or cash flows or have a material effect on net income. Goodwill The FASB issued updated guidance on testing goodwill for impairment. The updated guidance requires recognition and measurement of goodwill impairment based on the excess of the carrying value of the reporting unit compared to its estimated fair value, with the amount of the impairment not to exceed the carrying value of the reporting unit’s goodwill. Under existing guidance, if the reporting unit’s carrying value exceeds its estimated fair value, the Company allocates the fair value of the reporting unit to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. An impairment loss is then recognized for the excess, if any, of the carrying value of the reporting unit’s goodwill compared to the implied goodwill value. The Company expects to adopt the updated guidance January 1, 2020 on a prospective basis as required, although earlier adoption is permitted. While the Company would not have recognized a goodwill impairment loss for the years presented, the impact of the adoption will depend on the estimated fair value of the Company’s reporting units compared to the carrying value at adoption. Financial Instruments - Credit Losses The FASB issued updated guidance for recognition and measurement of credit losses on financial instruments. The new guidance will replace the “incurred loss” approach with an “expected loss” model for recognizing credit losses for financial instruments carried at other than fair value, which will initially result in the recognition of greater allowances for losses. The allowance will be an estimate of credit losses expected over the life of financial instruments carried at other than fair value, such as mortgage loans, reinsurance recoverables and receivables. Credit losses on fixed maturities AFS carried at fair value will continue to be measured like other-than-temporary impairments ("OTTI"); however, the losses will be recognized through an allowance and no longer as an adjustment to the cost basis. Recoveries of impairments on fixed maturities AFS will be recognized as reversals of valuation allowances and no longer accreted as investment income through an adjustment to the investment yield. The allowance on fixed maturities AFS cannot cause the net carrying value to be below fair value and, therefore, it is possible that future increases in fair value due to decreases in market interest rates could cause the reversal of a valuation allowance and increase net income. The new guidance also requires purchased financial assets with a more-than-insignificant amount of credit deterioration since original issuance to be recorded based on contractual amounts due and an initial allowance recorded at the date of purchase. The Company will adopt the guidance effective January 1, 2020, through a cumulative-effect adjustment to retained earnings for the change in the allowance for credit losses for financial instruments carried at other than fair value. No allowance will be recognized at adoption for fixed maturities AFS; rather, their cost basis will be evaluated for an allowance for credit losses prospectively. The Company has not yet determined the effect on the Company’s consolidated financial statements and the ultimate impact of the adoption will depend on the composition of the financial instruments and market conditions at the adoption date. Significant implementation matters yet to be addressed include estimating lifetime expected losses on financial instruments carried at other than fair value, determining the impact of valuation allowances on net investment income from fixed maturities AFS, and updating our investment accounting system functionality to maintain adjustable valuation allowances on fixed maturities AFS, subject to a fair value floor. Leases The FASB issued updated guidance on lease accounting. Under the new guidance, effective January 1, 2019, lessees with operating leases are required to recognize a liability for the present value of future minimum lease payments with a corresponding asset for the right of use of the property. Under guidance effective through December 31, 2018, future minimum lease payments on operating leases are commitments that are not recognized as liabilities on the balance sheet. Under the new guidance, leases will be classified as financing or operating leases. Where the lease is economically similar to a purchase because The Hartford obtains control of the underlying asset, the lease will be a financing lease and the Company will recognize amortization of the right of use asset and interest expense on the liability. Where the lease provides The Hartford with only the right to control the use of the underlying asset over the lease term and the lease term is greater than one year, the lease will be an operating lease and the lease costs will be recognized as rental expense over the lease term on a straight-line basis. Leases with a term of one year or less will also be expensed over the lease term but will not be recognized on the balance sheet. The Company will adopt the guidance as of the January 1, 2019, effective date with no change to comparative periods and record a lease payment obligation of approximately $160 for outstanding leases and a right of use asset of approximately $150 , which is net of $10 in lease incentives received. The Hartford will elect to apply the package of practical expedients and not reassess expired or existing contracts that are or contain leases; all operating leases will remain classified as operating leases on adoption; and initial direct costs on existing leases will not be reassessed to determine if deferred costs should be written-off or recorded on adoption. The adoption will not impact net income or cash flows. Reserve for Future Policy Benefits The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities with total future policy benefit reserves of $642 as of December 31, 2018 . Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2021, |
Revenue Recognition | Revenue RecognitionProperty and casualty insurance premiums are earned on a pro rata basis over the policy period and include accruals for ultimate premium revenue anticipated under auditable and retrospectively rated policies. Unearned premiums represent the premiums applicable to the unexpired terms of policies in force. An estimated allowance for doubtful accounts is recorded on the basis of periodic evaluations of balances due from insureds, management’s experience and current economic conditions. The Company charges off any balances that are determined to be uncollectible. Group life, disability and accident premiums are generally due from policyholders and recognized as revenue on a pro rata basis over the period of the contracts. |
Dividends to Policyholders | Dividends to Policyholders Policyholder dividends are paid to certain property and casualty policyholders. Policies that receive dividends are referred to as participating policies. Participating dividends to policyholders are accrued and reported in insurance operating costs and other expenses and other liabilities using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. Net written premiums for participating property and casualty insurance policies represented 10% , 10% and 9% of total net written premiums for the years ended December 31, 2018 , 2017 and 2016 , respectively. Participating dividends to property and casualty policyholders were $23 , $35 and $15 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Investments | Investments Overview The Company’s investments in fixed maturities include bonds, structured securities, redeemable preferred stock and commercial paper. Most of these investments are classified as available-for-sale ("AFS") and are carried at fair value. The after tax difference between fair value and cost or amortized cost is reflected in stockholders’ equity as a component of AOCI. Effective January 1, 2018, equity securities are measured at fair value with any changes in valuation reported in net income. For further information, see Financial Instruments - Recognition and Measurement discussion above. Fixed maturities for which the Company elected the fair value option are classified as FVO, generally certain securities that contain embedded credit derivatives, and are carried at fair value with changes in value recorded in realized capital gains and losses. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value and are primarily accounted for under the equity method with the Company’s share of earnings included in net investment income. Recognition of income related to limited partnerships and other alternative investments is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds on a one-month delay. Accordingly, income for the years ended December 31, 2018 , 2017 , and 2016 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships. Other investments primarily consist of investments of consolidated investment funds and derivative instruments which are carried at fair value. The Company has provided seed money for investment funds and reports the underlying investments at fair value with changes in the fair value recognized in income consistent with accounting requirements for investment companies. Net Realized Capital Gains and Losses Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Net realized capital gains and losses also result from fair value changes in fixed maturities, FVO, equity securities, and derivatives contracts that do not qualify, or are not designated, as a hedge for accounting purposes as well as ineffectiveness on derivatives that qualify for hedge accounting treatment. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s impairment and mortgage loan valuation allowance policies as discussed in Note 6 - Investments of Notes to Consolidated Financial Statements. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. Net Investment Income Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. Most premiums and discounts on fixed maturities are amortized to the maturity date. Premiums on callable bonds may be amortized to call dates based on call prices. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future prepayments using the retrospective method; however, if these investments are impaired and for certain other asset-backed securities, any yield adjustments are made using the prospective method. Prepayment fees and make-whole payments on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, dividends are recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2018 , 2017 and 2016 |
Derivatives | Derivative Instruments Overview The Company utilizes a variety of over-the-counter ("OTC") derivatives, derivatives cleared through central clearing houses ("OTC-cleared") and exchange traded derivative instruments as part of its overall risk management strategy as well as to enter into replication transactions. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: • to hedge risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; • to manage liquidity; • to control transaction costs; • to enter into synthetic replication transactions. Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, little to no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. The Company clears certain interest rate swap and credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid securities, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 7 - Derivatives of Notes to Consolidated Financial Statements. In addition, OTC-cleared transactions include price alignment amounts either received or paid on the variation margin, which are reflected in realized capital gains and losses or, if characterized as interest, in net investment income. Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. The contracts may reference commodities, which grant the purchaser the right to either purchase from or sell to the issuer commodities at a specified price, within a specified period or on a stated date. Option contracts are typically settled in cash. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. The Company’s derivative transactions conducted in insurance company subsidiaries are used in strategies permitted under the derivative use plans required by the State of Connecticut, the State of Illinois and the State of New York insurance departments. Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. The Company currently does not designate any derivatives as fair value or net investment hedges. Cash Flow Hedges - Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the Consolidated Statements of Operations in which the cash flows of the hedged item are recorded. Cash flows from cash flow hedges are presented in the same category as the cash flows from the items being hedged in the Consolidated Statement of Cash Flows. Other Investment and/or Risk Management Activities - The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. Hedge Documentation and Effectiveness Testing To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values, cash flows or net investment in foreign operations of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the “Change in Variable Cash Flows Method”, the “Change in Fair Value Method”, the “Hypothetical Derivative Method”, or the “Dollar Offset Method”. Discontinuance of Hedge Accounting The Company discontinues hedge accounting prospectively when (1) it is determined that the qualifying criteria are no longer met; (2) the derivative is no longer designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. Changes in the fair value of the hedged item attributable to the hedged risk is no longer adjusted through current period earnings and the existing basis adjustment is amortized to earnings over the remaining life of the hedged item through the applicable earnings component associated with the hedged item. When cash flow hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. In other situations in which hedge accounting is discontinued, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the hedged item. Embedded Derivatives The Company purchases investments that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. Credit Risk of Derivative Instruments |
Cash | CashCash represents cash on hand and demand deposits with banks or other financial institutions. |
Reinsurance | Reinsurance The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers and is a member of and participates in reinsurance pools and associations. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies or pools have underwritten. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance contracts. Reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. Changes in the allowance for uncollectible reinsurance are reported in benefits, losses and loss adjustment expenses in the Company's Consolidated Statements of Operations. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Deferred policy acquisition costs ("DAC") represent costs that are directly related to the acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or in compensation to employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts. |
Income Taxes | Income TaxesThe Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. A deferred tax provision is recorded for the tax effects of differences between the Company's current taxable income and its income before tax under generally accepted accounting principles in the Consolidated Statements of Operations. For deferred tax assets, the Company records a valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of the cost to acquire a business over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. A reporting unit is defined as an operating segment or one level below an operating segment. The Company’s reporting units, for which goodwill has been allocated include small commercial within the Commercial Lines segment, Group Benefits, Personal Lines and Hartford Funds. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital required to support the business, future business growth, earnings projections and, for the Hartford Funds segment, assets under management and the weighted average cost of capital used for purposes of discounting. Decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease, increasing the possibility of impairments. Intangible Assets Acquired intangible assets on the Consolidated Balance Sheets include purchased customer relationship and agency or other distribution rights and licenses measured at fair value at acquisition. The Company amortizes finite-lived other intangible assets over their useful lives generally on a straight-line basis over the period of expected benefit, ranging from 1 to 15 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value. Indefinite-lived intangible assets are not subject to amortization. Intangible assets are assessed for impairment generally when events or circumstances indicate a potential impairment and at least annually for indefinite-lived intangibles. If the carrying amount is not recoverable from undiscounted cash flows, the impairment is measured as the difference between the carrying amount and fair value. |
Property and Equipment | Property and EquipmentProperty and equipment, which includes capitalized software, is carried at cost net of accumulated depreciation. Depreciation is based on the estimated useful lives of the various classes of property and equipment and is determined principally on the straight-line method. |
Unpaid Policy Claims and Claims Adjustment Expenses | Unpaid Losses and Loss Adjustment Expenses For property and casualty and group life and disability insurance products, the Company establishes reserves for unpaid losses and loss adjustment expenses to provide for the estimated costs of paying claims under insurance policies written by the Company. These reserves include estimates for both claims that have been reported and those that have been incurred but not reported ("IBNR"), and include estimates of all losses and loss adjustment expenses associated with processing and settling these claims. Estimating the ultimate cost of future losses and loss adjustment expenses is an uncertain and complex process. This estimation process is based significantly on the assumption that past developments are an appropriate predictor of future events, and involves a variety of actuarial techniques that analyze experience, trends and other relevant factors. The effects of inflation are implicitly considered in the reserving process. A number of complex factors influence the uncertainties involved with the reserving process including social and economic trends and changes in the concepts of legal liability and damage awards. Accordingly, final claim settlements may vary from the present estimates, particularly when those payments may not occur until well into the future. The Company regularly reviews the adequacy of its estimated losses and loss adjustment expense reserves by reserve line within the various reporting segments. Adjustments to previously established reserves are reflected in the operating results of the period in which the adjustment is determined to be necessary. Such adjustments could possibly be significant, reflecting any variety of new and adverse or favorable trends. Most of the Company’s property and casualty insurance products reserves are not discounted. However, the Company has discounted to present value certain reserves for indemnity payments that are due to permanently disabled claimants under workers’ compensation policies because the payment pattern and the ultimate costs are reasonably fixed and determinable on an individual claim basis. The discount rate is based on the risk free rate for the expected claim duration as determined in the year the claims were incurred. The Company also has discounted liabilities for run-off structured settlement agreements that provide fixed periodic payments to claimants. These structured settlements include annuities purchased to fund unpaid losses for permanently disabled claimants. These structured settlement liabilities are discounted to present value using the rate implicit in the purchased annuities and the purchased annuities are accounted for within reinsurance recoverables. |
Foreign Currency | Foreign CurrencyForeign currency translation gains and losses are reflected in stockholders’ equity as a component of AOCI. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. Gains and losses resulting from the remeasurement of foreign currency transactions are reflected in earnings in realized capital gains (losses) in the period in which they occur. |
Fair Value of Financial Instruments, Policy | The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework inclu des a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows: Level 1 Fair values based primarily on unadjusted quoted prices for identical assets, or liabilities, in active markets that the Company has the ability to access at the measurement date. Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities. Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers. The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order: • Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1. • Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3. • Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data. • Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3. The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments. Valuation Controls The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews. There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes. The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix. The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following: • Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services. • Daily comparison of OTC derivative market valuations to counterparty valuations. • Review of weekly price changes compared to published bond prices of a corporate bond index. • Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices. • Monthly validation of prices to a second source for securities in most sectors and for certain derivatives. In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models. Valuation Inputs Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, certain short-term investments, and exchange traded futures and option contracts. Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short Term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates Not applicable Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility |
Strategies that Qualify for Hedge Accounting | Strategies that Qualify for Hedge Accounting Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include: Cash Flow Hedges Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to Consolidated Financial Statements. Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities. Non-qualifying Strategies |
Commitments and Contingencies | Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies Revenue from Non-Insurance Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Revenue from Non-Insurance Contracts with Customers Year ended December 31, Revenue Line Item 2018 2017 2016 Commercial Lines Installment billing fees Fee income $ 34 $ 37 $ 39 Personal Lines Installment billing fees Fee income 40 44 39 Insurance servicing revenues Other revenues 84 85 86 Group Benefits Administrative services Fee income 175 91 75 Hartford Funds Advisor, distribution and other management fees Fee income 947 897 797 Other fees Fee income 85 95 88 Corporate Investment management and other fees Fee income 32 4 3 Transition service revenues Other revenues 21 — — Total revenues subject to updated guidance $ 1,418 $ 1,253 $ 1,127 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Fair Value of the Consideration Transferred at the Acquisition Date Cash $ 19 Contingent consideration 23 Total $ 42 Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date As of July 29, 2016 Assets Intangible assets [1] $ 11 Cash 1 Total assets acquired 12 Liabilities Total liabilities assumed 1 Net identifiable assets acquired 11 Goodwill [2] 31 Net assets acquired $ 42 [1] Comprised of indefinite lived intangibles of $ 10 related to customer relationships and $ 1 of other intangibles, which are amortized over 5 to 8 years. [2] As of July 29, 2016 Assets Cash and investments (including cash of $12) $ 274 Reinsurance recoverables 113 Intangible assets [1] 11 Other assets 79 Total assets acquired 477 Liabilities Unpaid losses 235 Unearned premiums 77 Other liabilities 34 Total liabilities assumed 346 Net identifiable assets acquired 131 Goodwill [2] 38 Net assets acquired $ 169 [1] Comprised of indefinite lived intangibles of $ 4 related to state insurance licenses acquired and other intangibles of $ 7 related to agency distribution relationships of Maxum which are amortized over 10 years. [2] Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017) Measurement Period Adjustments As Adjusted Value as of November 1, 2017 Assets Cash and invested assets $ 3,360 $ 45 $ 3,405 Premiums receivable 96 7 103 Deferred income taxes, net 56 13 69 Other intangible assets 629 — 629 Property and equipment 68 — 68 Reinsurance recoverables — 31 31 Other assets 16 (16 ) — Total Assets Acquired 4,225 80 4,305 Liabilities Unpaid losses and loss adjustment expenses 2,833 71 2,904 Reserve for future policy benefits payable 346 1 347 Other policyholder funds and benefits payable 245 1 246 Unearned premiums 3 1 4 Other liabilities 69 6 75 Total Liabilities Assumed 3,496 80 3,576 Net identifiable assets acquired 729 — 729 Goodwill [1] 723 — 723 Net Assets Acquired $ 1,452 $ — $ 1,452 [1] Approximately $ 610 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Intangible Assets Recorded in Connection with the Acquisition Asset Amount Estimated Useful Life Value of in-force contracts $ 23 1 year Customer relationships 590 15 years Marketing agreement with Aetna 16 15 years Total $ 629 |
Business Acquisition, Pro Forma Information | Pro Forma Results (Unaudited) Twelve months ended December 31, 2017 [1] Twelve months ended December 31, 2016 [1] Total Revenue $ 18,899 $ 18,348 Net Income $ (3,077 ) $ 953 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Computation of Basic and Diluted Earnings per Common Share For the years ended December 31, (In millions, except for per share data) 2018 2017 2016 Earnings Income (loss) from continuing operations, net of tax $ 1,485 $ (262 ) $ 613 Less: Preferred stock dividends 6 — — Income (loss) from continuing operations, net of tax, available to common stockholders 1,479 (262 ) 613 Income (loss) from discontinued operations, net of tax, available to common stockholders 322 (2,869 ) 283 Net income (loss) available to common stockholders 1,801 (3,131 ) 896 Shares Weighted average common shares outstanding, basic 358.4 363.7 387.7 Dilutive effect of warrants 1.9 — 3.6 Dilutive effect of stock-based awards under compensation plans 3.8 — 3.5 Weighted average common shares outstanding and dilutive potential common shares [1] 364.1 363.7 394.8 Earnings per common share Basic Income (loss) from continuing operations, net of tax, available to common stockholders $ 4.13 $ (0.72 ) $ 1.58 Income (loss) from discontinued operations, net of tax, available to common stockholders 0.90 (7.89 ) 0.73 Net income (loss) available to common stockholders $ 5.03 $ (8.61 ) $ 2.31 Diluted Income (loss) from continuing operations, net of tax, available to common stockholders $ 4.06 $ (0.72 ) $ 1.55 Income (loss) from discontinued operations, net of tax, available to common stockholders 0.89 (7.89 ) 0.72 Net income (loss) available to common stockholders $ 4.95 $ (8.61 ) $ 2.27 [1] For additional information, see Note 15 - Equity and Note 19 - Stock Compensation Plans |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Revenues For the years ended December 31, 2018 2017 2016 Earned premiums and fee income: Commercial Lines Workers’ compensation $ 3,341 $ 3,287 $ 3,187 Liability 653 604 585 Package business 1,364 1,301 1,249 Property 618 604 577 Professional liability 254 246 231 Bond 241 230 218 Automobile 610 630 643 Total Commercial Lines 7,081 6,902 6,690 Personal Lines Automobile 2,398 2,617 2,749 Homeowners 1,041 1,117 1,188 Total Personal Lines [1] 3,439 3,734 3,937 Property & Casualty Other Operations — — — Group Benefits Group disability 2,746 1,718 1,506 Group life 2,611 1,745 1,512 Other 241 214 205 Total Group Benefits 5,598 3,677 3,223 Hartford Funds Mutual fund and Exchange-Traded Products ("ETP") 932 888 779 Talcott Resolution life and annuity separate accounts [3] 100 104 106 Total Hartford Funds [2] 1,032 992 885 Corporate 32 4 3 Total earned premiums and fee income 17,182 15,309 14,738 Total net investment income 1,780 1,603 1,577 Net realized capital gains (losses) (112 ) 165 (110 ) Other revenues 105 85 86 Total revenues $ 18,955 $ 17,162 $ 16,291 [1] For 2018 , 2017 and 2016 , AARP members accounted for earned premiums of $3.0 billion , $3.2 billion and $3.3 billion , respectively. [2] Excludes distribution costs of $188 and $184 for the years ended December 31, 2017 , and 2016 , respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses. [3] |
Reconciliation of Net Income from Segments to Consolidated | Net Income (Loss) For the years ended December 31, 2018 2017 2016 Commercial Lines $ 1,212 $ 865 $ 994 Personal Lines (32 ) (9 ) (9 ) Property & Casualty Other Operations 15 69 (529 ) Group Benefits 340 294 230 Hartford Funds 148 106 78 Corporate 124 (4,456 ) 132 Net income (loss) $ 1,807 $ (3,131 ) $ 896 Preferred stock dividends 6 — — Net income (loss) available to common stockholders $ 1,801 $ (3,131 ) $ 896 |
Reconciliation of Other Significant Reconciling Item from Segments to Consolidated | For the years ended December 31, 2018 2017 2016 Commercial Lines $ 997 $ 949 $ 917 Personal Lines 155 141 135 Property & Casualty Other Operations 90 106 127 Group Benefits 474 381 366 Hartford Funds 5 3 1 Corporate 59 23 31 Net investment income $ 1,780 $ 1,603 $ 1,577 Amortization of Deferred Policy Acquisition Costs For the years ended December 31, 2018 2017 2016 Commercial Lines $ 1,048 $ 1,009 $ 973 Personal Lines 275 309 348 Group Benefits 45 33 31 Hartford Funds 16 21 24 Corporate — — 1 Total amortization of deferred policy acquisition costs $ 1,384 $ 1,372 $ 1,377 Amortization of Other Intangible Assets For the years ended December 31, 2018 2017 2016 Commercial Lines $ 4 $ 1 $ — Personal Lines 4 4 4 Group Benefits 60 9 — Total amortization of other intangible assets $ 68 $ 14 $ 4 Income Tax Expense (Benefit) For the years ended December 31, 2018 2017 2016 Commercial Lines $ 267 377 415 Personal Lines (19 ) 26 (23 ) Property & Casualty Other Operations (7 ) 24 (355 ) Group Benefits 84 38 83 Hartford Funds 38 63 43 Corporate (95 ) 457 (329 ) Total income tax expense (benefit) $ 268 $ 985 $ (166 ) |
Reconciliation of Assets from Segment to Consolidated | Assets As of December 31, 2018 2017 Commercial Lines $ 31,693 $ 31,281 Personal Lines 6,180 6,251 Property & Casualty Other Operations 3,351 3,568 Group Benefits 14,114 14,478 Hartford Funds 583 547 Corporate 6,386 169,135 Total assets $ 62,307 $ 225,260 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset backed securities ("ABS") $ 1,276 $ — $ 1,266 $ 10 Collateralized loan obligations ("CLOs") 1,437 — 1,337 100 Commercial mortgage-backed securities ("CMBS") 3,552 — 3,540 12 Corporate 13,398 — 12,878 520 Foreign government/government agencies 847 — 844 3 Municipal 10,346 — 10,346 — Residential mortgage-backed securities ("RMBS") 3,279 — 2,359 920 U.S. Treasuries 1,517 330 1,187 — Total fixed maturities 35,652 330 33,757 1,565 Fixed maturities, FVO 22 — 22 — Equity securities, at fair value 1,214 1,093 44 77 Derivative assets Credit derivatives 5 — 5 — Equity derivatives 3 — — 3 Foreign exchange derivatives (2 ) — (2 ) — Interest rate derivatives 1 — 1 — Total derivative assets [1] 7 — 4 3 Short-term investments 4,283 1,039 3,244 — Total assets accounted for at fair value on a recurring basis $ 41,178 $ 2,462 $ 37,071 $ 1,645 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (2 ) — (2 ) — Equity derivatives 1 — 1 — Foreign exchange derivatives (5 ) — (5 ) — Interest rate derivatives (62 ) — (63 ) 1 Total derivative liabilities [2] (68 ) — (69 ) 1 Contingent consideration [3] (35 ) — — (35 ) Total liabilities accounted for at fair value on a recurring basis $ (103 ) $ — $ (69 ) $ (34 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] For additional information see the Contingent Consideration section below. Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets accounted for at fair value on a recurring basis Fixed maturities, AFS Asset-backed-securities ("ABS") $ 1,126 $ — $ 1,107 $ 19 Collateralized loan obligations ("CLOs") 1,260 — 1,165 95 Commercial mortgage-backed securities ("CMBS") 3,336 — 3,267 69 Corporate 12,804 — 12,284 520 Foreign government/government agencies 1,110 — 1,108 2 Municipal 12,485 — 12,468 17 Residential mortgage-backed securities ("RMBS") 3,044 — 1,814 1,230 U.S. Treasuries 1,799 333 1,466 — Total fixed maturities 36,964 333 34,679 1,952 Fixed maturities, FVO 41 — 41 — Equity securities, AFS 1,012 887 49 76 Derivative assets Credit derivatives 9 — 9 — Foreign exchange derivatives (1 ) — (1 ) — Equity derivatives 1 — — 1 Interest rate derivatives 1 — 1 — Total derivative assets [1] 10 — 9 1 Short-term investments 2,270 1,098 1,172 — Total assets accounted for at fair value on a recurring basis $ 40,297 $ 2,318 $ 35,950 $ 2,029 Liabilities accounted for at fair value on a recurring basis Derivative liabilities Credit derivatives (3 ) — (3 ) — Foreign exchange derivatives (13 ) — (13 ) — Interest rate derivatives (84 ) — (85 ) 1 Total derivative liabilities [2] (100 ) — (101 ) 1 Contingent consideration [3] (29 ) — — (29 ) Total liabilities accounted for at fair value on a recurring basis $ (129 ) $ — $ (101 ) $ (28 ) [1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities. [2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. [3] |
Fair Value Inputs, Assets, Quantitative Information | Significant Unobservable Inputs for Level 3 - Securities Assets accounted for at fair value on a recurring basis Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2018 CMBS [3] $ 2 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 182 bps Decrease Corporate [4] 274 Discounted cash flows Spread 145 bps 1,175 bps 263 bps Decrease RMBS [3] 815 Discounted cash flows Spread [6] 12 bps 215 bps 86 bps Decrease Constant prepayment rate [6] 1% 15% 6% Decrease [5] Constant default rate [6] 1% 8% 3% Decrease Loss severity [6] —% 100% 61% Decrease As of December 31, 2017 CMBS [3] $ 56 Discounted cash flows Spread (encompasses prepayment, default risk and loss severity) 9 bps 1,040 bps 400 bps Decrease Corporate [4] 251 Discounted cash flows Spread 103 bps 1,000 bps 242 bps Decrease Municipal 17 Discounted cash flows Spread 192 bps 250 bps 219 bps Decrease RMBS [3] 1,215 Discounted cash flows Spread [6] 24 bps 351 bps 74 bps Decrease Constant prepayment rate [6] 1% 25% 6% Decrease [5] Constant default rate [6] —% 9% 4% Decrease Loss severity [6] —% 100% 66% Decrease [1] The weighted average is determined based on the fair value of the securities. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. [3] Excludes securities for which the Company bases fair value on broker quotations. [4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value. [5] Decrease for above market rate coupons and increase for below market rate coupons. [6] Level 2 Primary Observable Inputs Level 3 Primary Unobservable Inputs Fixed Maturity Investments Structured securities (includes ABS, CLOs CMBS and RMBS) • Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity Corporates • Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing : • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature • Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature U.S Treasuries, Municipals, and Foreign government/government agencies • Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements • Credit spreads beyond observable curve • Interest rates beyond observable curve Equity Securities • Quoted prices in markets that are not active • For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable Short Term Investments • Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates Not applicable Derivatives Credit derivatives • Swap yield curve • Credit default swap curves Not applicable Equity derivatives • Equity index levels • Swap yield curve • Independent broker quotes • Equity volatility Foreign exchange derivatives • Swap yield curve • Currency spot and forward rates • Cross currency basis curves Not applicable Interest rate derivatives • Swap yield curve • Independent broker quotes • Interest rate volatility Fair Value Predominant Valuation Technique Significant Unobservable Input Minimum Maximum Weighted Average [1] Impact of Increase in Input on Fair Value [2] As of December 31, 2018 Interest rate swaptions [3] 1 Option model Interest rate volatility 3 % 3 % 3 % Increase Equity options 3 Option model Equity volatility 19 % 21 % 20 % Increase As of December 31, 2017 Interest rate swaptions [3] 1 Option model Interest rate volatility 2 % 2 % 2 % Increase Equity options 1 Option model Equity volatility 18 % 22 % 20 % Increase [1] The weighted average is determined based on the fair value of the derivatives. [2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. [3] |
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation | Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2018 Total realized/unrealized gains (losses) Fair value as of January 1, 2018 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2018 Assets Fixed Maturities, AFS ABS $ 19 $ — $ — $ 90 $ (5 ) $ (4 ) $ 12 $ (102 ) $ 10 CLOs 95 — — 330 — (13 ) — (312 ) 100 CMBS 69 (1 ) — 25 (14 ) (8 ) — (59 ) 12 Corporate 520 1 (18 ) 197 (36 ) (52 ) 31 (123 ) 520 Foreign Govt./Govt. Agencies 2 — — 1 — — — — 3 Municipal 17 — (1 ) — — (1 ) — (15 ) — RMBS 1,230 — (16 ) 273 (319 ) (52 ) 4 (200 ) 920 Total Fixed Maturities, AFS 1,952 — (35 ) 916 (374 ) (130 ) 47 (811 ) 1,565 Equity Securities, at fair value 76 29 — 12 — (40 ) — — 77 Derivatives, net [4] Equity 1 3 — 1 — (2 ) — — 3 Interest rate 1 — — — — — — — 1 Total Derivatives, net [4] 2 3 — 1 — (2 ) — — 4 Total Assets 2,030 32 (35 ) 929 (374 ) (172 ) 47 (811 ) 1,646 Liabilities Contingent Consideration [5] (29 ) (6 ) — — — — — — (35 ) Total Liabilities $ (29 ) $ (6 ) $ — $ — $ — $ — $ — $ — $ (35 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. [5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statement for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Year Ended December 31, 2017 Total realized/unrealized gains (losses) Fair value as of January 1, 2017 Included in net income [1] Included in OCI [2] Purchases Settlements Sales Transfers into Level 3 [3] Transfers out of Level 3 [3] Fair value as of December 31, 2017 Assets Fixed Maturities, AFS ABS $ 45 $ — $ — $ 56 $ (6 ) $ (6 ) $ 27 $ (97 ) $ 19 CLOs 154 18 (13 ) 214 (101 ) (24 ) — (153 ) 95 CMBS 59 (2 ) — 76 (9 ) (10 ) — (45 ) 69 Corporate 514 1 19 232 (76 ) (157 ) 71 (84 ) 520 Foreign Govt./Govt. Agencies 47 — 3 12 (1 ) (2 ) — (57 ) 2 Municipal 46 4 1 1 — (35 ) — — 17 RMBS 1,261 — 36 209 (268 ) (7 ) — (1 ) 1,230 Total Fixed Maturities, AFS 2,126 21 46 800 (461 ) (241 ) 98 (437 ) 1,952 Fixed Maturities, FVO 11 — — 4 (2 ) (13 ) — — — Equity Securities, AFS 55 — (3 ) 24 — — — — 76 Derivatives, net [4] Equity — (4 ) — 5 — — — — 1 Interest rate 9 (8 ) — — — — — — 1 Other contracts 1 (1 ) — — — — — — — Total Derivatives, net [4] 10 (13 ) — 5 — — — — 2 Total Assets 2,202 8 43 833 (463 ) (254 ) 98 (437 ) 2,030 Liabilities Contingent Considerations [5] (25 ) (4 ) — — — — — — (29 ) Total Liabilities $ (25 ) $ (4 ) $ — $ — $ — $ — $ — $ — $ (29 ) [1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes. [2] All amounts are before income taxes. [3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. [4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Consolidated Balance Sheets in other investments and other liabilities. [5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statement for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses). Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at Year End December 31, 2018 2017 Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Changes in Unrealized Gain/(Loss) included in OCI [3] Changes in Unrealized Gain/(Loss) included in Net Income [1] [2] Assets Fixed Maturities, AFS ABS $ — $ 1 $ — CMBS (1 ) 28 (2 ) Corporate — (42 ) — Municipal — 24 — RMBS — 17 — Total Fixed Maturities, AFS (1 ) 28 (2 ) Derivatives, net Equity 1 (5 ) Interest rate — — (7 ) Total Derivatives, net 1 — (12 ) Total Assets — 28 (14 ) Liabilities Contingent Consideration [4] (6 ) (4 ) Total Liabilities $ (6 ) $ — $ (4 ) [1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes. [2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein. [3] Changes in unrealized gain/(loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Consolidated Statements of Comprehensive Income. [4] For additional information, see Note 2 - Business Acquisitions |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Financial Assets and Liabilities Not Carried at Fair Value December 31, 2018 December 31, 2017 Fair Value Hierarchy Level Carrying Amount Fair Value Fair Value Hierarchy Level Carrying Amount Fair Value Assets Mortgage loans Level 3 $ 3,704 $ 3,746 Level 3 $ 3,175 $ 3,220 Liabilities Other policyholder funds and benefits payable Level 3 $ 774 $ 775 Level 3 $ 825 $ 827 Senior notes [1] Level 2 $ 3,589 $ 3,887 Level 2 $ 3,415 $ 4,054 Junior subordinated debentures [1] Level 2 $ 1,089 $ 1,052 Level 2 $ 1,583 $ 1,699 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Net Investment Income | Net Investment Income For the years ended December 31, (Before tax) 2018 2017 2016 Fixed maturities [1] $ 1,459 $ 1,303 $ 1,319 Equity securities 32 24 22 Mortgage loans 141 124 116 Limited partnerships and other alternative investments 205 174 128 Other investments [2] 20 49 51 Investment expenses (77 ) (71 ) (59 ) Total net investment income $ 1,780 $ 1,603 $ 1,577 [1] Includes net investment income on short-term investments. [2] |
Net Realized Capital Gains (Losses) | Net Realized Capital Gains (Losses) For the years ended December 31, (Before tax) 2018 2017 2016 Gross gains on sales $ 114 $ 275 $ 222 Gross losses on sales (172 ) (113 ) (159 ) Equity securities [1] (48 ) — — Net OTTI losses recognized in earnings (1 ) (8 ) (27 ) Valuation allowances on mortgage loans — (1 ) — Transactional foreign currency revaluation 1 14 (78 ) Non-qualifying foreign currency derivatives 3 (14 ) 83 Other, net [2] (9 ) 12 (151 ) Net realized capital gains (losses) $ (112 ) $ 165 $ (110 ) [1] Effective January 1, 2018, with adoption of new accounting guidance for equity securities at fair value, includes all changes in fair value and trading gains and losses for equity securities. [2] Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $(15) , $8 , and $(9) , respectively for 2018 , 2017 and 2016 |
Sales of AFS Securities | Sales of AFS Securities For the years ended December 31, 2018 2017 2016 Fixed maturities, AFS Sale proceeds $ 21,327 $ 17,614 $ 9,984 Gross gains 90 204 196 Gross losses (169 ) (90 ) (138 ) Equity securities, AFS Sale proceeds $ 607 $ 359 Gross gains 69 26 Gross losses (23 ) (20 ) |
Impairments | Impairments in Earnings by Type For the years ended December 31, 2018 2017 2016 Credit impairments $ 1 $ 2 $ 21 Impairments on equity securities 6 4 Intent-to-sell impairments — — 2 Total impairments $ 1 $ 8 $ 27 For the years ended December 31, (Before tax) 2018 2017 2016 Balance as of beginning of period $ (25 ) $ (110 ) $ (113 ) Additions for credit impairments recognized on [1]: Securities not previously impaired — (1 ) (16 ) Securities previously impaired (1 ) (1 ) (5 ) Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period 7 76 15 Securities due to an increase in expected cash flows — 11 9 Balance as of end of period $ (19 ) $ (25 ) $ (110 ) [1] |
Schedule of Available-for-sale Securities | AFS Securities by Type December 31, 2018 December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non- Credit OTTI [1] ABS $ 1,272 $ 5 $ (1 ) $ 1,276 $ — $ 1,119 $ 9 $ (2 ) $ 1,126 $ — CLOs 1,455 2 (20 ) 1,437 — 1,257 3 — 1,260 — CMBS 3,581 35 (64 ) 3,552 (5 ) 3,304 58 (26 ) 3,336 (5 ) Corporate 13,696 148 (446 ) 13,398 — 12,370 490 (56 ) 12,804 — Foreign govt./govt. agencies 866 7 (26 ) 847 — 1,071 43 (4 ) 1,110 — Municipal 9,972 421 (47 ) 10,346 — 11,743 754 (12 ) 12,485 — RMBS 3,270 44 (35 ) 3,279 — 2,985 63 (4 ) 3,044 — U.S. Treasuries 1,491 41 (15 ) 1,517 — 1,763 46 (10 ) 1,799 — Total fixed maturities, AFS 35,603 703 (654 ) 35,652 (5 ) 35,612 1,466 (114 ) 36,964 (5 ) Equity securities, AFS [2] 907 121 (16 ) 1,012 — Total AFS securities $ 35,603 $ 703 $ (654 ) $ 35,652 $ (5 ) $ 36,519 $ 1,587 $ (130 ) $ 37,976 $ (5 ) [1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2018 and 2017 . [2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of December 31, 2018 |
Investments by Contractual Maturity Year | Fixed maturities, AFS, by Contractual Maturity Year December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value One year or less $ 999 $ 1,002 $ 1,507 $ 1,513 Over one year through five years 5,786 5,791 5,007 5,119 Over five years through ten years 6,611 6,495 6,505 6,700 Over ten years 12,629 12,820 13,928 14,866 Subtotal 26,025 26,108 26,947 28,198 Mortgage-backed and asset-backed securities 9,578 9,544 8,665 8,766 Total fixed maturities, AFS $ 35,603 $ 35,652 $ 35,612 $ 36,964 |
Unrealized Loss on Investments | Unrealized Losses on AFS Securities Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2018 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 566 $ 566 $ — $ 113 $ 112 $ (1 ) $ 679 $ 678 $ (1 ) CLOs 1,358 1,338 (20 ) 7 7 — 1,365 1,345 (20 ) CMBS 896 882 (14 ) 1,129 1,079 (50 ) 2,025 1,961 (64 ) Corporate 7,174 6,903 (271 ) 2,541 2,366 (175 ) 9,715 9,269 (446 ) Foreign govt./govt. agencies 407 391 (16 ) 203 193 (10 ) 610 584 (26 ) Municipal 1,643 1,613 (30 ) 292 275 (17 ) 1,935 1,888 (47 ) RMBS 1,344 1,329 (15 ) 648 628 (20 ) 1,992 1,957 (35 ) U.S. Treasuries 497 492 (5 ) 339 329 (10 ) 836 821 (15 ) Total fixed maturities, AFS in an unrealized loss position $ 13,885 $ 13,514 $ (371 ) $ 5,272 $ 4,989 $ (283 ) $ 19,157 $ 18,503 $ (654 ) Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017 Less Than 12 Months 12 Months or More Total Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses Amortized Cost Fair Value Unrealized Losses ABS $ 461 $ 460 $ (1 ) $ 30 $ 29 $ (1 ) $ 491 $ 489 $ (2 ) CLOs 359 359 — 1 1 — 360 360 — CMBS 1,178 1,167 (11 ) 243 228 (15 ) 1,421 1,395 (26 ) Corporate 2,322 2,302 (20 ) 1,064 1,028 (36 ) 3,386 3,330 (56 ) Foreign govt./govt. agencies 244 242 (2 ) 51 49 (2 ) 295 291 (4 ) Municipal 511 507 (4 ) 236 228 (8 ) 747 735 (12 ) RMBS 889 887 (2 ) 137 135 (2 ) 1,026 1,022 (4 ) U.S. Treasuries 658 652 (6 ) 254 250 (4 ) 912 902 (10 ) Total fixed maturities, AFS in an unrealized loss position 6,622 6,576 (46 ) 2,016 1,948 (68 ) 8,638 8,524 (114 ) Equity securities, AFS [1] 176 163 (13 ) 24 21 (3 ) 200 184 (16 ) Total securities in an unrealized loss position $ 6,798 $ 6,739 $ (59 ) $ 2,040 $ 1,969 $ (71 ) $ 8,838 $ 8,708 $ (130 ) [1] Effective January 1, 2018 , with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of December 31, 2018 |
Valuation Allowance Activity | Valuation Allowance Activity For the years ended December 31, 2018 2017 2016 Balance as of January 1 $ (1 ) $ — $ (4 ) Reversals/(Additions) — (1 ) — Deductions — — 4 Balance as of December 31 $ (1 ) $ (1 ) $ — |
Loans Credit Quality | Mortgage Loans Credit Quality December 31, 2018 December 31, 2017 Loan-to-value Carrying Value Avg. Debt-Service Coverage Ratio Carrying Value Avg. Debt-Service Coverage Ratio Greater than 80% $ — 0.00x $ 18 1.27x 65% - 80% 386 1.60x 265 1.95x Less than 65% 3,318 2.59x 2,892 2.76x Total mortgage loans $ 3,704 2.49x $ 3,175 2.69x |
Mortgage Loans | Mortgage Loans by Region December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 250 6.8 % $ 251 7.9 % Middle Atlantic 270 7.3 % 272 8.6 % Mountain 30 0.8 % 31 1.0 % New England 330 8.9 % 293 9.2 % Pacific 917 24.8 % 760 23.9 % South Atlantic 712 19.2 % 710 22.4 % West North Central 148 4.0 % 149 4.7 % West South Central 420 11.3 % 278 8.7 % Other [1] 627 16.9 % 431 13.6 % Total mortgage loans $ 3,704 100.0 % $ 3,175 100.0 % [1] Primarily represents loans collateralized by multiple properties in various regions. Mortgage Loans by Property Type December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Industrial 1,108 29.9 % 817 25.7 % Multifamily 1,138 30.7 % 1,006 31.7 % Office 708 19.1 % 751 23.7 % Retail 392 10.6 % 367 11.5 % Single Family 82 2.2 % — — % Other 276 7.5 % 234 7.4 % Total mortgage loans $ 3,704 100.0 % $ 3,175 100.0 % |
Offsetting Liabilities | Securities Lending and Repurchase Agreements December 31, 2018 December 31, 2017 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 820 $ 922 Gross amount of associated liability for collateral received [1] $ 840 $ 945 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 72 $ 174 Gross amount of collateral pledged related to repurchase agreements [2] $ 73 $ 176 Gross amount of recognized receivables for reverse repurchase agreements $ 64 $ — [1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $ 3 and $ 0 million which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017 , respectively. [2] (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) [1] Gross Amounts Offset in the Statement of Financial Position Derivative Assets [2] (Liabilities) [3] Accrued Interest and Cash Collateral (Received) [4] Pledged [3] Financial Collateral (Received) Pledged [5] Net Amount As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) As of December 31, 2017 Other investments $ 25 $ 22 $ 10 $ (7 ) $ 1 $ 2 Other liabilities $ (115 ) $ (10 ) $ (100 ) $ (5 ) $ (96 ) $ (9 ) [1] For amounts shown as of December 31, 2017, certain amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] Included in other investments in the Company's Consolidated Balance Sheets. [3] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [4] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [5] |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Balance Sheet Presentation | Derivative Balance Sheet Presentation Net Derivatives Asset Derivatives [1] Liability Derivatives [1] Notional Amount Fair Value Fair Value Fair Value Hedge Designation/ Derivative Type Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Cash flow hedges Interest rate swaps $ 2,040 $ 2,190 $ 1 $ — $ 2 $ 1 $ (1 ) $ (1 ) Foreign currency swaps 153 153 (6 ) (13 ) 2 — (8 ) (13 ) Total cash flow hedges 2,193 2,343 (5 ) (13 ) 4 1 (9 ) (14 ) Non-qualifying strategies Interest rate contracts Interest rate swaps and futures 8,451 7,986 (62 ) (83 ) 8 7 (70 ) (90 ) Foreign exchange contracts Foreign currency swaps and forwards 287 213 (1 ) (1 ) — — (1 ) (1 ) Credit contracts Credit derivatives that purchase credit protection 6 61 — 1 — 2 — (1 ) Credit derivatives that assume credit risk [2] 1,102 823 3 3 8 3 (5 ) — Credit derivatives in offsetting positions 41 1,046 — 2 6 11 (6 ) (9 ) Equity contracts Equity index swaps and options 211 258 4 1 5 1 (1 ) — Total non-qualifying strategies 10,098 10,387 (56 ) (77 ) 27 24 (83 ) (101 ) Total cash flow hedges and non-qualifying strategies $ 12,291 $ 12,730 $ (61 ) $ (90 ) $ 31 $ 25 $ (92 ) $ (115 ) Balance Sheet Location Fixed maturities, available-for-sale $ 153 $ 153 $ — $ — $ — $ — $ — $ — Other investments 9,864 9,957 7 10 23 16 (16 ) (6 ) Other liabilities 2,274 2,620 (68 ) (100 ) 8 9 (76 ) (109 ) Total derivatives $ 12,291 $ 12,730 $ (61 ) $ (90 ) $ 31 $ 25 $ (92 ) $ (115 ) [1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] |
Offsetting Assets | Offsetting Derivative Assets and Liabilities (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) [1] Gross Amounts Offset in the Statement of Financial Position Derivative Assets [2] (Liabilities) [3] Accrued Interest and Cash Collateral (Received) [4] Pledged [3] Financial Collateral (Received) Pledged [5] Net Amount As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) As of December 31, 2017 Other investments $ 25 $ 22 $ 10 $ (7 ) $ 1 $ 2 Other liabilities $ (115 ) $ (10 ) $ (100 ) $ (5 ) $ (96 ) $ (9 ) [1] For amounts shown as of December 31, 2017, certain amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] Included in other investments in the Company's Consolidated Balance Sheets. [3] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [4] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [5] |
Offsetting Liabilities | Securities Lending and Repurchase Agreements December 31, 2018 December 31, 2017 Fair Value Fair Value Securities Lending Transactions: Gross amount of securities on loan $ 820 $ 922 Gross amount of associated liability for collateral received [1] $ 840 $ 945 Repurchase agreements: Gross amount of recognized liabilities for repurchase agreements $ 72 $ 174 Gross amount of collateral pledged related to repurchase agreements [2] $ 73 $ 176 Gross amount of recognized receivables for reverse repurchase agreements $ 64 $ — [1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $ 3 and $ 0 million which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2018 and December 31, 2017 , respectively. [2] (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Net Amounts Presented in the Statement of Financial Position Collateral Disallowed for Offset in the Statement of Financial Position Gross Amounts of Recognized Assets (Liabilities) [1] Gross Amounts Offset in the Statement of Financial Position Derivative Assets [2] (Liabilities) [3] Accrued Interest and Cash Collateral (Received) [4] Pledged [3] Financial Collateral (Received) Pledged [5] Net Amount As of December 31, 2018 Other investments $ 31 $ 26 $ 7 $ (2 ) $ 2 $ 3 Other liabilities $ (92 ) $ (20 ) $ (68 ) $ (4 ) $ (65 ) $ (7 ) As of December 31, 2017 Other investments $ 25 $ 22 $ 10 $ (7 ) $ 1 $ 2 Other liabilities $ (115 ) $ (10 ) $ (100 ) $ (5 ) $ (96 ) $ (9 ) [1] For amounts shown as of December 31, 2017, certain amounts have been restated to conform to the current year presentation for OTC-cleared derivatives. [2] Included in other investments in the Company's Consolidated Balance Sheets. [3] Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. [4] Included in other investments in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. [5] |
Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in OCI on Derivative (Effective Portion) 2018 2017 2016 Interest rate swaps $ 5 $ 8 $ — Foreign currency swaps 7 (14 ) 1 Total $ 12 $ (6 ) $ 1 Gain Reclassified from AOCI into Income (Effective Portion) 2018 2017 2016 Interest rate swaps Net realized capital gain/(loss) $ 6 $ 5 $ 10 Net investment income 30 37 37 Total $ 36 $ 42 $ 47 |
Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) | Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses) For the Year Ended December 31, 2018 2017 2016 Foreign exchange contracts Foreign currency swaps and forwards $ 3 $ (14 ) $ 83 Other non-qualifying derivatives Interest rate contracts Interest rate swaps, swaptions and futures (3 ) (5 ) 1 Credit contracts Credit derivatives that purchase credit protection — 28 (17 ) Credit derivatives that assume credit risk (14 ) (7 ) 28 Equity contracts Equity options 2 (7 ) (15 ) Other Contingent capital facility put option — (1 ) (6 ) Total other non-qualifying derivatives (15 ) 8 (9 ) Total [1] $ (12 ) $ (6 ) $ 74 [1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements |
Credit Derivatives by Type | Credit Risk Assumed Derivatives by Type Underlying Referenced Credit Obligation(s) [1] Notional Amount [2] Fair Value Weighted Average Years to Maturity Type Average Credit Rating Offsetting Notional Amount [3] Offsetting Fair Value [3] As of December 31, 2018 Single name credit default swaps Investment grade risk exposure $ 169 $ 2 4 years Corporate Credit/ A $ — $ — Basket credit default swaps [4] Investment grade risk exposure 799 (1 ) 6 years Corporate Credit BBB+ — — Below investment grade risk exposure 125 2 5 years Corporate Credit B+ — — Investment grade risk exposure 11 — 5 years CMBS Credit A- 2 — Below investment grade risk exposure 19 (6 ) Less than 1 year CMBS Credit CCC 19 6 Total [5] $ 1,123 $ (3 ) $ 21 $ 6 As of December 31, 2017 Single name credit default swaps Investment grade risk exposure $ 130 $ 3 5 years Corporate Credit/ A- $ — $ — Below investment grade risk exposure 9 — Less than 1 year Corporate Credit B 9 — Basket credit default swaps [4] Investment grade risk exposure 1,137 2 3 years Corporate Credit BBB+ 454 (2 ) Below investment grade risk exposure 27 2 3 years Corporate Credit B+ 27 — Investment grade risk exposure 13 (1 ) 5 years CMBS Credit A 3 — Below investment grade risk exposure 30 (6 ) Less than 1 year CMBS Credit CCC 30 7 Total [5] $ 1,346 $ — $ 523 $ 5 [1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. [2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses. [3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. [4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. [5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Reinsurance Recoverables, Net | Reinsurance Recoverables As of December 31, 2018 December 31, 2017 Property and Casualty Insurance Products Paid loss and loss adjustment expenses $ 127 $ 84 Unpaid loss and loss adjustment expenses 3,773 3,496 Gross reinsurance recoverables 3,900 3,580 Allowance for uncollectible reinsurance (126 ) (104 ) Net P&C reinsurance recoverables 3,774 3,476 Group Benefits net reinsurance recoverables [1] 251 236 Recoverable related to reserves in Corporate 332 349 Reinsurance recoverables, net $ 4,357 $ 4,061 [1] No allowance for uncollectible reinsurance was required as of December 31, 2018 and 2017 |
Property and Casualty Insurance Revenue | Property and Casualty Insurance Revenue For the years ended December 31, Premiums Written 2018 2017 2016 Direct $ 10,784 $ 10,865 $ 10,906 Assumed 217 223 253 Ceded (593 ) (571 ) (591 ) Net $ 10,408 $ 10,517 $ 10,568 Premiums Earned Direct $ 10,824 $ 10,923 $ 10,871 Assumed 221 232 261 Ceded (599 ) (600 ) (583 ) Net $ 10,446 $ 10,555 $ 10,549 |
Group Benefits Revenue | Group Benefits Revenue For the years ended December 31, 2018 2017 2016 Gross earned premiums, fees and other considerations $ 3,615 $ 3,281 $ 3,160 Reinsurance assumed 2,044 446 107 Reinsurance ceded (61 ) (50 ) (44 ) Net earned premiums, fees and other considerations $ 5,598 $ 3,677 $ 3,223 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Changes in the DAC Balance | Changes in the DAC Balance For the years ended December 31, 2018 2017 2016 Balance, beginning of period $ 650 $ 645 $ 636 Deferred costs 1,404 1,377 1,378 Amortization — DAC (1,384 ) (1,372 ) (1,377 ) Add: Maxum acquisition — — 8 Balance, end of period $ 670 $ 650 $ 645 |
Goodwill & Other Intangible A_2
Goodwill & Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Carrying Value | Goodwill Carrying Value as of December 31, 2018 Commercial Lines Personal Lines Hartford Funds Group Benefits Corporate [1] Total Balance at December 31, 2016 $ 38 $ 119 $ 180 $ — $ 230 $ 567 Goodwill related to acquisitions [2] — — — 723 — 723 Balance at December 31, 2017 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 Goodwill related to acquisitions — — — — — — Balance at December 31, 2018 $ 38 $ 119 $ 180 $ 723 $ 230 $ 1,290 [1] The Corporate category includes goodwill that was acquired at a holding company level and not pushed down to a subsidiary within a reportable segment. Carrying value of goodwill within Corporate as of December 31, 2018, 2017, and 2016 includes $138 and $92 for the Group Benefits and Hartford Funds reporting units, respectively. [2] For further discussion on goodwill related to the acquisition of Aetna's U.S. group life and disability business, refer to Note 2 - Business Acquisitions |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Other Intangible Assets As of December 31, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Expected Life Amortized Intangible Assets: Value of in-force contracts $ 23 $ (23 ) $ — $ 23 $ (3 ) $ 20 1 Customer relationships [1] 636 (49 ) 587 590 (6 ) 584 15 Marketing agreement with Aetna 16 (1 ) 15 16 — 16 15 Distribution Agreement 79 (56 ) 23 70 (52 ) 18 15 Agency relationships & Other [2] 21 (3 ) 18 9 (2 ) 7 13 Total Finite Life Intangibles 775 (132 ) 643 708 (63 ) 645 14 Total Indefinite Life Intangible Assets 14 — 14 14 — 14 Total Other Intangible Assets $ 789 $ (132 ) $ 657 $ 722 $ (63 ) $ 659 [1] On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $ 46 which will be amortized over 10 years . [2] On December 1, 2018, the Company acquired Y-Risk LLC and recorded an agency relationships intangible asset of $ 12 which will be amortized over 15 years |
Expected Pre-tax Amortization Expense | [2]On December 1, 2018, the Company ac |
Reserve for Unpaid Losses and_2
Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Liabilities for Unpaid Losses and Loss Adjustment Expenses | (Favorable) Unfavorable Prior Accident Year Development For the years ended December 31, 2018 2017 2016 Workers’ compensation $ (164 ) $ (79 ) $ (119 ) Workers’ compensation discount accretion 40 28 28 General liability 52 11 65 Package business (26 ) (25 ) 65 Commercial property (12 ) (8 ) 1 Professional liability (12 ) 1 (37 ) Bond 2 32 (8 ) Automobile liability - Commercial Lines (15 ) 17 57 Automobile liability - Personal Lines (18 ) — 160 Homeowners (25 ) (14 ) (10 ) Net asbestos reserves — — 197 Net environmental reserves — — 71 Catastrophes (49 ) (16 ) (7 ) Uncollectible reinsurance 22 (15 ) (30 ) Other reserve re-estimates, net 38 27 24 Total prior accident year development $ (167 ) $ (41 ) $ 457 For the years ended December 31, 2018 2017 2016 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 23,775 $ 22,545 $ 22,568 Reinsurance and other recoverables 3,957 3,488 3,625 Beginning liabilities for unpaid losses and loss adjustment expenses, net 19,818 19,057 18,943 Add: Maxum acquisition — — 122 Provision for unpaid losses and loss adjustment expenses Current accident year 7,107 7,381 6,990 Prior accident year development (167 ) (41 ) 457 Total provision for unpaid losses and loss adjustment expenses 6,940 7,340 7,447 Less: payments Current accident year 2,452 2,751 2,749 Prior accident years 3,954 3,828 4,219 Total payments 6,406 6,579 6,968 Less: net reserves transferred to liabilities held for sale — — 487 Ending liabilities for unpaid losses and loss adjustment expenses, net 20,352 19,818 19,057 Reinsurance and other recoverables 4,232 3,957 3,488 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 24,584 $ 23,775 $ 22,545 For the years ended December 31, 2018 2017 2016 Beginning liabilities for unpaid losses and loss adjustment expenses, gross $ 8,512 $ 5,772 $ 5,889 Reinsurance recoverables 209 208 218 Beginning liabilities for unpaid losses and loss adjustment expenses, net 8,303 5,564 5,671 Add: Aetna U.S. group life and disability business acquisition [1] 42 2,833 — Provision for unpaid losses and loss adjustment expenses Current incurral year 4,470 2,868 2,562 Prior year's discount accretion 227 202 202 Prior incurral year development [2] (324 ) (185 ) (162 ) Total provision for unpaid losses and loss adjustment expenses [3] 4,373 2,885 2,602 Less: payments Current incurral year 2,377 1,528 1,327 Prior incurral years 2,135 1,451 1,382 Total payments 4,512 2,979 2,709 Ending liabilities for unpaid losses and loss adjustment expenses, net 8,206 8,303 5,564 Reinsurance recoverables 239 209 208 Ending liabilities for unpaid losses and loss adjustment expenses, gross $ 8,445 $ 8,512 $ 5,772 [1] Amount recognized in 2018 represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet. [2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis. [3] Includes unallocated loss adjustment expenses of $ 194 , $ 111 and $ 100 for the years ended December 31, 2018 , 2017 and 2016 |
Reserves, Net of Reinsurance that are Discounted | Property and Casualty Insurance Products Reserves, Net of Reinsurance, that are Discounted For the years ended December 31, 2018 2017 2016 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 1,331 $ 1,387 $ 1,504 Less: amount of discount 388 410 483 Carrying value of liability for unpaid losses and loss adjustment expenses $ 943 $ 977 $ 1,021 Discount accretion included in losses and loss adjustment expenses $ 40 $ 30 $ 29 Weighted average discount rate 2.98 % 3.06 % 3.11 % Range of discount rates 1.77 % - 14.15 % 1.77 % - 14.15 % 1.77 % - 14.15 % For the years ended December 31, 2018 2017 2016 Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts $ 8,957 $ 9,071 $ 6,382 Less: amount of discount 1,505 1,536 1,303 Carrying value of liability for unpaid losses and loss adjustment expenses $ 7,452 $ 7,535 $ 5,079 Weighted average discount rate 3.4 % 3.5 % 4.3 % Range of discount rate 2.1 % - 8.0 % 2.1 % - 8.0 % 3.0 % - 8.0 % |
Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses | Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses As of December 31, 2018 Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Accident Years Displayed in Triangles Cumulative Paid for Accident Years Displayed in Triangles Unpaid for Accident Years not Displayed in Triangles [1] Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Workers' compensation $ 18,685 $ (10,965 ) $ 2,316 $ 341 $ (372 ) $ 10,005 $ 2,160 $ 12,165 General liability 3,605 (1,840 ) 417 94 — 2,276 234 2,510 Package business 6,600 (5,128 ) 43 94 — 1,609 44 1,653 Commercial property 3,124 (2,763 ) 14 9 — 384 41 425 Commercial automobile liability 3,442 (2,604 ) 17 23 — 878 43 921 Commercial automobile physical damage 221 (210 ) 2 — — 13 — 13 Professional liability 1,491 (973 ) 41 19 — 578 306 884 Bond 598 (356 ) 28 20 — 290 12 302 Personal automobile liability 12,262 (10,703 ) 21 72 — 1,652 25 1,677 Personal automobile physical damage 1,752 (1,716 ) 1 3 — 40 — 40 Homeowners 7,714 (7,110 ) 2 36 — 642 83 725 Other ongoing business 197 (1 ) (16 ) 180 297 477 Asbestos and environmental [2] 1,254 — — 1,254 1,032 2,286 Other operations [2] 413 138 — 551 (45 ) 506 Total P&C $ 59,494 $ (44,368 ) $ 4,766 $ 848 $ (388 ) $ 20,352 $ 4,232 $ 24,584 [1] Amounts represent reserves for claims that were incurred more than ten years ago for long-tail lines and more than three years ago for short-tail lines. [2] Asbestos and environmental and other operations include asbestos, environmental and other latent exposures not foreseen when coverages were written, including, but not limited to, potential liability for pharmaceutical products, silica, talcum powder, head injuries, lead paint, construction defects, molestation and other long-tail liabilities. These reserve lines do not have significant paid or incurred loss development for the most recent ten accident years and therefore do not have loss development displayed in triangles. Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Subtotal Reserve Line Cumulative Incurred for Incurral Years Displayed in Triangles Cumulative Paid for Incurral Years Displayed in Triangles Unpaid for Incurral Years not Displayed in Triangles Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance Discount Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance Reinsurance and Other Recoverables Liability for Unpaid Losses and Loss Adjustment Expenses Group long-term disability $ 11,934 $ (6,217 ) $ 2,243 $ 171 $ (1,364 ) $ 6,767 $ 235 $ 7,002 Group life and accident, excluding premium waiver 5,820 (5,367 ) 139 2 (19 ) 575 2 577 Group short-term disability 113 5 — 118 — 118 Group life premium waiver 818 7 (122 ) 703 2 705 Group supplemental health 43 — — 43 — 43 Total Group Benefits $ 17,754 $ (11,584 ) $ 3,356 $ 185 $ (1,505 ) $ 8,206 $ 239 $ 8,445 |
Losses and Allocated Loss Adjustments Expense, Net of Reinsurance | Workers' Compensation Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,462 $ 1,455 $ 1,478 $ 1,493 $ 1,504 $ 1,504 $ 1,519 $ 1,529 $ 1,522 $ 1,534 $ 168 135,804 2010 1,560 1,775 1,814 1,858 1,857 1,882 1,881 1,878 1,892 236 156,747 2011 2,013 2,099 2,204 2,206 2,221 2,224 2,232 2,242 342 177,819 2012 2,185 2,207 2,207 2,181 2,168 2,169 2,154 385 171,219 2013 2,020 1,981 1,920 1,883 1,861 1,861 451 151,153 2014 1,869 1,838 1,789 1,761 1,713 532 125,840 2015 1,873 1,835 1,801 1,724 613 113,493 2016 1,772 1,772 1,780 787 111,190 2017 1,862 1,869 1,061 109,982 2018 1,916 1,363 109,842 Total $ 18,685 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 265 $ 587 $ 792 $ 937 $ 1,042 $ 1,115 $ 1,170 $ 1,208 $ 1,242 $ 1,263 2010 316 709 970 1,154 1,287 1,374 1,439 1,489 1,522 2011 371 841 1,156 1,368 1,518 1,622 1,690 1,746 2012 359 809 1,106 1,313 1,436 1,529 1,587 2013 304 675 917 1,071 1,175 1,260 2014 275 598 811 960 1,041 2015 261 576 778 909 2016 255 579 779 2017 261 575 2018 283 Total $ 10,965 General Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 382 $ 398 $ 394 $ 382 $ 359 $ 348 $ 347 $ 346 $ 341 $ 351 $ 39 20,714 2010 355 362 352 355 343 345 376 377 393 46 18,949 2011 353 343 323 316 315 320 318 326 52 16,854 2012 321 315 310 295 304 298 304 69 11,761 2013 318 321 332 352 344 352 80 9,906 2014 317 318 336 342 351 112 10,358 2015 316 346 345 364 164 10,805 2016 352 351 380 241 11,960 2017 363 385 289 10,965 2018 399 352 10,023 Total $ 3,605 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 22 $ 63 $ 124 $ 181 $ 227 $ 256 $ 277 $ 287 $ 297 $ 304 2010 14 51 115 181 224 259 314 331 337 2011 11 47 93 154 198 234 252 264 2012 8 39 75 124 167 198 215 2013 7 35 95 152 207 242 2014 11 31 88 142 195 2015 7 32 80 139 2016 8 32 79 2017 12 48 2018 17 Total $ 1,840 Package Business Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 587 $ 584 $ 584 $ 572 $ 578 $ 577 $ 576 $ 576 $ 574 $ 569 $ 15 50,413 2010 657 662 654 652 652 651 653 651 649 19 52,410 2011 810 792 790 800 808 814 813 812 31 60,967 2012 736 725 728 731 736 735 739 39 59,715 2013 579 565 573 585 586 592 46 43,415 2014 566 578 601 602 603 70 42,928 2015 582 588 585 583 94 41,678 2016 655 638 632 170 43,129 2017 695 702 257 44,709 2018 719 335 38,034 Total $ 6,600 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 227 $ 351 $ 411 $ 463 $ 503 $ 527 $ 539 $ 547 $ 550 $ 551 2010 270 414 487 539 570 601 613 618 625 2011 377 555 621 684 727 748 762 772 2012 286 486 560 616 652 673 687 2013 225 339 414 467 504 522 2014 226 345 416 468 507 2015 212 332 383 445 2016 225 353 410 2017 235 372 2018 237 Total $ 5,128 Commercial Property Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 267 $ 264 $ 259 $ 258 $ 251 $ 257 $ 257 $ 257 $ 257 $ 258 $ — 28,286 2010 286 283 279 282 284 284 284 284 284 — 28,515 2011 357 356 356 362 361 360 359 359 — 29,110 2012 329 301 301 305 306 305 305 1 25,789 2013 234 218 219 220 216 215 — 20,289 2014 268 260 262 264 263 — 19,758 2015 264 264 268 270 — 19,061 2016 328 331 327 5 19,945 2017 515 440 62 20,703 2018 403 86 17,839 Total $ 3,124 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 179 $ 247 $ 252 $ 256 $ 256 $ 257 $ 257 $ 257 $ 257 $ 257 2010 198 266 276 281 283 284 284 284 284 2011 231 332 350 355 358 359 360 360 2012 171 279 294 300 304 303 303 2013 157 208 216 218 215 215 2014 168 243 258 264 262 2015 172 239 255 265 2016 188 285 310 2017 210 334 2018 173 Total $ 2,763 Commercial Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 306 $ 292 $ 287 $ 287 $ 297 $ 301 $ 302 $ 302 $ 302 $ 302 $ — 38,703 2010 277 280 296 319 323 328 327 324 322 4 38,153 2011 272 310 356 356 366 365 362 362 4 39,293 2012 311 376 390 401 394 390 387 6 35,999 2013 309 314 329 336 335 333 18 31,918 2014 306 314 328 333 337 23 29,260 2015 302 353 368 351 43 28,079 2016 372 380 376 90 28,154 2017 346 358 165 24,587 2018 314 205 20,675 Total $ 3,442 Cumulative Paid Losses & Allocated Loss Adjustment Expense, Net of Reinsurance For the years ended December 31 (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 56 $ 115 $ 175 $ 237 $ 274 $ 291 $ 298 $ 300 $ 301 $ 301 2010 55 125 188 252 289 300 308 313 316 2011 62 133 211 273 315 339 348 352 2012 65 142 233 306 345 358 371 2013 61 128 199 255 289 306 2014 58 129 195 249 295 2015 61 141 204 264 2016 62 140 222 2017 55 123 2018 54 Total $ 2,604 Commercial Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 79 $ 78 $ 78 $ — 26,367 2017 85 81 3 24,275 2018 62 2 19,167 Total $ 221 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 71 $ 78 $ 77 2017 74 79 2018 54 Total $ 210 Professional Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 254 $ 251 $ 244 $ 266 $ 257 $ 263 $ 255 $ 257 $ 257 $ 259 $ 20 5,115 2010 202 211 212 205 201 200 195 199 192 22 4,894 2011 226 228 232 226 219 219 220 215 38 4,708 2012 174 172 168 149 146 144 139 18 3,734 2013 136 136 123 110 103 99 27 2,791 2014 116 123 118 114 109 33 2,891 2015 104 113 113 114 32 2,957 2016 106 106 125 71 3,133 2017 107 113 75 3,111 2018 126 107 2,971 Total $ 1,491 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Claims Made Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 17 $ 69 $ 127 $ 177 $ 194 $ 226 $ 225 $ 226 $ 235 $ 238 2010 22 62 103 137 148 157 162 166 169 2011 11 57 100 128 163 170 173 176 2012 11 41 60 89 97 107 109 2013 4 19 31 39 55 66 2014 4 21 40 64 72 2015 4 23 49 63 2016 4 25 46 2017 6 26 2018 8 Total $ 973 Bond Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 71 $ 71 $ 69 $ 58 $ 57 $ 51 $ 49 $ 49 $ 49 $ 49 $ 5 3,321 2010 71 75 80 79 73 69 70 90 71 3 2,674 2011 72 76 76 75 70 70 69 69 9 2,134 2012 69 69 60 53 48 48 43 9 1,720 2013 63 58 54 48 48 38 18 1,456 2014 69 65 65 66 58 13 1,373 2015 65 65 62 59 23 1,368 2016 59 59 58 37 1,272 2017 61 88 38 1,204 2018 65 59 1,040 Total $ 598 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 9 $ 32 $ 45 $ 46 $ 44 $ 43 $ 44 $ 44 $ 44 $ 43 2010 13 46 59 58 59 63 66 66 67 2011 12 39 51 56 57 59 59 59 2012 12 25 26 24 25 25 33 2013 3 9 17 18 18 18 2014 18 31 40 43 42 2015 9 19 23 31 2016 2 11 13 2017 5 45 2018 5 Total $ 356 Personal Automobile Liability Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 1,351 $ 1,305 $ 1,280 $ 1,255 $ 1,256 $ 1,260 $ 1,259 $ 1,257 $ 1,257 $ 1,257 $ 3 254,555 2010 1,346 1,321 1,293 1,287 1,282 1,275 1,265 1,265 1,264 3 248,944 2011 1,181 1,170 1,180 1,173 1,166 1,154 1,154 1,153 5 221,886 2012 1,141 1,149 1,146 1,142 1,133 1,130 1,130 7 210,750 2013 1,131 1,145 1,144 1,153 1,152 1,153 8 205,462 2014 1,146 1,153 1,198 1,200 1,199 15 208,942 2015 1,195 1,340 1,338 1,330 38 216,707 2016 1,407 1,402 1,393 103 215,126 2017 1,277 1,275 276 185,716 2018 1,108 510 146,845 Total $ 12,262 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 492 $ 888 $ 1,083 $ 1,171 $ 1,223 $ 1,240 $ 1,246 $ 1,250 $ 1,251 $ 1,251 2010 496 915 1,108 1,202 1,239 1,251 1,256 1,258 1,260 2011 447 826 1,006 1,088 1,126 1,140 1,145 1,146 2012 441 818 986 1,067 1,104 1,114 1,120 2013 442 816 1,002 1,091 1,121 1,135 2014 430 843 1,032 1,125 1,165 2015 475 935 1,142 1,243 2016 505 968 1,188 2017 441 836 2018 359 Total $ 10,703 Personal Automobile Physical Damage Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 IBNR Claims 2016 $ 665 $ 656 $ 655 $ 3 406,588 2017 598 588 (3 ) 361,857 2018 509 3 288,993 Total $ 1,752 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2016 2017 2018 2016 $ 634 $ 653 $ 651 2017 574 591 2018 474 Total $ 1,716 Homeowners Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Claims 2009 $ 757 $ 777 $ 776 $ 772 $ 772 $ 772 $ 772 $ 769 $ 768 $ 768 $ — 149,799 2010 838 850 838 840 840 840 836 834 834 — 161,590 2011 955 920 919 916 914 911 908 907 — 179,389 2012 774 741 741 741 739 738 738 1 142,828 2013 673 638 637 634 632 630 1 113,518 2014 710 707 702 700 698 1 121,863 2015 690 703 690 684 3 119,888 2016 669 673 663 7 119,441 2017 866 889 45 123,426 2018 903 89 94,946 Total $ 7,714 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 $ 559 $ 727 $ 749 $ 759 $ 763 $ 765 $ 766 $ 766 $ 767 $ 767 2010 599 789 815 825 829 832 833 833 834 2011 709 871 891 899 903 905 908 907 2012 547 696 719 727 731 734 735 2013 467 590 611 622 626 627 2014 526 663 684 691 695 2015 487 645 665 674 2016 481 621 640 2017 538 747 2018 484 Total $ 7,110 Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 2018 IBNR Reserves Claims Reported 2011 1,917 1,761 1,660 1,659 1,669 1,660 1,649 1,638 1 39,097 2012 1,829 1,605 1,539 1,532 1,530 1,515 1,504 1 37,343 2013 1,660 1,479 1,429 1,429 1,416 1,413 1 31,755 2014 1,636 1,473 1,430 1,431 1,431 3 32,970 2015 1,595 1,442 1,422 1,420 5 33,541 2016 1,651 1,481 1,468 12 34,259 2017 1,597 1,413 36 31,135 2018 1,647 810 19,386 Total $ 11,934 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2011 2012 2013 2014 2015 2016 2017 2018 2011 118 508 743 886 996 1,087 1,167 1,231 2012 108 483 708 835 933 1,014 1,080 2013 102 443 664 791 881 954 2014 103 448 675 801 884 2015 108 460 687 806 2016 112 479 705 2017 109 452 2018 105 Total $ 6,217 Group Life and Accident, excluding Premium Waiver Undiscounted Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2016 2017 2018 IBNR Reserves Claims Reported 2016 $ 1,974 $ 1,919 $ 1,915 $ 5 45,206 2017 1,999 1,953 20 44,539 2018 1,952 376 41,876 Total $ 5,820 Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance For the years ended December 31, (Unaudited) Incurral Year 2016 2017 2018 2016 $ 1,529 $ 1,888 $ 1,906 2017 1,551 1,929 2018 1,532 Total $ 5,367 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Reserve Line 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Workers' compensation 15.8 % 19.5 % 12.9 % 9.0 % 6.1 % 4.6 % 3.2 % 2.5 % 2.0 % 1.4 % General liability 3.3 % 8.7 % 14.9 % 16.5 % 13.7 % 9.7 % 7.8 % 3.6 % 2.1 % 2.1 % Package business 38.1 % 21.3 % 10.3 % 8.7 % 5.8 % 3.5 % 1.9 % 1.1 % 0.7 % 0.3 % Commercial property 60.8 % 27.6 % 4.9 % 1.9 % 0.3 % 0.1 % 0.1 % — % — % — % Commercial automobile liability 17.2 % 20.5 % 20.7 % 18.1 % 11.6 % 4.8 % 2.7 % 1.1 % 0.6 % 0.1 % Commercial automobile physical damage 90.0 % 7.1 % (0.5 %) Professional liability 5.7 % 18.6 % 18.1 % 16.2 % 9.8 % 7.6 % 1.3 % 1.4 % 2.5 % 1.1 % Bond 15.4 % 30.8 % 13.9 % 3.3 % 0.3 % 1.5 % 6.1 % (0.1 %) 1.0 % (1.9 %) Personal automobile liability 36.9 % 33.0 % 15.6 % 7.4 % 3.3 % 1.1 % 0.5 % 0.2 % 0.1 % — % Personal automobile physical damage 95.9 % 2.8 % (0.3 %) Homeowners 70.4 % 21.1 % 3.0 % 1.2 % 0.5 % 0.3 % 0.1 % 0.1 % — % — % Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year Group long-term disability 7.3 % 24.4 % 15.4 % 8.7 % 6.3 % 5.4 % 4.6 % 3.9 % Group life and accident, excluding premium waiver 79.3 % 19.0 % 0.9 % |
Reserve for Future Policy Ben_2
Reserve for Future Policy Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Changes in Reserves for Future Policy Benefits | Changes in Reserves for Future Policy Benefits [1] Liability Balance, as of January 1, 2018 $ 713 Incurred 72 Paid (101 ) Change in unrealized investment gains and losses (42 ) Liability Balance, as of December 31, 2018 $ 642 Reinsurance recoverable asset, as of January 1, 2018 $ 26 Incurred 1 Paid — Reinsurance recoverable asset, as of December 31, 2018 $ 27 Liability Balance, as of January 1, 2017 $ 322 Acquired [2] 346 Incurred 86 Paid (50 ) Change in unrealized investment gains and losses 9 Liability Balance, as of December 31, 2017 $ 713 Reinsurance recoverable asset, as of January 1, 2017 $ 28 Incurred (1 ) Paid (1 ) Reinsurance recoverable asset, as of December 31, 2017 $ 26 [1] Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category. [2] Represents reserves, net, related to the U.S. group life and disability business acquired from Aetna, as of the acquisition date. For additional information. see Note 2 - Business Acquisitions |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short-term and Long-term Debt by Issuance As of December 31, 2018 2017 Revolving Credit Facilities $ — $ — Senior Notes and Debentures 6.3% Notes, due 2018 — 320 6.0% Notes, due 2019 413 413 5.5% Notes, due 2020 500 500 5.125% Notes, due 2022 800 800 5.95% Notes, due 2036 300 300 6.625% Notes, due 2040 295 295 6.1% Notes, due 2041 409 409 6.625% Notes, due 2042 178 178 4.4% Notes, due 2048 500 — 4.3% Notes, due 2043 300 300 Junior Subordinated Debentures 7.875% Notes, due 2042 600 600 3 month Libor + 2.125% Notes, due 2067 [1] 500 500 8.125% Notes, due 2068 — 500 Total Notes and Debentures 4,795 5,115 Unamortized discount and debt issuance cost [2] (117 ) (117 ) Total Debt 4,678 4,998 Less: Current maturities 413 320 Long-Term Debt $ 4,265 $ 4,678 [1] In April 2017, the Company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the variable interest payments for this debenture into fixed interest payments of approximately 4.39% . [2] The amount primarily consists of $78 and $79 as of December 31, 2018 and 2017 , respectively, on the 6.1% |
Schedule of Subordinated Borrowing | Junior Subordinated Debentures by Issuance Issue 7.875% Debentures 3 Month Libor + 2.125% Face Value $ 600 $ 500 Interest Rate [1] 7.875 % [2] N/A [3] Call Date April 15, 2022 February 15, 2022 [4] Interest Rate Subsequent to Call Date [2] 3 Month Libor + 5.596% 3 Month Libor + 2.125% [5] Final Maturity April 15, 2042 February 12, 2067 [1] Interest rate in effect until call date. [2] Payable quarterly in arrears. [3] Debentures were issued on call date. [4] The original call date was February 15, 2017. Replacement Capital Covenant associated with the debenture prohibits the Company from redeeming all or any portion of the notes on or prior to February 15, 2022. [5] In April, 2017 the company entered into an interest rate swap agreement expiring February 15, 2027 to effectively convert the interest payments for the 3 month Libor + 2.125% debenture into fixed interest payments of approximately 4.39% |
Long-Term Debt Maturities | Long-term Debt Maturities (at par value) as of December 31, 2018 2019 - Current maturities $ 413 2020 $ 500 2021 $ — 2022 $ 800 2023 $ — Thereafter $ 3,082 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease commitments as of December 31, 2018 Operating Leases 2019 $ 44 2020 36 2021 25 2022 18 2023 16 Thereafter 34 Total minimum lease payments [1] $ 173 [1] Excludes expected future minimum sublease income of approximately $2 , $1 , $1 , $0 , $0 and $0 in 2019 , 2020 , 2021 , 2022 , 2023 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Statutory Accounting Practices Disclosure | Statutory Net Income (Loss) For the years ended December 31, 2018 2017 2016 Group Benefits Insurance Subsidiary $ 390 $ (1,066 ) $ 208 Property and Casualty Insurance Subsidiaries 1,114 950 304 Life and annuity business sold in May, 2018 196 369 349 Total $ 1,700 $ 253 $ 861 Statutory Capital As of December 31, 2018 2017 Group Benefits Insurance Subsidiary $ 2,407 $ 2,029 Property and Casualty Insurance Subsidiaries 7,435 7,396 Total $ 9,842 $ 9,425 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income Tax Expense (Benefit) For the years ended December 31, 2018 2017 2016 Income Tax Expense (Benefit) Current - U.S. Federal $ (18 ) $ 116 $ 10 International — 1 — Total current (18 ) 117 10 Deferred - U.S. Federal 286 866 (173 ) International — 2 (3 ) Total deferred 286 868 (176 ) Total income tax expense (benefit) $ 268 $ 985 $ (166 ) |
Income Tax Rate Reconciliation | Income Tax Rate Reconciliation For the years ended December 31, 2018 2017 2016 Tax provision at U.S. federal statutory rate [1] $ 368 $ 253 $ 157 Tax-exempt interest (66 ) (123 ) (124 ) Decrease in deferred tax valuation allowance — — (79 ) Executive Compensation 11 — — Stock-based compensation (5 ) (15 ) — Solar credits — — (79 ) Sale of the U.K. property & casualty run-off subsidiaries and foreign rate differential — 5 (37 ) Tax Reform (39 ) 877 — Other (1 ) (12 ) (4 ) Provision (benefit) for income taxes $ 268 $ 985 $ (166 ) [1] Due to the passage of Tax Reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively. |
Deferred Tax Assets (Liabilities) | As of December 31, 2018 2017 Deferred Tax Assets Loss reserves and tax discount $ 150 $ 104 Unearned premium reserve and other underwriting related reserves 355 352 Investment-related items 183 194 Employee benefits 287 313 General business credit carryover 1 3 Net operating loss carryover 521 710 Foreign tax credit carryover — 26 Other — 1 Total Deferred Tax Assets 1,497 1,703 Deferred Tax Liabilities Deferred acquisition costs (104 ) (103 ) Net unrealized gains on investments (7 ) (306 ) Other depreciable and amortizable assets (135 ) (130 ) Other (3 ) — Total Deferred Tax Liabilities (249 ) (539 ) Net Deferred Tax Asset $ 1,248 $ 1,164 |
Roll-forward of Unrecognized Tax Benefits | Rollforward of Unrecognized Tax Benefits For the years ended December 31, 2018 2017 2016 Balance, beginning of period $ 9 $ 12 $ 12 Gross increases - tax positions in prior period 5 3 — Gross decreases - tax positions in prior period — — — Gross decreases - tax reform — (6 ) — Balance, end of period $ 14 $ 9 $ 12 |
Changes in and Reclassificati_2
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in AOCI, Net of Tax | Changes in AOCI, Net of Tax for the Year Ended December 31, 2018 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain (Loss) on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Cumulative effect of accounting changes, net of tax [1] 273 — 2 4 (284 ) (5 ) Adjusted balance, beginning of period 2,204 (3 ) 20 38 (1,601 ) 658 OCI before reclassifications [2] (2,245 ) — 8 (8 ) (61 ) (2,306 ) Amounts reclassified from AOCI 65 (1 ) (33 ) — 38 69 OCI, net of tax (2,180 ) (1 ) (25 ) (8 ) (23 ) (2,237 ) Ending balance $ 24 $ (4 ) $ (5 ) $ 30 $ (1,624 ) $ (1,579 ) [1] Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains, after tax, related to equity securities. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements for further information. [2] The reduction in AOCI included the effect of removing $ 758 of AOCI from the balance sheet when the life and annuity business was sold in May 2018. Changes in AOCI, Net of Tax for the Year Ended December 31, 2017 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) OCI before reclassifications 857 — (8 ) 28 (146 ) 731 Amounts reclassified from AOCI (202 ) — (50 ) — 521 269 OCI, net of tax 655 — (58 ) 28 375 1,000 Ending balance $ 1,931 $ (3 ) $ 18 $ 34 $ (1,317 ) $ 663 Changes in AOCI, Net of Tax for the Year ended December 31, 2016 Changes in Net Unrealized Gain on Securities OTTI Losses in OCI Net Gain on Cash Flow Hedging Instruments Foreign Currency Translation Adjustments Pension and Other Postretirement Plan Adjustments AOCI, net of tax Beginning balance $ 1,279 $ (7 ) $ 130 $ (55 ) $ (1,676 ) $ (329 ) OCI before reclassifications 83 1 (8 ) (37 ) (52 ) (13 ) Amounts reclassified from AOCI (86 ) 3 (46 ) 98 36 5 OCI, net of tax (3 ) 4 (54 ) 61 (16 ) (8 ) Ending balance $ 1,276 $ (3 ) $ 76 $ 6 $ (1,692 ) $ (337 ) |
Reclassifications from AOCI | Reclassifications from AOCI AOCI Amount Reclassified from AOCI Affected Line Item in the Consolidated Statement of Operations For the year ended December 31, 2018 For the year ended December 31, 2017 For the year ended December 31, 2016 Net Unrealized Gain on Securities Available-for-sale securities $ (80 ) $ 152 $ 36 Net realized capital gains (losses) (80 ) 152 36 Total before tax (17 ) 53 13 Income tax expense (benefit) (2 ) 103 63 Income (loss) from discontinued operations, net of tax $ (65 ) $ 202 $ 86 Net income (loss) OTTI Losses in OCI Other than temporary impairments $ — $ — $ (2 ) Net realized capital gains (losses) — — (2 ) Total before tax — — (1 ) Income tax expense (benefit) 1 — (2 ) Income (loss) from discontinued operations, net of tax 1 — (3 ) Net income (loss) Net Gain on Cash Flow Hedging Instruments Interest rate swaps $ 6 $ 5 $ 10 Net realized capital gains (losses) Interest rate swaps 30 37 37 Net investment income 36 42 47 Total before tax 8 15 17 Income tax expense (benefit) $ 5 $ 23 $ 16 Income (loss) from discontinued operations, net of tax $ 33 $ 50 $ 46 Net income (loss) Foreign Currency Translation Adjustments Currency translation adjustments [1] $ — $ — $ (118 ) Net realized capital gains (losses) — — (118 ) Total before tax — — (20 ) Income tax expense (benefit) $ — $ — $ (98 ) Net income (loss) Pension and Other Postretirement Plan Adjustments Amortization of prior service credit $ 7 $ 7 $ 6 Insurance operating costs and other expenses Amortization of actuarial loss (55 ) (61 ) (61 ) Insurance operating costs and other expenses Settlement loss — (747 ) — Insurance operating costs and other expenses (48 ) (801 ) (55 ) Total before tax (10 ) (280 ) (19 ) Income tax expense (benefit) (38 ) (521 ) (36 ) Net income (loss) Total amounts reclassified from AOCI $ (69 ) $ (269 ) $ (5 ) Net income (loss) [1] |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans and Other Postretirement Plans | Weighted Average Assumptions Used in Calculating the Benefit Obligations and the Net Amount Recognized Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Discount rate 4.35 % 3.73 % 4.23 % 3.55 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Pension Plans For the years ended December 31, 2018 2017 2016 Discount rate 3.73 % 4.22 % 4.25 % Expected long-term rate of return on plan assets 6.60 % 6.60 % 6.70 % Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost for Other Postretirement Plans For the years ended December 31, 2018 2017 2016 Discount rate 3.55 % 3.97 % 4.00 % Expected long-term rate of return on plan assets 6.60 % 6.60 % 6.60 % |
Assumed Health Care Cost Trend Rates | Assumed Health Care Cost Trend Rates For the years ended December 31, 2018 2017 2016 Pre-65 health care cost trend rate 6.50 % 6.75 % 6.90 % Post-65 health care cost trend rate N/A N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % 5.00 % Year that the rate reaches the ultimate trend rate 2028 2028 2024 |
Change in Benefit Obligation | Change in Benefit Obligation Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Benefit obligation — beginning of year $ 4,376 $ 5,650 $ 256 $ 272 Service cost 4 4 — — Interest cost 142 170 7 8 Plan participants’ contributions — — 11 11 Actuarial (gain) loss (6 ) 139 — 5 Settlements — (1,647 ) — — Changes in assumptions (329 ) 332 (11 ) 10 Benefits and expenses paid (186 ) (273 ) (45 ) (51 ) Retiree drug subsidy — — 2 1 Foreign exchange adjustment (1 ) 1 — — Benefit obligation — end of year $ 4,000 $ 4,376 $ 220 $ 256 |
Change in Plan Assets | Change in Plan Assets Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2018 2017 Fair value of plan assets — beginning of year $ 3,592 $ 4,678 $ 114 $ 138 Actual return on plan assets (172 ) 549 (2 ) 11 Employer contributions 103 280 — — Benefits paid [1] (161 ) (248 ) (27 ) (35 ) Expenses paid (17 ) (21 ) — — Settlements — (1,647 ) — — Foreign exchange adjustment (1 ) 1 — — Fair value of plan assets — end of year $ 3,344 $ 3,592 $ 85 $ 114 Funded status — end of year $ (656 ) $ (784 ) $ (135 ) $ (142 ) [1] |
Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets As of December 31, 2018 2017 Projected benefit obligation $ 4,000 $ 4,376 Accumulated benefit obligation $ 4,000 $ 4,376 Fair value of plan assets $ 3,344 $ 3,592 |
Amounts Recognized in Consolidated Balance Sheets | Amounts Recognized in the Consolidated Balance Sheets Pension Benefits Other Postretirement Benefits As of December 31, 2018 2017 2018 2017 Other liabilities $ 656 $ 784 $ 135 $ 142 |
Net Periodic Cost (Benefit) | Net Periodic Cost (Benefit) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2016 2018 2017 2016 Service cost $ 4 $ 4 $ 2 $ — $ — $ — Interest cost 142 170 237 7 8 11 Expected return on plan assets (227 ) (267 ) (311 ) (7 ) (8 ) (10 ) Amortization of prior service credit — — — (7 ) (7 ) (6 ) Amortization of actuarial loss 49 56 56 6 5 5 Settlements — 750 — — — — Net periodic cost (benefit) $ (32 ) $ 713 $ (16 ) $ (1 ) $ (2 ) $ — |
Amounts Recognized in Other Comprehensive Income (Loss) | Amounts Recognized in Other Comprehensive Income (Loss) Pension Benefits Other Postretirement Benefits For the years ended December 31, 2018 2017 2016 2018 2017 2016 Amortization of actuarial loss $ 49 $ 56 $ 56 $ 6 $ 5 $ 5 Settlement loss — 750 — — — — Amortization of prior service credit — — — (6 ) (7 ) (6 ) Net loss arising during the year (91 ) (209 ) (66 ) 3 (12 ) (4 ) Total $ (42 ) $ 597 $ (10 ) $ 3 $ (14 ) $ (5 ) |
Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost | Amounts in Accumulated Other Comprehensive Income (Loss), Before Tax, not yet Recognized as Components of Net Periodic Benefit Cost Pension Benefits Other Postretirement Benefits As of December 31, 2018 2017 2016 2018 2017 2016 Net loss $ (2,008 ) $ (1,966 ) $ (2,563 ) $ (120 ) $ (129 ) $ (122 ) Prior service credit — — — 72 78 85 Total $ (2,008 ) $ (1,966 ) $ (2,563 ) $ (48 ) $ (51 ) $ (37 ) |
Plan Assets | Target Asset Allocation Pension Plans Other Postretirement Plans Minimum Maximum Minimum Maximum Equity securities 5 % 35 % 15 % 45 % Fixed income securities 50 % 70 % 55 % 85 % Alternative assets — % 45 % — % — % Other Postretirement Plan Assets at Fair Value as of December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Short-term investments $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 19 — 19 RMBS — 15 — 15 U.S. Treasuries 6 13 — 19 Foreign government — 1 — 1 CMBS — 2 — 2 Other fixed income — 2 — 2 Equity Securities: Large-cap 23 — — 23 Total other postretirement plan assets at fair value [1] $ 33 $ 52 $ — $ 85 [1] Excludes approximately $1 of investment receivables net of investment payables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Other Postretirement Plan Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Short-term investments $ 4 $ — $ — $ 4 Fixed Income Securities: Corporate — 25 — 25 RMBS — 17 — 17 U.S. Treasuries 1 25 — 26 Foreign government — 1 — 1 CMBS — 5 — 5 Other fixed income — 4 1 5 Equity Securities: Large-cap 30 — — 30 Total other postretirement plan assets at fair value [1] $ 35 $ 77 $ 1 $ 113 [1] Excludes approximately $0 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $1 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Short-term investments: $ 50 $ 60 $ — $ 110 Fixed Income Securities: Corporate — 1,663 14 1,677 RMBS — 62 1 63 U.S. Treasuries 10 120 — 130 Foreign government — 15 2 17 CMBS — 22 — 22 Other fixed income [1] — 52 1 53 Mortgage Loans — — 133 133 Equity Securities: Domestic 376 3 — 379 International 303 — — 303 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 739 $ 1,997 $ 151 $ 2,887 Other Investments, at net asset value [3]: Private Market Alternatives 272 Hedge funds 186 Total pension plan assets at fair value. $ 739 $ 1,997 $ 151 $ 3,345 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $1 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. [3] Investments that are measured at net asset value per share or an equivalent and have not been classified in the fair value hierarchy. Pension Plan Assets at Fair Value as of December 31, 2017 Asset Category Level 1 Level 2 Level 3 Total Short-term investments: $ 21 $ 168 $ — $ 189 Fixed Income Securities: Corporate — 1,549 14 1,563 RMBS — 28 2 30 U.S. Treasuries 3 74 — 77 Foreign government — 16 1 17 CMBS — 28 2 30 Other fixed income [1] — 97 2 99 Mortgage Loans — — 140 140 Equity Securities: Large-cap domestic 595 89 — 684 Mid-cap domestic 11 — — 11 International 343 — — 343 Total pension plan assets at fair value, in the fair value hierarchy [2] $ 973 $ 2,049 $ 161 $ 3,183 Other Investments, at net asset value [3]: Private Market Alternatives 168 Hedge funds 212 Total pension plan assets at fair value. $ 973 $ 2,049 $ 161 $ 3,563 [1] Includes ABS, municipal bonds, and CDOs. [2] Excludes approximately $1 of investment payables net of investment receivables that are excluded from this disclosure requirement because they are trade receivables in the ordinary course of business where the carrying amount approximates fair value. Also excludes approximately $30 of interest receivable. [3] |
Pension Plan Assets Fair Value Measurements Using Significant Unobservable Inputs | 2018 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2018 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 Realized gains,net — — — — — — Changes in unrealized gains (losses), net (1 ) — — (1 ) — (2 ) Purchases 5 — 1 — — 6 Settlements — — — — — — Sales (4 ) (1 ) — (6 ) (3 ) (14 ) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — — — — Fair Value as of December 31, 2018 $ 14 $ 1 $ 2 $ 133 $ 1 $ 151 [1] 2017 Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals Fair Value as of January 1, 2017 $ 13 $ 10 $ 1 $ 121 $ 22 $ 167 Realized gains,net — — — — 2 2 Changes in unrealized gains, net 2 — — 2 2 6 Purchases 11 1 — 17 7 36 Settlements — (5 ) — — (1 ) (6 ) Sales (12 ) (4 ) — — (19 ) (35 ) Transfers into Level 3 — — — — 2 2 Transfers out of Level 3 — — — — (11 ) (11 ) Fair Value as of December 31, 2017 $ 14 $ 2 $ 1 $ 140 $ 4 $ 161 |
Company Contributions | Company Contributions Employer Contributions Pension Benefits Other Postretirement Benefits 2018 $ 103 $ — 2017 $ 281 $ — |
Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans | Amounts of Benefits Expected to be Paid over the next Ten Years from Pension and other Postretirement Plans as of December 31, 2018 Pension Benefits Other Postretirement Benefits 2019 $ 239 $ 27 2020 239 24 2021 246 22 2022 251 20 2023 250 18 2024 - 2028 1,263 67 Total $ 2,488 $ 178 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense For the years ended December 31, 2018 2017 2016 Stock-based compensation plans expense [1] $ 130 $ 116 $ 81 Income tax benefit (27 ) (41 ) (29 ) Excess tax benefit on awards vested, exercised and expired (5 ) (15 ) — Total stock-based compensation plans expense, after tax [2] $ 98 $ 60 $ 52 [1] |
Stock Compensation Valuation Assumptions | Stock Options Valuation Assumptions For the years ended December 31, 2018 2017 2016 Expected dividend yield 1.8% 1.9% 2.0% Expected annualized spot volatility 20.8 % - 36.5% 21.8 % - 37.9% 27.3 % - 41.3% Weighted average annualized volatility 29.0% 29.5% 34.1% Risk-free spot rate 1.5 % - 2.9% 0.4 % - 2.4% 0.3 % - 1.8% Expected term 5.7 years 5.0 years 5.0 years |
Non-qualified Stock Option Activity Under the Incentive Stock Plan | Non-qualified Stock Option Activity Under the Incentive Stock Plan Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value For the year ended December 31, 2018 Outstanding at beginning of year 5,212 $ 37.25 Granted 876 $ 53.81 Exercised (571 ) $ 26.43 Forfeited — $ — Expired (27 ) $ 74.88 Outstanding at end of year 5,490 $ 40.84 6.1 years $ 32 Outstanding, fully vested and expected to vest 5,240 $ 42.79 6.1 years $ 30 Exercisable at end of year 3,737 $ 36.30 4.9 years $ 32 |
Assumptions | Assumptions for Total Shareholder Return Performance Shares For the years ended December 31, 2018 2017 2016 Volatility of common stock 20.8% 20.3% 22.2% Average volatility of peer companies 17.0 % - 25.0% 15.0 % - 25.0% 15.0 % - 26.0% Average correlation coefficient of peer companies 54.0% 60.0% 56.0% Risk-free spot rate 2.4% 1.5% 1.0% Term 3.0 years 3.0 years 3.0 years |
Non-vested Share Award Activity Under the Incentive Stock Plan | Non-vested Share Award Activity Under the Incentive Stock Plan Restricted Stock and Restricted Stock Units Performance Shares Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value Number of Shares (in thousands) Weighted-Average Grant date Fair Value Non-vested shares For the year ended December 31, 2018 Non-vested at beginning of year 4,444 $ 43.94 795 $ 45.16 Granted 1,359 $ 53.11 372 $ 50.26 Performance based adjustment 188 $ 43.59 Vested (1,721 ) $ 41.52 (539 ) $ 43.59 Forfeited (636 ) $ 46.07 (81 ) $ 44.45 Non-vested at end of year 3,446 $ 48.43 735 $ 49.56 |
Business Dispositions and Dis_2
Business Dispositions and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations For the years ended December 31, 2018 2017 2016 Revenues Earned premiums $ 39 $ 106 $ 114 Fee income and other 382 912 931 Net investment income 519 1,289 1,384 Net realized capital losses (68 ) (53 ) (158 ) Total revenues 872 2,254 2,271 Benefits, losses and expenses Benefits, losses and loss adjustment expenses 535 1,416 1,390 Amortization of DAC 58 45 146 Insurance operating costs and other expenses [1] 157 368 378 Total benefits, losses and expenses 750 1,829 1,914 Income before income taxes 122 425 357 Income tax expense (benefit) 2 37 74 Income from operations of discontinued operations, net of tax 120 388 283 Net realized capital gain (loss) on disposal, net of tax 202 (3,257 ) — Income (loss) from discontinued operations, net of tax $ 322 $ (2,869 ) $ 283 Year Ended December 31, 2018 2017 2016 Net cash provided by operating activities from discontinued operations $ 603 $ 797 $ 784 Net cash provided by investing activities from discontinued operations $ 463 $ 1,466 $ 864 Net cash used in financing activities from discontinued operations [1] $ (737 ) $ (884 ) $ (647 ) Cash paid for interest $ — $ 11 $ 11 [1] Excludes return of capital to parent of $619 , $1,396 , and $752 for 2018 , 2017 and 2016 Carrying Value as of Closing December 31, 2017 [2] Assets Cash and investments $ 27,058 $ 30,135 Reinsurance recoverables 20,718 20,785 Loss accrual [1] (3,044 ) (3,257 ) Other assets 2,907 1,439 Separate account assets 110,773 115,834 Total assets held for sale $ 158,412 $ 164,936 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses $ 14,308 $ 14,482 Other policyholder funds and benefits payable 28,680 29,228 Long-term debt 142 142 Other liabilities 2,222 2,756 Separate account liabilities 110,773 115,834 Total liabilities held for sale $ 156,125 $ 162,442 [1] Carrying Value as of Closing December 31, 2016 [2] Assets Cash and investments $ 669 $ 657 Reinsurance recoverables and other [1] 268 213 Total assets held for sale 937 870 Liabilities Reserve for future policy benefits and unpaid loss and loss adjustment expenses 653 600 Other liabilities 12 11 Total liabilities held for sale $ 665 $ 611 [1] Includes intercompany reinsurance recoverables of $ 71 as of December 31, 2016, settled in cash at closing. [2] |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Current and Historical Quarterly Results of the Company Three months ended March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Revenues $ 4,691 $ 4,169 $ 4,789 $ 4,214 $ 4,842 $ 4,192 $ 4,633 $ 4,587 Benefits, losses and expenses 4,172 3,768 4,252 4,495 4,312 4,011 4,466 4,165 Income (loss) from continuing operations, net of tax 428 303 434 (152 ) 427 145 196 (558 ) Income (loss) from discontinued operations, net of tax 169 75 148 112 5 89 — (3,145 ) Net income (loss) $ 597 $ 378 $ 582 $ (40 ) $ 432 $ 234 $ 196 $ (3,703 ) Less: Preferred stock dividends — — — — — — 6 — Net income (loss) available to common stockholders $ 597 $ 378 $ 582 $ (40 ) $ 432 $ 234 $ 190 $ (3,703 ) Basic Income (loss) from continuing operations, net of tax, available to common stockholders per share $ 1.20 $ 0.82 $ 1.21 $ (0.42 ) $ 1.19 $ 0.40 $ 0.53 $ (1.56 ) Income (loss) from discontinued operations, net of tax per share $ 0.47 $ 0.20 $ 0.41 $ 0.31 $ 0.01 $ 0.25 $ — $ (8.81 ) Net income (loss) per common share available to common stockholders $ 1.67 $ 1.02 $ 1.62 $ (0.11 ) $ 1.20 $ 0.65 $ 0.53 $ (10.37 ) Diluted Income (loss) from continuing operations, net of tax, available to common stockholders per share $ 1.18 $ 0.80 $ 1.19 $ (0.42 ) $ 1.17 $ 0.40 $ 0.52 $ (1.56 ) Income (loss) from discontinued operations, net of tax per share $ 0.46 $ 0.20 $ 0.41 $ 0.31 $ 0.02 $ 0.24 $ — $ (8.81 ) Net income (loss) per common share available to common stockholders $ 1.64 $ 1.00 $ 1.60 $ (0.11 ) $ 1.19 $ 0.64 $ 0.52 $ (10.37 ) Weighted average common shares outstanding, basic 357.5 371.4 358.3 366.0 358.6 360.2 359.1 357.0 Weighted average shares outstanding and dilutive potential common shares [1] 363.9 378.6 364.2 366.0 364.1 367.0 364.0 357.0 [1] |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) | Jan. 01, 2019 | Aug. 22, 2018 | May 31, 2018 | Jan. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | $ (5,000,000) | $ (15,000,000) | $ 0 | ||||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (88,000,000) | ||||||||
Equity securities, at fair value | 0 | 1,012,000,000 | |||||||
Fee income | 1,313,000,000 | 1,168,000,000 | 1,041,000,000 | ||||||
Other Income | 105,000,000 | 85,000,000 | 86,000,000 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 1,418,000,000 | 1,253,000,000 | 1,127,000,000 | ||||||
Cumulative Effect on Retained Earnings, before Tax | 1,000,000 | ||||||||
Participating dividends to policyholders | 23,000,000 | 35,000,000 | 15,000,000 | ||||||
Accumulated depreciation | 1,600,000,000 | 2,600,000,000 | |||||||
Depreciation expense | 232,000,000 | 197,000,000 | 186,000,000 | ||||||
Incentive to Lessee | $ 10,000,000 | ||||||||
Reserve for future policy benefits | $ 642,000,000 | 713,000,000 | |||||||
Minimum | Other Intangible Assets | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Useful lives | 1 year | ||||||||
Maximum [Member] | Other Intangible Assets | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Useful lives | 15 years | ||||||||
Property and Casualty Insurance Products | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net written premiums | $ 0.10 | 0.10 | 0.09 | ||||||
Allowance for Doubtful Accounts | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Valuation allowances and reserves | 135,000,000 | 132,000,000 | 137,000,000 | $ 134,000,000 | |||||
Scenario, Forecast | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 150,000,000 | ||||||||
Operating Lease, Liability | $ 160 | ||||||||
Operating Segments [Member] | Commercial Lines | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reserve for future policy benefits | 0 | 0 | |||||||
Operating Segments [Member] | Commercial Lines | Installment billing fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 34,000,000 | 37,000,000 | 39,000,000 | ||||||
Operating Segments [Member] | Personal Lines Segment [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reserve for future policy benefits | 0 | 0 | |||||||
Operating Segments [Member] | Personal Lines Segment [Member] | Installment billing fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 40,000,000 | 44,000,000 | 39,000,000 | ||||||
Operating Segments [Member] | Personal Lines Segment [Member] | Insurance servicing fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Other Income | 84,000,000 | 85,000,000 | 86,000,000 | ||||||
Operating Segments [Member] | Group Benefits | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reserve for future policy benefits | 427,000,000 | 441,000,000 | |||||||
Operating Segments [Member] | Group Benefits | Administrative services fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 175,000,000 | 91,000,000 | 75,000,000 | ||||||
Operating Segments [Member] | Hartford Funds | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reserve for future policy benefits | 0 | 0 | |||||||
Operating Segments [Member] | Hartford Funds | Advisor, distribution and other management fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 947,000,000 | 897,000,000 | 797,000,000 | ||||||
Operating Segments [Member] | Hartford Funds | Other fees [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 85,000,000 | 95,000,000 | 88,000,000 | ||||||
Corporate | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fee income | 32,000,000 | 4,000,000 | 3,000,000 | ||||||
Other Income | 21,000,000 | 0 | 0 | ||||||
Reserve for future policy benefits | 215,000,000 | 272,000,000 | |||||||
Insurance Operating Costs | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Distribution costs | (188,000,000) | (184,000,000) | |||||||
Fee Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Distribution costs | 188,000,000 | 184,000,000 | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (193,000,000) | ||||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Other Income [Member] | Minimum | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 5 years | ||||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Other Income [Member] | Maximum [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 24 months | ||||||||
Equity securities | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Cumulative effect of accounting changes, net of tax | 83,000,000 | ||||||||
Equity securities, at fair value | 1,012,000,000 | ||||||||
Shadow DAC [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Cumulative effect of accounting changes, net of tax | 10,000,000 | ||||||||
Continuing Operations [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | (105,000,000) | ||||||||
Additional Paid-in Capital | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Tax benefit on employee stock options and share-based awards | $ 0 | 0 | $ 5,000,000 | ||||||
Accumulated Net Unrealized Investment Gain (Loss) | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Cumulative effect of accounting changes, net of tax | $ 273,000,000 | ||||||||
Accumulated Net Unrealized Investment Gain (Loss) | Equity securities | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Equity securities, at fair value | $ 1,000,000,000 | ||||||||
The Navigators Group, Inc. [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Business Acquisition, Share Price | $ 70 | ||||||||
Business Combination, Consideration Transferred | $ 2,100,000,000 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Nov. 01, 2017 | Jul. 30, 2016 | Jul. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||||||
Revenues | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | $ 4,587 | $ 4,192 | $ 4,214 | $ 4,169 | $ 18,955 | $ 17,162 | $ 16,291 | ||||||
Net income (loss) available to common stockholders | 190 | 432 | $ 582 | $ 597 | (3,703) | $ 234 | $ (40) | $ 378 | 1,801 | (3,131) | 896 | ||||||
Goodwill | $ 1,290 | 1,290 | $ 1,290 | $ 567 | 1,290 | $ 1,290 | $ 567 | ||||||||||
Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Combination, Consideration Transferred | $ 1,452 | ||||||||||||||||
Payments to Acquire Businesses, Gross | 1,450 | ||||||||||||||||
Business Combination, Consideration Transferred, Other | 2 | ||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Assets | 80 | $ 80 | |||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Liabilities | $ 80 | $ 80 | |||||||||||||||
Revenues | 370 | ||||||||||||||||
Net income (loss) available to common stockholders | 37 | ||||||||||||||||
Goodwill | $ 723 | $ 723 | $ 723 | ||||||||||||||
Business Combination, Acquisition Related Costs | $ 17 | ||||||||||||||||
Maxum [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payments to Acquire Businesses, Gross | $ 169 | ||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||||||||||||
Goodwill | $ 38 | ||||||||||||||||
Business Combination, Acquisition Related Costs | 1 | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||||||||
Lattice [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Combination, Consideration Transferred | $ 42 | ||||||||||||||||
Payments to Acquire Businesses, Gross | 19 | ||||||||||||||||
Goodwill | $ 31 | ||||||||||||||||
Business Combination, Acquisition Related Costs | $ 1 | ||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||||||||
Assets under Management, Carrying Amount | $ 200 | ||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 60 | ||||||||||||||||
Business Combination, Contingent Consideration Arrangement, Payment Period | 4 years | ||||||||||||||||
Customer Relationships [Member] | Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||||||||
Goodwill | $ 723 | ||||||||||||||||
Marketing agreement with Aetna | Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite-lived Intangible Assets Acquired, Term of Agreement | 3 years | ||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||||||||||
Computer Software, Intangible Asset [Member] | Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||||||||||||
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | Aetna Group Insurance [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date (Details) - USD ($) $ in Millions | Nov. 01, 2017 | Jul. 30, 2016 | Jul. 29, 2016 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||
Cash | $ 121 | $ 180 | $ 328 | $ 143 | |||||
Goodwill | 1,290 | $ 1,290 | $ 567 | ||||||
Aetna Group Insurance [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 3,360 | 3,405 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | $ 45 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Premiums Receivable | 96 | 103 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Premiums Receivable | 7 | ||||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 56 | 69 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes | 13 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 629 | 629 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 68 | 68 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | 0 | 31 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Reinsurance Recoverables | 31 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 16 | 0 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Assets | (16) | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,225 | 4,305 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Assets | $ 80 | 80 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unpaid Losses and Loss Adjustment Expenses | 2,833 | 2,904 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Unpaid Loss and Loss Adjustment Expenses | 71 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed,Liability for Future Policy Benefits | 346 | 347 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Liability for Future Policy Benefits | 1 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Policyholder Benefits | 245 | 246 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Policyholder Benefits | 1 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 3 | 4 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Revenue | 1 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 69 | 75 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Liabilities | 6 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 3,496 | 3,576 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Liabilities | 80 | 80 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 729 | 729 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets and Liabilities, Net | 0 | ||||||||
Goodwill | 723 | 723 | |||||||
Goodwill, Purchase Accounting Adjustments | 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 1,452 | $ 1,452 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Assets Liabilities and Goodwill, Net | 0 | ||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 610 | $ 610 | |||||||
Maxum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 274 | ||||||||
Cash | 12 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 7 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Reinsurance Recoverables | 113 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 79 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 477 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unpaid Losses and Loss Adjustment Expenses | 235 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 77 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 34 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 346 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 131 | ||||||||
Goodwill | 38 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 169 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 4 | ||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||||||
Lattice [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 1 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 12 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 1 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 11 | ||||||||
Goodwill | 31 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 42 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11 | ||||||||
Customer Relationships [Member] | Aetna Group Insurance [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 723 | ||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||||||
Customer Relationships [Member] | Lattice [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 10 | ||||||||
Other Intangible Assets | Lattice [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1 | ||||||||
Other Intangible Assets | Lattice [Member] | Minimum | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||||||
Other Intangible Assets | Lattice [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Information (Details) - Aetna Group Insurance [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Total Revenue | $ 18,899 | $ 18,348 |
Net Income | $ (3,077) | $ 953 |
Business Acquisitions - Intangi
Business Acquisitions - Intangible Assets Recorded in Connection with the Acquisition (Details) - Aetna Group Insurance [Member] $ in Millions | Nov. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 629 |
Value of in-force contracts | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 23 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
Customer relationships [1] | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 590 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Marketing agreement with Aetna | |
Business Acquisition [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 16 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Software and Software Development Costs [Member] | |
Business Acquisition [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |
Business Acquisition [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years |
Business Acquisitions - Fair _2
Business Acquisitions - Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Business Combination, Contingent Consideration, Liability | $ 40 | |
Lattice [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 19 | |
Business Combination, Contingent Consideration, Liability | 23 | |
Business Combination, Consideration Transferred | 42 | |
Contingent consideration | $ 60 | |
Contingent consideration period | 4 years |
Earnings Per Common Share - Co
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings | |||||||||||
Income (loss) from continuing operations, net of tax | $ 1,485 | $ (262) | $ 613 | ||||||||
Preferred Stock Dividends, Income Statement Impact | 6 | 0 | 0 | ||||||||
Income loss from Continuing Operations Net of Tax Available to Common Shareholders | 1,479 | (262) | 613 | ||||||||
Income (loss) from discontinued operations, net of tax | 322 | (2,869) | 283 | ||||||||
Net income (loss) available to common stockholders | $ 190 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | $ 1,801 | $ (3,131) | $ 896 |
Shares | |||||||||||
Weighted average common shares outstanding, basic | 359.1 | 358.6 | 358.3 | 357.5 | 357 | 360.2 | 366 | 371.4 | 358.4 | 363.7 | 387.7 |
Dilutive effect of warrants | 1.9 | 0 | 3.6 | ||||||||
Dilutive effect of stock-based awards under compensation plans | 3.8 | 0 | 3.5 | ||||||||
Weighted average common shares outstanding and dilutive potential common shares [1] | 364 | 364.1 | 364.2 | 363.9 | 357 | 367 | 366 | 378.6 | 364.1 | 363.7 | 394.8 |
Basic | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | $ 0.53 | $ 1.19 | $ 1.21 | $ 1.20 | $ (1.56) | $ 0.40 | $ (0.42) | $ 0.82 | $ 4.13 | $ (0.72) | $ 1.58 |
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 0.01 | 0.41 | 0.47 | (8.81) | 0.25 | 0.31 | 0.20 | 0.90 | (7.89) | 0.73 |
Net income (loss) available to common stockholders | 0.53 | 1.20 | 1.62 | 1.67 | (10.37) | 0.65 | (0.11) | 1.02 | 5.03 | (8.61) | 2.31 |
Diluted | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | 0.52 | 1.17 | 1.19 | 1.18 | (1.56) | 0.40 | (0.42) | 0.80 | 4.06 | (0.72) | 1.55 |
Income (loss) from discontinued operations, net of tax, available to common stockholders | 0 | 0.02 | 0.41 | 0.46 | (8.81) | 0.24 | 0.31 | 0.20 | 0.89 | (7.89) | 0.72 |
Net income (loss) available to common stockholders | $ 0.52 | $ 1.19 | $ 1.60 | $ 1.64 | $ (10.37) | $ 0.64 | $ (0.11) | $ 1 | $ 4.95 | $ (8.61) | $ 2.27 |
Stock Compensation Plan | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities (in shares) | 4.3 | ||||||||||
Warrant | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities (in shares) | 2.5 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
Segment Information - Revenues
Segment Information - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | $ 17,182 | $ 15,309 | $ 14,738 | ||||||||
Total net investment income | 1,780 | 1,603 | 1,577 | ||||||||
Net realized capital gains (losses) | (112) | 165 | (110) | ||||||||
Other revenues | 105 | 85 | 86 | ||||||||
Total revenues | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | $ 4,587 | $ 4,192 | $ 4,214 | $ 4,169 | 18,955 | 17,162 | 16,291 |
Operating Expense [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Distribution Costs | 188 | 184 | |||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 7,081 | 6,902 | 6,690 | ||||||||
Total net investment income | 997 | 949 | 917 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Workers’ compensation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 3,341 | 3,287 | 3,187 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 653 | 604 | 585 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Package business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 1,364 | 1,301 | 1,249 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 618 | 604 | 577 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 254 | 246 | 231 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Bond | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 241 | 230 | 218 | ||||||||
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 610 | 630 | 643 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 3,439 | 3,734 | 3,937 | ||||||||
Total net investment income | 155 | 141 | 135 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | AARP Members | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 3,000 | 3,200 | 3,300 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 1,041 | 1,117 | 1,188 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Automobile | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,398 | 2,617 | 2,749 | ||||||||
Property & Casualty Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 0 | 0 | 0 | ||||||||
Total net investment income | 90 | 106 | 127 | ||||||||
Group Insurance Policies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 5,598 | 3,677 | 3,223 | ||||||||
Total net investment income | 474 | 381 | 366 | ||||||||
Group Insurance Policies | Group disability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,746 | 1,718 | 1,506 | ||||||||
Group Insurance Policies | Group life | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 2,611 | 1,745 | 1,512 | ||||||||
Group Insurance Policies | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 241 | 214 | 205 | ||||||||
Hartford Funds [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 1,032 | 992 | 885 | ||||||||
Total net investment income | 5 | 3 | 1 | ||||||||
Hartford Funds [Member] | Third party retail customers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 932 | 888 | 779 | ||||||||
Hartford Funds [Member] | Talcott Resolution [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 100 | 104 | 106 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned premiums and fee income | 32 | 4 | 3 | ||||||||
Total net investment income | $ 59 | $ 23 | $ 31 |
Segment Information - Net Incom
Segment Information - Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | $ 196 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | $ 1,807 | $ (3,131) | $ 896 |
Preferred stock dividends | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6 | 0 | 0 |
Net income (loss) available to common stockholders | $ 190 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | 1,801 | (3,131) | 896 |
Commercial Lines | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 1,212 | 865 | 994 | ||||||||
Personal Lines | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | (32) | (9) | (9) | ||||||||
Property & Casualty Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 15 | 69 | (529) | ||||||||
Group Benefits | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 340 | 294 | 230 | ||||||||
Hartford Funds | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | 148 | 106 | 78 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) | $ 124 | $ (4,456) | $ 132 |
Segment Information - Net Inves
Segment Information - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net investment income | $ 1,780 | $ 1,603 | $ 1,577 |
Property and Casualty, Commercial Insurance Product Line [Member] | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 997 | 949 | 917 |
Property and Casualty, Personal Insurance Product Line [Member] | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 155 | 141 | 135 |
Property & Casualty Other Operations | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 90 | 106 | 127 |
Group Insurance Policies | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 474 | 381 | 366 |
Hartford Funds [Member] | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 5 | 3 | 1 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net investment income | $ 59 | $ 23 | $ 31 |
Segment Information - Amortizat
Segment Information - Amortization of Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | $ 1,384 | $ 1,372 | $ 1,377 |
Property and Casualty, Commercial Insurance Product Line [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 1,048 | 1,009 | 973 |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 275 | 309 | 348 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 45 | 33 | 31 |
Hartford Funds | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | 16 | 21 | 24 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs (DAC) | $ 0 | $ 0 | $ 1 |
Segment Information - Amortiz_2
Segment Information - Amortization of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | $ 68 | $ 14 | $ 4 |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | 4 | 1 | 0 |
Property and Casualty, Personal Insurance Product Line [Member] | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | 4 | 4 | 4 |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Amortization of other intangible assets | $ 60 | $ 9 | $ 0 |
Segment Information - Income Ta
Segment Information - Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | $ 268 | $ 985 | $ (166) |
Commercial Lines | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | 267 | 377 | 415 |
Personal Lines | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | (19) | 26 | (23) |
Property & Casualty Other Operations | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | (7) | 24 | (355) |
Group Benefits | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | 84 | 38 | 83 |
Hartford Funds | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | 38 | 63 | 43 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | $ (95) | $ 457 | $ (329) |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 62,307 | $ 225,260 |
Commercial Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 31,693 | 31,281 |
Personal Lines | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,180 | 6,251 |
Property & Casualty Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,351 | 3,568 |
Group Benefits | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14,114 | 14,478 |
Hartford Funds | ||
Segment Reporting Information [Line Items] | ||
Total assets | 583 | 547 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,386 | $ 169,135 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | $ 35,652 | $ 36,964 |
Fixed maturities, FVO | 22 | 41 |
Equity Securities, FV-NI | 1,214 | 0 |
Equity securities, at fair value | 0 | 1,012 |
Derivative assets | 7 | 10 |
Short-term investments | 4,283 | 2,270 |
Total assets accounted for at fair value on a recurring basis | 41,178 | 40,297 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (68) | (100) |
Contingent consideration | (35) | (29) |
Total liabilities accounted for at fair value on a recurring basis | (103) | (129) |
Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 5 | 9 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (2) | (3) |
Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 3 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | |
Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | (2) | (1) |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (5) | (13) |
Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (62) | (84) |
Asset backed securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,276 | 1,126 |
Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,437 | 1,260 |
Commercial mortgage-backed securities (CMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 3,552 | 3,336 |
Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 13,398 | 12,804 |
Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 847 | 1,110 |
Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 10,346 | 12,485 |
Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 3,279 | 3,044 |
U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,517 | 1,799 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 330 | 333 |
Fixed maturities, FVO | 0 | 0 |
Equity Securities, FV-NI | 1,093 | |
Equity securities, at fair value | 887 | |
Short-term investments | 1,039 | 1,098 |
Total assets accounted for at fair value on a recurring basis | 2,462 | 2,318 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities accounted for at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset backed securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities (CMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 330 | 333 |
Significant Observable Inputs (Level 2) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 33,757 | 34,679 |
Fixed maturities, FVO | 22 | 41 |
Equity Securities, FV-NI | 44 | |
Equity securities, at fair value | 49 | |
Derivative assets | 4 | 9 |
Short-term investments | 3,244 | 1,172 |
Total assets accounted for at fair value on a recurring basis | 37,071 | 35,950 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (69) | (101) |
Contingent consideration | 0 | 0 |
Total liabilities accounted for at fair value on a recurring basis | (69) | (101) |
Significant Observable Inputs (Level 2) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 5 | 9 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (2) | (3) |
Significant Observable Inputs (Level 2) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | |
Significant Observable Inputs (Level 2) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | (2) | (1) |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (5) | (13) |
Significant Observable Inputs (Level 2) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 1 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | (63) | (85) |
Significant Observable Inputs (Level 2) | Asset backed securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,266 | 1,107 |
Significant Observable Inputs (Level 2) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,337 | 1,165 |
Significant Observable Inputs (Level 2) | Commercial mortgage-backed securities (CMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 3,540 | 3,267 |
Significant Observable Inputs (Level 2) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 12,878 | 12,284 |
Significant Observable Inputs (Level 2) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 844 | 1,108 |
Significant Observable Inputs (Level 2) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 10,346 | 12,468 |
Significant Observable Inputs (Level 2) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 2,359 | 1,814 |
Significant Observable Inputs (Level 2) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,187 | 1,466 |
Significant Unobservable Inputs (Level 3) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 1,565 | 1,952 |
Fixed maturities, FVO | 0 | 0 |
Equity Securities, FV-NI | 77 | |
Equity securities, at fair value | 76 | |
Derivative assets | 3 | 1 |
Short-term investments | 0 | 0 |
Total assets accounted for at fair value on a recurring basis | 1,645 | 2,029 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | 1 |
Contingent consideration | (35) | (29) |
Total liabilities accounted for at fair value on a recurring basis | (34) | (28) |
Significant Unobservable Inputs (Level 3) | Credit derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 3 | 1 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign exchange derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate derivatives | ||
Assets accounted for at fair value on a recurring basis | ||
Derivative assets | 0 | 0 |
Liabilities accounted for at fair value on a recurring basis | ||
Derivative liabilities | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Asset backed securities (ABS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 10 | 19 |
Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (CLOs) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 100 | 95 |
Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities (CMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 12 | 69 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 520 | 520 |
Significant Unobservable Inputs (Level 3) | Foreign government/government agencies | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 3 | 2 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 0 | 17 |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | 920 | 1,230 |
Significant Unobservable Inputs (Level 3) | U.S. Treasuries | ||
Assets accounted for at fair value on a recurring basis | ||
Total fixed maturities | $ 0 | $ 0 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs - Securities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 35,652 | $ 36,964 |
Servicing Asset, Measurement Input | 0 | |
CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 3,552 | 3,336 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 13,398 | 12,804 |
Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 10,346 | 12,485 |
Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 3,279 | 3,044 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 1,565 | 1,952 |
Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 12 | 69 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 520 | 520 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 0 | 17 |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | 920 | 1,230 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 2 | $ 56 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.09 | 0.09 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 10.40 | 10.40 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 1.82 | 4 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 274 | $ 251 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 1.45 | 1.03 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 11.75 | 10 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.63 | 2.42 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 17 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 1.92 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.50 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.19 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fixed maturities | $ 815 | $ 1,215 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.12 | 0.24 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 1.00% | 1.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 2.15 | 3.51 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.00% | 25.00% |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Asset, Measurement Input | 0.86 | 0.74 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 6.00% | 6.00% |
Measurement Input, Default Rate [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 1.00% | 0.00% |
Measurement Input, Default Rate [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 8.00% | 9.00% |
Measurement Input, Default Rate [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 3.00% | 4.00% |
Measurement Input, Loss Severity [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 0.00% | 0.00% |
Measurement Input, Loss Severity [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 100.00% | 100.00% |
Measurement Input, Loss Severity [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Residential mortgage-backed securities (RMBS) | Weighted Average Expected Life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected Credit Losses | 61.00% | 66.00% |
Fair Value Measurements - Sig_2
Fair Value Measurements - Significant Unobservable Inputs Freestanding Derivatives (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (6) | $ (4) |
Interest Rate Swaption | Long | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value | $ 1 | $ 1 |
Interest Rate Swaption | Minimum | Long | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | 2.00% |
Interest Rate Swaption | Maximum | Long | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | 2.00% |
Interest Rate Swaption | Weighted Average Expected Life | Long | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 3.00% | 2.00% |
Equity options | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value | $ 3 | $ 1 |
Equity options | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 19.00% | 18.00% |
Equity options | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 21.00% | 22.00% |
Equity options | Weighted Average Expected Life | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Measurements, Unobservable Swap_Curve | 20.00% | 20.00% |
Obligations [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (6) | $ (4) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Jul. 29, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Servicing Asset, Measurement Input | 0 | 0 | |
Business Combination, Contingent Consideration, Liability | $ 40 | $ 40 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 1,000 | 4,000 | |
Business Combination, Contingent Consideration, Liability, Current | $ 10 | $ 10 | |
Lattice | |||
Business Acquisition [Line Items] | |||
Contingent consideration | $ 60 | ||
Contingent consideration period | 4 years | ||
Business Combination, Contingent Consideration, Liability | $ 23 | ||
Lattice | Contingent Consideration | |||
Business Acquisition [Line Items] | |||
Discount rate | 16.60% |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Recurring Basis, Unobservable Input (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ (6) | $ (4) |
Contingent Consideration | ||
Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | (6) | (4) |
Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 2,030 | 2,202 |
Total realized/unrealized gains (losses), Included in net income | 32 | 8 |
Total realized/unrealized gains (losses), Included in OCI | (35) | 43 |
Purchases | 929 | 833 |
Settlements | (374) | (463) |
Sales | (172) | (254) |
Transfers into Level 3 | 47 | 98 |
Transfers out of Level 3 | (811) | (437) |
Ending balance | 1,646 | 2,030 |
Freestanding Derivatives, net | ||
Beginning balance | 2 | 10 |
Total realized/unrealized gains (losses), Included in net income | 3 | (13) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 1 | 5 |
Settlements | 0 | 0 |
Sales | (2) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 4 | 2 |
Liabilities | ||
Beginning balance | (29) | (25) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | (35) | (29) |
Fair Value, Measurements, Recurring | Contingent Consideration | ||
Liabilities | ||
Beginning balance | (29) | (25) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | (35) | (29) |
Equity | Fair Value, Measurements, Recurring | ||
Freestanding Derivatives, net | ||
Beginning balance | 1 | 0 |
Total realized/unrealized gains (losses), Included in net income | 3 | (4) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 1 | 5 |
Settlements | 0 | 0 |
Sales | (2) | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 3 | 1 |
Interest rate derivatives | Fair Value, Measurements, Recurring | ||
Freestanding Derivatives, net | ||
Beginning balance | 1 | 9 |
Total realized/unrealized gains (losses), Included in net income | 0 | (8) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending balance | 1 | 1 |
Other contracts | Fair Value, Measurements, Recurring | ||
Freestanding Derivatives, net | ||
Beginning balance | 0 | 1 |
Total realized/unrealized gains (losses), Included in net income | (1) | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 0 | |
Equity securities | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 76 | |
Total realized/unrealized gains (losses), Included in net income | 29 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 12 | |
Settlements | 0 | |
Sales | (40) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 77 | 76 |
Fixed Maturities, FVO | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 0 | 11 |
Total realized/unrealized gains (losses), Included in net income | 0 | |
Total realized/unrealized gains (losses), Included in OCI | 0 | |
Purchases | 4 | |
Settlements | (2) | |
Sales | (13) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 0 | |
Securities available-for-sale and other | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 76 | 55 |
Total realized/unrealized gains (losses), Included in net income | 0 | |
Total realized/unrealized gains (losses), Included in OCI | (3) | |
Purchases | 24 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Ending balance | 76 | |
Securities available-for-sale and other | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 1,952 | 2,126 |
Total realized/unrealized gains (losses), Included in net income | 0 | 21 |
Total realized/unrealized gains (losses), Included in OCI | (35) | 46 |
Purchases | 916 | 800 |
Settlements | (374) | (461) |
Sales | (130) | (241) |
Transfers into Level 3 | 47 | 98 |
Transfers out of Level 3 | (811) | (437) |
Ending balance | 1,565 | 1,952 |
Securities available-for-sale and other | ABS | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 19 | 45 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 90 | 56 |
Settlements | (5) | (6) |
Sales | (4) | (6) |
Transfers into Level 3 | 12 | 27 |
Transfers out of Level 3 | (102) | (97) |
Ending balance | 10 | 19 |
Securities available-for-sale and other | CDOs | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 95 | 154 |
Total realized/unrealized gains (losses), Included in net income | 0 | 18 |
Total realized/unrealized gains (losses), Included in OCI | (13) | |
Purchases | 330 | 214 |
Settlements | 0 | (101) |
Sales | (13) | (24) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (312) | (153) |
Ending balance | 100 | 95 |
Securities available-for-sale and other | CMBS | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 69 | 59 |
Total realized/unrealized gains (losses), Included in net income | (1) | (2) |
Total realized/unrealized gains (losses), Included in OCI | 0 | 0 |
Purchases | 25 | 76 |
Settlements | (14) | (9) |
Sales | (8) | (10) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (59) | (45) |
Ending balance | 12 | 69 |
Securities available-for-sale and other | Corporate | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 520 | 514 |
Total realized/unrealized gains (losses), Included in net income | 1 | 1 |
Total realized/unrealized gains (losses), Included in OCI | (18) | 19 |
Purchases | 197 | 232 |
Settlements | (36) | (76) |
Sales | (52) | (157) |
Transfers into Level 3 | 31 | 71 |
Transfers out of Level 3 | (123) | (84) |
Ending balance | 520 | 520 |
Securities available-for-sale and other | Foreign government | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 2 | 47 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | 0 | 3 |
Purchases | 1 | 12 |
Settlements | 0 | (1) |
Sales | 0 | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (57) |
Ending balance | 3 | 2 |
Securities available-for-sale and other | Municipal | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 17 | 46 |
Total realized/unrealized gains (losses), Included in net income | 0 | 4 |
Total realized/unrealized gains (losses), Included in OCI | (1) | 1 |
Purchases | 0 | 1 |
Settlements | 0 | 0 |
Sales | (1) | (35) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (15) | 0 |
Ending balance | 0 | 17 |
Securities available-for-sale and other | Residential mortgage-backed securities (RMBS) | Total fixed maturities | Fair Value, Measurements, Recurring | ||
Assets | ||
Beginning balance | 1,230 | 1,261 |
Total realized/unrealized gains (losses), Included in net income | 0 | 0 |
Total realized/unrealized gains (losses), Included in OCI | (16) | 36 |
Purchases | 273 | 209 |
Settlements | (319) | (268) |
Sales | (52) | (7) |
Transfers into Level 3 | 4 | 0 |
Transfers out of Level 3 | (200) | (1) |
Ending balance | $ 920 | $ 1,230 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at Year End (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ 0 | $ (14) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (6) | (4) |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | (6) | (4) |
Significant Unobservable Inputs (Level 3) | Derivatives, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 1 | (12) |
Significant Unobservable Inputs (Level 3) | Derivatives, net | Equity derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 1 | (5) |
Significant Unobservable Inputs (Level 3) | Derivatives, net | Interest rate derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | (7) | |
Significant Unobservable Inputs (Level 3) | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | (1) | (2) |
Significant Unobservable Inputs (Level 3) | ABS | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | CMBS | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | (1) | (2) |
Significant Unobservable Inputs (Level 3) | Corporate | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | States, municipalities and political subdivisions | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 0 | |
Other Comprehensive Income (Loss) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 28 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | 0 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities | ||
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Derivatives, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | 0 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Derivatives, net | Equity derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives | ||
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 28 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | ABS | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 1 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | CMBS | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 28 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Corporate | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | (42) | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | States, municipalities and political subdivisions | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | 24 | |
Other Comprehensive Income (Loss) [Member] | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS) | Total fixed maturities | Securities available-for-sale and other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets | $ 17 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs and Valuation Techniques | |||
Fixed maturities, at fair value using the fair value option | $ 22 | $ 41 | |
Corporate | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | (1) | ||
Equity Securities [Member] | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | $ 1 | ||
Real Estate Investment [Member] | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | $ (1) | $ 5 | |
Foreign government | |||
Fair Value Inputs and Valuation Techniques | |||
Changes in fair value of assets using fair value option | $ (1) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | $ 62,307 | $ 225,260 |
Assets, fair value | 41,178 | 40,297 |
Liabilities, carrying value | 49,206 | 211,766 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 1,645 | 2,029 |
Significant Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 37,071 | 35,950 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 774 | 825 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, carrying value | 3,704 | 3,175 |
Carrying Amount | Significant Observable Inputs (Level 2) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 3,589 | 3,415 |
Carrying Amount | Significant Observable Inputs (Level 2) | Junior Subordinated Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, carrying value | 1,089 | 1,583 |
Fair Value | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 775 | 827 |
Fair Value | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 3,746 | 3,220 |
Fair Value | Significant Observable Inputs (Level 2) | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | 3,887 | 4,054 |
Fair Value | Significant Observable Inputs (Level 2) | Junior Subordinated Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | $ 1,052 | $ 1,699 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||
Investment expenses | $ (77) | $ (71) | $ (59) |
Total net investment income | 1,780 | 1,603 | 1,577 |
Total fixed maturities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1,459 | 1,303 | 1,319 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 32 | 24 | 22 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 141 | 124 | 116 |
Limited partnerships and other alternative investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 205 | 174 | 128 |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 20 | $ 49 | $ 51 |
Investments - Net Realized Capi
Investments - Net Realized Capital Gains (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||
Gross gains on sales | $ 114 | $ 275 | $ 222 |
Gross losses on sales | (172) | (113) | (159) |
Net OTTI losses recognized in earnings | (1) | (8) | (27) |
Transactional foreign currency revaluation | 1 | 14 | (78) |
Total net realized capital gains (losses) | (112) | 165 | (110) |
Other investments | |||
Schedule of Investments [Line Items] | |||
Other, net | (9) | 12 | (151) |
Non-qualifying | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | (12) | (6) | 74 |
Foreign Currency Derivatives | Non-qualifying | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | 3 | (14) | 83 |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Debt and Equity Securities, Gain (Loss) | (48) | 0 | 0 |
Net OTTI losses recognized in earnings | (6) | (4) | |
Mortgage loans | |||
Schedule of Investments [Line Items] | |||
Valuation allowances on mortgage loans | 0 | (1) | 0 |
Other Credit Derivatives [Member] | Non-qualifying | |||
Schedule of Investments [Line Items] | |||
Non-qualifying foreign currency derivatives | $ (15) | $ 8 | $ (9) |
Investments - Available-for-Sal
Investments - Available-for-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | $ 35,603 | $ 35,612 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 703 | 1,466 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (654) | (114) |
Total fixed maturities | 35,652 | 36,964 |
Non-Credit OTTI | (5) | (5) |
Equity securities, available-for-sale, Cost or Amortized Cost | 0 | 907 |
Equity securities, at fair value | 0 | 1,012 |
Available-for-sale, Cost or Amortized Cost | 35,603 | 36,519 |
Available-for-sale, Gross Unrealized Gains | 703 | 1,587 |
Available-for-sale, Gross Unrealized Losses | (654) | (130) |
Available-for-sale, Fair Value | 35,652 | 37,976 |
Amortized Cost | ||
One year or less | 999 | 1,507 |
Over one year through five years | 5,786 | 5,007 |
Over five years through ten years | 6,611 | 6,505 |
Over ten years | 12,629 | 13,928 |
Subtotal | 26,025 | 26,947 |
Mortgage-backed and asset-backed securities | 9,578 | 8,665 |
Fair Value | ||
One year or less | 1,002 | 1,513 |
Over one year through five years | 5,791 | 5,119 |
Over five years through ten years | 6,495 | 6,700 |
Over ten years | 12,820 | 14,866 |
Subtotal | 26,108 | 28,198 |
Mortgage-backed and asset-backed securities | 9,544 | 8,766 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,272 | 1,119 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 5 | 9 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (1) | (2) |
Total fixed maturities | 1,276 | 1,126 |
Non-Credit OTTI | 0 | 0 |
Collateralized loan obligations (CLOs) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,455 | 1,257 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 2 | 3 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (20) | 0 |
Total fixed maturities | 1,437 | 1,260 |
Non-Credit OTTI | 0 | 0 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,581 | 3,304 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 35 | 58 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (64) | (26) |
Total fixed maturities | 3,552 | 3,336 |
Non-Credit OTTI | (5) | (5) |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 13,696 | 12,370 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 148 | 490 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (446) | (56) |
Total fixed maturities | 13,398 | 12,804 |
Non-Credit OTTI | 0 | 0 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 866 | 1,071 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 7 | 43 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (26) | (4) |
Total fixed maturities | 847 | 1,110 |
Non-Credit OTTI | 0 | 0 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 9,972 | 11,743 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 421 | 754 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (47) | (12) |
Total fixed maturities | 10,346 | 12,485 |
Non-Credit OTTI | 0 | 0 |
Residential mortgage-backed securities (RMBS) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 3,270 | 2,985 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 44 | 63 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (35) | (4) |
Total fixed maturities | 3,279 | 3,044 |
Non-Credit OTTI | 0 | 0 |
US Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, available-for-sale, at fair value, amortized cost | 1,491 | 1,763 |
Gross Unrealized Gains, fixed maturities, available-for-sale | 41 | 46 |
Gross Unrealized Losses, fixed maturities, available-for-sale | (15) | (10) |
Total fixed maturities | 1,517 | 1,799 |
Non-Credit OTTI | 0 | 0 |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Non-Credit OTTI | 0 | |
Equity securities, available-for-sale, Cost or Amortized Cost | 907 | |
Gross Unrealized Gains, fixed maturities, available-for-sale | 121 | |
Gross Unrealized Losses Gains, fixed maturities, available-for-sale | (16) | |
Equity securities, at fair value | $ 1,012 |
Investments - Additional Inform
Investments - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($)security | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | ||||||||||||
Net realized capital gains (losses) | $ (111,000,000) | $ 173,000,000 | $ (83,000,000) | |||||||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ (80,000,000) | |||||||||||
AFS securities in an unrealized loss position | security | 2,960 | 2,960 | ||||||||||
Percentage of AFS securities depressed less than 20% of cost or amortized cost | 98.00% | 98.00% | ||||||||||
Carrying Value | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | 1,000,000 | 0 | $ 4,000,000 | ||||||
Mortgage loans | $ 3,704,000,000 | 3,175,000,000 | $ 3,704,000,000 | 3,175,000,000 | ||||||||
LTV ratio | 52.00% | 52.00% | ||||||||||
LTV ratio at origination | 61.00% | 61.00% | ||||||||||
Servicing rights | $ 0 | 0 | $ 0 | 0 | ||||||||
Maximum exposure to loss for variable interest | 1,000,000,000 | 920,000,000 | 1,000,000,000 | 920,000,000 | ||||||||
Commitments for variable interest | $ 718,000,000 | 787,000,000 | $ 718,000,000 | 787,000,000 | ||||||||
Required collateral under securities lending | 100.00% | 100.00% | ||||||||||
Fair value of securities on deposit | $ 2,200,000,000 | 2,500,000,000 | $ 2,200,000,000 | 2,500,000,000 | ||||||||
Income (Loss) from Equity Method Investments | 214,000,000 | 168,000,000 | 137,000,000 | |||||||||
Equity method investments | 1,500,000,000 | 1,500,000,000 | ||||||||||
Commitments to fund limited partnership and alternative investments | 741,000,000 | $ 741,000,000 | ||||||||||
Aggregate investment income from limited partnerships and other alternative investments | 10.00% | |||||||||||
Total assets | 62,307,000,000 | 225,260,000,000 | $ 62,307,000,000 | 225,260,000,000 | ||||||||
Liabilities | 49,206,000,000 | 211,766,000,000 | 49,206,000,000 | 211,766,000,000 | ||||||||
Net investment income | 1,780,000,000 | 1,603,000,000 | 1,577,000,000 | |||||||||
Net income (loss) | 196,000,000 | $ 432,000,000 | $ 582,000,000 | $ 597,000,000 | (3,703,000,000) | $ 234,000,000 | $ (40,000,000) | $ 378,000,000 | 1,807,000,000 | (3,131,000,000) | 896,000,000 | |
Fair Value, Concentration of Risk, Investments | 0 | 0 | 0 | 0 | ||||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||||||||
Limited Partner | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Total assets | 311,000,000,000 | 165,900,000,000 | 311,000,000,000 | 165,900,000,000 | ||||||||
Liabilities | $ 187,700,000,000 | 47,800,000,000 | 187,700,000,000 | 47,800,000,000 | ||||||||
Net investment income | 773,000,000 | 1,900,000,000 | 844,000,000 | |||||||||
Net income (loss) | $ 12,300,000,000 | 9,800,000,000 | 7,700,000,000 | |||||||||
Minimum | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Collateral provided by borrowers under securities lending | 102.00% | 102.00% | ||||||||||
Percentage of fair value received at sale under repurchase agreements | 95.00% | 95.00% | ||||||||||
Maximum | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Collateral provided by borrowers under securities lending | 105.00% | 105.00% | ||||||||||
Term of security lending agreement | 90 days | |||||||||||
Commercial Loan | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Loans serviced | $ 6,000,000,000 | 1,300,000,000 | $ 6,000,000,000 | 1,300,000,000 | ||||||||
Loans serviced on behalf of third parties | 3,600,000 | 402,000,000 | 3,600,000 | 402,000,000 | ||||||||
Loans serviced on behalf of third parties, retained and reported as assets | 2,400,000,000 | 2,400,000,000 | ||||||||||
U.S. Treasuries | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Debt Securities, Available-for-sale, Restricted | 47,000,000 | 104,000,000 | 47,000,000 | 104,000,000 | ||||||||
Valuation allowance | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Mortgage loans | $ 23,000,000 | $ 23,000,000 | ||||||||||
Investments | Commercial Loan | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Loans serviced on behalf of third parties, retained and reported as assets | 566,000,000 | 566,000,000 | ||||||||||
Assets Held for Sale | Commercial Loan | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Loans serviced on behalf of third parties, retained and reported as assets | 356,000,000 | 356,000,000 | ||||||||||
Commercial Loan | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
LTV ratio for which valuation allowance may be recorded for loans | 90.00% | 90.00% | ||||||||||
Carrying Value | $ 1,000,000 | 1,000,000 | $ 1,000,000 | 1,000,000 | ||||||||
Mortgage loans | 3,704,000,000 | 3,175,000,000 | 3,704,000,000 | 3,175,000,000 | ||||||||
Commercial Loan | Mortgage loans | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Mortgage loans past due by 90 days or more | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
CMBS | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by sector, percent of invested assets | 8.00% | 7.00% | 8.00% | 7.00% | ||||||||
Municipal | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by sector, percent of invested assets | 22.00% | 28.00% | 22.00% | 28.00% | ||||||||
Residential mortgage-backed securities (RMBS) | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by sector, percent of invested assets | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||
New York State Dormitory Authority | States, municipalities and political subdivisions | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
New York Transitional Authority | States, municipalities and political subdivisions | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | 1.00% | ||||||||||
New York Transitional Authority | Corporate | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | 1.00% | ||||||||||
Commonwealth Massachusetts | States, municipalities and political subdivisions | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Largest exposure by issuer, percent of invested assets (less than) | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Net income (loss) | $ (69,000,000) | $ (269,000,000) | (5,000,000) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Net realized capital gains (losses) | (80,000,000) | 152,000,000 | 36,000,000 | |||||||||
Net income (loss) | (65,000,000) | 202,000,000 | $ 86,000,000 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Mortgage loans | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - Sales of Availabl
Investments - Sales of Available for Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | $ 24,700 | $ 31,646 | $ 24,486 |
Gross gains | 114 | 275 | 222 |
Gross losses | (172) | (113) | (159) |
Fixed maturities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | 21,327 | 17,614 | 9,984 |
Gross gains | 90 | 204 | 196 |
Gross losses | $ (169) | (90) | (138) |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sale proceeds | 607 | 359 | |
Gross gains | 69 | 26 | |
Gross losses | $ (23) | $ (20) |
Investments - Other Than Tempor
Investments - Other Than Temporary Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Credit impairments | $ 1 | $ 2 | $ 21 |
Impairments on equity securities and other impairments | 1 | 8 | 27 |
Intent-to-sell impairments | 0 | 0 | 2 |
Total impairments | 1 | 8 | 27 |
Cumulative Credit Impairments | |||
Beginning balance | (25) | (110) | (113) |
Additions for credit impairments recognized on: | |||
Securities not previously impaired | 0 | (1) | (16) |
Securities previously impaired | (1) | (1) | (5) |
Reductions for credit impairments previously recognized on: | |||
Securities that matured or were sold during the period | 7 | 76 | 15 |
Securities due to an increase in expected cash flows | 0 | 11 | 9 |
Ending balance | $ (19) | (25) | (110) |
Equity securities | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impairments on equity securities and other impairments | $ 6 | $ 4 |
Investments - Unrealized Losses
Investments - Unrealized Losses on AFS Securities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Less Than 12 Months | $ 6,798 | |
12 Months or More | 2,040 | |
Total | 8,838 | |
Fair Value | ||
Less Than 12 Months | 6,739 | |
12 Months or More | 1,969 | |
Total | 8,708 | |
Unrealized Losses | ||
Less Than 12 Months | (59) | |
12 Months or More | (71) | |
Total | (130) | |
ABS | ||
Amortized Cost | ||
Less Than 12 Months | $ 566 | 461 |
12 Months or More | 113 | 30 |
Total | 679 | 491 |
Fair Value | ||
Less Than 12 Months | 566 | 460 |
12 Months or More | 112 | 29 |
Total | 678 | 489 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or More | (1) | (1) |
Total | (1) | (2) |
Collateralized loan obligations (CLOs) | ||
Amortized Cost | ||
Less Than 12 Months | 1,358 | 359 |
12 Months or More | 7 | 1 |
Total | 1,365 | 360 |
Fair Value | ||
Less Than 12 Months | 1,338 | 359 |
12 Months or More | 7 | 1 |
Total | 1,345 | 360 |
Unrealized Losses | ||
Less Than 12 Months | (20) | 0 |
12 Months or More | 0 | 0 |
Total | (20) | 0 |
CMBS | ||
Amortized Cost | ||
Less Than 12 Months | 896 | 1,178 |
12 Months or More | 1,129 | 243 |
Total | 2,025 | 1,421 |
Fair Value | ||
Less Than 12 Months | 882 | 1,167 |
12 Months or More | 1,079 | 228 |
Total | 1,961 | 1,395 |
Unrealized Losses | ||
Less Than 12 Months | (14) | (11) |
12 Months or More | (50) | (15) |
Total | (64) | (26) |
Corporate | ||
Amortized Cost | ||
Less Than 12 Months | 7,174 | 2,322 |
12 Months or More | 2,541 | 1,064 |
Total | 9,715 | 3,386 |
Fair Value | ||
Less Than 12 Months | 6,903 | 2,302 |
12 Months or More | 2,366 | 1,028 |
Total | 9,269 | 3,330 |
Unrealized Losses | ||
Less Than 12 Months | (271) | (20) |
12 Months or More | (175) | (36) |
Total | (446) | (56) |
Foreign government | ||
Amortized Cost | ||
Less Than 12 Months | 407 | 244 |
12 Months or More | 203 | 51 |
Total | 610 | 295 |
Fair Value | ||
Less Than 12 Months | 391 | 242 |
12 Months or More | 193 | 49 |
Total | 584 | 291 |
Unrealized Losses | ||
Less Than 12 Months | (16) | (2) |
12 Months or More | (10) | (2) |
Total | (26) | (4) |
Municipal | ||
Amortized Cost | ||
Less Than 12 Months | 1,643 | 511 |
12 Months or More | 292 | 236 |
Total | 1,935 | 747 |
Fair Value | ||
Less Than 12 Months | 1,613 | 507 |
12 Months or More | 275 | 228 |
Total | 1,888 | 735 |
Unrealized Losses | ||
Less Than 12 Months | (30) | (4) |
12 Months or More | (17) | (8) |
Total | (47) | (12) |
Residential mortgage-backed securities (RMBS) | ||
Amortized Cost | ||
Less Than 12 Months | 1,344 | 889 |
12 Months or More | 648 | 137 |
Total | 1,992 | 1,026 |
Fair Value | ||
Less Than 12 Months | 1,329 | 887 |
12 Months or More | 628 | 135 |
Total | 1,957 | 1,022 |
Unrealized Losses | ||
Less Than 12 Months | (15) | (2) |
12 Months or More | (20) | (2) |
Total | (35) | (4) |
US Treasury Securities | ||
Amortized Cost | ||
Less Than 12 Months | 497 | 658 |
12 Months or More | 339 | 254 |
Total | 836 | 912 |
Fair Value | ||
Less Than 12 Months | 492 | 652 |
12 Months or More | 329 | 250 |
Total | 821 | 902 |
Unrealized Losses | ||
Less Than 12 Months | (5) | (6) |
12 Months or More | (10) | (4) |
Total | (15) | (10) |
Securities available-for-sale and other | ||
Amortized Cost | ||
Less Than 12 Months | 6,622 | |
12 Months or More | 2,016 | |
Total | 8,638 | |
Fair Value | ||
Less Than 12 Months | 6,576 | |
12 Months or More | 1,948 | |
Total | 8,524 | |
Unrealized Losses | ||
Less Than 12 Months | (46) | |
12 Months or More | (68) | |
Total | (114) | |
Fixed maturities | ||
Amortized Cost | ||
Less Than 12 Months | 13,885 | |
12 Months or More | 5,272 | |
Total | 19,157 | |
Fair Value | ||
Less Than 12 Months | 13,514 | |
12 Months or More | 4,989 | |
Total | 18,503 | |
Unrealized Losses | ||
Less Than 12 Months | (371) | |
12 Months or More | (283) | |
Total | $ (654) | |
Equity Securities [Member] | ||
Amortized Cost | ||
Less Than 12 Months | 176 | |
12 Months or More | 24 | |
Total | 200 | |
Fair Value | ||
Less Than 12 Months | 163 | |
12 Months or More | 21 | |
Total | 184 | |
Unrealized Losses | ||
Less Than 12 Months | (13) | |
12 Months or More | (3) | |
Total | $ (16) |
Investments - Mortgage Loans- V
Investments - Mortgage Loans- Valuation Allowance Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | $ 3,704 | $ 3,175 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (1) | 0 | $ (4) |
Reversals/(Additions) | 0 | (1) | 0 |
Deductions | 0 | 0 | 4 |
Ending balance | (1) | (1) | $ 0 |
Commercial Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | 3,704 | 3,175 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (1) | ||
Ending balance | (1) | (1) | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans | $ 0 | $ 0 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loans Credit Quality (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,704 | $ 3,175 |
Commercial Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,704 | $ 3,175 |
Avg. Debt-Service Coverage Ratio | 2.49 | 2.69 |
Commercial Loan | Greater than 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 0 | $ 18 |
Avg. Debt-Service Coverage Ratio | 0 | 1.27 |
Commercial Loan | 65% - 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 386 | $ 265 |
Avg. Debt-Service Coverage Ratio | 1.60 | 1.95 |
Commercial Loan | Less than 65% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Carrying Value | $ 3,318 | $ 2,892 |
Avg. Debt-Service Coverage Ratio | 2.59 | 2.76 |
Investments - Mortgage Loans by
Investments - Mortgage Loans by Region and Property Type (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 3,704 | $ 3,175 |
Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 1,108 | 817 |
Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 1,138 | 1,006 |
Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 708 | 751 |
Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 392 | 367 |
Residential Real Estate [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | 82 | 0 |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 276 | $ 234 |
Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 100.00% | 100.00% |
Mortgage loans | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 29.90% | 25.70% |
Mortgage loans | Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 30.70% | 31.70% |
Mortgage loans | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 19.10% | 23.70% |
Mortgage loans | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 10.60% | 11.50% |
Mortgage loans | Residential Real Estate [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 2.20% | 0.00% |
Mortgage loans | Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 7.50% | 7.40% |
East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 250 | $ 251 |
East North Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 6.80% | 7.90% |
Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 270 | $ 272 |
Middle Atlantic | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 7.30% | 8.60% |
Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 30 | $ 31 |
Mountain | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 0.80% | 1.00% |
New England | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 330 | $ 293 |
New England | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 8.90% | 9.20% |
Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 917 | $ 760 |
Pacific | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 24.80% | 23.90% |
South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 712 | $ 710 |
South Atlantic | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 19.20% | 22.40% |
West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 148 | $ 149 |
West North Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 4.00% | 4.70% |
West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 420 | $ 278 |
West South Central | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 11.30% | 8.70% |
Other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying Value | $ 627 | $ 431 |
Other | Mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percent of Total | 16.90% | 13.60% |
Investments - Securities Lendin
Investments - Securities Lending and Repurchase Agreements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Securities Lending Transactions: | ||
Gross amount of securities on loan | $ 820 | $ 922 |
Gross amount of associated liability for collateral received | 840 | 945 |
Repurchase agreements: | ||
Gross amount of recognized liabilities for repurchase agreements | 72 | 174 |
Gross amount of collateral pledged related to repurchase agreements | 73 | 176 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 64 | 0 |
Gross amount of associated liability for collateral received, securities | $ 3 | $ 0 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | Feb. 15, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 08, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Information about Sources and Uses of Collateral that is Received Through Resale Agreements and Securities Borrowing Agreements | did not sell any securities held as collateral | not sell any securities held as collateral | |||
Issuance of junior subordinated debt | $ 500,000,000 | ||||
Notional amount | $ 12,291,000,000 | $ 12,730,000,000 | |||
Deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months | 23,000,000 | ||||
Net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring | 0 | 0 | $ 0 | ||
Collateral receivable | 4,000,000 | 1,000,000 | |||
Pledged collateral, securities | 67,000,000 | 101,000,000 | |||
Cash collateral held | 9,000,000 | 11,000,000 | |||
Securities collateral held | 5,000,000 | 2,000,000 | |||
Collateral Securities Repledged, Delivered, or Used | 0 | 0 | |||
Over the Counter [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Pledged collateral, securities | 89,000,000 | 96,000,000 | |||
Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | 10,098,000,000 | 10,387,000,000 | |||
Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | 2,193,000,000 | 2,343,000,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Ineffectiveness recognized in income with net realized capital gains (losses) | 0 | 0 | $ 0 | ||
Interest rate swaps | Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | 7,100,000,000 | 7,300,000,000 | |||
Interest rate swaps | Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | $ 2,040,000,000 | $ 2,190,000,000 | |||
Contingent capital facility put option | Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Maximum aggregate principal amount of junior subordinated notes | $ 500,000,000 |
Derivatives - Derivative Balanc
Derivatives - Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 12,291 | $ 12,730 |
Fair Value | (61) | (90) |
Asset Derivatives [1] | 31 | 25 |
Liability Derivatives [1] | (92) | (115) |
Fixed maturities, available-for-sale | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 153 | 153 |
Fair Value | 0 | 0 |
Asset Derivatives [1] | 0 | 0 |
Liability Derivatives [1] | 0 | 0 |
Other investments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 9,864 | 9,957 |
Fair Value | 7 | 10 |
Asset Derivatives [1] | 23 | 16 |
Liability Derivatives [1] | (16) | (6) |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,274 | 2,620 |
Fair Value | (68) | (100) |
Asset Derivatives [1] | 8 | 9 |
Liability Derivatives [1] | (76) | (109) |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,193 | 2,343 |
Fair Value | (5) | (13) |
Asset Derivatives [1] | 4 | 1 |
Liability Derivatives [1] | (9) | (14) |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 10,098 | 10,387 |
Fair Value | (56) | (77) |
Asset Derivatives [1] | 27 | 24 |
Liability Derivatives [1] | (83) | (101) |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,040 | 2,190 |
Fair Value | 1 | 0 |
Asset Derivatives [1] | 2 | 1 |
Liability Derivatives [1] | (1) | (1) |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 7,100 | 7,300 |
Foreign currency swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 153 | 153 |
Fair Value | (6) | (13) |
Asset Derivatives [1] | 2 | 0 |
Liability Derivatives [1] | (8) | (13) |
Interest rate swaps and futures | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 8,451 | 7,986 |
Fair Value | (62) | (83) |
Asset Derivatives [1] | 8 | 7 |
Liability Derivatives [1] | (70) | (90) |
Foreign currency swaps and forwards | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 287 | 213 |
Fair Value | (1) | (1) |
Asset Derivatives [1] | 0 | 0 |
Liability Derivatives [1] | (1) | (1) |
Credit derivatives that purchase credit protection | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6 | 61 |
Fair Value | 0 | 1 |
Asset Derivatives [1] | 0 | 2 |
Liability Derivatives [1] | 0 | (1) |
Credit derivatives that assume credit risk | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,102 | 823 |
Fair Value | 3 | 3 |
Asset Derivatives [1] | 8 | 3 |
Liability Derivatives [1] | (5) | 0 |
Credit derivatives in offsetting positions | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 41 | 1,046 |
Fair Value | 0 | 2 |
Asset Derivatives [1] | 6 | 11 |
Liability Derivatives [1] | (6) | (9) |
Equity index swaps and options | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 211 | 258 |
Fair Value | 4 | 1 |
Asset Derivatives [1] | 5 | 1 |
Liability Derivatives [1] | $ (1) | $ 0 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Asset Derivatives [1] | $ 31 | $ 25 |
Derivative assets | 7 | 10 |
Gross Amounts of Recognized (Liabilities) | (92) | (115) |
Derivative liabilities | (68) | (100) |
Derivative Liabilities | Other Investments and Other Liabilities | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized (Liabilities) | (92) | (115) |
Gross Amounts Offset in the Statement of Financial Position, liabilities | (20) | (10) |
Derivative liabilities | (68) | (100) |
Accrued Interest and Cash Collateral (Received) | (4) | (5) |
Financial Collateral (Received) | (65) | (96) |
Net amount, liabilities | (7) | (9) |
Derivative Assets | Other Investments and Other Liabilities | ||
Derivative [Line Items] | ||
Asset Derivatives [1] | 31 | 25 |
Gross Amounts Offset in the Statement of Financial Position, assets | 26 | 22 |
Derivative assets | 7 | 10 |
Financial Collateral Pledged | 2 | 1 |
Net Amount, assets | 3 | 2 |
Accrued Interest and Cash Collateral (Received) | $ (2) | $ (7) |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 12 | $ (6) | $ 1 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income (Effective Portion) | 36 | 42 | 47 |
Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 5 | 8 | |
Interest rate swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Net realized capital gain/(loss) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income (Effective Portion) | 6 | 5 | 10 |
Interest rate swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | Net investment income | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain Reclassified from AOCI into Income (Effective Portion) | 30 | 37 | 37 |
Foreign currency swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 7 | $ (14) | $ 1 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges - Non-qualifying Strategies (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | $ (12) | $ (6) | $ 74 |
Foreign Exchange Forward [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | 3 | (14) | 83 |
Interest rate swaps, swaptions and futures | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | (3) | (5) | 1 |
Credit derivatives | Credit derivatives that purchase credit protection | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | 0 | 28 | (17) |
Credit derivatives | Credit derivatives that assume credit risk | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | (14) | (7) | 28 |
Equity index swaps and options | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | 2 | (7) | (15) |
Contingent capital facility put option | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Non-qualifying foreign currency derivatives | $ 0 | $ (1) | $ (6) |
Derivatives - Credit Risk Assum
Derivatives - Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Credit Derivatives [Line Items] | ||
Notional Amount | $ 12,291 | $ 12,730 |
Fair Value | (61) | (90) |
Credit derivatives | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 1,123 | 1,346 |
Fair Value | (3) | 0 |
Offsetting Notional Amount | 21 | 523 |
Offsetting Fair Value | 6 | 5 |
Credit derivatives | Single name credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 169 | 130 |
Fair Value | $ 2 | $ 3 |
Weighted Average Years to Maturity | 4 years | 5 years |
Offsetting Notional Amount | $ 0 | $ 0 |
Offsetting Fair Value | 0 | 0 |
Credit derivatives | Single name credit default swaps | B | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 9 | |
Fair Value | 0 | |
Offsetting Notional Amount | 9 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | A Minus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 11 | |
Fair Value | $ 0 | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 2 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | BBB Plus | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 799 | 1,137 |
Fair Value | $ (1) | $ 2 |
Weighted Average Years to Maturity | 6 years | 3 years |
Offsetting Notional Amount | $ 0 | $ 454 |
Offsetting Fair Value | 0 | (2) |
Credit derivatives | Basket credit default swaps | B Plus | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 125 | 27 |
Fair Value | $ 2 | $ 2 |
Weighted Average Years to Maturity | 5 years | 3 years |
Offsetting Notional Amount | $ 0 | $ 27 |
Offsetting Fair Value | 0 | 0 |
Credit derivatives | Basket credit default swaps | A | Investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 13 | |
Fair Value | $ (1) | |
Weighted Average Years to Maturity | 5 years | |
Offsetting Notional Amount | $ 3 | |
Offsetting Fair Value | 0 | |
Credit derivatives | Basket credit default swaps | CCC | Below investment grade risk exposure | ||
Credit Derivatives [Line Items] | ||
Notional Amount | 19 | 30 |
Fair Value | (6) | (6) |
Offsetting Notional Amount | 19 | 30 |
Offsetting Fair Value | $ 6 | $ 7 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Ceded losses | $ 661 | $ 901 | $ 388 | |
Asbestos and Environmental | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance premium | 650 | |||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 977 | |||
Unpaid Losses and Loss Adjustment Expenses | 1,700 | |||
Accrued reinsurance premium | 650 | |||
Ceded losses | 523 | |||
Asbestos and Environmental | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance premium | $ 650 | |||
Asbestos and Environmental | Maximum | ||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 1,500 |
Reinsurance - Reinsurance Reco
Reinsurance - Reinsurance Recoverables (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Ceded Credit Risk [Line Items] | ||
Net reinsurance recoverables | $ 4,357 | $ 4,061 |
Corporate | ||
Ceded Credit Risk [Line Items] | ||
Net reinsurance recoverables | 332 | 349 |
Property and Casualty Insurance Products | Operating Segments | ||
Ceded Credit Risk [Line Items] | ||
Paid loss and loss adjustment expenses | 127 | 84 |
Unpaid loss and loss adjustment expenses | 3,773 | 3,496 |
Gross reinsurance recoverables | 3,900 | 3,580 |
Allowance for uncollectible reinsurance | (126) | (104) |
Net reinsurance recoverables | 3,774 | 3,476 |
Group Benefits | Operating Segments | ||
Ceded Credit Risk [Line Items] | ||
Net reinsurance recoverables | $ 251 | $ 236 |
Reinsurance - Insurance Revenue
Reinsurance - Insurance Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premiums Earned | |||
Direct | $ 14,439 | $ 14,204 | $ 14,031 |
Assumed | 2,265 | 678 | 368 |
Ceded | (660) | (650) | (627) |
Net earned premiums, fees and other considerations | 17,182 | 15,309 | 14,738 |
Group Benefits | |||
Premiums Earned | |||
Gross earned premiums, fees and other considerations | 3,615 | 3,281 | 3,160 |
Assumed | 2,044 | 446 | 107 |
Ceded | (61) | (50) | (44) |
Net earned premiums, fees and other considerations | 5,598 | 3,677 | 3,223 |
Property and Casualty Insurance Products | |||
Premiums Written | |||
Direct | 10,784 | 10,865 | 10,906 |
Assumed | 217 | 223 | 253 |
Ceded | (593) | (571) | (591) |
Net | 10,408 | 10,517 | 10,568 |
Premiums Earned | |||
Direct | 10,824 | 10,923 | 10,871 |
Assumed | 221 | 232 | 261 |
Ceded | (599) | (600) | (583) |
Net | $ 10,446 | $ 10,555 | $ 10,549 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 650 | $ 645 | $ 636 |
Deferred costs | 1,404 | 1,377 | 1,378 |
Amortization — DAC | (1,384) | (1,372) | (1,377) |
Add: Maxum acquisition | 0 | 0 | 8 |
Balance, end of period | $ 670 | $ 650 | $ 645 |
Goodwill & Other Intangible A_3
Goodwill & Other Intangible Assets - Goodwill Carrying Value (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,290,000,000 | $ 567,000,000 | |
Goodwill related to acquisitions | 0 | 723,000,000 | |
Ending balance | 1,290,000,000 | 1,290,000,000 | $ 567,000,000 |
Goodwill, Impairment Loss | $ 0 | 0 | 0 |
Number of Reporting Units | 5 | ||
Operating Segments | Commercial Lines | |||
Goodwill [Roll Forward] | |||
Beginning balance | $ 38,000,000 | 38,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 38,000,000 | 38,000,000 | 38,000,000 |
Operating Segments | Personal Lines | |||
Goodwill [Roll Forward] | |||
Beginning balance | 119,000,000 | 119,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 119,000,000 | 119,000,000 | 119,000,000 |
Operating Segments | Hartford Funds | |||
Goodwill [Roll Forward] | |||
Beginning balance | 180,000,000 | 180,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 180,000,000 | 180,000,000 | 180,000,000 |
Operating Segments | Group Benefits | |||
Goodwill [Roll Forward] | |||
Beginning balance | 723,000,000 | 0 | |
Goodwill related to acquisitions | 0 | 723,000,000 | |
Ending balance | 723,000,000 | 723,000,000 | 0 |
Corporate | |||
Goodwill [Roll Forward] | |||
Beginning balance | 230,000,000 | 230,000,000 | |
Goodwill related to acquisitions | 0 | 0 | |
Ending balance | 230,000,000 | 230,000,000 | 230,000,000 |
Corporate | Group Benefits | |||
Goodwill [Roll Forward] | |||
Beginning balance | 138,000,000 | 138,000,000 | |
Ending balance | 138,000,000 | 138,000,000 | 138,000,000 |
Corporate | Hartford Funds | |||
Goodwill [Roll Forward] | |||
Beginning balance | 92,000,000 | 92,000,000 | |
Ending balance | $ 92,000,000 | $ 92,000,000 | $ 92,000,000 |
Goodwill & Other Intangible A_4
Goodwill & Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | $ 775 | $ 775 | $ 708 |
Accumulated Amortization | (132) | (132) | (63) |
Net Carrying Amount | 643 | 643 | 645 |
Total Indefinite Life Intangible Assets | 14 | 14 | 14 |
Total Other Intangible Assets | 789 | 789 | 722 |
Total Other Intangible Assets | 657 | $ 657 | 659 |
Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | ||
Value of in-force contracts | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 23 | $ 23 | 23 |
Accumulated Amortization | (23) | (23) | (3) |
Net Carrying Amount | 0 | $ 0 | 20 |
Value of in-force contracts | Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | ||
Customer relationships [1] | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 636 | $ 636 | 590 |
Accumulated Amortization | (49) | (49) | (6) |
Net Carrying Amount | 587 | $ 587 | 584 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Customer relationships [1] | Foremost [Domain] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 46 | ||
Customer relationships [1] | Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Marketing agreement with Aetna | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 16 | $ 16 | 16 |
Accumulated Amortization | (1) | (1) | 0 |
Net Carrying Amount | 15 | $ 15 | 16 |
Marketing agreement with Aetna | Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Distribution Agreement | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 79 | $ 79 | 70 |
Accumulated Amortization | (56) | (56) | (52) |
Net Carrying Amount | 23 | $ 23 | 18 |
Distribution Agreement | Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Agency relationships & Other [2] | |||
Amortized Intangible Assets: | |||
Finite-Lived Intangible Assets, Gross | 21 | $ 21 | 9 |
Accumulated Amortization | (3) | (3) | (2) |
Net Carrying Amount | 18 | $ 18 | $ 7 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Agency relationships & Other [2] | Y-Risk [Domain] | |||
Amortized Intangible Assets: | |||
Finite-lived Intangible Assets Acquired | $ 12 | ||
Agency relationships & Other [2] | Weighted Average Expected Life | |||
Amortized Intangible Assets: | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years |
Goodwill & Other Intangible A_5
Goodwill & Other Intangible Assets - Expected Amortization Expense (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 53 |
2,020 | 53 |
2,021 | 53 |
2,022 | 52 |
2,023 | $ 47 |
Reserve for Unpaid Losses and_3
Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 32,287 | ||
Less: payments | |||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 33,029 | $ 32,287 | |
Reinsurance recoverables, net | 4,357 | 4,061 | |
Property and Casualty Insurance Products | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 23,775 | 22,545 | $ 22,568 |
Reinsurance and other recoverables | 3,957 | 3,488 | 3,625 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 19,818 | 19,057 | 18,943 |
Add: Maxum acquisition | 0 | 0 | 122 |
Provision for unpaid losses and loss adjustment expenses | |||
Current accident year | 7,107 | 7,381 | 6,990 |
Prior accident year development | (167) | (41) | 457 |
Total provision for unpaid losses and loss adjustment expenses | 6,940 | 7,340 | 7,447 |
Less: payments | |||
Current accident year | 2,452 | 2,751 | 2,749 |
Prior accident years | 3,954 | 3,828 | 4,219 |
Total payments | 6,406 | 6,579 | 6,968 |
Less: net reserves transferred to liabilities held for sale | 0 | 0 | 487 |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 20,352 | 19,818 | 19,057 |
Reinsurance and other recoverables | 4,232 | 3,957 | 3,488 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | $ 24,584 | $ 23,775 | $ 22,545 |
Reserve for Unpaid Losses and_4
Reserve for Unpaid Losses and Loss Adjustment Expenses - Discounted Reserves, P&C (Details) - Property and Casualty Insurance Products - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Discount Rate [Line Items] | |||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 1,331 | $ 1,387 | $ 1,504 |
Less: amount of discount | 388 | 410 | 483 |
Carrying value of liability for unpaid losses and loss adjustment expenses | 943 | 977 | 1,021 |
Discount accretion included in losses and loss adjustment expenses | $ 40 | $ 30 | $ 29 |
Weighted average discount rate | 2.98% | 3.06% | 3.11% |
Minimum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 1.77% | 1.77% | 1.77% |
Maximum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 14.15% | 14.15% | 14.15% |
Reserve for Unpaid Losses and_5
Reserve for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Current accident year benefit from discounting property and casualty reserves | $ 12 | $ 15 | $ 27 | |||
Group Insurance Policies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior accident year development | (324) | (185) | (162) | |||
Reinsurance and Other Recoverables | $ 239 | $ 209 | 239 | 209 | 208 | $ 218 |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 8,206 | 8,303 | 8,206 | $ 8,303 | $ 5,564 | $ 5,671 |
Scenario, Adjustment [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Reinsurance and Other Recoverables | 90 | $ 90 | ||||
Minimum | Group Insurance Policies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Range of discount rates | 2.10% | 2.10% | 3.00% | |||
Maximum | Group Insurance Policies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Range of discount rates | 8.00% | 8.00% | 8.00% | |||
Property and Casualty Insurance Products | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Reinsurance and Other Recoverables | 4,232 | $ 4,232 | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 20,352 | $ 20,352 | ||||
Property and Casualty Insurance Products | Minimum | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Range of discount rates | 1.77% | 1.77% | 1.77% | |||
Property and Casualty Insurance Products | Maximum | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Range of discount rates | 14.15% | 14.15% | 14.15% | |||
Catastrophes | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior accident year development | $ (49) | $ (16) | $ (7) | |||
Catastrophes | Scenario, Adjustment [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior accident year development | 133 | |||||
Catastrophes | Scenario, Plan [Member] | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 850 | 850 | ||||
Asbestos and Environmental | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Adverse development from comprehensive annual review | 238 | $ 285 | ||||
Reinsurance recoverable during period | 238 | 285 | ||||
Reinsurance and Other Recoverables | 1,032 | 1,032 | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 1,254 | 1,254 | ||||
Group long-term disability | Group Insurance Policies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior accident year development | 230 | 125 | 90 | |||
Reinsurance and Other Recoverables | 235 | 235 | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 6,767 | 6,767 | ||||
Group life and accident, excluding premium waiver | Group Insurance Policies | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Prior accident year development | 90 | $ 60 | $ 75 | |||
Reinsurance and Other Recoverables | 2 | 2 | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 575 | $ 575 |
Reserve for Unpaid Losses and_6
Reserve for Unpaid Losses and Loss Adjustment Expenses - Prior Accident Years Reserve Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Workers’ compensation | |||
Prior accident years reserve development | |||
Prior accident year development | $ (164) | $ (79) | $ (119) |
Workers’ compensation discount accretion | |||
Prior accident years reserve development | |||
Prior accident year development | 40 | 28 | 28 |
General liability | |||
Prior accident years reserve development | |||
Prior accident year development | 52 | 11 | 65 |
Package business | |||
Prior accident years reserve development | |||
Prior accident year development | (26) | (25) | 65 |
Professional liability | |||
Prior accident years reserve development | |||
Prior accident year development | (12) | 1 | (37) |
Bond | |||
Prior accident years reserve development | |||
Prior accident year development | 2 | 32 | (8) |
Net asbestos reserves | |||
Prior accident years reserve development | |||
Prior accident year development | 0 | 0 | 197 |
Net environmental reserves | |||
Prior accident years reserve development | |||
Prior accident year development | 0 | 0 | 71 |
Catastrophes | |||
Prior accident years reserve development | |||
Prior accident year development | (49) | (16) | (7) |
Uncollectible reinsurance | |||
Prior accident years reserve development | |||
Prior accident year development | 22 | (15) | (30) |
Other | |||
Prior accident years reserve development | |||
Prior accident year development | 38 | 27 | 24 |
Property and Casualty, Commercial Insurance Product Line [Member] | Property | |||
Prior accident years reserve development | |||
Prior accident year development | (12) | (8) | 1 |
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile liability | |||
Prior accident years reserve development | |||
Prior accident year development | (15) | 17 | 57 |
Property and Casualty, Personal Insurance Product Line [Member] | Property | |||
Prior accident years reserve development | |||
Prior accident year development | (25) | (14) | (10) |
Property and Casualty, Personal Insurance Product Line [Member] | Automobile liability | |||
Prior accident years reserve development | |||
Prior accident year development | (18) | 0 | 160 |
Property and Casualty Insurance Products | |||
Prior accident years reserve development | |||
Prior accident year development | (167) | $ (41) | $ 457 |
Scenario, Adjustment [Member] | Catastrophes | |||
Prior accident years reserve development | |||
Prior accident year development | $ 133 |
Reserve for Unpaid Losses and_7
Reserve for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses, P&C (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid losses and loss adjustment expenses | $ 33,029 | $ 32,287 | |
Workers’ compensation | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 18,685 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (10,965) | ||
Unpaid for Accident Years not Displayed in Triangles | 2,316 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 341 | ||
Discount | (372) | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 10,005 | ||
Reinsurance and Other Recoverables | 2,160 | ||
Unpaid losses and loss adjustment expenses | 12,165 | ||
General liability | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 3,605 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (1,840) | ||
Unpaid for Accident Years not Displayed in Triangles | 417 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 94 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 2,276 | ||
Reinsurance and Other Recoverables | 234 | ||
Unpaid losses and loss adjustment expenses | 2,510 | ||
Package business | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 6,600 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (5,128) | ||
Unpaid for Accident Years not Displayed in Triangles | 43 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 94 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,609 | ||
Reinsurance and Other Recoverables | 44 | ||
Unpaid losses and loss adjustment expenses | 1,653 | ||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 3,124 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (2,763) | ||
Unpaid for Accident Years not Displayed in Triangles | 14 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 9 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 384 | ||
Reinsurance and Other Recoverables | 41 | ||
Unpaid losses and loss adjustment expenses | 425 | ||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 3,442 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (2,604) | ||
Unpaid for Accident Years not Displayed in Triangles | 17 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 23 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 878 | ||
Reinsurance and Other Recoverables | 43 | ||
Unpaid losses and loss adjustment expenses | 921 | ||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 12,262 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (10,703) | ||
Unpaid for Accident Years not Displayed in Triangles | 21 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 72 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,652 | ||
Reinsurance and Other Recoverables | 25 | ||
Unpaid losses and loss adjustment expenses | 1,677 | ||
Commercial automobile physical damage | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 221 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (210) | ||
Unpaid for Accident Years not Displayed in Triangles | 2 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 13 | ||
Reinsurance and Other Recoverables | 0 | ||
Unpaid losses and loss adjustment expenses | 13 | ||
Professional liability | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,491 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (973) | ||
Unpaid for Accident Years not Displayed in Triangles | 41 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 19 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 578 | ||
Reinsurance and Other Recoverables | 306 | ||
Unpaid losses and loss adjustment expenses | 884 | ||
Bond | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 598 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (356) | ||
Unpaid for Accident Years not Displayed in Triangles | 28 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 20 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 290 | ||
Reinsurance and Other Recoverables | 12 | ||
Unpaid losses and loss adjustment expenses | 302 | ||
Personal automobile physical damage | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,752 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (1,716) | ||
Unpaid for Accident Years not Displayed in Triangles | 1 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 3 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 40 | ||
Reinsurance and Other Recoverables | 0 | ||
Unpaid losses and loss adjustment expenses | 40 | ||
Homeowners | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 7,714 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (7,110) | ||
Unpaid for Accident Years not Displayed in Triangles | 2 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 36 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 642 | ||
Reinsurance and Other Recoverables | 83 | ||
Unpaid losses and loss adjustment expenses | 725 | ||
Other ongoing business | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 197 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | (1) | ||
Discount | (16) | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 180 | ||
Reinsurance and Other Recoverables | 297 | ||
Unpaid losses and loss adjustment expenses | 477 | ||
Asbestos and Environmental | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 1,254 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 1,254 | ||
Reinsurance and Other Recoverables | 1,032 | ||
Unpaid losses and loss adjustment expenses | 2,286 | ||
Other operations | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Unpaid for Accident Years not Displayed in Triangles | 413 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 138 | ||
Discount | 0 | ||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 551 | ||
Reinsurance and Other Recoverables | (45) | ||
Unpaid losses and loss adjustment expenses | 506 | ||
Property and Casualty Insurance Products | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 59,494 | ||
Cumulative Paid for Accident Years Displayed in Triangles | (44,368) | ||
Unpaid for Accident Years not Displayed in Triangles | 4,766 | ||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 848 | ||
Discount | (388) | $ (410) | $ (483) |
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 20,352 | ||
Reinsurance and Other Recoverables | 4,232 | ||
Unpaid losses and loss adjustment expenses | $ 24,584 | ||
Property and Casualty Insurance Products | Maximum | |||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||
Period for long-tail lines included in loss triangles | 10 years | ||
Period for short-tail lines included in loss triangles | 3 years |
Reserve for Unpaid Losses and_8
Reserve for Unpaid Losses and Loss Adjustment Expenses - Historical Loss Development Triangles, P&C (Details) claim in Millions, $ in Millions | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Workers’ compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 18,685 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 10,965 | |||||||||
Workers’ compensation | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,534 | $ 1,522 | $ 1,529 | $ 1,519 | $ 1,504 | $ 1,504 | $ 1,493 | $ 1,478 | $ 1,455 | $ 1,462 |
IBNR Reserves | $ 168 | |||||||||
Claims Reported | claim | 135,804 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,263 | 1,242 | 1,208 | 1,170 | 1,115 | 1,042 | 937 | 792 | 587 | 265 |
Workers’ compensation | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,892 | 1,878 | 1,881 | 1,882 | 1,857 | 1,858 | 1,814 | 1,775 | 1,560 | |
IBNR Reserves | $ 236 | |||||||||
Claims Reported | claim | 156,747 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,522 | 1,489 | 1,439 | 1,374 | 1,287 | 1,154 | 970 | 709 | 316 | |
Workers’ compensation | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,242 | 2,232 | 2,224 | 2,221 | 2,206 | 2,204 | 2,099 | 2,013 | ||
IBNR Reserves | $ 342 | |||||||||
Claims Reported | claim | 177,819 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,746 | 1,690 | 1,622 | 1,518 | 1,368 | 1,156 | 841 | 371 | ||
Workers’ compensation | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,154 | 2,169 | 2,168 | 2,181 | 2,207 | 2,207 | 2,185 | |||
IBNR Reserves | $ 385 | |||||||||
Claims Reported | claim | 171,219 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,587 | 1,529 | 1,436 | 1,313 | 1,106 | 809 | 359 | |||
Workers’ compensation | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,861 | 1,861 | 1,883 | 1,920 | 1,981 | 2,020 | ||||
IBNR Reserves | $ 451 | |||||||||
Claims Reported | claim | 151,153 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,260 | 1,175 | 1,071 | 917 | 675 | 304 | ||||
Workers’ compensation | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,713 | 1,761 | 1,789 | 1,838 | 1,869 | |||||
IBNR Reserves | $ 532 | |||||||||
Claims Reported | claim | 125,840 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,041 | 960 | 811 | 598 | 275 | |||||
Workers’ compensation | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,724 | 1,801 | 1,835 | 1,873 | ||||||
IBNR Reserves | $ 613 | |||||||||
Claims Reported | claim | 113,493 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 909 | 778 | 576 | 261 | ||||||
Workers’ compensation | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,780 | 1,772 | 1,772 | |||||||
IBNR Reserves | $ 787 | |||||||||
Claims Reported | claim | 111,190 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 779 | 579 | 255 | |||||||
Workers’ compensation | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,869 | 1,862 | ||||||||
IBNR Reserves | $ 1,061 | |||||||||
Claims Reported | claim | 109,982 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 575 | 261 | ||||||||
Workers’ compensation | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,916 | |||||||||
IBNR Reserves | $ 1,363 | |||||||||
Claims Reported | claim | 109,842 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 283 | |||||||||
General liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,605 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,840 | |||||||||
General liability | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 351 | 341 | 346 | 347 | 348 | 359 | 382 | 394 | 398 | 382 |
IBNR Reserves | $ 39 | |||||||||
Claims Reported | claim | 20,714 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 304 | 297 | 287 | 277 | 256 | 227 | 181 | 124 | 63 | 22 |
General liability | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 393 | 377 | 376 | 345 | 343 | 355 | 352 | 362 | 355 | |
IBNR Reserves | $ 46 | |||||||||
Claims Reported | claim | 18,949 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 337 | 331 | 314 | 259 | 224 | 181 | 115 | 51 | 14 | |
General liability | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 326 | 318 | 320 | 315 | 316 | 323 | 343 | 353 | ||
IBNR Reserves | $ 52 | |||||||||
Claims Reported | claim | 16,854 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 264 | 252 | 234 | 198 | 154 | 93 | 47 | 11 | ||
General liability | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 304 | 298 | 304 | 295 | 310 | 315 | 321 | |||
IBNR Reserves | $ 69 | |||||||||
Claims Reported | claim | 11,761 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 215 | 198 | 167 | 124 | 75 | 39 | 8 | |||
General liability | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 352 | 344 | 352 | 332 | 321 | 318 | ||||
IBNR Reserves | $ 80 | |||||||||
Claims Reported | claim | 9,906 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 242 | 207 | 152 | 95 | 35 | 7 | ||||
General liability | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 351 | 342 | 336 | 318 | 317 | |||||
IBNR Reserves | $ 112 | |||||||||
Claims Reported | claim | 10,358 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 195 | 142 | 88 | 31 | 11 | |||||
General liability | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 364 | 345 | 346 | 316 | ||||||
IBNR Reserves | $ 164 | |||||||||
Claims Reported | claim | 10,805 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 139 | 80 | 32 | 7 | ||||||
General liability | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 380 | 351 | 352 | |||||||
IBNR Reserves | $ 241 | |||||||||
Claims Reported | claim | 11,960 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 79 | 32 | 8 | |||||||
General liability | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 385 | 363 | ||||||||
IBNR Reserves | $ 289 | |||||||||
Claims Reported | claim | 10,965 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 48 | 12 | ||||||||
General liability | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 399 | |||||||||
IBNR Reserves | $ 352 | |||||||||
Claims Reported | claim | 10,023 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 17 | |||||||||
Package business | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,600 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,128 | |||||||||
Package business | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 569 | 574 | 576 | 576 | 577 | 578 | 572 | 584 | 584 | 587 |
IBNR Reserves | $ 15 | |||||||||
Claims Reported | claim | 50,413 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 551 | 550 | 547 | 539 | 527 | 503 | 463 | 411 | 351 | 227 |
Package business | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 649 | 651 | 653 | 651 | 652 | 652 | 654 | 662 | 657 | |
IBNR Reserves | $ 19 | |||||||||
Claims Reported | claim | 52,410 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 625 | 618 | 613 | 601 | 570 | 539 | 487 | 414 | 270 | |
Package business | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 812 | 813 | 814 | 808 | 800 | 790 | 792 | 810 | ||
IBNR Reserves | $ 31 | |||||||||
Claims Reported | claim | 60,967 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 772 | 762 | 748 | 727 | 684 | 621 | 555 | 377 | ||
Package business | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 739 | 735 | 736 | 731 | 728 | 725 | 736 | |||
IBNR Reserves | $ 39 | |||||||||
Claims Reported | claim | 59,715 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 687 | 673 | 652 | 616 | 560 | 486 | 286 | |||
Package business | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 592 | 586 | 585 | 573 | 565 | 579 | ||||
IBNR Reserves | $ 46 | |||||||||
Claims Reported | claim | 43,415 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 522 | 504 | 467 | 414 | 339 | 225 | ||||
Package business | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 603 | 602 | 601 | 578 | 566 | |||||
IBNR Reserves | $ 70 | |||||||||
Claims Reported | claim | 42,928 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 507 | 468 | 416 | 345 | 226 | |||||
Package business | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 583 | 585 | 588 | 582 | ||||||
IBNR Reserves | $ 94 | |||||||||
Claims Reported | claim | 41,678 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 445 | 383 | 332 | 212 | ||||||
Package business | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 632 | 638 | 655 | |||||||
IBNR Reserves | $ 170 | |||||||||
Claims Reported | claim | 43,129 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 410 | 353 | 225 | |||||||
Package business | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 702 | 695 | ||||||||
IBNR Reserves | $ 257 | |||||||||
Claims Reported | claim | 44,709 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 372 | 235 | ||||||||
Package business | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 719 | |||||||||
IBNR Reserves | $ 335 | |||||||||
Claims Reported | claim | 38,034 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 237 | |||||||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,124 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,763 | |||||||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 258 | 257 | 257 | 257 | 257 | 251 | 258 | 259 | 264 | 267 |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 28,286 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 257 | 257 | 257 | 257 | 257 | 256 | 256 | 252 | 247 | 179 |
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 284 | 284 | 284 | 284 | 284 | 282 | 279 | 283 | 286 | |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 28,515 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 284 | 284 | 284 | 284 | 283 | 281 | 276 | 266 | 198 | |
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 359 | 359 | 360 | 361 | 362 | 356 | 356 | 357 | ||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 29,110 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 360 | 360 | 359 | 358 | 355 | 350 | 332 | 231 | ||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 305 | 305 | 306 | 305 | 301 | 301 | 329 | |||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 25,789 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 303 | 303 | 304 | 300 | 294 | 279 | 171 | |||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 215 | 216 | 220 | 219 | 218 | 234 | ||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 20,289 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 215 | 215 | 218 | 216 | 208 | 157 | ||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 263 | 264 | 262 | 260 | 268 | |||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 19,758 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 262 | 264 | 258 | 243 | 168 | |||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 270 | 268 | 264 | 264 | ||||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 19,061 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 265 | 255 | 239 | 172 | ||||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 327 | 331 | 328 | |||||||
IBNR Reserves | $ 5 | |||||||||
Claims Reported | claim | 19,945 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 310 | 285 | 188 | |||||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 440 | 515 | ||||||||
IBNR Reserves | $ 62 | |||||||||
Claims Reported | claim | 20,703 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 334 | 210 | ||||||||
Property | Property and Casualty, Commercial Insurance Product Line [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 403 | |||||||||
IBNR Reserves | $ 86 | |||||||||
Claims Reported | claim | 17,839 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 173 | |||||||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,442 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,604 | |||||||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 302 | 302 | 302 | 302 | 301 | 297 | 287 | 287 | 292 | 306 |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 38,703 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 301 | 301 | 300 | 298 | 291 | 274 | 237 | 175 | 115 | 56 |
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 322 | 324 | 327 | 328 | 323 | 319 | 296 | 280 | 277 | |
IBNR Reserves | $ 4 | |||||||||
Claims Reported | claim | 38,153 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 316 | 313 | 308 | 300 | 289 | 252 | 188 | 125 | 55 | |
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 362 | 362 | 365 | 366 | 356 | 356 | 310 | 272 | ||
IBNR Reserves | $ 4 | |||||||||
Claims Reported | claim | 39,293 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 352 | 348 | 339 | 315 | 273 | 211 | 133 | 62 | ||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 387 | 390 | 394 | 401 | 390 | 376 | 311 | |||
IBNR Reserves | $ 6 | |||||||||
Claims Reported | claim | 35,999 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 371 | 358 | 345 | 306 | 233 | 142 | 65 | |||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 333 | 335 | 336 | 329 | 314 | 309 | ||||
IBNR Reserves | $ 18 | |||||||||
Claims Reported | claim | 31,918 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 306 | 289 | 255 | 199 | 128 | 61 | ||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 337 | 333 | 328 | 314 | 306 | |||||
IBNR Reserves | $ 23 | |||||||||
Claims Reported | claim | 29,260 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 295 | 249 | 195 | 129 | 58 | |||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 351 | 368 | 353 | 302 | ||||||
IBNR Reserves | $ 43 | |||||||||
Claims Reported | claim | 28,079 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 264 | 204 | 141 | 61 | ||||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 376 | 380 | 372 | |||||||
IBNR Reserves | $ 90 | |||||||||
Claims Reported | claim | 28,154 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 222 | 140 | 62 | |||||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 358 | 346 | ||||||||
IBNR Reserves | $ 165 | |||||||||
Claims Reported | claim | 24,587 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 123 | 55 | ||||||||
Automobile liability | Property and Casualty, Commercial Insurance Product Line [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 314 | |||||||||
IBNR Reserves | $ 205 | |||||||||
Claims Reported | claim | 20,675 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 54 | |||||||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,262 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 10,703 | |||||||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,257 | 1,257 | 1,257 | 1,259 | 1,260 | 1,256 | 1,255 | 1,280 | 1,305 | 1,351 |
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 254,555 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,251 | 1,251 | 1,250 | 1,246 | 1,240 | 1,223 | 1,171 | 1,083 | 888 | 492 |
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,264 | 1,265 | 1,265 | 1,275 | 1,282 | 1,287 | 1,293 | 1,321 | 1,346 | |
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 248,944 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,260 | 1,258 | 1,256 | 1,251 | 1,239 | 1,202 | 1,108 | 915 | 496 | |
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,153 | 1,154 | 1,154 | 1,166 | 1,173 | 1,180 | 1,170 | 1,181 | ||
IBNR Reserves | $ 5 | |||||||||
Claims Reported | claim | 221,886 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,146 | 1,145 | 1,140 | 1,126 | 1,088 | 1,006 | 826 | 447 | ||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,130 | 1,130 | 1,133 | 1,142 | 1,146 | 1,149 | 1,141 | |||
IBNR Reserves | $ 7 | |||||||||
Claims Reported | claim | 210,750 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,120 | 1,114 | 1,104 | 1,067 | 986 | 818 | 441 | |||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,153 | 1,152 | 1,153 | 1,144 | 1,145 | 1,131 | ||||
IBNR Reserves | $ 8 | |||||||||
Claims Reported | claim | 205,462 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,135 | 1,121 | 1,091 | 1,002 | 816 | 442 | ||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,199 | 1,200 | 1,198 | 1,153 | 1,146 | |||||
IBNR Reserves | $ 15 | |||||||||
Claims Reported | claim | 208,942 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,165 | 1,125 | 1,032 | 843 | 430 | |||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,330 | 1,338 | 1,340 | 1,195 | ||||||
IBNR Reserves | $ 38 | |||||||||
Claims Reported | claim | 216,707 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,243 | 1,142 | 935 | 475 | ||||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,393 | 1,402 | 1,407 | |||||||
IBNR Reserves | $ 103 | |||||||||
Claims Reported | claim | 215,126 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,188 | 968 | 505 | |||||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,275 | 1,277 | ||||||||
IBNR Reserves | $ 276 | |||||||||
Claims Reported | claim | 185,716 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 836 | 441 | ||||||||
Automobile liability | Property and Casualty, Personal Insurance Product Line [Member] | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,108 | |||||||||
IBNR Reserves | $ 510 | |||||||||
Claims Reported | claim | 146,845 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 359 | |||||||||
Commercial automobile physical damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 221 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 210 | |||||||||
Commercial automobile physical damage | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 78 | 78 | 79 | |||||||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 26,367 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 77 | 78 | 71 | |||||||
Commercial automobile physical damage | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 81 | 85 | ||||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 24,275 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 79 | 74 | ||||||||
Commercial automobile physical damage | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 62 | |||||||||
IBNR Reserves | $ 2 | |||||||||
Claims Reported | claim | 19,167 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 54 | |||||||||
Professional liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,491 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 973 | |||||||||
Professional liability | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 259 | 257 | 257 | 255 | 263 | 257 | 266 | 244 | 251 | 254 |
IBNR Reserves | $ 20 | |||||||||
Claims Reported | claim | 5,115 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 238 | 235 | 226 | 225 | 226 | 194 | 177 | 127 | 69 | 17 |
Professional liability | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 192 | 199 | 195 | 200 | 201 | 205 | 212 | 211 | 202 | |
IBNR Reserves | $ 22 | |||||||||
Claims Reported | claim | 4,894 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 169 | 166 | 162 | 157 | 148 | 137 | 103 | 62 | 22 | |
Professional liability | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 215 | 220 | 219 | 219 | 226 | 232 | 228 | 226 | ||
IBNR Reserves | $ 38 | |||||||||
Claims Reported | claim | 4,708 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 176 | 173 | 170 | 163 | 128 | 100 | 57 | 11 | ||
Professional liability | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 139 | 144 | 146 | 149 | 168 | 172 | 174 | |||
IBNR Reserves | $ 18 | |||||||||
Claims Reported | claim | 3,734 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 109 | 107 | 97 | 89 | 60 | 41 | 11 | |||
Professional liability | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 99 | 103 | 110 | 123 | 136 | 136 | ||||
IBNR Reserves | $ 27 | |||||||||
Claims Reported | claim | 2,791 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 66 | 55 | 39 | 31 | 19 | 4 | ||||
Professional liability | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 109 | 114 | 118 | 123 | 116 | |||||
IBNR Reserves | $ 33 | |||||||||
Claims Reported | claim | 2,891 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 72 | 64 | 40 | 21 | 4 | |||||
Professional liability | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 114 | 113 | 113 | 104 | ||||||
IBNR Reserves | $ 32 | |||||||||
Claims Reported | claim | 2,957 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 63 | 49 | 23 | 4 | ||||||
Professional liability | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 125 | 106 | 106 | |||||||
IBNR Reserves | $ 71 | |||||||||
Claims Reported | claim | 3,133 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 46 | 25 | 4 | |||||||
Professional liability | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 113 | 107 | ||||||||
IBNR Reserves | $ 75 | |||||||||
Claims Reported | claim | 3,111 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 26 | 6 | ||||||||
Professional liability | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 126 | |||||||||
IBNR Reserves | $ 107 | |||||||||
Claims Reported | claim | 2,971 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 8 | |||||||||
Bond | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 598 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 356 | |||||||||
Bond | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 49 | 49 | 49 | 49 | 51 | 57 | 58 | 69 | 71 | 71 |
IBNR Reserves | $ 5 | |||||||||
Claims Reported | claim | 3,321 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 43 | 44 | 44 | 44 | 43 | 44 | 46 | 45 | 32 | 9 |
Bond | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 71 | 90 | 70 | 69 | 73 | 79 | 80 | 75 | 71 | |
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 2,674 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 67 | 66 | 66 | 63 | 59 | 58 | 59 | 46 | 13 | |
Bond | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 69 | 69 | 70 | 70 | 75 | 76 | 76 | 72 | ||
IBNR Reserves | $ 9 | |||||||||
Claims Reported | claim | 2,134 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 59 | 59 | 59 | 57 | 56 | 51 | 39 | 12 | ||
Bond | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 43 | 48 | 48 | 53 | 60 | 69 | 69 | |||
IBNR Reserves | $ 9 | |||||||||
Claims Reported | claim | 1,720 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 33 | 25 | 25 | 24 | 26 | 25 | 12 | |||
Bond | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 38 | 48 | 48 | 54 | 58 | 63 | ||||
IBNR Reserves | $ 18 | |||||||||
Claims Reported | claim | 1,456 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 18 | 18 | 18 | 17 | 9 | 3 | ||||
Bond | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 58 | 66 | 65 | 65 | 69 | |||||
IBNR Reserves | $ 13 | |||||||||
Claims Reported | claim | 1,373 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 42 | 43 | 40 | 31 | 18 | |||||
Bond | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 59 | 62 | 65 | 65 | ||||||
IBNR Reserves | $ 23 | |||||||||
Claims Reported | claim | 1,368 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 31 | 23 | 19 | 9 | ||||||
Bond | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 58 | 59 | 59 | |||||||
IBNR Reserves | $ 37 | |||||||||
Claims Reported | claim | 1,272 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 13 | 11 | 2 | |||||||
Bond | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 88 | 61 | ||||||||
IBNR Reserves | $ 38 | |||||||||
Claims Reported | claim | 1,204 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 45 | 5 | ||||||||
Bond | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 65 | |||||||||
IBNR Reserves | $ 59 | |||||||||
Claims Reported | claim | 1,040 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 5 | |||||||||
Personal automobile physical damage | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,752 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,716 | |||||||||
Personal automobile physical damage | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 655 | 656 | 665 | |||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 406,588 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 651 | 653 | 634 | |||||||
Personal automobile physical damage | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 588 | 598 | ||||||||
IBNR Reserves | $ (3) | |||||||||
Claims Reported | claim | 361,857 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 591 | 574 | ||||||||
Personal automobile physical damage | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 509 | |||||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 288,993 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 474 | |||||||||
Homeowners | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,714 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,110 | |||||||||
Homeowners | 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 768 | 768 | 769 | 772 | 772 | 772 | 772 | 776 | 777 | 757 |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 149,799 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 767 | 767 | 766 | 766 | 765 | 763 | 759 | 749 | 727 | $ 559 |
Homeowners | 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 834 | 834 | 836 | 840 | 840 | 840 | 838 | 850 | 838 | |
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 161,590 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 834 | 833 | 833 | 832 | 829 | 825 | 815 | 789 | $ 599 | |
Homeowners | 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 907 | 908 | 911 | 914 | 916 | 919 | 920 | 955 | ||
IBNR Reserves | $ 0 | |||||||||
Claims Reported | claim | 179,389 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 907 | 908 | 905 | 903 | 899 | 891 | 871 | $ 709 | ||
Homeowners | 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 738 | 738 | 739 | 741 | 741 | 741 | 774 | |||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 142,828 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 735 | 734 | 731 | 727 | 719 | 696 | $ 547 | |||
Homeowners | 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 630 | 632 | 634 | 637 | 638 | 673 | ||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 113,518 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 627 | 626 | 622 | 611 | 590 | $ 467 | ||||
Homeowners | 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 698 | 700 | 702 | 707 | 710 | |||||
IBNR Reserves | $ 1 | |||||||||
Claims Reported | claim | 121,863 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 695 | 691 | 684 | 663 | $ 526 | |||||
Homeowners | 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 684 | 690 | 703 | 690 | ||||||
IBNR Reserves | $ 3 | |||||||||
Claims Reported | claim | 119,888 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 674 | 665 | 645 | $ 487 | ||||||
Homeowners | 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 663 | 673 | 669 | |||||||
IBNR Reserves | $ 7 | |||||||||
Claims Reported | claim | 119,441 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 640 | 621 | $ 481 | |||||||
Homeowners | 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 889 | 866 | ||||||||
IBNR Reserves | $ 45 | |||||||||
Claims Reported | claim | 123,426 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 747 | $ 538 | ||||||||
Homeowners | 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 903 | |||||||||
IBNR Reserves | $ 89 | |||||||||
Claims Reported | claim | 94,946 | |||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 484 |
Reserve for Unpaid Losses and_9
Reserve for Unpaid Losses and Loss Adjustment Expenses - Average Annual Payout of Incurred Claims by Age, P&C (Details) | Dec. 31, 2018 |
Workers’ compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 15.80% |
2nd Year | 19.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 12.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 9.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 6.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 4.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 3.20% |
8th Year | 2.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 2.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 1.40% |
General liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 3.30% |
2nd Year | 8.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 14.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 16.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 13.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 9.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 7.80% |
8th Year | 3.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 2.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 2.10% |
Package business | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 38.10% |
2nd Year | 21.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 10.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 8.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 5.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 3.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 1.90% |
8th Year | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 0.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 0.30% |
Commercial automobile physical damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 90.00% |
2nd Year | 7.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | (0.50%) |
Professional liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 5.70% |
2nd Year | 18.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 18.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 16.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 9.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 7.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 1.30% |
8th Year | 1.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 2.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 1.10% |
Bond | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 15.40% |
2nd Year | 30.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 13.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 3.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 0.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 1.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 6.10% |
8th Year | (0.10%) |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 1.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | (1.90%) |
Personal automobile physical damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 95.90% |
2nd Year | 2.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | (0.30%) |
Homeowners | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 70.40% |
2nd Year | 21.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 3.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 1.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 0.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 0.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 0.10% |
8th Year | 0.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 0.00% |
Group Insurance Policies | Group long-term disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 7.30% |
2nd Year | 24.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 15.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 8.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 6.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 5.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 4.60% |
8th Year | 3.90% |
Property and Casualty, Commercial Insurance Product Line [Member] | Property | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 60.80% |
2nd Year | 27.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 4.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 1.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 0.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 0.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 0.10% |
8th Year | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 0.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 0.00% |
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 17.20% |
2nd Year | 20.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 20.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 18.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 11.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 4.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 2.70% |
8th Year | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 0.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 0.10% |
Property and Casualty, Personal Insurance Product Line [Member] | Automobile liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 36.90% |
2nd Year | 33.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 3rd Year | 15.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 4th Year | 7.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 5th Year | 3.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 6th Year | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 7th Year | 0.50% |
8th Year | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 9th Year | 0.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, 10th Year | 0.00% |
Reserve for Unpaid Losses an_10
Reserve for Unpaid Losses and Loss Adjustment Expenses - Group Benefits Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | $ 32,287 | ||
Less: payments | |||
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 33,029 | $ 32,287 | |
Reinsurance recoverables, net | 4,357 | 4,061 | |
Group Insurance Policies | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning liabilities for unpaid losses and loss adjustment expenses, gross | 8,512 | 5,772 | $ 5,889 |
Reinsurance and other recoverables | 209 | 208 | 218 |
Beginning liabilities for unpaid losses and loss adjustment expenses, net | 8,303 | 5,564 | 5,671 |
Provision for unpaid losses and loss adjustment expenses | |||
Current accident year | 4,470 | 2,868 | 2,562 |
Prior year's discount accretion | 227 | 202 | 202 |
Prior accident year development | (324) | (185) | (162) |
Total provision for unpaid losses and loss adjustment expenses | 4,373 | 2,885 | 2,602 |
Less: payments | |||
Current incurral year | 2,377 | 1,528 | 1,327 |
Prior incurral years | 2,135 | 1,451 | 1,382 |
Total payments | 4,512 | 2,979 | 2,709 |
Ending liabilities for unpaid losses and loss adjustment expenses, net | 8,206 | 8,303 | 5,564 |
Reinsurance and other recoverables | 239 | 209 | 208 |
Ending liabilities for unpaid losses and loss adjustment expenses, gross | 8,445 | 8,512 | 5,772 |
Reinsurance recoverables, net | 194 | 111 | 100 |
Aetna Group Insurance [Member] | Group Insurance Policies | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Add: Aetna U.S. group life and disability business acquisitions | $ 42 | $ 2,833 | $ 0 |
Reserve for Unpaid Losses an_11
Reserve for Unpaid Losses and Loss Adjustment Expenses - Discounted Reserves, Group (Details) - Group Insurance Policies - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Discount Rate [Line Items] | |||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | $ 8,957 | $ 9,071 | $ 6,382 |
Less: amount of discount | 1,505 | 1,536 | 1,303 |
Carrying value of liability for unpaid losses and loss adjustment expenses | $ 7,452 | $ 7,535 | $ 5,079 |
Weighted average discount rate | 3.40% | 3.50% | 4.30% |
Minimum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 2.10% | 2.10% | 3.00% |
Maximum | |||
Weighted Average Discount Rate [Line Items] | |||
Range of discount rates | 8.00% | 8.00% | 8.00% |
Reserve for Unpaid Losses an_12
Reserve for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Loss Development to Liability for Unpaid Losses and Loss Adjustment Expenses, Group (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid losses and loss adjustment expenses | $ 33,029 | $ 32,287 | ||
Group Insurance Policies | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 17,754 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (11,584) | |||
Unpaid for Accident Years not Displayed in Triangles | 3,356 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 185 | |||
Discount | (1,505) | (1,536) | $ (1,303) | |
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 8,206 | 8,303 | 5,564 | $ 5,671 |
Reinsurance and Other Recoverables | 239 | 209 | 208 | 218 |
Unpaid losses and loss adjustment expenses | 8,445 | $ 8,512 | $ 5,772 | $ 5,889 |
Group Insurance Policies | Group long-term disability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 11,934 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (6,217) | |||
Unpaid for Accident Years not Displayed in Triangles | 2,243 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 171 | |||
Discount | (1,364) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 6,767 | |||
Reinsurance and Other Recoverables | 235 | |||
Unpaid losses and loss adjustment expenses | 7,002 | |||
Group Insurance Policies | Group life and accident, excluding premium waiver | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 5,820 | |||
Cumulative Paid for Accident Years Displayed in Triangles | (5,367) | |||
Unpaid for Accident Years not Displayed in Triangles | 139 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 2 | |||
Discount | (19) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 575 | |||
Reinsurance and Other Recoverables | 2 | |||
Unpaid losses and loss adjustment expenses | 577 | |||
Group Insurance Policies | Group short-term disability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 113 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 5 | |||
Discount | 0 | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 118 | |||
Reinsurance and Other Recoverables | 0 | |||
Unpaid losses and loss adjustment expenses | 118 | |||
Group Insurance Policies | Group life premium waiver | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 818 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 7 | |||
Discount | (122) | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 703 | |||
Reinsurance and Other Recoverables | 2 | |||
Unpaid losses and loss adjustment expenses | 705 | |||
Group Insurance Policies | Group supplemental health | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid for Accident Years not Displayed in Triangles | 43 | |||
Unpaid Unallocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||
Discount | 0 | |||
Unpaid Losses and Loss Adjustment Expenses, Net of Reinsurance | 43 | |||
Reinsurance and Other Recoverables | 0 | |||
Unpaid losses and loss adjustment expenses | $ 43 |
Reserve for Unpaid Losses an_13
Reserve for Unpaid Losses and Loss Adjustment Expenses - Historical Loss Development Triangles, Group (Details) - Group Insurance Policies claim in Millions, $ in Millions | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) |
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 11,584 | |||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 17,754 | |||||||
Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,217 | |||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 11,934 | |||||||
Group life and accident, excluding premium waiver | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,367 | |||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 5,820 | |||||||
2011 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,231 | $ 1,167 | $ 1,087 | $ 996 | $ 886 | $ 743 | $ 508 | $ 118 |
Cumulative Incurred for Accident Years Displayed in Triangles | 1,638 | 1,649 | 1,660 | 1,669 | 1,659 | 1,660 | 1,761 | $ 1,917 |
IBNR Reserves | $ 1 | |||||||
Claims Reported | claim | 39,097 | |||||||
2012 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,080 | 1,014 | 933 | 835 | 708 | 483 | 108 | |
Cumulative Incurred for Accident Years Displayed in Triangles | 1,504 | 1,515 | 1,530 | 1,532 | 1,539 | 1,605 | $ 1,829 | |
IBNR Reserves | $ 1 | |||||||
Claims Reported | claim | 37,343 | |||||||
2013 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 954 | 881 | 791 | 664 | 443 | 102 | ||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,413 | 1,416 | 1,429 | 1,429 | 1,479 | $ 1,660 | ||
IBNR Reserves | $ 1 | |||||||
Claims Reported | claim | 31,755 | |||||||
2014 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 884 | 801 | 675 | 448 | 103 | |||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,431 | 1,431 | 1,430 | 1,473 | $ 1,636 | |||
IBNR Reserves | $ 3 | |||||||
Claims Reported | claim | 32,970 | |||||||
2015 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 806 | 687 | 460 | 108 | ||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,420 | 1,422 | 1,442 | $ 1,595 | ||||
IBNR Reserves | $ 5 | |||||||
Claims Reported | claim | 33,541 | |||||||
2015 | Group life and accident, excluding premium waiver | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,906 | 1,888 | 1,529 | |||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,915 | 1,919 | 1,974 | |||||
IBNR Reserves | $ 5 | |||||||
Claims Reported | claim | 45,206 | |||||||
2016 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 705 | 479 | 112 | |||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,468 | 1,481 | $ 1,651 | |||||
IBNR Reserves | $ 12 | |||||||
Claims Reported | claim | 34,259 | |||||||
2016 | Group life and accident, excluding premium waiver | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,929 | 1,551 | ||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,953 | 1,999 | ||||||
IBNR Reserves | $ 20 | |||||||
Claims Reported | claim | 44,539 | |||||||
2017 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 452 | 109 | ||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,413 | $ 1,597 | ||||||
IBNR Reserves | $ 36 | |||||||
Claims Reported | claim | 31,135 | |||||||
2017 | Group life and accident, excluding premium waiver | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,532 | |||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,952 | |||||||
IBNR Reserves | $ 376 | |||||||
Claims Reported | claim | 41,876 | |||||||
2018 | Group long-term disability | ||||||||
Claims Development [Line Items] | ||||||||
Cumulative Paid Losses & Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 105 | |||||||
Cumulative Incurred for Accident Years Displayed in Triangles | 1,647 | |||||||
IBNR Reserves | $ 810 | |||||||
Claims Reported | claim | 19,386 |
Reserve for Unpaid Losses an_14
Reserve for Unpaid Losses and Loss Adjustment Expenses - Average Annual Payout of Incurred Claims by Age, Group (Details) - Group Insurance Policies | Dec. 31, 2018 |
Group long-term disability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 7.30% |
2nd Year | 24.40% |
3rd Year | 15.40% |
4th Year | 8.70% |
5th Year | 6.30% |
6th Year | 5.40% |
7th Year | 4.60% |
8th Year | 3.90% |
Group life and accident, excluding premium waiver | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
1st Year | 79.30% |
2nd Year | 19.00% |
3rd Year | 0.90% |
Reserve for Future Policy Ben_3
Reserve for Future Policy Benefits (Details) - Annuitization Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Liability | ||
Beginning balance | $ 713 | $ 322 |
Incurred | 72 | 86 |
Paid | (101) | (50) |
Change in unrealized investment gains and losses | (42) | 9 |
Ending balance | 642 | 713 |
Reinsurance Recoverable Asset | ||
Beginning balance | 26 | 28 |
Acquired [2] | 346 | |
Incurred | 1 | (1) |
Paid | 0 | (1) |
Ending balance | $ 27 | $ 26 |
Debt - Short-term and Long-ter
Debt - Short-term and Long-term Debt by Issuance (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 15, 2018 | Mar. 15, 2018 | |
Schedule of Debt [Line Items] | ||||||
Revolving Credit Facilities | $ 0 | $ 0 | ||||
Total Notes and Debentures | 4,795 | 5,115 | ||||
Unamortized discount and debt issuance cost | 117 | 117 | ||||
Total Debt | 4,678 | 4,998 | ||||
Less: Current maturities | 413 | 320 | ||||
Long-Term Debt | 4,265 | 4,678 | ||||
Interest Expense | 298 | 316 | $ 327 | |||
6.3% Notes, due 2018 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 0 | 320 | ||||
Interest rate | 6.30% | |||||
6.0% Notes, due 2019 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 413 | 413 | ||||
Interest rate | 6.00% | |||||
5.5% Notes, due 2020 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 500 | 500 | ||||
Interest rate | 5.50% | |||||
5.125% Notes, due 2022 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 800 | 800 | ||||
Interest rate | 5.125% | |||||
5.95% Notes, due 2036 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 300 | 300 | ||||
Interest rate | 5.95% | |||||
6.625% Notes, due 2040 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 295 | 295 | ||||
Interest rate | 6.625% | |||||
6.1% Notes, due 2041 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 409 | 409 | ||||
Unamortized discount and debt issuance cost | $ 78 | $ 79 | ||||
Interest rate | 6.10% | 6.10% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.90% | |||||
6.625% Notes, due 2042 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 178 | $ 178 | ||||
Interest rate | 6.625% | |||||
4.4% Notes, due 2048 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 500 | 0 | ||||
4.3% Notes, due 2043 | ||||||
Schedule of Debt [Line Items] | ||||||
Senior Notes and Debentures | $ 300 | $ 300 | ||||
Interest rate | 4.30% | 4.30% | ||||
4.4% Notes, due 2048 | ||||||
Schedule of Debt [Line Items] | ||||||
Interest rate | 4.40% | 4.40% | ||||
7.875% Notes, due 2042 | ||||||
Schedule of Debt [Line Items] | ||||||
Junior Subordinated Debentures | $ 600 | $ 600 | ||||
Interest rate | 7.875% | 7.875% | ||||
3 month Libor 2.125% Notes, due 2067 [1] | ||||||
Schedule of Debt [Line Items] | ||||||
Junior Subordinated Debentures | $ 500 | $ 500 | ||||
3 month Libor 2.125% Notes, due 2067 [1] | LIBOR | ||||||
Schedule of Debt [Line Items] | ||||||
Derivative, Fixed Interest Rate | 4.39% | |||||
Variable interest rate | 2.125% | 2.125% | ||||
8.125% Notes, due 2068 | ||||||
Schedule of Debt [Line Items] | ||||||
Junior Subordinated Debentures | $ 0 | $ 500 | ||||
Interest rate | 8.125% | 8.125% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | Mar. 15, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 500,000,000 | |
Proceeds from Debt, Net of Issuance Costs | $ 490,000,000 | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | |
Debt Instrument, Interest Rate, Increase (Decrease) | 25.00% | |
4.4% Notes, due 2048 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.40% | 4.40% |
Senior Notes | Senior Note Six Point Three Due in Two Thousand Eighteen [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.30% | |
Debt repaid | $ 320,000,000 |
Debt - Junior Subordinated Debt
Debt - Junior Subordinated Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Junior Subordinated Notes Seven Point Eight Seven Five Percent Due Two Thousand Forty Two [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 600 | ||
Interest rate | 7.875% | 7.875% | |
3 month Libor 2.125% Notes, due 2067 [1] | |||
Debt Instrument [Line Items] | |||
Face Value | $ 500 | ||
3 month Libor 2.125% Notes, due 2067 [1] | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.125% | 2.125% | |
Derivative, Fixed Interest Rate | 4.39% | ||
LIBOR Plus Five Point Five Nine Six Percent Junior Subordinated Notes Due Two Thousand Twenty Two [Member] [Domain] | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 5.596% |
Debt - Long-Term Debt Maturitie
Debt - Long-Term Debt Maturities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 - Current maturities | $ 413 |
2,020 | 500 |
2,021 | 0 |
2,022 | 800 |
2,023 | 0 |
Thereafter | $ 3,082 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Mar. 29, 2018 | Jul. 29, 2016 | Apr. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 19, 2018 | Jun. 15, 2018 | Mar. 15, 2018 |
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ (6,000,000) | $ (6,000,000) | $ 0 | $ 0 | ||||||
Term of registration statement | three | |||||||||
Letters of Credit, Maximum Borrowing Capacity | 100,000,000 | |||||||||
Line of Credit Facility, Covenant Terms - Monetary | $ 9,000,000,000 | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 0 | |||||||||
Letters of Credit Outstanding, Amount | 3,000,000 | |||||||||
Commercial paper outstanding | 0 | |||||||||
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding | 0 | |||||||||
Hartford Fire Insurance Company [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 1,100,000,000 | |||||||||
Hartford Life and Accident Insurance Company [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 600,000,000 | |||||||||
Commercial Paper | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility | 750,000,000 | $ 750,000,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings outstanding under revolving credit facility | 750,000,000 | |||||||||
Line of Credit Facility, Covenant Terms - Percent | 35.00% | |||||||||
Scenario, Adjustment [Member] | Commercial Paper | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility | $ 1,000,000,000 | |||||||||
Scenario, Adjustment [Member] | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility | 1,000,000,000 | |||||||||
Previously Reported [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of Credit, Maximum Borrowing Capacity | 250,000,000 | |||||||||
Line of Credit Facility, Covenant Terms - Monetary | $ 13,500,000,000 | |||||||||
Junior Subordinated Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest deferral period | 10 years | |||||||||
Redemption price | 100.00% | |||||||||
6.3% Notes, due 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.30% | |||||||||
6.0% Notes, due 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.00% | |||||||||
5.5% Notes, due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.50% | |||||||||
5.125% Notes, due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.125% | |||||||||
5.95% Notes, due 2036 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.95% | |||||||||
6.625% Notes, due 2040 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.625% | |||||||||
6.1% Notes, due 2041 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.10% | 6.10% | ||||||||
6.625% Notes, due 2042 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.625% | |||||||||
4.3% Notes, due 2043 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.30% | 4.30% | ||||||||
4.4% Notes, due 2048 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.40% | 4.40% | ||||||||
7.875% Notes, due 2042 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 7.875% | 7.875% | ||||||||
Debt Instrument, Face Amount | $ 600,000,000 | |||||||||
3 month Libor 2.125% Notes, due 2067 [1] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||||
3 month Libor 2.125% Notes, due 2067 [1] | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable interest rate | 2.125% | 2.125% | ||||||||
Derivative, Fixed Interest Rate | 4.39% | |||||||||
8.125% Notes, due 2068 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 8.125% | 8.125% | ||||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||||
Senior Note Six Point Three Due in Two Thousand Eighteen [Member] | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.30% | |||||||||
Debt repaid | $ 320,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||||
Adverse development from comprehensive annual review | $ 661,000,000 | $ 901,000,000 | $ 388,000,000 | |
Rental expense on operating leases | 56,000,000 | 57,000,000 | 53,000,000 | |
Sublease rental income | 4,000,000 | 3,000,000 | 2,000,000 | |
Outstanding commitments | $ 954,000,000 | 954,000,000 | ||
Minimum percentage of written premiums in state for assessment under guaranty funds | 0.01 | |||
Maximum percentage of written premiums in state for assessment under guaranty funds | 0.02 | |||
Guaranty liabilities | 97,000,000 | 97,000,000 | 113,000,000 | |
Fair value of derivative instrument in a net liability position | 76,000,000 | 76,000,000 | ||
Collateral already posted | 71,000,000 | 71,000,000 | ||
Additional collateral required | 7,000,000 | $ 7,000,000 | ||
Guarantor Obligations, Unlimited Exposure | The guarantees have no limitation as to maximum potential future payments. | |||
Other Assets | ||||
Loss Contingencies [Line Items] | ||||
Premium tax offsets | 2,000,000 | $ 2,000,000 | $ 6,000,000 | |
Limited partnerships and other alternative investments | ||||
Loss Contingencies [Line Items] | ||||
Outstanding commitments | 707,000,000 | 707,000,000 | ||
Private Placement Securities | ||||
Loss Contingencies [Line Items] | ||||
Outstanding commitments | 163,000,000 | 163,000,000 | ||
Mortgage loans | ||||
Loss Contingencies [Line Items] | ||||
Outstanding commitments | 84,000,000 | 84,000,000 | ||
Cancelable mortgage loan [Member] | ||||
Loss Contingencies [Line Items] | ||||
Outstanding commitments | 48,000,000 | 48,000,000 | ||
Asbestos and Environmental | ||||
Loss Contingencies [Line Items] | ||||
Reinsurance premium | 650,000,000 | |||
Maximum | Asbestos and Environmental | ||||
Loss Contingencies [Line Items] | ||||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | 1,500,000,000 | |||
Asbestos | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 1,100,000,000 | 1,100,000,000 | ||
Environmental | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 203,000,000 | 203,000,000 | ||
Asbestos and Environmental | ||||
Loss Contingencies [Line Items] | ||||
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | 1,254,000,000 | 1,254,000,000 | ||
Reinsurance premium | $ 650,000,000 | |||
Reinsurance Retention Policy, Excess Retention, Amount Reinsured | $ 977,000,000 | |||
Reinsurance Retention Policy, Amount Retained | 1,700,000,000 | |||
Adverse development from comprehensive annual review | $ 523,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 44 |
2,020 | 36 |
2,021 | 25 |
2,022 | 18 |
2,023 | 16 |
Thereafter | 34 |
Total minimum lease payments | 173 |
Sublease Income | |
2,019 | 2 |
2,020 | 1 |
2,021 | 1 |
2,022 | 0 |
2,023 | 0 |
Thereafter | $ 0 |
Equity - Capital Purchase Progr
Equity - Capital Purchase Program, Additional Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Warrant or Right [Line Items] | |||
Warrant exercise price (in USD per share) | $ 8.836 | $ 8.999 | $ 9.126 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1.1 | 1 | 1 |
Warrant | |||
Class of Warrant or Right [Line Items] | |||
Warrants outstanding (in shares) | 1,900,000 | 2,200,000 | |
Warrants exercised (in shares) | 300,000 | 1,800,000 | 400,000 |
Equity - Equity Repurchase Prog
Equity - Equity Repurchase Program (Details) shares in Billions | Dec. 31, 2018shares |
Equity [Abstract] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - USD ($) | Dec. 13, 2018 | Dec. 31, 2018 | Nov. 06, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Issuance of preferred shares | 13,800,000 | 0 | 0 | ||
Preferred Stock, Liquidation Preference, Value | $ 345,000,000 | $ 0 | |||
Preferred Stock, Redemption Date | Nov. 15, 2023 | ||||
Entity Listing, Depository Receipt Ratio | $ 0.4125 | ||||
Dividends Payable, Date to be Paid | Feb. 15, 2019 | ||||
Preferred Stock, end of period | |||||
Class of Stock [Line Items] | |||||
Issuance of preferred shares | 13,800,000 | ||||
Preferred Stock, Liquidation Preference, Value | $ 25,000 | ||||
Share Price | $ 25 | ||||
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options | $ 334,000,000 | ||||
Preferred Stock, Dividend Payment Terms | no | ||||
Other Restrictions on Payment of Dividends | no | ||||
Preferred Stock, Redemption Price Per Share | $ 25,000 | ||||
Preferred Stock, Redemption Terms | P90D | ||||
Preferred Stock, Dividends Per Share, Declared | $ 412.50 | ||||
Rating Agency Event [Member] | Preferred Stock, end of period | |||||
Class of Stock [Line Items] | |||||
Preferred Stock, Redemption Price Per Share | $ 25,500 | ||||
Regulatory Capital Event [Member] | Preferred Stock, end of period | |||||
Class of Stock [Line Items] | |||||
Preferred Stock, Redemption Price Per Share | $ 25,000 |
Equity - Statutory Results (Det
Equity - Statutory Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | $ 1,700 | $ 253 | $ 861 |
Statutory Capital | 9,842 | 9,425 | |
Group Benefits Insurance Subsidiary | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | 390 | (1,066) | 208 |
Statutory Capital | 2,407 | 2,029 | |
Property and Casualty Insurance Subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | 1,114 | 950 | 304 |
Statutory Capital | 7,435 | 7,396 | |
Life and Annuity Run-Off Business | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Net Income | $ 196 | $ 369 | $ 349 |
Equity - Dividend Restrictions,
Equity - Dividend Restrictions, Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Class of Stock [Line Items] | |||
Percent of insurer's policyholder surplus available for dividends | 10.00% | ||
Dividends received | $ 3,100,000,000 | ||
Extraordinary dividends received | 3,000,000,000 | ||
Dividends received, subsequently used to pay debt | 1,900,000,000 | ||
Dividends received, subsequently contributed to subsidiary | 50,000,000 | ||
Dividends received, net | $ 2,900,000,000 | ||
Statutory Dividend Payment Restrictions Disclosure | There are no current restrictions on the HFSG Holding Company's ability to pay dividends to its stockholders. | ||
Interest Expense [Member] | |||
Class of Stock [Line Items] | |||
Dividends received, subsequently used to pay debt | $ 226,000,000 | ||
P&C Subsidiaries | |||
Class of Stock [Line Items] | |||
Dividends received, net | 2,800,000,000 | ||
P&C Subsidiaries | Scenario, Forecast | |||
Class of Stock [Line Items] | |||
Dividends received, net | $ 0 | ||
Maximum dividends permitted to be paid | 1,200,000,000 | $ 200,000,000 | |
HLA | |||
Class of Stock [Line Items] | |||
Dividends received, net | 0 | ||
HLA | Scenario, Forecast | |||
Class of Stock [Line Items] | |||
Maximum dividends permitted to be paid | 380,000,000 | ||
Mutual Funds | |||
Class of Stock [Line Items] | |||
Dividends received, net | 119,000,000 | ||
Minimum [Member] | P&C Subsidiaries | Scenario, Plan [Member] | |||
Class of Stock [Line Items] | |||
Dividends received, net | 850 | ||
Minimum [Member] | HLA | Scenario, Forecast | |||
Class of Stock [Line Items] | |||
Dividends received, net | 250,000,000 | ||
Maximum | P&C Subsidiaries | Scenario, Plan [Member] | |||
Class of Stock [Line Items] | |||
Dividends received, net | 900 | ||
Maximum | HLA | Scenario, Forecast | |||
Class of Stock [Line Items] | |||
Dividends received, net | $ 300,000,000 | ||
Other Current Liabilities [Member] | |||
Class of Stock [Line Items] | |||
Dividends received, subsequently used to pay debt | 900,000,000 | ||
Parent Company | |||
Class of Stock [Line Items] | |||
Dividends received, subsequently contributed to subsidiary | $ 110,000,000 |
Equity - Restricted Net Assets,
Equity - Restricted Net Assets, Additional Information (Details) $ in Billions | Dec. 31, 2018USD ($) |
Equity [Abstract] | |
Restricted net assets | $ 10.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income tax expense from income tax reform | $ (39) | $ 877 | $ 0 |
Net income tax expense from income tax reform, reduction in deferred tax asset | 821 | ||
Net income tax expense from income tax reform, reduction in deferred tax asset from sequestration fee payable | (56) | 56 | |
Tax Adjustments, Settlements, and Unusual Provisions | 17 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 841 | ||
Income from domestic operations | 1,753 | 704 | 521 |
Losses from foreign operations | 0 | 19 | 74 |
Stock-based compensation | 11 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | (5) | (15) | 0 |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | 0 | 0 | 79 |
Income Tax Benefit (Expense) from Investment Tax Credit, Including Impairment | 113 | ||
Sale of HFPI and foreign rate differential | 0 | (5) | 37 |
Operating Loss Carryforwards | $ 521 | 710 | |
Valuation Allowance, Methodologies and Assumptions | A deferred tax valuation allowance has not been recorded because the Company believes the deferred tax assets will more likely than not be realized. | ||
Income Tax Examination, Penalties and Interest Expense | $ 0 | 0 | 0 |
Income Tax Examination, Interest Accrued | 0 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Run-Off U.K. Property and Casualty Subsidiaries | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total tax benefit from sale of business | $ 76 | ||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Loss Carryforwards | 477 | ||
Income Taxes Receivable, Current | $ 5 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current - U.S. Federal | $ (18) | $ 116 | $ 10 |
International | 0 | 1 | 0 |
Total current | (18) | 117 | 10 |
Deferred - U.S. Federal | 286 | 866 | (173) |
International | 0 | 2 | (3) |
Total deferred | 286 | 868 | (176) |
Total income tax expense (benefit) | $ 268 | $ 985 | $ (166) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at U.S. federal statutory rate [1] | $ 368 | $ 253 | $ 157 |
Tax-exempt interest | (66) | (123) | (124) |
Decrease in deferred tax valuation allowance | 0 | 0 | (79) |
Executive Compensation | 11 | 0 | 0 |
Stock-based compensation | (5) | (15) | 0 |
Solar credits | 0 | 0 | (79) |
Sale of the U.K. property & casualty run-off subsidiaries and foreign rate differential | 0 | 5 | (37) |
Tax Reform | (39) | 877 | 0 |
Other | (1) | (12) | (4) |
Total income tax expense (benefit) | $ 268 | $ 985 | $ (166) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Loss reserves and tax discount | $ 150 | $ 104 |
Unearned premium reserve and other underwriting related reserves | 355 | 352 |
Investment-related items | 183 | 194 |
Employee benefits | 287 | 313 |
General business credit carryover | 1 | 3 |
Net operating loss carryover | 521 | 710 |
Foreign tax credit carryover | 0 | 26 |
Other | 0 | 1 |
Total Deferred Tax Assets | 1,497 | 1,703 |
Deferred Tax Liabilities | ||
Deferred acquisition costs | (104) | (103) |
Net unrealized gains on investments | (7) | (306) |
Other depreciable and amortizable assets | (135) | (130) |
Other | (3) | 0 |
Total Deferred Tax Liabilities | (249) | (539) |
Net Deferred Tax Asset | $ 1,248 | $ 1,164 |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefit (expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of period | $ 9 | $ 12 | $ 12 |
Gross increases - tax positions in prior period | 5 | 3 | 0 |
Gross decreases - tax positions in prior period | 0 | 0 | 0 |
Gross decreases - tax reform | 0 | (6) | 0 |
Balance, end of period | $ 14 | $ 9 | $ 12 |
Changes in and Reclassificati_3
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) - AOCI Rollforward (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | May 31, 2018 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (88) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 13,494 | $ 13,494 | $ 13,494 | $ 16,903 | ||||
OCI, net of tax | (2,237) | 1,000 | $ (8) | |||||
Ending balance | 13,101 | 13,494 | 16,903 | |||||
Net Unrealized Gain on Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | 273 | |||||||
Adjusted balance beginning of period | 2,204 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 1,931 | 1,931 | 1,931 | 1,276 | 1,279 | |||
OCI before reclassifications [2] | (2,245) | 857 | 83 | |||||
Amounts reclassified from AOCI | 65 | (202) | (86) | |||||
OCI, net of tax | (2,180) | 655 | (3) | |||||
Ending balance | 24 | 1,931 | 1,276 | |||||
OTTI Losses in OCI | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | 0 | |||||||
Adjusted balance beginning of period | (3) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (3) | (3) | (3) | (3) | (7) | |||
OCI before reclassifications [2] | 0 | 0 | 1 | |||||
Amounts reclassified from AOCI | (1) | 0 | 3 | |||||
OCI, net of tax | (1) | 0 | 4 | |||||
Ending balance | (4) | (3) | (3) | |||||
Net Gain (Loss) on Cash Flow Hedging Instruments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | 2 | |||||||
Adjusted balance beginning of period | 20 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 18 | 18 | 18 | 76 | 130 | |||
OCI before reclassifications [2] | 8 | (8) | (8) | |||||
Amounts reclassified from AOCI | (33) | (50) | (46) | |||||
OCI, net of tax | (25) | (58) | (54) | |||||
Ending balance | (5) | 18 | 76 | |||||
Foreign Currency Translation Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | 4 | |||||||
Adjusted balance beginning of period | 38 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 34 | 34 | 34 | 6 | (55) | |||
OCI before reclassifications [2] | (8) | 28 | (37) | |||||
Amounts reclassified from AOCI | 0 | 0 | 98 | |||||
OCI, net of tax | (8) | 28 | 61 | |||||
Ending balance | 30 | 34 | 6 | |||||
Pension and Other Postretirement Plan Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | (284) | |||||||
Adjusted balance beginning of period | (1,601) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (1,317) | (1,317) | (1,317) | (1,692) | (1,676) | |||
OCI before reclassifications [2] | (61) | (146) | (52) | |||||
Amounts reclassified from AOCI | 38 | 521 | 36 | |||||
OCI, net of tax | (23) | 375 | (16) | |||||
Ending balance | (1,624) | (1,317) | (1,692) | |||||
AOCI, net of tax | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | (5) | 0 | $ 0 | |||||
Adjusted balance beginning of period | 658 | (337) | $ (329) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 663 | 663 | 663 | (337) | (329) | |||
OCI before reclassifications [2] | (2,306) | 731 | (13) | |||||
Amounts reclassified from AOCI | 69 | 269 | 5 | |||||
OCI, net of tax | (2,237) | 1,000 | (8) | |||||
Ending balance | $ (1,579) | 663 | $ (337) | |||||
Equity securities and shadow DAC [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Cumulative effect of accounting changes, net of tax | $ 93 | |||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (193) | |||||||
Disposal Group, Including Discontinued Operations, Adjustments to AOCI | $ 1,000 | $ 758 | $ 758 |
Changes in and Reclassificati_4
Changes in and Reclassifications From Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | $ (111) | $ 173 | $ (83) | ||||||||
Net investment income | 1,780 | 1,603 | 1,577 | ||||||||
Income from continuing operations before income taxes | 1,753 | 723 | 447 | ||||||||
Income tax expense (benefit) | 268 | 985 | (166) | ||||||||
Income (loss) from discontinued operations, net of tax | 322 | (2,869) | 283 | ||||||||
Net income (loss) | $ 196 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | 1,807 | (3,131) | 896 |
Insurance operating costs and other expenses | 4,281 | 4,563 | 3,525 | ||||||||
Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net income (loss) | (69) | (269) | (5) | ||||||||
Net Unrealized Gain on Securities | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | (80) | 152 | 36 | ||||||||
Income from continuing operations before income taxes | (80) | 152 | 36 | ||||||||
Income tax expense (benefit) | (17) | 53 | 13 | ||||||||
Income (loss) from discontinued operations, net of tax | (2) | 103 | 63 | ||||||||
Net income (loss) | (65) | 202 | 86 | ||||||||
OTTI Losses in OCI | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 0 | 0 | (2) | ||||||||
Income from continuing operations before income taxes | 0 | 0 | (2) | ||||||||
Income tax expense (benefit) | 0 | 0 | (1) | ||||||||
Income (loss) from discontinued operations, net of tax | 1 | 0 | (2) | ||||||||
Net income (loss) | 1 | 0 | (3) | ||||||||
Net Gain (Loss) on Cash Flow Hedging Instruments | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income from continuing operations before income taxes | 36 | 42 | 47 | ||||||||
Income tax expense (benefit) | 8 | 15 | 17 | ||||||||
Income (loss) from discontinued operations, net of tax | 5 | 23 | 16 | ||||||||
Net income (loss) | 33 | 50 | 46 | ||||||||
Net Gain (Loss) on Cash Flow Hedging Instruments | Amount Reclassified from AOCI | Interest rate swaps | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 6 | 5 | 10 | ||||||||
Net investment income | 30 | 37 | 37 | ||||||||
Foreign Currency Translation Adjustments | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net realized capital gains (losses) | 0 | 0 | (118) | ||||||||
Income from continuing operations before income taxes | 0 | 0 | (118) | ||||||||
Income tax expense (benefit) | 0 | 0 | (20) | ||||||||
Net income (loss) | 0 | 0 | (98) | ||||||||
Amortization of prior service credit | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | 7 | 7 | 6 | ||||||||
Amortization of actuarial loss | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | (55) | (61) | (61) | ||||||||
Settlement loss | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Insurance operating costs and other expenses | 0 | (747) | 0 | ||||||||
Pension and Other Postretirement Plan Adjustments | Amount Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income from continuing operations before income taxes | (48) | (801) | (55) | ||||||||
Income tax expense (benefit) | (10) | (280) | (19) | ||||||||
Net income (loss) | $ (38) | $ (521) | $ (36) |
Employee Benefit Plans - Invest
Employee Benefit Plans - Investment and Savings Plan, Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Maximum percentage of plan assets that can be in the common stock of Hartford | 10.00% | ||
Non-elective contribution percent | 2.00% | ||
Percent of employer matching contribution | 6.00% | ||
Limit of employee compensation annually | $ 1,000,000 | ||
Total cost to company related to Investment and Savings Plan | $ 134,000,000 | $ 113,000,000 | $ 115,000,000 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions, Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | ||
Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Market return expectation rate | 60.00% | |||
Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Market return expectation rate | 40.00% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.35% | 3.73% | ||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.70% | |
Pension Benefits | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.45% | |||
Other postretirement obligations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.23% | 3.55% | ||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.60% | |
Other postretirement obligations | Scenario, Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.00% |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating the Benefits Obligations and Net Amount Recognized (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.70% | |
Discount rate | 4.35% | 3.73% | ||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.60% | |
Discount rate | 4.23% | 3.55% | ||
Scenario, Forecast [Member] | Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.45% | |||
Scenario, Forecast [Member] | Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected long-term rate of return on plan assets | 6.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating the Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected long-term rate of return on plan assets | 6.60% | 6.60% | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.73% | 4.22% | 4.25% |
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.70% |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.55% | 3.97% | 4.00% |
Expected long-term rate of return on plan assets | 6.60% | 6.60% | 6.60% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rate (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | |||
Pre-65 health care cost trend rate | 6.50% | 6.75% | 6.90% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 5.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation — beginning of year | $ 4,376 | $ 5,650 | ||
Service cost | 4 | 4 | $ 2 | |
Interest cost | 142 | 170 | 237 | |
Plan participants’ contributions | 0 | 0 | ||
Actuarial (gain) loss | (6) | 139 | ||
Plan Amendment | $ (1,600) | |||
Settlements | 0 | (1,647) | ||
Changes in assumptions | (329) | 332 | ||
Benefits and expenses paid | (186) | (273) | ||
Retiree drug subsidy | 0 | 0 | ||
Foreign exchange adjustment | (1) | 1 | ||
Benefit obligation — end of year | 4,000 | 4,376 | 5,650 | |
Other Postretirement Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation — beginning of year | 256 | 272 | ||
Service cost | 0 | 0 | ||
Interest cost | 7 | 8 | 11 | |
Plan participants’ contributions | 11 | 11 | ||
Actuarial (gain) loss | 0 | 5 | ||
Settlements | 0 | 0 | ||
Changes in assumptions | (11) | 10 | ||
Benefits and expenses paid | (45) | (51) | ||
Retiree drug subsidy | 2 | 1 | ||
Foreign exchange adjustment | 0 | 0 | ||
Benefit obligation — end of year | $ 220 | $ 256 | $ 272 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligations and Funded Status, Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Weighted average interest credit rating for cash balance plan | 3.30% | 3.30% | 3.30% | |
Fair value of plan assets had fair value of rabbi trusts been included | $ 3,483 | $ 3,736 | ||
Funded status of plan had fair value of rabbi trust assets been included | $ 517 | $ (640) | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Changes in assumptions, discount rate | 4.22% | |||
Discount rate | 4.35% | 3.73% | ||
Defined Benefit Plan, Benefit Obligation | $ 4,000 | $ 4,376 | $ 5,650 | |
Changes in assumptions, mortality tables | 281 | 350 | ||
Transferred pension obligation | $ 1,600 | |||
Assets held in rabbi trusts and designated for the non-qualified pension plans | 139 | 144 | ||
Fair value of plan assets | 3,344 | 3,592 | $ 4,678 | |
After-tax settlement charge | $ 750 | 488 | ||
Pension Benefits | Cash | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | $ 412 | $ 443 |
Employee Benefit Plans - Chan_2
Employee Benefit Plans - Change Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | $ 101 | ||
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 3,345 | $ 3,563 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Interest Receivables | 30 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets — beginning of year | 3,592 | 4,678 | |
Actual return on plan assets | (172) | 549 | |
Employer contributions | 103 | 280 | |
Benefits paid | (161) | (248) | |
Expenses paid | (17) | (21) | |
Settlements | 0 | (1,647) | |
Foreign exchange adjustment | (1) | 1 | |
Fair value of plan assets — end of year | 3,344 | 3,592 | |
Funded status — end of year | (656) | (784) | |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 85 | 113 | |
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Interest Receivables | 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets — beginning of year | 114 | 138 | |
Actual return on plan assets | (2) | 11 | |
Employer contributions | 0 | 0 | |
Benefits paid | (27) | (35) | |
Expenses paid | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange adjustment | 0 | 0 | |
Fair value of plan assets — end of year | 85 | 114 | |
Funded status — end of year | (135) | (142) | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Settlements | 0 | 6 | |
Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 151 | 161 | $ 167 |
Purchases | 6 | 36 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sales | 14 | 35 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Assets Transferred out of Level 3 | 11 | ||
Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 1 | ||
Defined Benefit Plan, Equity Securities, Common Stock [Member] | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 1 | 1 | |
Defined Benefit Plan, Equity Securities, Common Stock [Member] | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 0 | 0 | |
Other Fixed Income [Member] | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 2 | 5 | |
Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 0 | 1 | |
Purchases | 1 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sales | (1) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Assets Transferred out of Level 3 | (1) | ||
Corporate | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 19 | 25 | |
Corporate | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Settlements | 0 | 0 | |
Corporate | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 14 | 14 | 13 |
Purchases | 5 | 11 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sales | 4 | 12 | |
Corporate | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 0 | 1 | |
Purchases | 1 | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sales | (2) | ||
Residential mortgage-backed securities (RMBS) | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 15 | 17 | |
Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Settlements | 0 | 5 | |
Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 1 | 2 | 10 |
Purchases | 0 | 1 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Sales | 1 | 4 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Assets Transferred out of Level 3 | $ 0 | ||
Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets Excluding Trade Receivables and Payables | 0 | $ 1 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Decrease for Settlements | $ (1) |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Pension Plans with an Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 4,000 | $ 4,376 |
Accumulated benefit obligation | 4,000 | 4,376 |
Fair value of plan assets | $ 3,344 | $ 3,592 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other liabilities | $ 656 | $ 784 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other liabilities | $ 135 | $ 142 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income (Loss), Additional Information (Details) - USD ($) | Jun. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contributions | $ 101,000,000 | ||||
Reduction in interest cost component of net periodic interest | $ 32 | ||||
Pension Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pre-tax settlement charge | 0 | 750,000,000 | |||
After-tax settlement charge | $ 750,000,000 | 488,000,000 | |||
Reduction to stockholder's equity | 144,000,000 | ||||
Employer contributions | 103,000,000 | 280,000,000 | |||
Increase to unrecognized net loss from pension settlement transaction | $ 750,000,000 | ||||
Pension Benefits | Qualified Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contributions | $ 280,000,000 | ||||
Discount rate used to measure interest cost | 3.37% | 3.58% | |||
Discount rate used to measure interest cost, historical method | 3.92% | 4.22% | |||
Pension Benefits | Non-Qualified Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate used to measure interest cost | 3.55% | ||||
Discount rate used to measure interest cost, historical method | 4.19% | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pre-tax settlement charge | $ 0 | ||||
Employer contributions | $ 0 | $ 0 | |||
Discount rate used to measure interest cost | 3.13% | ||||
Discount rate used to measure interest cost, historical method | 3.97% |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefits Cost and Other Recognized in the OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Cost (Benefit) | |||
Service cost | $ 4 | $ 4 | $ 2 |
Interest cost | 142 | 170 | 237 |
Expected return on plan assets | (227) | (267) | (311) |
Amortization of actuarial loss | 49 | 56 | 56 |
Settlements | 0 | 750 | |
Net periodic cost (benefit) | (32) | 713 | (16) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Amortization of actuarial loss | 49 | 56 | 56 |
Settlement loss | 0 | 750 | 0 |
Amortization of prior service credit | 0 | 0 | 0 |
Net loss arising during the year | (91) | (209) | (66) |
Total | (42) | 597 | (10) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net loss | (2,008) | (1,966) | (2,563) |
Prior service credit | 0 | 0 | 0 |
Total | (2,008) | (1,966) | (2,563) |
Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Cost (Benefit) | |||
Service cost | 0 | 0 | |
Interest cost | 7 | 8 | 11 |
Expected return on plan assets | (7) | (8) | (10) |
Amortization of prior service credit | (7) | (7) | (6) |
Amortization of actuarial loss | 6 | 5 | 5 |
Settlements | 0 | ||
Net periodic cost (benefit) | (1) | (2) | 0 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Amortization of actuarial loss | 6 | 5 | 5 |
Settlement loss | 0 | 0 | 0 |
Amortization of prior service credit | (6) | (7) | (6) |
Net loss arising during the year | 3 | (12) | (4) |
Total | 3 | (14) | (5) |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net loss | (120) | (129) | (122) |
Prior service credit | 72 | 78 | 85 |
Total | $ (48) | $ (51) | $ (37) |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plan, Information about Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | $ 0 | $ (6) | ||
Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 40.00% | |||
Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 60.00% | |||
Corporate | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | (5) | ||
Foreign government | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Mortgage loans | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | 0 | ||
Other investments | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Settlements | 0 | (1) | ||
Pension Benefits | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 3,563 | |||
Fair value of plan assets - end of year | 3,345 | 3,563 | ||
Plan assets at fair value | 3,345 | 3,563 | $ 3,345 | $ 3,563 |
Excluded investment payables | 1 | 1 | ||
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Interest Receivables | 30 | |||
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 973 | |||
Fair value of plan assets - end of year | 739 | 973 | ||
Plan assets at fair value | 739 | 973 | 739 | 973 |
Pension Benefits | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2,049 | |||
Fair value of plan assets - end of year | 1,997 | 2,049 | ||
Plan assets at fair value | 1,997 | 2,049 | 1,997 | 2,049 |
Pension Benefits | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 161 | 167 | ||
Realized gains,net | 0 | 2 | ||
Changes in unrealized gains (losses), net | (2) | 6 | ||
Purchases | 6 | 36 | ||
Sales | (14) | (35) | ||
Transfers into Level 3 | 0 | 2 | ||
Transfers out of Level 3 | (11) | |||
Fair value of plan assets - end of year | 151 | 161 | ||
Plan assets at fair value | 151 | 161 | 151 | 161 |
Pension Benefits | Short-term Investments [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 110 | 189 | ||
Pension Benefits | Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 50 | 21 | ||
Pension Benefits | Short-term Investments [Member] | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 60 | 168 | ||
Pension Benefits | Short-term Investments [Member] | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Defined Benefit Plan, Equity Securities, Common Stock [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 1 | 1 | ||
Plan assets at fair value | 1 | 1 | $ 1 | 1 |
Pension Benefits | Equity securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 35.00% | |||
Pension Benefits | Equity securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 5.00% | |||
Pension Benefits | Fixed income securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 70.00% | |||
Pension Benefits | Fixed income securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 50.00% | |||
Pension Benefits | Alternative assets | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 45.00% | |||
Pension Benefits | Alternative assets | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Pension Benefits | Corporate | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | $ 1,677 | 1,563 | ||
Pension Benefits | Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Corporate | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 1,663 | 1,549 | ||
Pension Benefits | Corporate | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 14 | 13 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains (losses), net | (1) | 2 | ||
Purchases | 5 | 11 | ||
Sales | (4) | (12) | ||
Transfers into Level 3 | 0 | 0 | ||
Fair value of plan assets - end of year | 14 | 14 | ||
Plan assets at fair value in the fair value hierarchy | 14 | 14 | ||
Plan assets at fair value | 14 | 14 | 14 | 14 |
Pension Benefits | Residential mortgage-backed securities (RMBS) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 63 | 30 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 62 | 28 | ||
Pension Benefits | Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 2 | 10 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains (losses), net | 0 | 0 | ||
Purchases | 0 | 1 | ||
Sales | (1) | (4) | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 1 | 2 | ||
Plan assets at fair value in the fair value hierarchy | 1 | 2 | ||
Plan assets at fair value | 2 | 2 | 1 | 2 |
Pension Benefits | U.S. Treasuries | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 130 | 77 | ||
Pension Benefits | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 10 | 3 | ||
Pension Benefits | U.S. Treasuries | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 120 | 74 | ||
Pension Benefits | U.S. Treasuries | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Foreign government | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 17 | 17 | ||
Pension Benefits | Foreign government | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Foreign government | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 15 | 16 | ||
Pension Benefits | Foreign government | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | 1 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains (losses), net | 0 | 0 | ||
Purchases | 1 | 0 | ||
Sales | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 2 | 1 | ||
Plan assets at fair value in the fair value hierarchy | 2 | 1 | ||
Plan assets at fair value | 2 | 1 | 2 | 1 |
Pension Benefits | CMBS | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 22 | 30 | ||
Pension Benefits | CMBS | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | CMBS | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 22 | 28 | ||
Pension Benefits | CMBS | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 2 | ||
Pension Benefits | Other Fixed Income [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 53 | 99 | ||
Pension Benefits | Other Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Other Fixed Income [Member] | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 52 | 97 | ||
Pension Benefits | Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 1 | 2 | ||
Pension Benefits | Mortgage loans | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 133 | 140 | ||
Pension Benefits | Mortgage loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Mortgage loans | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Mortgage loans | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 140 | 121 | ||
Realized gains,net | 0 | 0 | ||
Changes in unrealized gains (losses), net | (1) | 2 | ||
Purchases | 0 | 17 | ||
Sales | (6) | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | |||
Fair value of plan assets - end of year | 133 | 140 | ||
Plan assets at fair value in the fair value hierarchy | 133 | 140 | ||
Plan assets at fair value | 140 | 140 | 133 | 140 |
Pension Benefits | Other investments | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | 22 | ||
Realized gains,net | 0 | 2 | ||
Changes in unrealized gains (losses), net | 0 | 2 | ||
Purchases | 0 | 7 | ||
Sales | (3) | (19) | ||
Transfers into Level 3 | 0 | 2 | ||
Transfers out of Level 3 | (11) | |||
Fair value of plan assets - end of year | 1 | 4 | ||
Plan assets at fair value | 4 | 4 | 1 | 4 |
Pension Benefits | Large-cap domestic | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 379 | 684 | ||
Pension Benefits | Large-cap domestic | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 376 | 595 | ||
Pension Benefits | Large-cap domestic | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 3 | 89 | ||
Pension Benefits | Large-cap domestic | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Mid-cap domestic | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 11 | |||
Pension Benefits | Mid-cap domestic | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 11 | |||
Pension Benefits | Mid-cap domestic | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | |||
Pension Benefits | Mid-cap domestic | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | |||
Pension Benefits | International | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 303 | 343 | ||
Pension Benefits | International | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 303 | 343 | ||
Pension Benefits | International | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | International | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 0 | 0 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 2,887 | 3,183 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 739 | 973 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 1,997 | 2,049 | ||
Pension Benefits | Total pension plan assets at fair value, in the fair value hierarchy | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at fair value in the fair value hierarchy | 151 | 161 | ||
Pension Benefits | Private Market Alternatives | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | 272 | 168 | ||
Pension Benefits | Private Market Alternatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Pension Benefits | Private Market Alternatives | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Pension Benefits | Private Market Alternatives | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | 186 | 212 | ||
Pension Benefits | Hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Pension Benefits | Hedge funds | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Plan assets at net asset value | ||||
Other Postretirement Benefits | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 113 | |||
Fair value of plan assets - end of year | 85 | 113 | ||
Plan assets at fair value | 85 | 113 | 85 | 113 |
Excluded investment payables | 1 | 0 | ||
Defined Benefit Plan, Fair Value of Plan Assets, Excluded Interest Receivables | 1 | |||
Other Postretirement Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 35 | |||
Fair value of plan assets - end of year | 33 | 35 | ||
Plan assets at fair value | 33 | 35 | 33 | 35 |
Other Postretirement Benefits | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 77 | |||
Fair value of plan assets - end of year | 52 | 77 | ||
Plan assets at fair value | 52 | 77 | 52 | 77 |
Other Postretirement Benefits | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 1 | |||
Plan assets at fair value | 1 | 1 | 1 | |
Other Postretirement Benefits | Short-term Investments [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | |||
Fair value of plan assets - end of year | 4 | 4 | ||
Plan assets at fair value | 4 | 4 | 4 | 4 |
Other Postretirement Benefits | Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | |||
Fair value of plan assets - end of year | 4 | 4 | ||
Plan assets at fair value | 4 | 4 | 4 | 4 |
Other Postretirement Benefits | Short-term Investments [Member] | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | 0 | 0 | ||
Plan assets at fair value | 0 | 0 | 0 | 0 |
Other Postretirement Benefits | Defined Benefit Plan, Equity Securities, Common Stock [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | 0 | 0 | ||
Plan assets at fair value | 0 | 0 | $ 0 | 0 |
Other Postretirement Benefits | Equity securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 45.00% | |||
Other Postretirement Benefits | Equity securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 15.00% | |||
Other Postretirement Benefits | Fixed income securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 85.00% | |||
Other Postretirement Benefits | Fixed income securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 55.00% | |||
Other Postretirement Benefits | Alternative assets | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Other Postretirement Benefits | Alternative assets | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation | 0.00% | |||
Other Postretirement Benefits | Corporate | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 25 | |||
Fair value of plan assets - end of year | 19 | 25 | ||
Plan assets at fair value | 19 | 25 | $ 19 | 25 |
Other Postretirement Benefits | Corporate | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 25 | |||
Fair value of plan assets - end of year | 19 | 25 | ||
Plan assets at fair value | 19 | 25 | 19 | 25 |
Other Postretirement Benefits | Corporate | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | 1 | ||
Purchases | 1 | |||
Sales | 2 | |||
Fair value of plan assets - end of year | 0 | |||
Plan assets at fair value | 0 | 1 | 0 | |
Other Postretirement Benefits | Residential mortgage-backed securities (RMBS) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 17 | |||
Fair value of plan assets - end of year | 15 | 17 | ||
Plan assets at fair value | 15 | 17 | 15 | 17 |
Other Postretirement Benefits | Residential mortgage-backed securities (RMBS) | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 17 | |||
Fair value of plan assets - end of year | 15 | 17 | ||
Plan assets at fair value | 15 | 17 | 15 | 17 |
Other Postretirement Benefits | Residential mortgage-backed securities (RMBS) | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | 1 | ||
Settlements | 1 | |||
Fair value of plan assets - end of year | 0 | |||
Plan assets at fair value | 0 | 1 | 0 | |
Other Postretirement Benefits | U.S. Treasuries | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 26 | |||
Fair value of plan assets - end of year | 19 | 26 | ||
Plan assets at fair value | 19 | 26 | 19 | 26 |
Other Postretirement Benefits | U.S. Treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 6 | 1 | ||
Plan assets at fair value | 6 | 1 | 6 | 1 |
Other Postretirement Benefits | U.S. Treasuries | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 25 | |||
Fair value of plan assets - end of year | 13 | 25 | ||
Plan assets at fair value | 13 | 25 | 13 | 25 |
Other Postretirement Benefits | Foreign government | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 1 | 1 | ||
Plan assets at fair value | 1 | 1 | 1 | 1 |
Other Postretirement Benefits | Foreign government | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Fair value of plan assets - end of year | 1 | 1 | ||
Plan assets at fair value | 1 | 1 | 1 | 1 |
Other Postretirement Benefits | CMBS | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 5 | |||
Fair value of plan assets - end of year | 2 | 5 | ||
Plan assets at fair value | 2 | 5 | 2 | 5 |
Other Postretirement Benefits | CMBS | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 5 | |||
Fair value of plan assets - end of year | 2 | 5 | ||
Plan assets at fair value | 2 | 5 | 2 | 5 |
Other Postretirement Benefits | Other Fixed Income [Member] | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 5 | |||
Fair value of plan assets - end of year | 2 | 5 | ||
Plan assets at fair value | 2 | 5 | 2 | 5 |
Other Postretirement Benefits | Other Fixed Income [Member] | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 4 | |||
Fair value of plan assets - end of year | 2 | 4 | ||
Plan assets at fair value | 2 | 4 | 2 | 4 |
Other Postretirement Benefits | Other Fixed Income [Member] | Significant Unobservable Inputs (Level 3) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 1 | |||
Purchases | 1 | |||
Sales | 1 | |||
Transfers out of Level 3 | 1 | |||
Fair value of plan assets - end of year | 0 | 1 | ||
Plan assets at fair value | 1 | 1 | 0 | 1 |
Other Postretirement Benefits | Large-cap | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 30 | |||
Fair value of plan assets - end of year | 23 | 30 | ||
Plan assets at fair value | 23 | 30 | 23 | 30 |
Other Postretirement Benefits | Large-cap | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 30 | |||
Fair value of plan assets - end of year | 23 | 30 | ||
Plan assets at fair value | 23 | 30 | 23 | 30 |
Other Postretirement Benefits | Large-cap | Significant Observable Inputs (Level 2) | ||||
Pension Plan Asset Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||
Fair value of plan assets - beginning of year | 0 | |||
Fair value of plan assets - end of year | 0 | 0 | ||
Plan assets at fair value | $ 0 | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Cash F
Employee Benefit Plans - Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 101 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 103 | $ 281 |
Employer contributions | 103 | 280 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 0 | 0 |
Employer contributions | $ 0 | $ 0 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |
2,018 | $ 239 |
2,019 | 239 |
2,020 | 246 |
2,021 | 251 |
2,022 | 250 |
2024 - 2028 | 1,263 |
Total | 2,488 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | |
2,018 | 27 |
2,019 | 24 |
2,020 | 22 |
2,021 | 20 |
2,022 | 18 |
2024 - 2028 | 67 |
Total | $ 178 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation plans expense | $ 130 | $ 116 | $ 81 |
Income tax benefit | (27) | (41) | (29) |
Excess tax benefit on awards vested, exercised and expired | (5) | (15) | 0 |
Total stock-based compensation plans expense, after-tax | $ 98 | $ 60 | $ 52 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost related to non-vested awards not yet recognized | $ 64 | ||
Weighted average period of compensation cost recognized | 1 year 10 months 24 days | ||
Maximum number of shares that may be issued (in shares) | 15,400,000 | ||
Shares available for future issuance (in shares) | 4,297,972 | ||
Award vesting period | 3 years | ||
Weighted average grant-date fair value of options granted during period (in shares) | $ 14.04 | $ 12.38 | $ 12.14 |
Total intrinsic value of options exercised during period | $ 14 | $ 8 | $ 1 |
Employee Service Share-based Compensation, Cash Flow Effect, Cash Used to Settle Awards | 0 | 0 | |
Stock-based compensation plans expense | $ 130 | $ 116 | $ 81 |
Discount rate for employee stock purchase plan | 5.00% | ||
Shares sold during period (in shares) | 219,661 | 204,533 | 222,113 |
Weighted average per share fair value of discount (in USD per share) | $ 2.56 | $ 2.63 | $ 2.26 |
Discount rate from market price per share, purchase date | 5.00% | ||
Subsidiary Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation plans expense | $ 9 | $ 9 | $ 7 |
Subsidiary stock repurchased | $ 4 | ||
Employee Stock Option Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 3 years | 3 years | 3 years |
Stock-based Compensation Arrangement by Share-based Payment Award, Performance Period | 3 years | ||
Weighted average grant-date fair value (in USD per share) | $ 50.26 | $ 48.89 | $ 41.50 |
Total fair value of shares vested during period | $ 114 | $ 94 | $ 128 |
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target performance ratio | 200.00% | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target performance ratio | 0.00% | ||
Performance Shares One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value (in USD per share) | $ 53.11 | $ 48.90 | $ 42.87 |
The Hartford 2014 Incentive Stock Plan (ISOP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years | ||
Maximum number of shares that may be issued (in shares) | 12,000,000 | ||
Shares available for future issuance (in shares) | 7,294,481 | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Employee Stock Option One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Service period | 1 year | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 5 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
The Hartford 2014 Incentive Stock Plan (ISOP) | Restricted Stock Units | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
Stock Compensation Plans - St_2
Stock Compensation Plans - Stock Option Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options (in thousands) | |||
Outstanding at beginning of year (in shares) | 5,212 | ||
Granted (in shares) | 876 | ||
Exercised (in shares) | (571) | ||
Forfeited (in shares) | 0 | ||
Expired (in shares) | (27) | ||
Outstanding at end of year (in shares) | 5,490 | 5,212 | |
Number of Options (in thousands), Outstanding, fully vested and expected to vest (in shares) | 5,240 | ||
Number of Options (in thousands), Exercisable at end of year (in shares) | 3,737 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 37.25 | ||
Granted (in USD per share) | 53.81 | ||
Exercised (in USD per share) | 26.43 | ||
Forfeited (in USD per share) | 0 | ||
Expired (in USD per share) | 74.88 | ||
Outstanding at end of year (in USD per share) | 40.84 | $ 37.25 | |
Weighted Average Exercise Price, Outstanding, fully vested and expected to vest (in USD per share) | 42.79 | ||
Weighted Average Exercise Price, Exercisable at end of year (in USD per share) | $ 36.30 | ||
Weighted Average Remaining Contractual Term, Outstanding at end of year | 6 years 1 month 6 days | ||
Weighted Average Remaining Contractual Term, Outstanding, fully vested and expected to vest | 6 years 1 month 6 days | ||
Weighted Average Remaining Contractual Term, Exercisable at end of year | 4 years 10 months 24 days | ||
Aggregate Intrinsic Value, Outstanding at end of year | $ 32 | ||
Aggregate Intrinsic Value, Outstanding, fully vested and expected to vest | 30 | ||
Aggregate Intrinsic Value, Exercisable at end of year | $ 32 | ||
Employee Stock Option | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Expected dividend yield | 1.80% | 1.90% | 2.00% |
Expected annualized spot volatility minimum | 20.80% | 21.80% | 27.30% |
Expected annualized spot volatility maximum | 36.50% | 37.90% | 41.30% |
Weighted average annualized volatility | 29.00% | 29.50% | 34.10% |
Risk-free spot rate minimum | 1.50% | 0.40% | 0.30% |
Risk-free spot rate maximum | 2.90% | 2.40% | 1.80% |
Expected term | 5 years 8 months 12 days | 5 years | 5 years |
Stock Compensation Plans - Perf
Stock Compensation Plans - Performance Shares (Details) - Performance Shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility of common stock | 20.80% | 20.30% | 22.20% |
Average correlation coefficient of peer companies | 54.00% | 60.00% | 56.00% |
Risk-free spot rate | 2.40% | 1.50% | 1.00% |
Term | 3 years | 3 years | 3 years |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average volatility of peer companies | 17.00% | 15.00% | 15.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average volatility of peer companies | 25.00% | 25.00% | 26.00% |
Stock Compensation Plans - Tota
Stock Compensation Plans - Total Share Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average per share fair value of discount (in USD per share) | $ 2.56 | $ 2.63 | $ 2.26 |
Restricted Stock and Restricted Stock Units | |||
Number of Shares (in thousands) | |||
Non-vested at beginning of year (in shares) | 4,444 | ||
Granted (in shares) | 1,359 | ||
Vested (in shares) | (1,721) | ||
Forfeited (in shares) | (636) | ||
Non-vested at end of year (in shares) | 3,446 | 4,444 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested at beginning of year (in USD per share) | $ 43.94 | ||
Granted (in USD per share) | 53.11 | $ 48.90 | 42.87 |
Vested (in USD per share) | 41.52 | ||
Forfeited (in USD per share) | 46.07 | ||
Non-vested at end of year (in USD per share) | $ 48.43 | $ 43.94 | |
Performance Shares | |||
Number of Shares (in thousands) | |||
Non-vested at beginning of year (in shares) | 795 | ||
Granted (in shares) | 372 | ||
Performance based adjustment (in shares) | 188 | ||
Vested (in shares) | (539) | ||
Forfeited (in shares) | (81) | ||
Non-vested at end of year (in shares) | 735 | 795 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested at beginning of year (in USD per share) | $ 45.16 | ||
Granted (in USD per share) | 50.26 | $ 48.89 | $ 41.50 |
Performance based adjustment (in USD per share) | 43.59 | ||
Vested (in USD per share) | 43.59 | ||
Forfeited (in USD per share) | 44.45 | ||
Non-vested at end of year (in USD per share) | $ 49.56 | $ 45.16 |
Business Dispositions and Dis_3
Business Dispositions and Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | May 31, 2018 | May 11, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Long-term Debt | $ 4,265 | $ 4,678 | |||||
Loss on discontinued operations | (202) | 3,257 | $ 81 | ||||
Income (Loss) from Ongoing Equity Method Investment in Discontinued Operation after Disposal | 8 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | P&C Runoff Subsidiaries | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from sale of business | $ 272 | ||||||
Capital loss from transaction | $ (5) | ||||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from sale of business | $ 1.4 | ||||||
Dividends paid | $ 300 | ||||||
Ownership interest retained, percentage | 9.70% | ||||||
Ownership interest retained | $ 164 | ||||||
Long-term Debt | 142 | 142 | |||||
Consideration received | 1,500 | ||||||
Loss on discontinued operations | 3,300 | ||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 202 | (3,257) | $ 0 | ||||
Adjustments to AOCI | $ 758 | $ 1,000 | $ 758 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Shadow DAC [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 10 | ||||||
Equity [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ (193) | ||||||
Deferred Tax Asset [Domain] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | (141) | ||||||
Operating Income (Loss) [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | $ 104 | ||||||
Other Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Minimum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 5 years | ||||||
Other Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 24 months |
Business Dispositions and Dis_4
Business Dispositions and Discontinued Operations - Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with Sale (Details) - USD ($) $ in Millions | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2017 | May 10, 2017 | Dec. 31, 2016 |
Assets | |||||
Assets | $ 0 | $ 164,936 | |||
Liabilities | |||||
Long-term debt | 4,265 | 4,678 | |||
Liabilities | $ 0 | 162,442 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||
Assets | |||||
Cash and investments | $ 27,058 | 30,135 | |||
Reinsurance recoverables | 20,718 | 20,785 | |||
Loss accrual | (3,044) | (3,257) | |||
Other assets | 2,907 | 1,439 | |||
Separate account assets | 110,773 | 115,834 | |||
Assets | 158,412 | 164,936 | |||
Liabilities | |||||
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | 14,308 | 14,482 | |||
Other policyholder funds and benefits payable | 28,680 | 29,228 | |||
Long-term debt | 142 | 142 | |||
Other liabilities | 2,222 | 2,756 | |||
Separate account liabilities | 110,773 | 115,834 | |||
Liabilities | $ 156,125 | $ 162,442 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | P&C Runoff Subsidiaries | |||||
Assets | |||||
Cash and investments | $ 669 | $ 657 | |||
Reinsurance recoverables | 268 | 213 | |||
Assets | 937 | 870 | |||
Liabilities | |||||
Reserve for future policy benefits and unpaid loss and loss adjustment expenses | 653 | 600 | |||
Other liabilities | 12 | 11 | |||
Liabilities | $ 665 | 611 | |||
Intercompany reinsurance recoverables | $ 71 |
Business Dispositions and Dis_5
Business Dispositions and Discontinued Operations - Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefits, losses and expenses | |||
Income (loss) from discontinued operations, net of tax | $ 322 | $ (2,869) | $ 283 |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Revenues | |||
Earned premiums | 39 | 106 | 114 |
Fee income and other | 382 | 912 | 931 |
Net investment income | 519 | 1,289 | 1,384 |
Net realized capital losses | (68) | (53) | (158) |
Total revenues | 872 | 2,254 | 2,271 |
Benefits, losses and expenses | |||
Benefits, losses and loss adjustment expenses | 535 | 1,416 | 1,390 |
Amortization of DAC | 58 | 45 | 146 |
Insurance operating costs and other expenses | 157 | 368 | 378 |
Total benefits, losses and expenses | 750 | 1,829 | 1,914 |
Income before income taxes | 122 | 425 | 357 |
Income tax expense (benefit) | 2 | 37 | 74 |
Income from operations of discontinued operations, net of tax | 120 | 388 | 283 |
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | 202 | (3,257) | 0 |
Income (loss) from discontinued operations, net of tax | $ 322 | $ (2,869) | $ 283 |
Business Dispositions and Dis_6
Business Dispositions and Discontinued Operations - Cash Flows from Discontinued Operations (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided by operating activities from discontinued operations | $ 603 | $ 797 | $ 784 |
Net cash provided by investing activities from discontinued operations | 463 | 1,466 | 864 |
Net cash used in financing activities from discontinued operations | (737) | (884) | (647) |
Cash paid for interest | 0 | 11 | 11 |
Return to capital to parent | $ 619 | $ 1,396 | $ 752 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | $ 4,587 | $ 4,192 | $ 4,214 | $ 4,169 | $ 18,955 | $ 17,162 | $ 16,291 |
Benefits, losses and expenses | 4,466 | 4,312 | 4,252 | 4,172 | 4,165 | 4,011 | 4,495 | 3,768 | 17,202 | 16,439 | 15,844 |
Income (loss) from continuing operations, net of tax | 196 | 427 | 434 | 428 | (558) | 145 | (152) | 303 | 1,485 | (262) | 613 |
Income (loss) from discontinued operations, net of tax | 0 | 5 | 148 | 169 | (3,145) | 89 | 112 | 75 | |||
Net income (loss) | 196 | 432 | 582 | 597 | (3,703) | 234 | (40) | 378 | 1,807 | (3,131) | 896 |
Preferred stock dividends | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6 | 0 | 0 |
Net income (loss) available to common stockholders | $ 190 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | $ 1,801 | $ (3,131) | $ 896 |
Basic | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | $ 0.53 | $ 1.19 | $ 1.21 | $ 1.20 | $ (1.56) | $ 0.40 | $ (0.42) | $ 0.82 | $ 4.13 | $ (0.72) | $ 1.58 |
(Loss) income from discontinued operations, net of tax (in USD per share) | 0 | 0.01 | 0.41 | 0.47 | (8.81) | 0.25 | 0.31 | 0.20 | 0.90 | (7.89) | 0.73 |
Net income (loss) available to common stockholders | 0.53 | 1.20 | 1.62 | 1.67 | (10.37) | 0.65 | (0.11) | 1.02 | 5.03 | (8.61) | 2.31 |
Diluted | |||||||||||
Income (loss) from continuing operations, net of tax, available to common stockholders | 0.52 | 1.17 | 1.19 | 1.18 | (1.56) | 0.40 | (0.42) | 0.80 | 4.06 | (0.72) | 1.55 |
(Loss) income from discontinued operations, net of tax (in USD per share) | 0 | 0.02 | 0.41 | 0.46 | (8.81) | 0.24 | 0.31 | 0.20 | 0.89 | (7.89) | 0.72 |
Net income (loss) available to common stockholders | $ 0.52 | $ 1.19 | $ 1.60 | $ 1.64 | $ (10.37) | $ 0.64 | $ (0.11) | $ 1 | $ 4.95 | $ (8.61) | $ 2.27 |
Weighted average common shares outstanding, basic | 359.1 | 358.6 | 358.3 | 357.5 | 357 | 360.2 | 366 | 371.4 | 358.4 | 363.7 | 387.7 |
Weighted average shares outstanding and dilutive potential common shares (in shares) | 364 | 364.1 | 364.2 | 363.9 | 357 | 367 | 366 | 378.6 | 364.1 | 363.7 | 394.8 |
Schedule I Summary of Investm_2
Schedule I Summary of Investments - Other Than Investments in Affiliates (Details) $ in Millions | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 46,802 |
Amount at which shown on Balance Sheet | 46,790 |
U.S. government and government agencies and authorities (guaranteed and sponsored) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,446 |
Fair Value | 4,430 |
Amount at which shown on Balance Sheet | 4,430 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 9,972 |
Fair Value | 10,346 |
Amount at which shown on Balance Sheet | 10,346 |
Foreign government | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 866 |
Fair Value | 847 |
Amount at which shown on Balance Sheet | 847 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,017 |
Fair Value | 1,991 |
Amount at which shown on Balance Sheet | 1,991 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 11,679 |
Fair Value | 11,407 |
Amount at which shown on Balance Sheet | 11,407 |
All other mortgage-backed and asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 6,623 |
Fair Value | 6,631 |
Amount at which shown on Balance Sheet | 6,631 |
Total fixed maturities, available-for-sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 35,603 |
Fair Value | 35,652 |
Amount at which shown on Balance Sheet | 35,652 |
Fixed maturities, at fair value using fair value option | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 21 |
Fair Value | 22 |
Amount at which shown on Balance Sheet | 22 |
Total fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 35,624 |
Fair Value | 35,674 |
Amount at which shown on Balance Sheet | 35,674 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,170 |
Fair Value | 1,170 |
Amount at which shown on Balance Sheet | 1,170 |
Non-redeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 44 |
Fair Value | 44 |
Amount at which shown on Balance Sheet | 44 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,214 |
Fair Value | 1,214 |
Amount at which shown on Balance Sheet | 1,214 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,704 |
Fair Value | 3,746 |
Amount at which shown on Balance Sheet | 3,704 |
Futures, options and miscellaneous | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 254 |
Fair Value | 192 |
Amount at which shown on Balance Sheet | 192 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 4,282 |
Fair Value | 4,283 |
Amount at which shown on Balance Sheet | 4,283 |
Investments in partnerships and trusts | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,723 |
Amount at which shown on Balance Sheet | $ 1,723 |
Schedule II Condensed Financi_2
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Total fixed maturities | $ 35,652 | $ 36,964 | ||
Equity Securities, FV-NI | 1,214 | 0 | ||
Short-term investments | 4,283 | 2,270 | ||
Cash | 121 | 180 | $ 328 | $ 143 |
Deferred income taxes | 1,248 | 1,164 | ||
Other assets | 2,173 | 2,230 | ||
Total assets | 62,307 | 225,260 | ||
Liabilities and Stockholders’ Equity | ||||
Long-term debt | 4,265 | 4,678 | ||
Other liabilities | 4,808 | 5,188 | ||
Total liabilities | 49,206 | 211,766 | ||
Total stockholders’ equity | 13,101 | 13,494 | 16,903 | |
Total liabilities and stockholders’ equity | 62,307 | 225,260 | ||
Parent Company | ||||
Assets | ||||
Total fixed maturities | 785 | 637 | ||
Equity Securities, FV-NI | 30 | 0 | ||
Other investments | 103 | (1) | ||
Short-term investments | 2,603 | 442 | ||
Cash | 3 | 2 | $ 0 | $ 0 |
Investment in affiliates | 15,074 | 19,023 | ||
Deferred income taxes | 992 | 693 | ||
Unamortized issue costs | 3 | 1 | ||
Other assets | 78 | 11 | ||
Total assets | 19,671 | 20,808 | ||
Liabilities and Stockholders’ Equity | ||||
Net payable to affiliates | 1,530 | 1,598 | ||
Short-term debt (includes current maturities of long-term debt) | 413 | 320 | ||
Long-term debt | 4,265 | 4,678 | ||
Other liabilities | 362 | 718 | ||
Total liabilities | 6,570 | 7,314 | ||
Total stockholders’ equity | 13,101 | 13,494 | ||
Total liabilities and stockholders’ equity | $ 19,671 | $ 20,808 |
Schedule II Condensed Financi_3
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Operations and Comprehensive Income | ||||||||||||
Net investment income | $ 1,780 | $ 1,603 | $ 1,577 | |||||||||
Net realized capital gains (losses) | (112) | 165 | (110) | |||||||||
Total revenues | $ 4,633 | $ 4,842 | $ 4,789 | $ 4,691 | $ 4,587 | $ 4,192 | $ 4,214 | $ 4,169 | 18,955 | 17,162 | 16,291 | |
Interest expense | 298 | 316 | 327 | |||||||||
Loss on extinguishment of debt | $ (6) | (6) | 0 | 0 | ||||||||
Total benefits, losses and expenses | 4,466 | 4,312 | 4,252 | 4,172 | 4,165 | 4,011 | 4,495 | 3,768 | 17,202 | 16,439 | 15,844 | |
Income tax expense (benefit) | 268 | 985 | (166) | |||||||||
Net income (loss) | $ 196 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | 1,807 | (3,131) | 896 | |
Other comprehensive income (loss) - parent company: | ||||||||||||
Comprehensive income (loss) | (430) | (2,131) | 888 | |||||||||
Parent Company | ||||||||||||
Consolidated Statements of Operations and Comprehensive Income | ||||||||||||
Net investment income | 41 | 15 | 21 | |||||||||
Net realized capital gains (losses) | 37 | (1) | (6) | |||||||||
Total revenues | 78 | 14 | 15 | |||||||||
Interest expense | 298 | 316 | 328 | |||||||||
Loss on extinguishment of debt | (6) | 0 | 0 | |||||||||
Pension settlement | 0 | (750) | 0 | |||||||||
Other expense (income) | (6) | 1 | 9 | |||||||||
Total benefits, losses and expenses | 298 | 1,067 | 337 | |||||||||
Loss before income taxes and earnings of subsidiaries | (220) | (1,053) | (322) | |||||||||
Income tax expense (benefit) | (630) | 106 | (117) | |||||||||
Income (loss) before earnings of subsidiaries | 410 | (1,159) | (205) | |||||||||
Earnings of subsidiaries | 1,397 | (1,972) | 1,101 | |||||||||
Net income (loss) | 1,807 | (3,131) | 896 | |||||||||
Other comprehensive income (loss) - parent company: | ||||||||||||
Change in net gain/loss on cash-flow hedging instruments | 8 | 2 | 0 | |||||||||
Change in net unrealized gain/loss on securities | (271) | 280 | 1 | |||||||||
Change in pension and other postretirement plan adjustments | (26) | 107 | (6) | |||||||||
Other comprehensive income (loss), net of taxes before other comprehensive income of subsidiaries | (289) | 389 | (5) | |||||||||
Other comprehensive income (loss) of subsidiaries | (1,948) | 611 | (3) | |||||||||
Total other comprehensive income (loss) | (2,237) | 1,000 | (8) | |||||||||
Comprehensive income (loss) | $ (430) | $ (2,131) | $ 888 |
Schedule II Condensed Financi_4
Schedule II Condensed Financial Information of the Hartford Financial Services, Inc. - Cash Flow Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | ||||||||||||
Net income (loss) | $ 196 | $ 432 | $ 582 | $ 597 | $ (3,703) | $ 234 | $ (40) | $ 378 | $ 1,807 | $ (3,131) | $ 896 | |
Loss on extinguishment of debt | $ (6) | (6) | 0 | 0 | ||||||||
Realized Investment Gains (Losses) | 112 | (165) | 110 | |||||||||
Cash provided by operating activities | 2,843 | 2,186 | 2,066 | |||||||||
Investing Activities | ||||||||||||
Net proceeds from (payments for) short-term investments | (3,460) | (144) | (1,377) | |||||||||
Payments for (Proceeds from) Other Investing Activities | (3) | 21 | (129) | |||||||||
Net additions to property and equipment | (122) | (250) | (224) | |||||||||
Net cash provided by (used for) investing activities | (1,962) | (1,442) | 949 | |||||||||
Financing Activities | ||||||||||||
Treasury stock acquired | (1,028) | (1,330) | ||||||||||
Dividends paid on common shares | (379) | (341) | (334) | |||||||||
Net cash used for financing activities | (1,467) | (979) | (2,541) | |||||||||
Cash — beginning of period | 180 | 328 | 180 | 180 | 328 | 143 | ||||||
Cash — end of period | 121 | 180 | 121 | 180 | 328 | |||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Interest Paid | 292 | 322 | 336 | |||||||||
Parent Company | ||||||||||||
Operating Activities | ||||||||||||
Net income (loss) | 1,807 | (3,131) | 896 | |||||||||
Loss on extinguishment of debt | (6) | 0 | 0 | |||||||||
Equity in net loss (income) of subsidiaries | (1,397) | 1,972 | (1,101) | |||||||||
Realized Investment Gains (Losses) | (37) | 1 | 6 | |||||||||
Change in operating assets and liabilities | 2,362 | 3,220 | 1,634 | |||||||||
Cash provided by operating activities | 2,778 | 2,061 | 1,429 | |||||||||
Investing Activities | ||||||||||||
Net proceeds from (payments for) short-term investments | (2,161) | (121) | 30 | |||||||||
Net additions to property and equipment | (69) | 0 | 0 | |||||||||
Capital returned from (contributions to) subsidiaries | (148) | (633) | 491 | |||||||||
Net cash provided by (used for) investing activities | (2,378) | (754) | 521 | |||||||||
Financing Activities | ||||||||||||
Proceeds from issuance of debt | 490 | 500 | 0 | |||||||||
Repayments of long-term debt | (826) | (416) | (275) | |||||||||
Preferred stock issued, net of issuance costs | 334 | 0 | 0 | |||||||||
Treasury stock acquired | (1,028) | (1,330) | ||||||||||
Net issuance (return of) shares under incentive and stock compensation plans | (18) | (20) | (11) | |||||||||
Dividends paid on common shares | (379) | (341) | (334) | |||||||||
Net cash used for financing activities | (399) | (1,305) | (1,950) | |||||||||
Net increase in cash | 1 | 2 | 0 | |||||||||
Cash — beginning of period | $ 2 | $ 0 | $ 2 | 2 | 0 | 0 | ||||||
Cash — end of period | $ 3 | $ 2 | 3 | 2 | 0 | |||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Interest Paid | 290 | 312 | 326 | |||||||||
Dividends Received from Subsidiaries | $ 3,115 | $ 2,142 | $ 1,320 |
Schedule III Supplementary In_2
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | $ 670 | $ 650 | |
Unpaid Losses and Loss Adjustment Expenses | 33,029 | 32,287 | |
Reserve for Future Policy Benefits | 642 | 713 | |
Unearned Premiums | 5,282 | 5,322 | |
Other Policyholder Funds and Benefits Payable | 767 | 816 | |
Earned Premiums, Fee Income and Other | 17,287 | 15,394 | $ 14,824 |
Net Investment Income | 1,780 | 1,603 | 1,577 |
Benefits, Losses and Loss Adjustment Expenses | 11,165 | 10,174 | 9,961 |
Amortization of Deferred Policy Acquisition Costs | 1,384 | 1,372 | 1,377 |
Insurance Operating Costs and Other Expenses | 4,653 | 4,893 | 4,506 |
Net Written Premiums | 10,408 | 10,517 | 10,568 |
Operating Segments | Commercial Lines | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 495 | 467 | |
Unpaid Losses and Loss Adjustment Expenses | 19,455 | 18,893 | |
Reserve for Future Policy Benefits | 0 | 0 | |
Unearned Premiums | 3,589 | 3,504 | |
Other Policyholder Funds and Benefits Payable | 0 | 0 | |
Earned Premiums, Fee Income and Other | 7,081 | 6,902 | 6,690 |
Net Investment Income | 997 | 949 | 917 |
Benefits, Losses and Loss Adjustment Expenses | 4,112 | 4,322 | 3,994 |
Amortization of Deferred Policy Acquisition Costs | 1,048 | 1,009 | 973 |
Insurance Operating Costs and Other Expenses | 1,396 | 1,381 | 1,244 |
Net Written Premiums | 7,136 | 6,956 | 6,732 |
Operating Segments | Personal Lines | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 117 | 127 | |
Unpaid Losses and Loss Adjustment Expenses | 2,456 | 2,294 | |
Reserve for Future Policy Benefits | 0 | 0 | |
Unearned Premiums | 1,643 | 1,768 | |
Other Policyholder Funds and Benefits Payable | 0 | 0 | |
Earned Premiums, Fee Income and Other | 3,523 | 3,819 | 4,023 |
Net Investment Income | 155 | 141 | 135 |
Benefits, Losses and Loss Adjustment Expenses | 2,763 | 3,000 | 3,175 |
Amortization of Deferred Policy Acquisition Costs | 275 | 309 | 348 |
Insurance Operating Costs and Other Expenses | 684 | 649 | 669 |
Net Written Premiums | 3,276 | 3,561 | 3,837 |
Operating Segments | Property & Casualty Other Operations | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 0 | 0 | |
Unpaid Losses and Loss Adjustment Expenses | 2,673 | 2,588 | |
Reserve for Future Policy Benefits | 0 | 0 | |
Unearned Premiums | 7 | 10 | |
Other Policyholder Funds and Benefits Payable | 0 | 0 | |
Earned Premiums, Fee Income and Other | 0 | 0 | 0 |
Net Investment Income | 90 | 106 | 127 |
Benefits, Losses and Loss Adjustment Expenses | 65 | 18 | 278 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Insurance Operating Costs and Other Expenses | 13 | 9 | 663 |
Net Written Premiums | (4) | 0 | (1) |
Operating Segments | Group Benefits | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 52 | 47 | |
Unpaid Losses and Loss Adjustment Expenses | 8,445 | 8,512 | |
Reserve for Future Policy Benefits | 427 | 441 | |
Unearned Premiums | 43 | 40 | |
Other Policyholder Funds and Benefits Payable | 455 | 492 | |
Earned Premiums, Fee Income and Other | 5,598 | 3,677 | 3,223 |
Net Investment Income | 474 | 381 | 366 |
Benefits, Losses and Loss Adjustment Expenses | 4,214 | 2,803 | 2,514 |
Amortization of Deferred Policy Acquisition Costs | 45 | 33 | 31 |
Insurance Operating Costs and Other Expenses | 1,342 | 924 | 776 |
Net Written Premiums | 0 | 0 | 0 |
Operating Segments | Hartford Funds | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 6 | 9 | |
Unpaid Losses and Loss Adjustment Expenses | 0 | 0 | |
Reserve for Future Policy Benefits | 0 | 0 | |
Unearned Premiums | 0 | 0 | |
Other Policyholder Funds and Benefits Payable | 0 | 0 | |
Earned Premiums, Fee Income and Other | 1,032 | 992 | 885 |
Net Investment Income | 5 | 3 | 1 |
Benefits, Losses and Loss Adjustment Expenses | 0 | 0 | 0 |
Amortization of Deferred Policy Acquisition Costs | 16 | 21 | 24 |
Insurance Operating Costs and Other Expenses | 831 | 805 | 741 |
Net Written Premiums | 0 | 0 | 0 |
Corporate | |||
Schedule of Supplementary Insurance Information [Abstract] | |||
Deferred Policy Acquisition Costs | 0 | 0 | |
Unpaid Losses and Loss Adjustment Expenses | 0 | 0 | |
Reserve for Future Policy Benefits | 215 | 272 | |
Unearned Premiums | 0 | 0 | |
Other Policyholder Funds and Benefits Payable | 312 | 324 | |
Earned Premiums, Fee Income and Other | 53 | 4 | 3 |
Net Investment Income | 59 | 23 | 31 |
Benefits, Losses and Loss Adjustment Expenses | 11 | 31 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 1 |
Insurance Operating Costs and Other Expenses | 387 | 1,125 | 413 |
Net Written Premiums | $ 0 | $ 0 | $ 0 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Life insurance in-force | |||
Gross Amount | $ 722,048 | $ 700,860 | $ 657,197 |
Ceded Amount | 16,674 | 9,493 | 7,919 |
Assumed From Other Companies | 442,817 | 301,573 | 22,239 |
Net Amount | $ 1,148,191 | $ 992,940 | $ 671,517 |
Percentage of Amount Assumed to Net | 39.00% | 30.00% | 3.00% |
Insurance revenues | |||
Gross Amount | $ 14,439 | $ 14,204 | $ 14,031 |
Ceded Amount | 660 | 650 | 627 |
Assumed From Other Companies | 2,265 | 678 | 368 |
Net Amount | $ 16,044 | $ 14,232 | $ 13,772 |
Percentage of Amount Assumed to Net | 14.00% | 5.00% | 3.00% |
Property and Casualty Insurance Products | |||
Insurance revenues | |||
Gross Amount | $ 10,824 | $ 10,923 | $ 10,871 |
Ceded Amount | 599 | 600 | 583 |
Assumed From Other Companies | 221 | 232 | 261 |
Net Amount | $ 10,446 | $ 10,555 | $ 10,549 |
Percentage of Amount Assumed to Net | 2.00% | 2.00% | 2.00% |
Life insurance and annuities | |||
Insurance revenues | |||
Gross Amount | $ 1,551 | $ 1,526 | $ 1,471 |
Ceded Amount | 22 | 14 | 11 |
Assumed From Other Companies | 1,082 | 232 | 52 |
Net Amount | $ 2,611 | $ 1,744 | $ 1,512 |
Percentage of Amount Assumed to Net | 41.00% | 13.00% | 3.00% |
Accident and health insurance | |||
Insurance revenues | |||
Gross Amount | $ 2,064 | $ 1,755 | $ 1,689 |
Ceded Amount | 39 | 36 | 33 |
Assumed From Other Companies | 962 | 214 | 55 |
Net Amount | $ 2,987 | $ 1,933 | $ 1,711 |
Percentage of Amount Assumed to Net | 32.00% | 11.00% | 3.00% |
Schedule V Valuation and Qual_2
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts and other | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | $ 132 | $ 137 | $ 134 |
Increase (decrease) in Costs and Expenses | 42 | 39 | |
Write-offs/ Payments/ Other | (47) | (36) | |
Balance December 31, | 135 | 132 | 137 |
Allowance for uncollectible reinsurance | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 104 | 165 | 266 |
Increase (decrease) in Costs and Expenses | 3 | 4 | 3 |
Write-offs/ Payments/ Other | 19 | (65) | (104) |
Balance December 31, | 126 | 104 | 165 |
Valuation allowance on mortgage loans | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 1 | 0 | 4 |
Increase (decrease) in Costs and Expenses | 0 | 1 | 0 |
Write-offs/ Payments/ Other | 0 | 0 | (4) |
Balance December 31, | 1 | 1 | 0 |
Valuation allowance for deferred taxes | |||
Movement in Valuation allowance and reserves | |||
Balance January 1, | 0 | 0 | 79 |
Increase (decrease) in Costs and Expenses | 0 | 0 | (79) |
Write-offs/ Payments/ Other | 0 | 0 | 0 |
Balance December 31, | $ 0 | $ 0 | $ 0 |
Schedule VI Supplementary Inf_2
Schedule VI Supplementary Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Casualty Insurance Products | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Discount Deducted From Liabilities | $ 388 | $ 410 | $ 483 |
Weighted average interest rate | 2.98% | 3.06% | 3.11% |
Property and Casualty Insurance Products | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Losses and Loss Adjustment Expenses Incurred Related to: Current Year | $ 7,107 | $ 7,381 | $ 6,990 |
Losses and Loss Adjustment Expenses Incurred Related to: Prior Year | (167) | (41) | 457 |
Paid Losses and Loss Adjustment Expenses | $ 6,406 | $ 6,579 | $ 6,968 |