Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Nov. 07, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METROPOLITAN LIFE INSURANCE CO | |
Entity Central Index Key | 937,834 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 494,466,664 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $161,168 and $157,809, respectively) | $ 165,847 | $ 170,272 |
Equity securities, at estimated fair value | 841 | 1,658 |
Mortgage loans (net of valuation allowances of $287 and $271, respectively; includes $210 and $0, respectively, relating to variable interest entities; includes $323 and $520, respectively, under the fair value option) | 61,136 | 58,459 |
Policy loans | 6,050 | 6,006 |
Real estate and real estate joint ventures (includes $1,194 and $1,077, respectively, relating to variable interest entities; includes $622 and $25, respectively, of real estate held-for-sale) | 6,561 | 6,656 |
Other limited partnership interests | 4,263 | 3,991 |
Short-term investments, principally at estimated fair value | 2,918 | 3,155 |
Other invested assets (includes $123 and $131, respectively, relating to variable interest entities) | 14,213 | 14,911 |
Total investments | 261,829 | 265,108 |
Cash and cash equivalents, principally at estimated fair value (includes $14 and $12, respectively, relating to variable interest entities) | 5,474 | 5,069 |
Accrued investment income (includes $1 and $0, respectively, relating to variable interest entities) | 2,140 | 2,042 |
Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities) | 22,623 | 22,098 |
Deferred policy acquisition costs and value of business acquired | 4,356 | 4,348 |
Current income tax recoverable | 148 | 64 |
Deferred income tax asset | 151 | 0 |
Other assets (includes $2 and $2, respectively, relating to variable interest entities) | 4,489 | 4,741 |
Separate account assets | 117,939 | 130,825 |
Total assets | 419,149 | 434,295 |
Liabilities | ||
Future policy benefits | 125,969 | 119,415 |
Policyholder account balances | 92,085 | 93,939 |
Other policy-related balances | 7,289 | 7,176 |
Policyholder dividends payable | 541 | 499 |
Policyholder dividend obligation | 456 | 2,121 |
Payables for collateral under securities loaned and other transactions | 20,253 | 19,871 |
Short-term debt | 131 | 243 |
Long-term debt (includes $5 and $6, respectively, at estimated fair value, relating to variable interest entities) | 1,624 | 1,667 |
Deferred income tax liability | 0 | 1,369 |
Other liabilities (includes $0 and $3, respectively, relating to variable interest entities) | 27,533 | 27,409 |
Separate account liabilities | 117,939 | 130,825 |
Total liabilities | 393,820 | 404,534 |
Contingencies, Commitments and Guarantees (Note 12) | ||
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding | 5 | 5 |
Additional paid-in capital | 14,221 | 14,150 |
Retained earnings | 9,179 | 10,035 |
Accumulated other comprehensive income (loss) | 1,727 | 5,428 |
Total Metropolitan Life Insurance Company stockholder’s equity | 25,132 | 29,618 |
Noncontrolling interests | 197 | 143 |
Total equity | 25,329 | 29,761 |
Total liabilities and equity | $ 419,149 | $ 434,295 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 161,168 | $ 157,809 |
Mortgage loans valuation allowances | 287 | 271 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 61,136 | 58,459 |
Real estate and real estate joint ventures relating to variable interest entities | 6,561 | 6,656 |
Real estate held-for-sale | 622 | 25 |
Other invested assets relating to variable interest entities | 14,213 | 14,911 |
Cash and cash equivalents relating to variable interest entities | 5,474 | 5,069 |
Accrued Investment Income Receivable | 2,140 | 2,042 |
Premiums, reinsurance and other receivables relating to variable interest entities | 22,623 | 22,098 |
Other assets relating to variable interest entities | 4,489 | 4,741 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 1,624 | 1,667 |
Other Liabilities | $ 27,533 | $ 27,409 |
Metropolitan Life Insurance Company stockholder’s equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 494,466,664 | 494,466,664 |
Common stock, shares outstanding | 494,466,664 | 494,466,664 |
Residential mortgage loans - FVO | ||
Assets | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | $ 323 | $ 520 |
Variable interest entities | ||
Assets | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 210 | 0 |
Real estate and real estate joint ventures relating to variable interest entities | 1,194 | 1,077 |
Other invested assets relating to variable interest entities | 123 | 131 |
Cash and cash equivalents relating to variable interest entities | 14 | 12 |
Accrued Investment Income Receivable | 1 | 0 |
Premiums, reinsurance and other receivables relating to variable interest entities | 3 | 3 |
Other assets relating to variable interest entities | 2 | 2 |
Liabilities | ||
Long-term debt, at estimated fair value, relating to variable interest entities | 5 | 6 |
Other Liabilities | $ 0 | $ 3 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Premiums | $ 5,925 | $ 6,629 | $ 21,794 | $ 17,597 |
Universal life and investment-type product policy fees | 510 | 556 | 1,570 | 1,706 |
Net investment income | 2,786 | 2,660 | 8,171 | 7,955 |
Other revenues | 401 | 371 | 1,203 | 1,148 |
Net investment gains (losses) | 205 | 96 | (21) | 184 |
Net derivative gains (losses) | (76) | (26) | 289 | (317) |
Total revenues | 9,751 | 10,286 | 33,006 | 28,273 |
Expenses | ||||
Policyholder benefits and claims | 6,576 | 7,372 | 23,642 | 19,628 |
Interest credited to policyholder account balances | 628 | 567 | 1,821 | 1,660 |
Policyholder dividends | 282 | 267 | 812 | 827 |
Other expenses | 1,361 | 1,205 | 3,992 | 3,808 |
Total expenses | 8,847 | 9,411 | 30,267 | 25,923 |
Income (loss) before provision for income tax | 904 | 875 | 2,739 | 2,350 |
Provision for income tax expense (benefit) | 88 | 167 | 244 | 451 |
Net income (loss) | 816 | 708 | 2,495 | 1,899 |
Less: Net income (loss) attributable to noncontrolling interests | 2 | 5 | 10 | 8 |
Net income (loss) attributable to Metropolitan Life Insurance Company | 814 | 703 | 2,485 | 1,891 |
Comprehensive income (loss) | (244) | 879 | (2,130) | 3,821 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax | 2 | 5 | 10 | 8 |
Comprehensive income (loss) attributable to Metropolitan Life Insurance Company | $ (246) | $ 874 | $ (2,140) | $ 3,813 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Metropolitan Life Insurance Company Stockholder’s Equity | Noncontrolling Interests | Previously Reported | Previously ReportedCommon Stock | Previously ReportedAdditional Paid-in Capital | Previously ReportedRetained Earnings | Previously ReportedAccumulated Other Comprehensive Income (Loss) | Previously ReportedTotal Metropolitan Life Insurance Company Stockholder’s Equity | Previously ReportedNoncontrolling Interests | Restatement Adjustment | Restatement AdjustmentRetained Earnings | Restatement AdjustmentTotal Metropolitan Life Insurance Company Stockholder’s Equity |
Beginning Balance at Dec. 31, 2016 | $ 26,760 | $ 5 | $ 14,413 | $ 9,033 | $ 3,119 | $ 26,570 | $ 190 | $ 26,977 | $ 5 | $ 14,413 | $ 9,250 | $ 3,119 | $ 26,787 | $ 190 | $ (217) | $ (217) | $ (217) |
Capital contributions from MetLife, Inc. | 5 | 5 | 5 | ||||||||||||||
Returns of capital | (20) | (20) | (20) | ||||||||||||||
Dividends paid to MetLife, Inc. | (2,000) | (2,000) | (2,000) | ||||||||||||||
Purchase of operating joint venture interest from an affiliate (Note 5) | (249) | (249) | (249) | ||||||||||||||
Change in equity of noncontrolling interests | (19) | 0 | (19) | ||||||||||||||
Net income (loss) | 1,899 | 1,891 | 1,891 | 8 | |||||||||||||
Other comprehensive income (loss), net of income tax | 1,922 | 1,922 | 1,922 | ||||||||||||||
Ending Balance at Sep. 30, 2017 | 28,298 | 5 | 14,149 | 8,924 | 5,041 | 28,119 | 179 | $ 28,558 | $ 28,379 | $ (260) | $ (260) | ||||||
Cumulative effects of changes in accounting principles, net of income tax (Note 1) | 7 | (917) | 924 | 7 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 29,768 | 5 | 14,150 | 9,118 | 6,352 | 29,625 | 143 | ||||||||||
Beginning Balance at Dec. 31, 2017 | 29,761 | 5 | 14,150 | 10,035 | 5,428 | 29,618 | 143 | ||||||||||
Capital contributions from MetLife, Inc. | 73 | 73 | 73 | ||||||||||||||
Returns of capital | (2) | (2) | (2) | ||||||||||||||
Dividends paid to MetLife, Inc. | (2,424) | (2,424) | (2,424) | ||||||||||||||
Change in equity of noncontrolling interests | 44 | 0 | 44 | ||||||||||||||
Net income (loss) | 2,495 | 2,485 | 2,485 | 10 | |||||||||||||
Other comprehensive income (loss), net of income tax | (4,625) | (4,625) | (4,625) | ||||||||||||||
Ending Balance at Sep. 30, 2018 | $ 25,329 | $ 5 | $ 14,221 | $ 9,179 | $ 1,727 | $ 25,132 | $ 197 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by (used in) operating activities | $ 6,850 | $ 5,010 |
Cash flows from investing activities | ||
Sales, maturities and repayments of fixed maturity securities | 48,348 | 37,260 |
Sales, maturities and repayments of equity securities | 112 | 470 |
Sales, maturities and repayments of mortgage loans | 6,365 | 5,696 |
Sales, maturities and repayments of real estate and real estate joint ventures | 466 | 673 |
Sales, maturities and repayments of other limited partnership interests | 355 | 412 |
Purchases of fixed maturity securities | (48,036) | (40,819) |
Purchases of equity securities | (117) | (387) |
Purchases of mortgage loans | (8,856) | (7,020) |
Purchases of real estate and real estate joint ventures | (321) | (671) |
Purchases of other limited partnership interests | (558) | (536) |
Cash received in connection with freestanding derivatives | 1,582 | 1,439 |
Cash paid in connection with freestanding derivatives | (2,179) | (2,259) |
Net change in policy loans | (44) | (40) |
Net change in short-term investments | 334 | 78 |
Net change in other invested assets | 328 | (168) |
Net change in property, equipment and leasehold improvements | 185 | (148) |
Other, net | 4 | 0 |
Net cash provided by (used in) investing activities | (2,032) | (6,020) |
Cash flows from financing activities | ||
Policyholder account balances: Deposits | 58,488 | 53,149 |
Policyholder account balances: Withdrawals | (60,701) | (52,610) |
Net change in payables for collateral under securities loaned and other transactions | 382 | 1,443 |
Long-term debt issued | 24 | 169 |
Long-term debt repaid | (49) | (81) |
Financing element on certain derivative instruments and other derivative related transactions, net | (75) | (210) |
Dividends paid to MetLife, Inc. | (2,424) | (2,000) |
Returns of capital | 0 | (5) |
Return of capital associated with the purchase of operating joint venture interest from an affiliate (Note 5) | 0 | (249) |
Other, net | (57) | (10) |
Net cash provided by (used in) financing activities | (4,412) | (404) |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | (1) | 23 |
Change in cash and cash equivalents | 405 | (1,391) |
Cash and cash equivalents, beginning of period | 5,069 | 5,714 |
Cash and cash equivalents, end of period | 5,474 | 4,323 |
Supplemental disclosures of cash flow information | ||
Net cash paid for Interest | 65 | 64 |
Net cash paid (received) for Income tax | 581 | 1,137 |
Non-cash transactions: | ||
Capital contributions from MetLife, Inc. | 73 | 5 |
Returns of capital | 0 | 15 |
Fixed maturity securities available-for-sale received in connection with pension risk transfer transaction | 3,016 | 0 |
Transfer of fixed maturity securities available-for-sale from affiliate | $ 0 | $ 292 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Metropolitan Life Insurance Company and its subsidiaries (collectively, “MLIC” or the “Company”) is a provider of insurance, annuities, employee benefits and asset management and is organized into two segments: U.S. and MetLife Holdings. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) , which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2017 Annual Report. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “ — Adoption of New Accounting Pronouncements.” Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2018 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Revisions As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, the Company made adjustments for group annuity reserves for which amounts previously reported have been immaterially restated. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods the Company identified them. The impact of the revisions is shown in the tables below: Three Months Nine Months 2017 Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) As Revisions As As Revisions As (In millions) Expenses Policyholder benefits and claims $ 7,317 $ 55 $ 7,372 $ 19,561 $ 67 $ 19,628 Total expenses $ 9,356 $ 55 $ 9,411 $ 25,856 $ 67 $ 25,923 Income (loss) before provision for income tax $ 930 $ (55 ) $ 875 $ 2,417 $ (67 ) $ 2,350 Provision for income tax expense (benefit) $ 187 $ (20 ) $ 167 $ 475 $ (24 ) $ 451 Net income (loss) $ 743 $ (35 ) $ 708 $ 1,942 $ (43 ) $ 1,899 Net income (loss) attributable to Metropolitan Life Insurance Company $ 738 $ (35 ) $ 703 $ 1,934 $ (43 ) $ 1,891 Comprehensive income (loss) $ 914 $ (35 ) $ 879 $ 3,864 $ (43 ) $ 3,821 Comprehensive income (loss) attributable to Metropolitan Life Insurance Company $ 909 $ (35 ) $ 874 $ 3,856 $ (43 ) $ 3,813 Interim Condensed Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2016 $ 9,250 $ (217 ) $ 9,033 Net income (loss) $ 1,934 $ (43 ) $ 1,891 Balance at September 30, 2017 $ 9,184 $ (260 ) $ 8,924 Total Metropolitan Life Insurance Company Stockholder’s Equity Balance at December 31, 2016 $ 26,787 $ (217 ) $ 26,570 Balance at September 30, 2017 $ 28,379 $ (260 ) $ 28,119 Total Equity Balance at December 31, 2016 $ 26,977 $ (217 ) $ 26,760 Balance at September 30, 2017 $ 28,558 $ (260 ) $ 28,298 Adoption of New Accounting Pronouncements Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.0 billion with a corresponding increase to AOCI. Effective January 1, 2018, the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $101 million , net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $925 million of equity securities previously classified and measured as equity securities AFS. The Company has included the required disclosures related to equity securities within Note 5 . Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of Accounting Standards Codification Topic 944, Financial Services - Insurance , leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. For the three months and nine months ended September 30, 2018 , the Company identified $196 million and $598 million , respectively, of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amounts primarily consisted of: (i) prepaid legal plans and administrative-only contracts within the U.S. segment of $120 million and $375 million for the three months and nine months ended September 30, 2018 , respectively, and (ii) distribution and administrative services fees within the MetLife Holdings segment of $56 million and $169 million for the three months and nine months ended September 30, 2018 , respectively. Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal. Other Effective January 16, 2018, the London Clearing House (“LCH”) amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. These amendments impacted the accounting treatment of the Company’s centrally cleared derivatives, for which the LCH serves as the central clearing party. As of the effective date, the application of the amended rulebook reduced gross derivative assets by $2 million , gross derivative liabilities by $182 million , accrued investment income by $4 million and collateral receivables recorded within premiums, reinsurance and other receivables by $176 million . Future Adoption of New Accounting Pronouncements In October 2018, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding derivatives (Accounting Standards Update (“ASU”) 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes) . The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied prospectively for qualifying new or redesignated hedging relationships entered into after January 1, 2019. The amendments permit the use of the overnight index swap rate based on the Secured Overnight Financing Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued new guidance on implementation costs in a cloud computing arrangement that is a service contract (ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract) . The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The new guidance can be applied either prospectively to eligible costs incurred on or after the guidance is first applied, or retrospectively to all periods presented. The new guidance requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued new guidance on defined benefit pension or other postretirement plans (ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans). The new guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The new guidance should be applied on a retrospective basis to all periods presented. The new guidance modifies and clarifies certain disclosure requirements. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued new guidance on fair value measurement (ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement) . The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The guidance modifies the disclosure requirements on fair value by removing some requirements, modifying others, adding changes in unrealized gains and losses included in other comprehensive income (loss) (“OCI”) for recurring Level 3 fair value measurements, and providing the option to disclose certain other quantitative information with respect to significant unobservable inputs in lieu of a weighted average. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued new guidance on long-duration insurance contracts (ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts). The new guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with required retrospective application to January 1, 2019. Early adoption is permitted. The new guidance (i) prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts, and requires assumptions for those liability valuations to be updated after contract inception, (ii) requires more market-based product guarantees on certain separate account and other account balance long-duration contracts to be accounted for at fair value, (iii) simplifies the amortization of deferred policy acquisition costs (“DAC”) for virtually all long-duration contracts, and (iv) introduces certain financial statement presentation requirements, as well as significant additional quantitative and qualitative disclosures. The Company has just begun its implementation efforts and is currently evaluating the impact of the new guidance. Given the nature and extent of the required changes to a significant portion of the Company’s operations, the adoption of this standard is expected to have a material impact on the consolidated financial statements. In August 2017, the FASB issued new guidance on hedging activities (ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities) . The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings. Early adoption is permitted. The new guidance simplifies the application of hedge accounting in certain situations and amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in their financial statements. Upon the adoption of ASU 2017-12, the Company will make certain changes to its assessment of hedge effectiveness for fair value hedging relationships, and the Company will also reclassify hedge ineffectiveness for cash flow hedging relationships existing as of the adoption date, which was previously recorded to earnings, to AOCI. The estimated impact of adoption is a decrease to retained earnings of approximately $100 million to $250 million . In March 2017, the FASB issued new guidance on purchased callable debt securities (ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years and should be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings. Early adoption is permitted. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the new guidance does not require an accounting change for securities held at a discount whose discount continues to be amortized to maturity. The Company does not expect the adoption to have a material impact on its consolidated financial statements. In January 2017, the FASB issued new guidance on goodwill impairment (ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ). The new guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for a description of the two-step test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company expects the adoption of this new guidance will reduce the complexity involved with the evaluation of goodwill for impairment. The impact of the new guidance will depend on the outcomes of future goodwill impairment tests. In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments (ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ) . The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For substantially all financial assets, the ASU should be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings. For previously impaired debt securities and certain debt securities acquired with evidence of credit quality deterioration since origination, the new guidance should be applied prospectively. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that an other-than-temporary impairment (“ OTTI”) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company believes that the most significant impact upon adoption will be to its mortgage loan investments. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In February 2016, the FASB issued new guidance on leasing transactions (ASU 2016-02, Leases (Topic 842 )). The new guidance is effective for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The new guidance requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Leases would be classified as finance or operating leases and both types of leases will be recognized on the balance sheet. Lessor accounting will remain largely unchanged from current guidance except for certain targeted changes. The new guidance will also require new qualitative and quantitative disclosures. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases , amending certain aspects of the new leases standard. Also in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides lessors with a practical expedient not to separate lease and non-lease components for certain operating leases and with an additional transition method. The Company will adopt the new guidance under ASU 2016-02 and related amendments on January 1, 2019 and expects to elect certain practical expedients permitted under the transition guidance. In addition, the Company expects to elect the transition option, which allows the Company to use the modified retrospective transition method and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption but does not require restatement of prior periods. The Company has developed an integrated implementation plan and formed a multi-functional working group with a project governance structure to address any resource, system, data and process gaps related to the implementation of the new standard. The Company is currently in the process of integrating a lease accounting technology solution and developing updated reporting processes and internal controls to facilitate compliance with the new guidance. While the Company is in the process of evaluating the impact of this guidance on its consolidated financial statements, the Company believes the most significant changes relate to (i) the recognition of new right of use assets and lease liabilities on the consolidated balance sheet for real estate operating leases; and (ii) the recognition of deferred gains associated with previous sale-leaseback transactions as a cumulative effect adjustment to retained earnings. On adoption, the Company expects to recognize additional operating liabilities, with corresponding right of use assets of the same amount adjusted for prepaid/deferred rent, unamortized initial direct costs and potential impairment of right of use assets based on the present value of the remaining minimum rental payments. These assets and liabilities are expected to represent less than 1% of the Company’s total assets and total liabilities, and the Company does not expect the adoption to have a material impact on its consolidated financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: U.S. and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. U.S. The U.S. segment offers a broad range of protection products and services aimed at serving the financial needs of customers throughout their lives. These products are sold to corporations and their respective employees, other institutions and their respective members, as well as individuals. The U.S. segment is organized into two businesses: Group Benefits and Retirement and Income Solutions (“RIS”). • The Group Benefits business offers insurance products and services which include life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision and accident & health coverages, as well as prepaid legal plans. This business also sells administrative services-only arrangements to some employers. • The RIS business offers a broad range of annuity and investment products, including stable value and pension risk transfer products, institutional income annuities, tort settlements, capital market investment products, as well as postretirement benefits and company-, bank- or trust-owned life insurance. MetLife Holdings The MetLife Holdings segment consists of operations relating to products and businesses no longer actively marketed by the Company, such as variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. Corporate & Other Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, including enterprise-wide strategic initiative restructuring charges and various start-up businesses. Additionally, Corporate & Other includes run-off businesses such as the direct to consumer portion of the U.S. Direct business. Corporate & Other also includes the Company’s ancillary international operations, interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. In addition, Corporate & Other includes the elimination of intersegment amounts, which generally relate to affiliated reinsurance and intersegment loans, which bear interest rates commensurate with related borrowings. Financial Measures and Segment Accounting Policies Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. The financial measures of adjusted revenues and adjusted expenses focus on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MLIC but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MLIC that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes net investment gains (losses) and net derivative gains (losses). The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues: • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB fees”); and • Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP and (iv) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in net investment gains (losses) for GAAP. The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses: • Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments, (iii) benefits and hedging costs related to GMIBs (“GMIB costs”) and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”); • Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment; • Amortization of DAC and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB fees and GMIB costs and (iii) Market value adjustments; • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and • Other expenses excludes costs related to noncontrolling interests and goodwill impairments. The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and nine months ended September 30, 2018 and 2017 . The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife’s and the Company’s business. MetLife’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. MetLife’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss) or adjusted earnings. Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Three Months Ended September 30, 2018 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 5,125 $ 783 $ 17 $ 5,925 $ — $ 5,925 Universal life and investment-type product policy fees 248 239 — 487 23 510 Net investment income 1,707 1,218 (53 ) 2,872 (86 ) 2,786 Other revenues 189 66 146 401 — 401 Net investment gains (losses) — — — — 205 205 Net derivative gains (losses) — — — — (76 ) (76 ) Total revenues 7,269 2,306 110 9,685 66 9,751 Expenses Policyholder benefits and claims and policyholder dividends 5,227 1,500 12 6,739 119 6,858 Interest credited to policyholder account balances 443 187 — 630 (2 ) 628 Capitalization of DAC (8 ) 1 — (7 ) — (7 ) Amortization of DAC and VOBA 27 (2 ) — 25 79 104 Interest expense on debt 3 2 22 27 — 27 Other expenses 700 254 285 1,239 (2 ) 1,237 Total expenses 6,392 1,942 319 8,653 194 8,847 Provision for income tax expense (benefit) 187 70 (142 ) 115 (27 ) 88 Adjusted earnings $ 690 $ 294 $ (67 ) 917 Adjustments to: Total revenues 66 Total expenses (194 ) Provision for income tax (expense) benefit 27 Net income (loss) $ 816 $ 816 Three Months Ended September 30, 2017 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 5,820 $ 806 $ 3 $ 6,629 $ — $ 6,629 Universal life and investment-type product policy fees 245 286 — 531 25 556 Net investment income 1,554 1,228 (39 ) 2,743 (83 ) 2,660 Other revenues 191 36 144 371 — 371 Net investment gains (losses) — — — — 96 96 Net derivative gains (losses) — — — — (26 ) (26 ) Total revenues 7,810 2,356 108 10,274 12 10,286 Expenses Policyholder benefits and claims and policyholder dividends 6,018 1,491 — 7,509 130 7,639 Interest credited to policyholder account balances 373 195 — 568 (1 ) 567 Capitalization of DAC (15 ) (2 ) — (17 ) — (17 ) Amortization of DAC and VOBA 15 (79 ) — (64 ) 21 (43 ) Interest expense on debt 3 2 21 26 — 26 Other expenses 681 291 272 1,244 (5 ) 1,239 Total expenses 7,075 1,898 293 9,266 145 9,411 Provision for income tax expense (benefit) 257 146 (190 ) 213 (46 ) 167 Adjusted earnings $ 478 $ 312 $ 5 795 Adjustments to: Total revenues 12 Total expenses (145 ) Provision for income tax (expense) benefit 46 Net income (loss) $ 708 $ 708 Nine Months Ended September 30, 2018 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 19,425 $ 2,351 $ 18 $ 21,794 $ — $ 21,794 Universal life and investment-type product policy fees 758 742 — 1,500 70 1,570 Net investment income 4,945 3,599 (95 ) 8,449 (278 ) 8,171 Other revenues 581 199 423 1,203 — 1,203 Net investment gains (losses) — — — — (21 ) (21 ) Net derivative gains (losses) — — — — 289 289 Total revenues 25,709 6,891 346 32,946 60 33,006 Expenses Policyholder benefits and claims and policyholder dividends 19,970 4,331 3 24,304 150 24,454 Interest credited to policyholder account balances 1,262 562 — 1,824 (3 ) 1,821 Capitalization of DAC (30 ) 4 — (26 ) — (26 ) Amortization of DAC and VOBA 59 149 — 208 63 271 Interest expense on debt 9 6 66 81 — 81 Other expenses 2,124 754 797 3,675 (9 ) 3,666 Total expenses 23,394 5,806 866 30,066 201 30,267 Provision for income tax expense (benefit) 493 208 (425 ) 276 (32 ) 244 Adjusted earnings $ 1,822 $ 877 $ (95 ) 2,604 Adjustments to: Total revenues 60 Total expenses (201 ) Provision for income tax (expense) benefit 32 Net income (loss) $ 2,495 $ 2,495 Nine Months Ended September 30, 2017 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 15,055 $ 2,530 $ 12 $ 17,597 $ — $ 17,597 Universal life and investment-type product policy fees 757 876 — 1,633 73 1,706 Net investment income 4,646 3,711 (103 ) 8,254 (299 ) 7,955 Other revenues 581 126 441 1,148 — 1,148 Net investment gains (losses) — — — — 184 184 Net derivative gains (losses) — — — — (317 ) (317 ) Total revenues 21,039 7,243 350 28,632 (359 ) 28,273 Expenses Policyholder benefits and claims and policyholder dividends 15,773 4,432 3 20,208 247 20,455 Interest credited to policyholder account balances 1,076 587 — 1,663 (3 ) 1,660 Capitalization of DAC (42 ) (15 ) — (57 ) — (57 ) Amortization of DAC and VOBA 44 165 — 209 (85 ) 124 Interest expense on debt 8 6 65 79 — 79 Other expenses 2,044 895 735 3,674 (12 ) 3,662 Total expenses 18,903 6,070 803 25,776 147 25,923 Provision for income tax expense (benefit) 745 368 (485 ) 628 (177 ) 451 Adjusted earnings $ 1,391 $ 805 $ 32 2,228 Adjustments to: Total revenues (359 ) Total expenses (147 ) Provision for income tax (expense) benefit 177 Net income (loss) $ 1,899 $ 1,899 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: September 30, 2018 December 31, 2017 (In millions) U.S. $ 238,102 $ 245,750 MetLife Holdings 154,371 163,397 Corporate & Other 26,676 25,148 Total $ 419,149 $ 434,295 Revenues derived from two U.S. segment customers exceeded 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from the first U.S. segment customer were $6.0 billion for the nine months ended September 30, 2018, which represented 24% of consolidated premiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenues derived from the second U.S. customer were $730 million and $2.4 billion for the three months and nine months ended September 30, 2018, respectively, which represented 11% and 10% , of consolidated premiums, universal life and investment-type product policy fees and other revenues, respectively. Revenues derived from the second U.S. customer were $685 million and $2.1 billion for the three months and nine months ended September 30, 2017, respectively, which represented 9% and 10% , of consolidated premiums, universal life and investment-type product policy fees and other revenues, respectively. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the three months and nine months ended September 30, 2018 and 2017. |
Insurance
Insurance | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Guarantees As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. Guaranteed minimum accumulation benefits (“GMABs”), the non-life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 6 . The Company also issues other annuity contracts that apply a lower rate on funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Certain other annuity contracts contain guaranteed annuitization benefits that may be above what would be provided by the current account value of the contract. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: September 30, 2018 December 31, 2017 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2) $ 53,096 $ 23,418 $ 56,136 $ 25,257 Separate account value (1) $ 42,881 $ 22,550 $ 45,431 $ 24,336 Net amount at risk $ 1,236 (3 ) $ 269 (4 ) $ 990 (3 ) $ 353 (4 ) Average attained age of contractholders 67 years 65 years 66 years 65 years Other Annuity Guarantees: Total account value (1), (2) N/A $ 143 N/A $ 141 Net amount at risk N/A $ 88 (5 ) N/A $ 92 (5 ) Average attained age of contractholders N/A 53 years N/A 52 years September 30, 2018 December 31, 2017 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (2) $ 4,843 $ 947 $ 4,679 $ 977 Net amount at risk (6) $ 44,989 $ 6,394 $ 46,704 $ 6,713 Average attained age of policyholders 55 years 63 years 54 years 62 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (4) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (5) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. Liabilities for Unpaid Claims and Claim Expenses Rollforward of Claims and Claim Adjustment Expenses Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Nine Months 2018 2017 (1) (In millions) Balance, beginning of period $ 12,090 $ 11,621 Less: Reinsurance recoverables 1,401 1,251 Net balance, beginning of period 10,689 10,370 Incurred related to: Current period 12,623 12,282 Prior periods (2) 118 204 Total incurred 12,741 12,486 Paid related to: Current period (8,566 ) (9,153 ) Prior periods (3,609 ) (2,914 ) Total paid (12,175 ) (12,067 ) Net balance, end of period 11,255 10,789 Add: Reinsurance recoverables 1,381 1,355 Balance, end of period (included in future policy benefits and other policy-related balances) $ 12,636 $ 12,144 __________________ (1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. As a result, at September 30, 2017, Total incurred increased by $712 million . Additionally, at September 30, 2017, the Net balance decreased by $199 million from the amount previously reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017. The adjustments to the Net balance, at September 30, 2017, are primarily to correct for improper classifications between components of the rollforward. (2) During the nine months ended September 30, 2018 , claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported during current year. During the nine months ended September 30, 2017, claims and claim adjustment expenses associated with prior periods increased due to unfavorable claims experience. |
Closed Block
Closed Block | 9 Months Ended |
Sep. 30, 2018 | |
Closed Block Disclosure [Abstract] | |
Closed Block | 4. Closed Block On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follow s at: September 30, 2018 December 31, 2017 (In millions) Closed Block Liabilities Future policy benefits $ 40,106 $ 40,463 Other policy-related balances 287 222 Policyholder dividends payable 476 437 Policyholder dividend obligation 456 2,121 Deferred income tax liability 2 — Other liabilities 472 212 Total closed block liabilities 41,799 43,455 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 25,803 27,904 Equity securities, at estimated fair value 66 70 Mortgage loans 6,474 5,878 Policy loans 4,524 4,548 Real estate and real estate joint ventures 580 613 Other invested assets 686 731 Total investments 38,133 39,744 Accrued investment income 469 477 Premiums, reinsurance and other receivables; cash and cash equivalents 92 14 Current income tax recoverable 52 35 Deferred income tax asset — 36 Total assets designated to the closed block 38,746 40,306 Excess of closed block liabilities over assets designated to the closed block 3,053 3,149 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,110 1,863 Unrealized gains (losses) on derivatives, net of income tax 17 (7 ) Allocated to policyholder dividend obligation, net of income tax (360 ) (1,379 ) Total amounts included in AOCI 767 477 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,820 $ 3,626 See Note 1 for discussion of new accounting guidance related to U.S. Tax Reform. Information regarding the closed block policyholder dividend obligation was as follows: Nine Months Year (In millions) Balance, beginning of period $ 2,121 $ 1,931 Change in unrealized investment and derivative gains (losses) (1,665 ) 190 Balance, end of period $ 456 $ 2,121 Information regarding the closed block revenues and expenses was as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Revenues Premiums $ 405 $ 413 $ 1,202 $ 1,247 Net investment income 443 450 1,318 1,368 Net investment gains (losses) 7 — (46 ) (10 ) Net derivative gains (losses) 2 (6 ) 12 (24 ) Total revenues 857 857 2,486 2,581 Expenses Policyholder benefits and claims 641 591 1,808 1,773 Policyholder dividends 241 235 723 732 Other expenses 29 30 88 94 Total expenses 911 856 2,619 2,599 Revenues, net of expenses before provision for income tax expense (benefit) (54 ) 1 (133 ) (18 ) Provision for income tax expense (benefit) (12 ) — (29 ) (8 ) Revenues, net of expenses and provision for income tax expense (benefit) $ (42 ) $ 1 $ (104 ) $ (10 ) Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan of Reorganization. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5 . Investments Fixed Maturity Securities AFS Fixed Maturity Securities AFS by Sector The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities AFS. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). September 30, 2018 December 31, 2017 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) Fixed maturity securities AFS: U.S. corporate $ 56,474 $ 2,803 $ 1,022 $ — $ 58,255 $ 53,291 $ 5,037 $ 238 $ — $ 58,090 U.S. government and agency 33,094 2,217 604 — 34,707 35,021 3,755 231 — 38,545 Foreign corporate 25,021 756 913 — 24,864 24,367 1,655 426 — 25,596 RMBS 22,023 826 521 (35 ) 22,363 21,735 1,039 181 (41 ) 22,634 ABS 8,795 44 24 — 8,815 7,808 73 15 — 7,866 State and political subdivision 6,172 852 42 — 6,982 6,310 1,245 3 1 7,551 CMBS 5,529 26 97 — 5,458 5,390 124 26 — 5,488 Foreign government 4,060 433 90 — 4,403 3,887 641 26 — 4,502 Total fixed maturity securities AFS $ 161,168 $ 7,957 $ 3,313 $ (35 ) $ 165,847 $ 157,809 $ 13,569 $ 1,146 $ (40 ) $ 170,272 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $23 million and $4 million , and unrealized gains (losses) of $0 and ($3) million at September 30, 2018 and December 31, 2017 , respectively. Maturities of Fixed Maturity Securities AFS The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at September 30, 2018 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities AFS (In millions) Amortized cost $ 9,061 $ 30,339 $ 29,664 $ 55,757 $ 36,347 $ 161,168 Estimated fair value $ 9,022 $ 30,528 $ 30,003 $ 59,658 $ 36,636 $ 165,847 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: September 30, 2018 December 31, 2017 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) Fixed maturity securities AFS: U.S. corporate $ 19,006 $ 695 $ 2,913 $ 327 $ 3,727 $ 57 $ 2,523 $ 181 U.S. government and agency 13,510 171 5,332 433 13,905 76 3,018 155 Foreign corporate 9,817 564 2,036 349 1,677 43 3,912 383 RMBS 9,615 276 3,267 210 3,673 30 3,332 110 ABS 4,321 17 177 7 732 3 358 12 State and political subdivision 935 32 111 10 106 1 120 3 CMBS 3,245 63 357 34 844 6 193 20 Foreign government 1,110 64 156 26 247 6 265 20 Total fixed maturity securities AFS $ 61,559 $ 1,882 $ 14,349 $ 1,396 $ 24,911 $ 222 $ 13,721 $ 884 Total number of securities in an unrealized loss position 4,912 1,116 1,295 1,103 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities AFS and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at September 30, 2018 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities AFS increased $2.2 billion during the nine months ended September 30, 2018 to $3.3 billion . The increase in gross unrealized losses for the nine months ended September 30, 2018 was primarily attributable to increases in interest rates, widening credit spreads and to a lesser extent, the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities AFS. At September 30, 2018 , $65 million of the total $3.3 billion of gross unrealized losses were from 18 fixed maturity securities AFS with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities AFS Of the $65 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $10 million , or 15% , were related to gross unrealized losses on three investment grade fixed maturity securities AFS. Unrealized losses on investment grade fixed maturity securities AFS are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities AFS, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities AFS Of the $65 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $55 million , or 85% , were related to gross unrealized losses on 15 below investment grade fixed maturity securities AFS. Unrealized losses on below investment grade fixed maturity securities AFS are principally related to U.S. and foreign corporate securities (primarily industrial and utility securities) and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers and evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Equity Securities Equity securities are summarized as follows at: September 30, 2018 December 31, 2017 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Equity securities: Common stock $ 487 57.9 % $ 1,251 75.5 % Non-redeemable preferred stock 354 42.1 407 24.5 Total equity securities $ 841 100.0 % $ 1,658 100.0 % In connection with the adoption of new guidance related to the recognition and measurement of financial instruments (see Note 1 ), effective January 1, 2018, the Company has reclassified its investment in common stock in regional banks of the Federal Home Loan Bank (“FHLB”) system from equity securities to other invested assets. These investments are carried at redemption value and are considered restricted investments until redeemed by the respective FHLB regional banks. The carrying value of these investments at December 31, 2017 was $733 million . Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: September 30, 2018 December 31, 2017 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 37,639 61.6 % $ 35,440 60.6 % Agricultural 13,190 21.6 12,712 21.8 Residential 10,271 16.8 10,058 17.2 Subtotal (1) 61,100 100.0 58,210 99.6 Valuation allowances (287 ) (0.5 ) (271 ) (0.5 ) Subtotal mortgage loans, net 60,813 99.5 57,939 99.1 Residential — FVO 323 0.5 520 0.9 Total mortgage loans, net $ 61,136 100.0 % $ 58,459 100.0 % __________________ (1) Purchases of mortgage loans, primarily residential mortgage loans, were $724 million and $1.7 billion for the three months and nine months ended September 30, 2018 , respectively, and $409 million and $1.9 billion for the three months and nine months ended September 30, 2017 , respectively. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — FVO is presented in Note 7. The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The carrying value of foreclosed mortgage loans included in real estate and real estate joint ventures was $42 million and $44 million at September 30, 2018 and December 31, 2017, respectively. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) September 30, 2018 Commercial $ — $ — $ — $ — $ — $ 37,639 $ 186 $ — Agricultural 13 13 2 111 110 13,067 39 121 Residential — — — 420 377 9,894 60 377 Total $ 13 $ 13 $ 2 $ 531 $ 487 $ 60,600 $ 285 $ 498 December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 35,440 $ 173 $ — Agricultural 22 21 2 27 27 12,664 38 46 Residential — — — 358 324 9,734 58 324 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 57,838 $ 269 $ 370 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $124 million and $369 million , respectively, for the three months ended September 30, 2018 ; and $0 , $104 million and $350 million , respectively, for the nine months ended September 30, 2018 . The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $31 million and $297 million , respectively, for the three months ended September 30, 2017 ; and $6 million , $28 million and $275 million , respectively, for the nine months ended September 30, 2017 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Nine Months 2018 2017 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 173 $ 40 $ 58 $ 271 $ 167 $ 38 $ 62 $ 267 Provision (release) 13 1 8 22 4 4 10 18 Charge-offs, net of recoveries — — (6 ) (6 ) — (2 ) (11 ) (13 ) Balance, end of period $ 186 $ 41 $ 60 $ 287 $ 171 $ 40 $ 61 $ 272 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios % of > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) September 30, 2018 Loan-to-value ratios: Less than 65% $ 31,661 $ 724 $ 12 $ 32,397 86.1 % $ 32,455 86.3 % 65% to 75% 3,648 367 55 4,070 10.8 4,053 10.8 76% to 80% 260 210 56 526 1.4 504 1.3 Greater than 80% 479 167 — 646 1.7 611 1.6 Total $ 36,048 $ 1,468 $ 123 $ 37,639 100.0 % $ 37,623 100.0 % December 31, 2017 Loan-to-value ratios: Less than 65% $ 29,346 $ 1,359 $ 198 $ 30,903 87.2 % $ 31,563 87.5 % 65% to 75% 3,245 95 114 3,454 9.7 3,465 9.6 76% to 80% 149 171 57 377 1.1 363 1.0 Greater than 80% 400 159 147 706 2.0 665 1.9 Total $ 33,140 $ 1,784 $ 516 $ 35,440 100.0 % $ 36,056 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: September 30, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,402 94.0 % $ 12,082 95.0 % 65% to 75% 751 5.7 581 4.6 76% to 80% 32 0.2 40 0.3 Greater than 80% 5 0.1 9 0.1 Total $ 13,190 100.0 % $ 12,712 100.0 % The estimated fair value of agricultural mortgage loans was $13.0 billion and $12.8 billion at September 30, 2018 and December 31, 2017 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: September 30, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 9,881 96.2 % $ 9,614 95.6 % Nonperforming 390 3.8 444 4.4 Total $ 10,271 100.0 % $ 10,058 100.0 % The estimated fair value of residential mortgage loans was $10.7 billion and $10.6 billion at September 30, 2018 and December 31, 2017 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both September 30, 2018 and December 31, 2017 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In millions) Commercial $ — $ — $ — $ — $ 167 $ — Agricultural 200 134 105 125 106 36 Residential 390 444 — — 390 444 Total $ 590 $ 578 $ 105 $ 125 $ 663 $ 480 Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $3.9 billion and $3.1 billion at September 30, 2018 and December 31, 2017 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and equity securities and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: September 30, 2018 December 31, 2017 (In millions) Fixed maturity securities AFS $ 4,572 $ 12,349 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 35 40 Total fixed maturity securities AFS 4,607 12,389 Equity securities — 119 Derivatives 1,096 1,396 Other 66 1 Subtotal 5,769 13,905 Amounts allocated from: Future policy benefits (3 ) (19 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) — DAC, VOBA and DSI (523 ) (790 ) Policyholder dividend obligation (456 ) (2,121 ) Subtotal (983 ) (2,930 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (7 ) (14 ) Deferred income tax benefit (expense) (992 ) (3,704 ) Net unrealized investment gains (losses) $ 3,787 $ 7,257 The changes in net unrealized investment gains (losses) were as follows: Nine Months (In millions) Balance, beginning of period $ 7,257 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 1,310 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized (5 ) Unrealized investment gains (losses) during the period (8,012 ) Unrealized investment gains (losses) relating to: Future policy benefits 16 DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) DAC, VOBA and DSI 267 Policyholder dividend obligation 1,665 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 7 Deferred income tax benefit (expense) 1,283 Balance, end of period $ 3,787 Change in net unrealized investment gains (losses) $ (3,470 ) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both September 30, 2018 and December 31, 2017 . Securities Lending Elements of the Company’s securities lending program are presented below at: September 30, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 14,069 $ 13,887 Estimated fair value $ 14,435 $ 14,852 Cash collateral received from counterparties (2) $ 14,786 $ 15,170 Security collateral received from counterparties (3) $ — $ 11 Reinvestment portfolio — estimated fair value $ 14,808 $ 15,188 __________________ (1) Included within fixed maturity securities AFS and short-term investments. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: September 30, 2018 December 31, 2017 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,309 $ 6,007 $ 6,470 $ 14,786 $ 2,927 $ 5,279 $ 6,964 $ 15,170 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at September 30, 2018 was $2.3 billion , 99% of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities AFS (including U.S. government and agency securities, agency RMBS and ABS), short-term investments and cash equivalents with 67% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Repurchase Agreements Elements of the Company’s short-term repurchase agreements are presented below at: September 30, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 2,468 $ 900 Estimated fair value $ 2,508 $ 1,031 Cash collateral received from counterparties (2) $ 2,460 $ 1,000 Security collateral received from counterparties (3) $ 8 $ — Reinvestment portfolio — estimated fair value $ 2,462 $ 1,000 __________________ (1) Included within fixed maturity securities AFS, short-term investments and cash equivalents. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: September 30, 2018 December 31, 2017 Remaining Tenor of Repurchase Agreements Remaining Tenor of Repurchase Agreements 1 Month or Less Total 1 Month or Less Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,460 $ 2,460 $ 1,000 $ 1,000 The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities AFS (including U.S. government and agency securities, agency RMBS and ABS), short-term investments and cash equivalents with 68% invested in U.S. government and agency securities, agency RMBS, short-term investments, cash equivalents or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: September 30, 2018 December 31, 2017 (In millions) Invested assets on deposit (regulatory deposits) $ 47 $ 49 Invested assets pledged as collateral 20,753 20,775 Total invested assets on deposit and pledged as collateral $ 20,800 $ 20,824 The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 6 ). Amounts in the table above include invested assets and cash and cash equivalents. See “— Securities Lending” and “— Repurchase Agreements” for information regarding securities on loan, Note 4 for information regarding investments designated to the closed block and “— Equity Securities” for information on common stock holdings in regional banks of the FHLB system, which are considered restricted investments. Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: September 30, 2018 December 31, 2017 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,194 $ — $ 1,077 $ — Renewable energy partnership (2) 107 — 116 3 Investment fund (primarily mortgage loans) (3) 215 — — — Other investments 31 5 32 6 Total $ 1,547 $ 5 $ 1,225 $ 9 __________________ (1) The Company’s investment in these affiliated real estate joint ventures was $1.1 billion and $1.0 billion at September 30, 2018 and December 31, 2017 , respectively. Other affiliates’ investments in these affiliated real estate joint ventures was $113 million and $85 million at September 30, 2018 and December 31, 2017 , respectively. (2) Assets of the renewable energy partnership primarily consisted of other invested assets. (3) The Company’s investment in this affiliated investment fund was $175 million at September 30, 2018 . Other affiliates’ investments in this affiliated investment fund was $40 million at September 30, 2018 . Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: September 30, 2018 December 31, 2017 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 34,663 $ 34,663 $ 34,284 $ 34,284 U.S. and foreign corporate 915 915 1,166 1,166 Other limited partnership interests 3,778 6,149 3,561 5,765 Other invested assets 1,755 1,934 2,172 2,506 Real estate joint ventures 36 40 38 43 Total $ 41,147 $ 43,701 $ 41,221 $ 43,764 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $100 million and $117 million at September 30, 2018 and December 31, 2017 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. As described in Note 12 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during both the nine months ended September 30, 2018 and 2017 . During the three months ended September 30, 2018, the Company securitized certain residential mortgage loans and acquired an interest in the related RMBS issued. While the Company has a variable interest in the issuer of the securities, it is not the primary beneficiary of the issuer of the securities since it does not have any rights to remove the servicer or veto rights over the servicer’s actions. During the three months ended September 30, 2018, the carrying value and the estimated fair value of the mortgage loans sold were $451 million and $478 million , respectively, resulting in a gain of $27 million , which was included within net investment gains (losses). The estimated fair value of the RMBS acquired in connection with the securitization was $102 million , which was included in the carrying amount and maximum exposure to loss for Structured Securities presented above. See Note 7 for information on how the estimated fair value of mortgage loans and RMBS is determined, the valuation approaches and key inputs, their placement in the fair value hierarchy, and for certain RMBS, quantitative information about the significant unobservable inputs and the sensitivity of their estimated fair value to changes in those inputs. Net Investment Income The components of net investment income were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Investment income: Fixed maturity securities AFS $ 1,849 $ 1,764 $ 5,450 $ 5,274 Equity securities 8 20 29 68 Mortgage loans 728 697 2,087 1,989 Policy loans 79 77 224 230 Real estate and real estate joint ventures 118 104 371 327 Other limited partnership interests 153 163 388 506 Cash, cash equivalents and short-term investments 38 20 87 54 Operating joint venture 2 6 23 12 Other 63 49 206 154 Subtotal 3,038 2,900 8,865 8,614 Less: Investment expenses 252 240 694 659 Net investment income $ 2,786 $ 2,660 $ 8,171 $ 7,955 See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. The Company invests in real estate joint ventures, other limited partnership interests and tax credit and renewable energy partnerships, and also does business through an operating joint venture, t he majority of which is accounted for under the equity method. Net investment income from other limited partnership interests and operating joint venture, accounted for under the equity method; and real estate joint ventures and tax credit and renewable energy partnerships, primarily accounted for under the equity method, totaled $98 million and $288 million for the three months and nine months ended September 30, 2018 , respectively, and $106 million and $293 million for the three months and nine months ended September 30, 2017 , re spectively. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Total gains (losses) on fixed maturity securities AFS: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Consumer $ — $ (5 ) $ — $ (5 ) Total U.S. and foreign corporate securities — (5 ) — (5 ) State and political subdivision — — — (1 ) OTTI losses on fixed maturity securities AFS recognized in earnings — (5 ) — (6 ) Fixed maturity securities AFS — net gains (losses) on sales and disposals 137 1 28 41 Total gains (losses) on fixed maturity securities AFS 137 (4 ) 28 35 Total gains (losses) on equity securities: OTTI losses recognized — by security type: Common stock — (4 ) — (16 ) Non-redeemable preferred stock — — — (1 ) Total OTTI losses on equity securities recognized in earnings — (4 ) — (17 ) Equity securities — net gains (losses) on sales and disposals 8 — 16 1 Change in estimated fair value of equity securities (1) 1 — (38 ) — Total gains (losses) on equity securities 9 (4 ) (22 ) (16 ) Mortgage loans 8 (16 ) (25 ) (44 ) Real estate and real estate joint ventures 39 169 139 436 Other limited partnership interests — (30 ) 8 (44 ) Other (2) 8 21 (171 ) (90 ) Subtotal 201 136 (43 ) 277 Change in estimated fair value of other limited partnership interests and real estate joint ventures 12 — 5 — Non-investment portfolio gains (losses) (8 ) (40 ) 17 (93 ) Subtotal 4 (40 ) 22 (93 ) Total net investment gains (losses) $ 205 $ 96 $ (21 ) $ 184 __________________ (1) C hanges in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were $5 million and ($22) million for the three months and nine months ended September 30, 2018 , respectively. See Note 1 . (2) Other gains (losses) included a renewable energy partnership realized loss of $0 and $83 million for the three months and nine months ended September 30, 2018 , respectively, and a leveraged lease impairment of $0 and $105 million for the three months and nine months ended September 30, 2018 , respectively. See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transacti |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. Derivatives Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. See Note 7 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, interest rate total return swaps, caps, floors, swaptions, futures and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and nonqualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. government and agency, or other fixed maturity security AFS. Structured interest rate swaps are included in interest rate swaps and are not designated as hedging instruments. Interest rate total return swaps are swaps whereby the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and the London Interbank Offered Rate (“LIBOR”), calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate total return swaps are used by the Company to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate total return swaps in nonqualifying hedging relationships. The Company purchases interest rate caps primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, and interest rate floors primarily to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in nonqualifying hedging relationships. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance, and to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded interest rate futures in nonqualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company’s long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in nonqualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and nonqualifying hedging relationships. A synthetic guaranteed interest contract (“GIC”) is a contract that simulates the performance of a traditional GIC through the use of financial instruments. Under a synthetic GIC, the contractholder owns the underlying assets. The Company guarantees a rate of return on those assets for a premium. Synthetic GICs are not designated as hedging instruments. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives, including foreign currency swaps and foreign currency forwards, to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and nonqualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in nonqualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional amount in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations and involuntary restructuring for corporate obligors, as well as repudiation, moratorium or governmental intervention for sovereign obligors. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in nonqualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. government and agency securities, or other fixed maturity securities AFS. These credit default swaps are not designated as hedging instruments. The Company enters into forwards to lock in the price to be paid for forward purchases of certain securities. The price is agreed upon at the time of the contract and payment for the contract is made at a specified future date. When the primary purpose of entering into these transactions is to hedge against the risk of changes in purchase price due to changes in credit spreads, the Company designates these transactions as credit forwards. The Company utilizes credit forwards in cash flow hedging relationships. Equity Derivatives The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, equity variance swaps, exchange-traded equity futures and equity total return swaps. Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the underlying equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. Certain of these contracts may also contain settlement provisions linked to interest rates. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in nonqualifying hedging relationships. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in nonqualifying hedging relationships. In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts and to pledge initial margin based on futures exchange requirements. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in nonqualifying hedging relationships. In an equity total return swap, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of an asset or a market index and LIBOR, calculated by reference to an agreed notional amount. No cash is exchanged at the outset of the contract. Cash is paid and received over the life of the contract based on the terms of the swap. The Company uses equity total return swaps to hedge its equity market guarantees in certain of its insurance products. Equity total return swaps can be used as hedges or to synthetically create investments. The Company utilizes equity total return swaps in nonqualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: September 30, 2018 December 31, 2017 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,450 $ 1,997 $ 1 $ 3,826 $ 2,289 $ 3 Foreign currency swaps Foreign currency exchange rate 969 29 5 1,082 47 17 Subtotal 3,419 2,026 6 4,908 2,336 20 Cash flow hedges: Interest rate swaps Interest rate 3,121 113 9 3,337 234 — Interest rate forwards Interest rate 3,023 — 302 3,333 — 127 Foreign currency swaps Foreign currency exchange rate 25,655 928 1,232 22,287 795 1,078 Subtotal 31,799 1,041 1,543 28,957 1,029 1,205 Total qualifying hedges 35,218 3,067 1,549 33,865 3,365 1,225 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 36,924 1,279 74 43,028 1,722 336 Interest rate floors Interest rate 12,701 53 — 7,201 91 — Interest rate caps Interest rate 63,044 259 1 53,079 78 2 Interest rate futures Interest rate 748 — — 2,257 1 2 Interest rate options Interest rate 20,775 78 1 7,525 142 11 Interest rate total return swaps Interest rate 1,048 — 25 1,048 8 2 Synthetic GICs Interest rate 16,868 — — 11,318 — — Foreign currency swaps Foreign currency exchange rate 6,783 675 110 6,739 547 164 Foreign currency forwards Foreign currency exchange rate 1,083 21 11 961 16 7 Credit default swaps — purchased Credit 941 27 5 980 7 8 Credit default swaps — written Credit 7,975 152 1 7,874 181 — Equity futures Equity market 1,129 — — 1,282 5 1 Equity index options Equity market 18,097 392 466 14,408 384 476 Equity variance swaps Equity market 3,530 47 175 3,530 45 169 Equity total return swaps Equity market 1,033 — 27 1,077 — 39 Total non-designated or nonqualifying derivatives 192,679 2,983 896 162,307 3,227 1,217 Total $ 227,897 $ 6,050 $ 2,445 $ 196,172 $ 6,592 $ 2,442 Based on gross notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both September 30, 2018 and December 31, 2017 . The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps and interest rate swaps that are used to synthetically create investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these nonqualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Freestanding derivative and hedging gains (losses) (1) $ (275 ) $ (167 ) $ (449 ) $ (634 ) Embedded derivative gains (losses) 199 141 738 317 Total net derivative gains (losses) $ (76 ) $ (26 ) $ 289 $ (317 ) __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. The following table presents earned income on derivatives: Three Months Nine Months 2018 2017 2018 2017 (In millions) Qualifying hedges: Net investment income $ 92 $ 73 $ 268 $ 220 Interest credited to policyholder account balances (27 ) (20 ) (79 ) (40 ) Nonqualifying hedges: Net derivative gains (losses) 87 93 253 327 Policyholder benefits and claims 2 2 6 4 Total $ 154 $ 148 $ 448 $ 511 Nonqualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Derivative Gains (Losses) Net Investment Income (1) Policyholder Benefits and Claims (2) (In millions) Three Months Ended September 30, 2018 Interest rate derivatives $ (200 ) $ — $ — Foreign currency exchange rate derivatives 54 — — Credit derivatives — purchased (6 ) — — Credit derivatives — written 48 — — Equity derivatives (186 ) — (25 ) Total $ (290 ) $ — $ (25 ) Three Months Ended September 30, 2017 Interest rate derivatives $ (60 ) $ (2 ) $ — Foreign currency exchange rate derivatives (238 ) — — Credit derivatives — purchased (6 ) — — Credit derivatives — written 24 — — Equity derivatives (124 ) (2 ) (52 ) Total $ (404 ) $ (4 ) $ (52 ) Nine Months Ended September 30, 2018 Interest rate derivatives $ (541 ) $ 4 $ — Foreign currency exchange rate derivatives 234 — — Credit derivatives — purchased 6 — — Credit derivatives — written (7 ) — — Equity derivatives (287 ) 1 (40 ) Total $ (595 ) $ 5 $ (40 ) Nine Months Ended September 30, 2017 Interest rate derivatives $ (260 ) $ (2 ) $ — Foreign currency exchange rate derivatives (639 ) — — Credit derivatives — purchased (14 ) — — Credit derivatives — written 80 — — Equity derivatives (442 ) (4 ) (149 ) Total $ (1,275 ) $ (6 ) $ (149 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. (2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities . The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Derivatives in Fair Value Hedging Relationships Hedged Items in Fair Value Hedging Relationships Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Ineffectiveness Recognized in Net Derivative Gains (Losses) (In millions) Three Months Ended September 30, 2018 Interest rate swaps: Fixed maturity securities AFS $ 1 $ (1 ) $ — Policyholder liabilities (1) (108 ) 109 1 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS and mortgage loans 4 (7 ) (3 ) Foreign-denominated policyholder account balances (2) — — — Total $ (103 ) $ 101 $ (2 ) Three Months Ended September 30, 2017 Interest rate swaps: Fixed maturity securities AFS $ 1 $ — $ 1 Policyholder liabilities (1) (13 ) 12 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities AFS (8 ) 9 1 Foreign-denominated policyholder account balances (2) 15 (16 ) (1 ) Total $ (5 ) $ 5 $ — Nine Months Ended September 30, 2018 Interest rate swaps: Fixed maturity securities AFS $ 4 $ (4 ) $ — Policyholder liabilities (1) (389 ) 392 3 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS and mortgage loans 28 (32 ) (4 ) Foreign-denominated policyholder account balances (2) 23 (23 ) — Total $ (334 ) $ 333 $ (1 ) Nine Months Ended September 30, 2017 Interest rate swaps: Fixed maturity securities AFS $ 2 $ (2 ) $ — Policyholder liabilities (1) (15 ) 83 68 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS (13 ) 14 1 Foreign-denominated policyholder account balances (2) 61 (40 ) 21 Total $ 35 $ 55 $ 90 __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. (2) Fixed rate or floating rate liabilities. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). These amounts were $0 and losses of less than $1 million for the three months and nine months ended September 30, 2018 , respectively, and $0 and $20 million for the three months and nine months ended September 30, 2017 , respectively. At September 30, 2018 and December 31, 2017 , the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed four years and five years , respectively. At September 30, 2018 and December 31, 2017 , the balance in AOCI associated with cash flow hedges was $1.1 billion and $1.4 billion , respectively. The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity: Derivatives in Cash Flow Amount of Gains Amount and Location Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Net Derivative (In millions) Three Months Ended September 30, 2018 Interest rate swaps $ (89 ) $ 1 $ 4 $ 4 Interest rate forwards (87 ) (3 ) 1 1 Foreign currency swaps 22 24 (1 ) — Credit forwards — — — — Total $ (154 ) $ 22 $ 4 $ 5 Three Months Ended September 30, 2017 Interest rate swaps $ 15 $ 8 $ 4 $ (2 ) Interest rate forwards 2 (1 ) 1 — Foreign currency swaps (37 ) 282 (1 ) — Credit forwards — — — — Total $ (20 ) $ 289 $ 4 $ (2 ) Nine Months Ended September 30, 2018 Interest rate swaps $ (311 ) $ 18 $ 13 $ 5 Interest rate forwards (200 ) — 2 — Foreign currency swaps 28 (214 ) (2 ) 5 Credit forwards — — — — Total $ (483 ) $ (196 ) $ 13 $ 10 Nine Months Ended September 30, 2017 Interest rate swaps $ 90 $ 22 $ 12 $ 5 Interest rate forwards 138 (5 ) 2 (1 ) Foreign currency swaps (2 ) 882 (1 ) 1 Credit forwards — 1 — — Total $ 226 $ 900 $ 13 $ 5 All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. At September 30, 2018 , the Company expected to reclassify $200 million of deferred net gains (losses) on derivatives in AOCI, included in the table above, to earnings within the next 12 months. Credit Derivatives In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the nonqualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $8.0 billion and $7.9 billion , at September 30, 2018 and December 31, 2017 , respectively. The Company can terminate these contr |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 7. Fair Value When developing estimated fair values, considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: September 30, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 55,241 $ 3,014 $ 58,255 U.S. government and agency 16,081 18,626 — 34,707 Foreign corporate — 20,861 4,003 24,864 RMBS — 19,419 2,944 22,363 ABS — 8,273 542 8,815 State and political subdivision — 6,982 — 6,982 CMBS — 5,389 69 5,458 Foreign government — 4,392 11 4,403 Total fixed maturity securities AFS 16,081 139,183 10,583 165,847 Equity securities 385 80 376 841 Other limited partnership interests — — 151 151 Short-term investments 999 1,270 649 2,918 Residential mortgage loans — FVO — — 323 323 Derivative assets: (1) Interest rate — 3,779 — 3,779 Foreign currency exchange rate — 1,653 — 1,653 Credit — 144 35 179 Equity market — 380 59 439 Total derivative assets — 5,956 94 6,050 Embedded derivatives within asset host contracts (3) — — — — Separate account assets (3) 21,276 95,654 1,009 117,939 Total assets $ 38,741 $ 242,143 $ 13,185 $ 294,069 Liabilities Derivative liabilities: (1) Interest rate $ — $ 86 $ 327 $ 413 Foreign currency exchange rate — 1,354 4 1,358 Credit — 6 — 6 Equity market — 493 175 668 Total derivative liabilities — 1,939 506 2,445 Embedded derivatives within liability host contracts (2) — — 290 290 Separate account liabilities (3) — 8 8 16 Total liabilities $ — $ 1,947 $ 804 $ 2,751 December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 54,629 $ 3,461 $ 58,090 U.S. government and agency 18,802 19,743 — 38,545 Foreign corporate — 21,471 4,125 25,596 RMBS — 19,372 3,262 22,634 ABS — 7,079 787 7,866 State and political subdivision — 7,551 — 7,551 CMBS — 5,461 27 5,488 Foreign government — 4,471 31 4,502 Total fixed maturity securities AFS 18,802 139,777 11,693 170,272 Equity securities 399 893 366 1,658 Short-term investments 2,056 1,092 7 3,155 Residential mortgage loans — FVO — — 520 520 Derivative assets: (1) Interest rate 1 4,556 8 4,565 Foreign currency exchange rate — 1,405 — 1,405 Credit — 149 39 188 Equity market 5 363 66 434 Total derivative assets 6 6,473 113 6,592 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,571 106,294 960 130,825 Total assets $ 44,834 $ 254,529 $ 13,659 $ 313,022 Liabilities Derivative liabilities: (1) Interest rate $ 2 $ 351 $ 130 $ 483 Foreign currency exchange rate — 1,261 5 1,266 Credit — 8 — 8 Equity market 1 515 169 685 Total derivative liabilities 3 2,135 304 2,442 Embedded derivatives within liability host contracts (3) — — 876 876 Separate account liabilities (3) — 7 2 9 Total liabilities $ 3 $ 2,142 $ 1,182 $ 3,327 __________________ (1) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At September 30, 2018 and December 31, 2017 , debt and equity securities also included embedded derivatives of $0 and ($113) million , respectively. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company’s and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third-party pricing providers and the controls and procedures to evaluate third-party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of the Board of Directors of each of MetLife, Inc. and Metropolitan Life Insurance Company regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities AFS priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities AFS and 2% of the total estimated fair value of Level 3 fixed maturity securities AFS at September 30, 2018 . The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. Securities and Short-term Investments When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. Other Limited Partnership Interests The estimated fair values of other limited partnership interests are generally based on the Company’s share of the net asset value (“NAV”) of the other limited partnership interests as provided on the financial statements of the investee. In certain circumstances, management may adjust the NAV when it has sufficient evidence to support applying such adjustments. The valuation of most instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed maturity securities AFS U.S. corporate and Foreign corporate securities Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • market yield curve; call provisions • observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues U.S. government and agency, State and political subdivision and Foreign government securities Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • independent non-binding broker quotations • benchmark U.S. Treasury yield or other yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • credit spreads • comparable securities that are actively traded Structured Securities Valuation Approaches: Principally the market and income approaches. Valuation Approaches: Principally the market and income approaches. Key Inputs: Key Inputs: • quoted prices in markets that are not active • credit spreads • spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Equity securities Valuation Approaches: Principally the market approach. Valuation Approaches: Principally the market and income approaches. Key Input: Key Inputs: • quoted prices in markets that are not considered active • credit ratings; issuance structures • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • independent non-binding broker quotations Short-term investments and Other limited partnership interests • Short-term investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and observable inputs used in their valuation are also similar to those described above. • Short-term investments are of a similar nature and class to the fixed maturity securities AFS and equity securities described above; accordingly, the valuation approaches and unobservable inputs used in their valuation are also similar to those described above. • Valuation approaches for other limited partnership interests are discussed below. Residential mortgage loans — FVO • N/A Valuation Approaches: Principally the market approach. Valuation Techniques and Key Inputs: These investments are based primarily on matrix pricing or other similar techniques that utilize inputs from mortgage servicers that are unobservable or cannot be derived principally from, or corroborated by, observable market data. Separate account assets and Separate account liabilities (1) Mutual funds and hedge funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported NAV provided by the fund managers Other limited partnership interests • N/A Valued giving consideration to the underlying holdings of the partnerships and adjusting, if appropriate. Key Inputs: • liquidity; bid/ask spreads; performance record of the fund manager • other relevant variables that may impact the exit value of the particular partnership interest __________________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets, including: mutual fund interests, fixed maturity securities AFS, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Fixed maturity securities AFS, equity securities, derivatives, short-term investments and cash and cash equivalents are similar in nature to the instruments described under “— Securities and Short-term Investments,” “—Other Limited Partnership Interests” and “— Derivatives — Freestanding Derivatives.” Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.” The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period . Freestanding Derivatives Level 2 Valuation Approaches and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. Level 3 Valuation Approaches and Key Inputs: These valuation methodologies generally use the same inputs as described in the corresponding sections for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. Key inputs are as follows: Instrument Interest Rate Foreign Currency Exchange Rate Credit Equity Market Inputs common to Level 2 and Level 3 by instrument type • swap yield curves • swap yield curves • swap yield curves • swap yield curves • basis curves • basis curves • credit curves • spot equity index levels • interest rate volatility (1) • currency spot rates • recovery rates • dividend yield curves • cross currency basis curves • equity volatility (1) Level 3 • swap yield curves (2) • swap yield curves (2) • swap yield curves (2) • dividend yield curves (2) • basis curves (2) • basis curves (2) • credit curves (2) • equity volatility (1), (2) • repurchase rates • cross currency basis curves (2) • credit spreads • correlation between model inputs (1) • currency correlation • repurchase rates • independent non-binding broker quotations __________________ (1) Option-based only. (2) Extrapolation beyond the observable limits of the curve(s). Embedded Derivatives Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and annuity contracts, and those related to funds withheld on ceded reinsurance agreements. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the consolidated balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described in “— Investments — Securities and Short-term Investments.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within policyholder account balances with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company’s credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Approaches and Key Inputs: Direct and assumed guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and assumed guaranteed minimum benefits” and also include counterparty credit spreads. Embedded derivatives within funds withheld related to certain ceded reinsurance These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curves and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at September 30, 2018 and December 31, 2017 . Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: September 30, 2018 December 31, 2017 Impact of Valuation Significant Unobservable Inputs Range Weighted Average (1) Range Weighted Average (1) Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 85 - 126 105 83 - 142 111 Increase • Market pricing • Quoted prices (4) 37 - 703 131 10 - 443 123 Increase RMBS • Market pricing • Quoted prices (4) — - 107 94 — - 126 94 Increase (5) ABS • Market pricing • Quoted prices (4) 14 - 102 100 27 - 104 100 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 100 - 101 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 310 - 331 200 - 300 Increase (7) • Repurchase rates (8) (5) - 55 (5) - 5 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (23) - 2 (14) - (3) Increase (7) Credit • Present value techniques • Credit spreads (9) 96 - 100 — - — Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value tech |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | 8. Equity Dividend Restrictions The table below sets forth the dividends permitted to be paid in 2018 by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and the dividends paid during the nine months ended September 30, 2018 : Company Paid (1) Permitted Without (In millions) Metropolitan Life Insurance Company $ 2,424 (2 ) $ 3,075 __________________ (1) Reflects all amounts paid, including those requiring regulatory approval. (2) Represents ordinary dividends of $1.7 billion and an extraordinary dividend of $705 million that was paid with regulatory approval. The extraordinary dividend was paid in cash with proceeds from the sale to an affiliate of certain property, equipment, leasehold improvements and computer software that were non-admitted by Metropolitan Life Insurance Company for statutory accounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase. See Note 12 of the Notes to Consolidated Financial Statements included in the 2017 Annual Report for additional information on dividend restrictions. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 OCI before reclassifications (1,212 ) (154 ) (35 ) 130 (1,271 ) Deferred income tax benefit (expense) 252 38 7 (27 ) 270 AOCI before reclassifications, net of income tax 2,973 897 (75 ) (2,009 ) 1,786 Amounts reclassified from AOCI (73 ) (26 ) — 31 (68 ) Deferred income tax benefit (expense) 16 — — (7 ) 9 Amounts reclassified from AOCI, net of income tax (57 ) (26 ) — 24 (59 ) Balance, end of period $ 2,916 $ 871 $ (75 ) $ (1,985 ) $ 1,727 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,549 $ 1,216 $ (82 ) $ (1,813 ) $ 4,870 OCI before reclassifications 560 (20 ) 29 2 571 Deferred income tax benefit (expense) (214 ) 7 (7 ) (1 ) (215 ) AOCI before reclassifications, net of income tax 5,895 1,203 (60 ) (1,812 ) 5,226 Amounts reclassified from AOCI (30 ) (293 ) — 40 (283 ) Deferred income tax benefit (expense) 10 102 — (14 ) 98 Amounts reclassified from AOCI, net of income tax (20 ) (191 ) — 26 (185 ) Balance, end of period $ 5,875 $ 1,012 $ (60 ) $ (1,786 ) $ 5,041 Nine Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 OCI before reclassifications (5,796 ) (483 ) (23 ) 130 (6,172 ) Deferred income tax benefit (expense) 1,237 93 2 (27 ) 1,305 AOCI before reclassifications, net of income tax 1,792 516 (68 ) (1,679 ) 561 Amounts reclassified from AOCI 26 183 — 93 302 Deferred income tax benefit (expense) (5 ) (35 ) — (20 ) (60 ) Amounts reclassified from AOCI, net of income tax 21 148 — 73 242 Cumulative effects of changes in accounting principles (119 ) — — — (119 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,222 207 (7 ) (379 ) 1,043 Cumulative effects of changes in accounting principles, net of income tax (2) 1,103 207 (7 ) (379 ) 924 Balance, end of period $ 2,916 $ 871 $ (75 ) $ (1,985 ) $ 1,727 Nine Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 3,592 $ 1,459 $ (67 ) $ (1,865 ) $ 3,119 OCI before reclassifications 3,434 226 9 5 3,674 Deferred income tax benefit (expense) (1,215 ) (79 ) (2 ) (2 ) (1,298 ) AOCI before reclassifications, net of income tax 5,811 1,606 (60 ) (1,862 ) 5,495 Amounts reclassified from AOCI 98 (913 ) — 118 (697 ) Deferred income tax benefit (expense) (34 ) 319 — (42 ) 243 Amounts reclassified from AOCI, net of income tax 64 (594 ) — 76 (454 ) Balance, end of period $ 5,875 $ 1,012 $ (60 ) $ (1,786 ) $ 5,041 __________________ (1) See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Three Months Nine Months 2018 2017 2018 2017 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 136 $ (5 ) $ 31 $ 30 Net investment gains (losses) Net unrealized investment gains (losses) 6 (3 ) 16 (5 ) Net investment income Net unrealized investment gains (losses) (69 ) 38 (73 ) (123 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 73 30 (26 ) (98 ) Income tax (expense) benefit (16 ) (10 ) 5 34 Net unrealized investment gains (losses), net of income tax 57 20 (21 ) (64 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 1 8 18 22 Net derivative gains (losses) Interest rate swaps 4 4 13 12 Net investment income Interest rate forwards (3 ) (1 ) — (5 ) Net derivative gains (losses) Interest rate forwards 1 1 2 2 Net investment income Foreign currency swaps 24 282 (214 ) 882 Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (2 ) (1 ) Net investment income Credit forwards — — — 1 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 26 293 (183 ) 913 Income tax (expense) benefit — (102 ) 35 (319 ) Gains (losses) on cash flow hedges, net of income tax 26 191 (148 ) 594 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (36 ) (45 ) (107 ) (134 ) Amortization of prior service (costs) credit 5 5 14 16 Amortization of defined benefit plan items, before income tax (31 ) (40 ) (93 ) (118 ) Income tax (expense) benefit 7 14 20 42 Amortization of defined benefit plan items, net of income tax (24 ) (26 ) (73 ) (76 ) Total reclassifications, net of income tax $ 59 $ 185 $ (242 ) $ 454 __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 10 . |
Other Expenses
Other Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 9. Other Expenses Information on other expenses was as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) General and administrative expenses $ 678 $ 689 $ 2,018 $ 1,943 Pension, postretirement and postemployment benefit costs 18 51 52 138 Premium taxes, other taxes, and licenses & fees 96 63 279 212 Commissions and other variable expenses 445 436 1,317 1,369 Capitalization of DAC (7 ) (17 ) (26 ) (57 ) Amortization of DAC and VOBA 104 (43 ) 271 124 Interest expense on debt 27 26 81 79 Total other expenses $ 1,361 $ 1,205 $ 3,992 $ 3,808 Certain prior year amounts have been reclassified to conform to the current year presentation, which has been revised to align the expense categories with the Company’s businesses. The reclassifications did not result in a change to total other expenses. Affiliated Expenses Commissions and other variable expenses, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 13 for a discussion of affiliated expenses included in the table above. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans Pension and Other Postretirement Benefit Plans The Company sponsors and administers various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. Participating affiliates are allocated an equitable share of net expense related to the plans, proportionate to other expenses being allocated to these affiliates. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 40 $ 1 $ 40 $ — Interest costs 93 13 98 16 Divestitures — — 3 2 Expected return on plan assets (131 ) (18 ) (121 ) (16 ) Amortization of net actuarial (gains) losses 45 (9 ) 45 — Amortization of prior service costs (credit) — (5 ) — (5 ) Allocated to affiliates (20 ) 6 (9 ) — Net periodic benefit costs (credit) $ 27 $ (12 ) $ 56 $ (3 ) Nine Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 119 $ 4 $ 120 $ 3 Interest costs 279 38 295 50 Divestitures — — 3 2 Expected return on plan assets (394 ) (54 ) (362 ) (48 ) Amortization of net actuarial (gains) losses 133 (26 ) 134 — Amortization of prior service costs (credit) — (14 ) (1 ) (15 ) Allocated to affiliates (58 ) 19 (26 ) (1 ) Net periodic benefit costs (credit) $ 79 $ (33 ) $ 163 $ (9 ) See Note 14 for information on benefit plan transfers to an affiliate. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 11. Income Tax The Company’s effective tax rates differ from the U.S. statutory rate typically due to non-taxable investment income and tax credits. The Company’s year-to-date results include a tax benefit of $36 million related to a non-cash transfer of assets from a wholly-owned U.K. investment subsidiary. The Company’s prior period results include tax benefits of $25 million for tax audit settlements. On December 22, 2017, President Trump signed into law U.S. Tax Reform. U.S. Tax Reform includes numerous changes in tax law, including a permanent reduction in the U.S. federal corporate income tax rate from 35% to 21% , which took effect for taxable years beginning on or after January 1, 2018. U.S. Tax Reform moves the United States from a worldwide tax system to a participation exemption system by providing corporations a 100% dividends received deduction for dividends distributed by a controlled foreign corporation. To transition to that new system, U.S. Tax Reform imposed a one-time deemed repatriation tax on unremitted earnings and profits at a rate of 8.0% for illiquid assets and 15.5% for cash and cash equivalents. In accordance with Staff Accounting Bulletin (“SAB”) 118 issued by the U.S. Securities and Exchange Commission (“SEC”) in December 2017, the Company recorded provisional amounts for certain items for which the income tax accounting is not complete. For these items, the Company recorded a reasonable estimate of the tax effects of U.S. Tax Reform. The estimates will be reported as provisional amounts during the measurement period, which will not exceed one year from the date of enactment of U.S. Tax Reform. The Company may reflect adjustments to its provisional amounts upon obtaining, preparing, or analyzing additional information about facts and circumstances that existed as of the enactment date that, if known, would have affected the income tax effects initially reported as provisional amounts. At December 31, 2017 , the Company recorded provisional estimates for the deemed repatriation transition tax, global intangible low-tax income, compensation and fringe benefits, alternative minimum tax credits, and tax credit partnerships. At September 30, 2018 , updates were made to the provisional amounts for tax credit partnerships, as described in the following paragraph. No other updates to provisional estimates were made. Certain tax credit partnership investments derive returns in part from income tax credits. The Company recognizes changes in tax attributes at the partnership level when reported by the investee in its financial information. The Company did not receive the necessary investee financial information to determine the impacts of U.S. Tax Reform on the tax attributes of its tax credit partnership investments until the third quarter of 2018. Accordingly, prior to the third quarter of 2018, the Company applied prior law to these equity method investments in accordance with SAB 118. After receiving the information, an after tax reduction in tax credit partnerships’ equity method income of $32 million was included in net investment income for both the three months and nine months ended September 30, 2018 . See Note 15 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for further information regarding SAB 118 items. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 12. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be reasonably estimated at September 30, 2018 . While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, the Company has not made an accrual. As of September 30, 2018 , the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $475 million . Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Asbestos-Related Claims Metropolitan Life Insurance Company is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing, or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company’s employees during the period from the 1920’s through approximately the 1950’s and allege that Metropolitan Life Insurance Company learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. Metropolitan Life Insurance Company believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company’s defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs — it had no special relationship with the plaintiffs and did not manufacture, produce, distribute, or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company’s motions. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. As reported in the 2017 Annual Report, Metropolitan Life Insurance Company received approximately 3,514 asbestos-related claims in 2017 . During the nine months ended September 30, 2018 and 2017 , Metropolitan Life Insurance Company received approximately 2,558 and 2,742 new asbestos-related claims, respectively. See Note 16 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report for historical information concerning asbestos claims and Metropolitan Life Insurance Company’s increase in its recorded liability at December 31, 2017 . The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. The ability of Metropolitan Life Insurance Company to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company when exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company’s judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company’s total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company’s financial position. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company’s recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company’s analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. Metropolitan Life Insurance Company reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through September 30, 2018 . Regulatory Matters The Company receives and responds to subpoenas or other inquiries seeking a broad range of information from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the SEC; federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority (“FINRA”). The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida In July 2010, the Environmental Protection Agency (“EPA”) advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as “Administrative Orders on Consent,” that New England Mutual Life Insurance Company (“New England Mutual”) signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the “Chemform Site”). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. In September 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party agreed to be responsible for certain environmental testing at the Chemform Site. The EPA may seek additional costs if the environmental testing identifies issues. The EPA and Metropolitan Life Insurance Company have reached a settlement in principle on the EPA’s claim for past costs. The Company estimates that the aggregate cost to resolve this matter, including the settlement for claims of past costs and the costs of environmental testing, will not exceed $300 thousand . Sales Practices Regulatory Matters Regulatory authorities in a number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by Metropolitan Life Insurance Company. These investigations often focus on the conduct of particular financial services representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices-related investigations or inquiries. Unclaimed Property Litigation Total Asset Recovery Services, LLC. v. MetLife, Inc., et al. (Supreme Court of the State of New York, County of New York, filed November 17, 2017) Alleging that MetLife, Inc., Metropolitan Life Insurance Company , and several other insurance companies violated the New York False Claims Act (the “Act”) by filing false unclaimed property reports from 1986 to 2017 with New York to avoid having to escheat the proceeds of more than 25,000 life insurance policies, including policies for which the defendants escheated funds as part of their demutualizations in the late 1990s, Total Asset Recovery Services (“The Relator”) has brought an action under the qui tam provision of the Act on behalf of itself and New York. The Relator originally filed this action under seal in 2010, and the complaint was unsealed on December 19, 2017. The Relator seeks treble damages and other relief. The Company intends to defend this action vigorously. Total Control Accounts Litigation Metropolitan Life Insurance Company is a defendant in a lawsuit related to its use of retained asset accounts, known as Total Control Accounts (“TCA”), as a settlement option for death benefits. Owens v. Metropolitan Life Insurance Company (N.D. Ga., filed April 17, 2014) Plaintiff filed this class action lawsuit on behalf of all persons for whom Metropolitan Life Insurance Company established a TCA, to pay death benefits under an Employee Retirement Income Security Act of 1974 (“ERISA”) plan. The action alleges that Metropolitan Life Insurance Company’s use of the TCA as the settlement option for life insurance benefits under some group life insurance policies violates Metropolitan Life Insurance Company’s fiduciary duties under ERISA. As damages, plaintiff seeks disgorgement of profits that Metropolitan Life Insurance Company realized on accounts owned by members of the class. In addition, plaintiff, on behalf of a subgroup of the class, seeks interest under Georgia’s delayed settlement interest statute, alleging that the use of the TCA as the settlement option did not constitute payment. On September 27, 2016, the court denied Metropolitan Life Insurance Company’s summary judgment motion in full and granted plaintiff’s partial summary judgment motion. On September 29, 2017, the court certified a nationwide class. The court also certified a Georgia subclass. The Company intends to defend this action vigorously. Inquiries into Pension Benefits and Related Litigation The Company informed its primary state regulator, the New York Department of Financial Services (“NYDFS”), about its practices in connection with the payment of certain pension benefits to annuitants and related matters. The NYDFS is examining the issue. The Division of Enforcement of the SEC is also investigating this matter and several additional regulators, including, but not limited to, the Massachusetts Securities Division, have made inquiries into these practices, including as to related disclosures. It is possible that other jurisdictions may pursue similar investigations or inquiries. As previously disclosed in the 2017 Annual Report, the Company, in connection with a review of practices and procedures used to estimate reserves related to certain RIS group annuitants who have been unresponsive or missing over time, identified a material weakness in its internal control over financial reporting related to certain RIS group annuity reserves. In conjunction with the material weakness, the Company increased reserves by $510 million pre-tax to reinstate reserves previously released, and to reflect accrued interest and other related liabilities. See Note 1 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report. The Company is exposed to lawsuits and regulatory investigations, and could be exposed to additional legal actions relating to these matters. These may result in payments, including damages, fines, penalties, interest and other amounts assessed or awarded by courts or regulatory authorities under applicable escheat, tax, securities, ERISA, or other laws or regulations. The Company could incur significant costs in connection with these actions. The Company’s increase in reserves does not reflect, and the Company has not recorded an accrual for, any such potential amounts. An estimate of the possible loss or range of loss cannot be made at this time. Roycroft v. MetLife, Inc., et al. (S.D.N.Y., filed June 18, 2018) Plaintiff filed this putative class action against MetLife, Inc. and Metropolitan Life Insurance Company on behalf of all persons due benefits under group annuity contracts but who did not receive the entire amount to which they were entitled. Plaintiff asserts claims for unjust enrichment, accounting, and restitution based on allegations that the Company and MetLife, Inc. failed to timely pay annuity benefits to certain group annuitants. Plaintiff seeks declaratory and injunctive relief, as well as unspecified compensatory and punitive damages, and other relief. The Company and MetLife, Inc. intend to defend this action vigorously. Other Litigation Sun Life Assurance Company of Canada Indemnity Claim In 2006, Sun Life Assurance Company of Canada (“Sun Life”), as successor to the purchaser of Metropolitan Life Insurance Company’s Canadian operations, filed a lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for “market conduct claims” related to certain individual life insurance policies sold by Metropolitan Life Insurance Company that were subsequently transferred to Sun Life. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company’s motion for summary judgment. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto alleging sales practices claims regarding the policies sold by Metropolitan Life Insurance Company and transferred to Sun Life (the “Ontario Litigation”). On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that another purported class action lawsuit was filed against Sun Life in Vancouver, BC alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits . In September 2018, the Court of Appeal for Ontario affirmed the lower court’s decision to not certify the sales practices claims in the Ontario Litigation. These sales practices cases against Sun Life are ongoing, and the Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. Voshall v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Los Angeles, April 8, 2015) Plaintiff filed this putative class action lawsuit on behalf of himself and all persons covered under a long-term group disability income insurance policy issued by Metropolitan Life Insurance Company to public entities in California between April 8, 2011 and April 8, 2015. Plaintiff alleges that Metropolitan Life Insurance Company improperly reduced benefits by including cost of living adjustments and employee paid contributions in the employer retirement benefits and other income that reduces the benefit payable under such policies. Plaintiff asserts causes of action for declaratory relief, violation of the California Business & Professions Code, breach of contract and breach of the implied covenant of good faith and fair dealing. The Company intends to defend this action vigorously. Martin v. Metropolitan Life Insurance Company (Superior Court of the State of California, County of Contra Costa, filed December 17, 2015) Plaintiffs filed this putative class action lawsuit on behalf of themselves and all California persons who have been charged compound interest by Metropolitan Life Insurance Company in life insurance policy and/or premium loan balances within the last four years. Plaintiffs allege that Metropolitan Life Insurance Company has engaged in a pattern and practice of charging compound interest on life insurance policy and premium loans without the borrower authorizing such compounding, and that this constitutes an unlawful business practice under California law. Plaintiffs assert causes of action for declaratory relief, violation of California’s Unfair Competition Law and Usury Law, and unjust enrichment. Plaintiffs seek declaratory and injunctive relief, restitution of interest, and damages in an unspecified amount. On April 12, 2016, the court granted Metropolitan Life Insurance Company’s motion to dismiss. Plaintiffs have appealed this ruling to the United States Court of Appeals for the Ninth Circuit. The Company intends to defend this action vigorously. Newman v. Metropolitan Life Insurance Company (N.D. Ill., filed March 23, 2016) Plaintiff filed this putative class action alleging causes of action for breach of contract, fraud, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, based on Metropolitan Life Insurance Company’s class-wide increase in premiums charged for long-term care insurance policies. Plaintiff alleges a class consisting of herself and all persons over age 65 who selected a Reduced Pay at Age 65 payment feature and whose premium rates were increased after age 65. Plaintiff asserts that premiums could not be increased for these class members and/or that marketing material was misleading as to Metropolitan Life Insurance Company’s right to increase premiums. Plaintiff seeks unspecified compensatory, statutory and punitive damages, as well as recessionary and injunctive relief. On April 12, 2017, the court granted Metropolitan Life Insurance Company’s motion, dismissing the action with prejudice. Plaintiff appealed this ruling to the United States Court of Appeals for the Seventh Circuit (the “Seventh Circuit”) and on February 6, 2018, the Seventh Circuit reversed and remanded for further proceedings, ruling that Plaintiff is entitled to relief on her contract claim. Following Metropolitan Life Insurance Company’s petition for rehearing, the Seventh Circuit issued an amended opinion on March 22, 2018, holding that plaintiff’s claim survived Metropolitan Life Insurance Company’s motion to dismiss but finding that the policy is ambiguous as to Metropolitan Life Insurance Company’s right to raise plaintiff’s premiums. The Seventh Circuit held that on remand to the district court, the parties may introduce evidence to try to resolve this ambiguity. Miller, et al. v. MetLife, Inc., et al. (C.D. Cal., filed April 7, 2017) Plaintiff filed this putative class action against MetLife, Inc. and Metropolitan Life Insurance Company in the U.S. District Court for the Central District of California, purporting to assert claims on behalf of all persons who replaced their MetLife Optional Term Life or Group Universal Life policy with a Group Variable Universal Life policy wherein MetLife allegedly charged smoker rates for certain non-smokers. Plaintiff seeks unspecified compensatory and punitive damages, as well as other relief. On September 25, 2017, plaintiff dismissed the action and refiled the complaint in U.S. District Court for the Southern District of New York. On November 9, 2017, plaintiff dismissed MetLife, Inc. without prejudice from the action. The Company intends to defend this action vigorously. Julian & McKinney v. Metropolitan Life Insurance Company (S.D.N.Y., filed February 9, 2017) Plaintiffs filed this putative class and collective action on behalf of themselves and all current and former long-term disability (“LTD”) claims specialists between February 2011 and the present for alleged wage and hour violations under the Fair Labor Standards Act, the New York Labor Law, and the Connecticut Minimum Wage Act. The suit alleges that Metropolitan Life Insurance Company improperly reclassified the plaintiffs and similarly situated LTD claims specialists from non-exempt to exempt from overtime pay in November 2013. As a result, they and members of the putative class were no longer eligible for overtime pay even though they allege they continued to work more than 40 hours per week. On March 22, 2018, the Court conditionally certified the case as a collective action, requiring that notice be mailed to LTD claims specialists who worked for the Company from February 8, 2014 to the present. The Company intends to defend this action vigorously. Sales Practices Claims Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds, other products or the misuse of client assets. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys’ fees. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Summary Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s consolidated net income or cash flows in particular quarterly or annual periods. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.9 billion and $3.3 billion at September 30, 2018 and December 31, 2017 , respectively. Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to fund partnership investments and to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $3.8 billion and $3.9 billion at September 30, 2018 and December 31, 2017 , respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $453 million , with a cumulative maximum of $839 million , while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company’s recorded liabilities were $4 million at both September 30, 2018 and December 31, 2017 for indemnities, guarantees and commitments. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $471 million and $1.5 billion for the three months and nine months ended September 30, 2018 , respectively, and $575 million and $1.7 billion for the three months and nine months ended September 30, 2017 , respectively. Total revenues received from affiliates related to these agreements were $18 million and $133 million for the three months and nine months ended September 30, 2018 , respectively, and $58 million and $175 million for the three months and nine months ended September 30, 2017 , respectively. The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates’ activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $328 million and $1.0 billion for the three months and nine months ended September 30, 2018 , respectively, and $378 million and $1.1 billion for the three months and nine months ended September 30, 2017 , respectively, and were reimbursed to the Company by these affiliates. The Company had net payables to affiliates, related to the items discussed above, of $152 million and $205 million at September 30, 2018 and December 31, 2017 , respectively. See Notes 5 and 10 for additional information on related party transactions. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MetLife Reinsurance Company of Charleston (“MRC”), MetLife Reinsurance Company of Vermont, and Metropolitan Tower Life Insurance Company, all of which are related parties. Additionally, the Company has reinsurance agreements with Brighthouse Insurance, Brighthouse Life Insurance Company of NY and New England Life Insurance Company, former subsidiaries of MetLife, Inc. that were part of the separation of Brighthouse and were related parties through June 2018 (see Note 5). Information regarding the significant effects of affiliated reinsurance included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Nine Months 2018 2017 2018 (1) 2017 (1) (In millions) Premiums Reinsurance assumed $ 2 $ 5 $ 7 $ 118 Reinsurance ceded (24 ) (32 ) (87 ) (101 ) Net premiums $ (22 ) $ (27 ) $ (80 ) $ 17 Universal life and investment-type product policy fees Reinsurance assumed $ — $ (2 ) $ (2 ) $ 16 Reinsurance ceded (4 ) (6 ) (14 ) (16 ) Net universal life and investment-type product policy fees $ (4 ) $ (8 ) $ (16 ) $ — Other revenues Reinsurance assumed $ (2 ) $ 4 $ 3 $ 30 Reinsurance ceded 138 139 401 421 Net other revenues $ 136 $ 143 $ 404 $ 451 Policyholder benefits and claims Reinsurance assumed $ 1 $ 4 $ 5 $ 63 Reinsurance ceded (33 ) (26 ) (90 ) (90 ) Net policyholder benefits and claims $ (32 ) $ (22 ) $ (85 ) $ (27 ) Interest credited to policyholder account balances Reinsurance assumed $ 8 $ 12 $ 30 $ 36 Reinsurance ceded (3 ) (3 ) (9 ) (9 ) Net interest credited to policyholder account balances $ 5 $ 9 $ 21 $ 27 Other expenses Reinsurance assumed $ — $ (4 ) $ 10 $ 33 Reinsurance ceded 154 139 412 459 Net other expenses $ 154 $ 135 $ 422 $ 492 __________________ (1) Includes the following amounts for reinsurance transactions with Brighthouse, which effective July 1, 2018 was no longer considered a related party: Nine Months 2018 2017 (In millions) Premiums Reinsurance assumed $ 1 $ 112 Universal life and investment-type product policy fees Reinsurance assumed $ (2 ) $ 15 Other revenues Reinsurance assumed $ 7 $ 30 Policyholder benefits and claims Reinsurance assumed $ 2 $ 60 Interest credited to policyholder account balances Reinsurance assumed $ 7 $ 12 Other expenses Reinsurance assumed $ 10 $ 9 Reinsurance ceded — 27 Net other expenses $ 10 $ 36 Information regarding the significant effects of affiliated reinsurance included on the interim condensed consolidated balance sheets was as follows at: September 30, 2018 December 31, 2017 Assumed Ceded Assumed (1) Ceded (In millions) Assets Premiums, reinsurance and other receivables $ — $ 12,672 $ 47 $ 12,762 Deferred policy acquisition costs and value of business acquired — (181 ) — (180 ) Total assets $ — $ 12,491 $ 47 $ 12,582 Liabilities Future policy benefits $ 64 $ (1 ) $ 380 $ (4 ) Policyholder account balances 154 — 166 — Other policy-related balances 1 13 104 15 Other liabilities 836 12,371 1,858 12,970 Total liabilities $ 1,055 $ 12,383 $ 2,508 $ 12,981 __________________ (1) Includes the following amounts for reinsurance transactions with Brighthouse, which effective July 1, 2018 was no longer considered a related party: December 31, 2017 Assumed (In millions) Assets Premiums, reinsurance and other receivables $ 47 Liabilities Future policy benefits $ 313 Other policy-related balances 101 Other liabilities 1,028 Total liabilities $ 1,442 The Company ceded two blocks of business to an affiliate on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and were $3 million and $16 million at September 30, 2018 and December 31, 2017 , respectively. Net derivative gains (losses) associated with these embedded derivatives were $3 million and $13 million for the three months and nine months ended September 30, 2018 , respectively, and $0 and ($6) million for the three months and nine months ended September 30, 2017 , respectively. Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and was $442 million and $882 million at September 30, 2018 and December 31, 2017 , respectively. Net derivative gains (losses) associated with the embedded derivative were $77 million and $440 million for the three months and nine months ended September 30, 2018 , respectively, and ($1) million and ($124) million for the three months and nine months ended September 30, 2017 , respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events New York Special Considerations Letter The NYDFS issued its annual “Special Considerations” letter (“SCL”) to New York licensed insurers on November 2, 2018. The SCL includes certain provisions that require such insurers, among other things, to use certain assumptions and perform certain tests as part of year-end asset adequacy testing. The Company is currently evaluating the SCL’s potential impact. Employee Benefit Plan Transfers Effective October 1, 2018, the Company amended certain qualified and nonqualified defined benefit pension plans, other postretirement employee benefit plans and defined contribution plans to replace the Company as plan sponsor with an affiliate. As part of the non-cash transfer of the employee benefits, the Company expects to record in the fourth quarter of 2018 a net decrease to total equity of approximately $100 million , which includes a decrease to additional paid-in capital of approximately $1.8 billion , substantially offset by an increase to AOCI of approximately $1.7 billion . |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 consolidated balance sheet data was derived from audited consolidated financial statements included in Metropolitan Life Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) , which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2017 Annual Report. Consolidation The accompanying interim condensed consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. The Company uses the equity method of accounting for equity securities when it has significant influence or at least 20% interest and for real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Subsequent to the adoption of guidance relating to the recognition and measurement of financial instruments on January 1, 2018, the Company accounts for interests in unconsolidated entities that are not accounted for under the equity method, at estimated fair value. Such investments were previously accounted for under the cost method of accounting. See “ — Adoption of New Accounting Pronouncements.” Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. |
Reclassification | Reclassifications Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform to the 2018 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. |
New Accounting Pronouncements | Adoption of New Accounting Pronouncements Effective January 1, 2018, the Company early adopted guidance relating to income taxes. The new guidance was applied in the period of adoption. Current GAAP guidance requires that the effect of a change in tax laws or rates on deferred tax liabilities or assets to be included in income from continuing operations in the reporting period that includes the enactment date, even if the related income tax effects were originally charged or credited directly to accumulated other comprehensive income (“AOCI”). The Company’s accounting policy for the release of stranded tax effects in AOCI is on an aggregate portfolio basis. The new guidance allows a reclassification of AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“U.S. Tax Reform”). Due to U.S. Tax Reform and the change in corporate tax rates, at December 22, 2017, the Company reported stranded tax effects in AOCI related to unrealized gains and losses on available-for-sale (“AFS”) securities, cumulative foreign translation adjustments and deferred costs on pension benefit plans. With the adoption of the guidance, the Company released these stranded tax effects in AOCI resulting in a decrease to retained earnings as of January 1, 2018 of $1.0 billion with a corresponding increase to AOCI. Effective January 1, 2018, the Company retrospectively adopted guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires that an employer that offers to its employees defined benefit pension or other postretirement benefit plans report the service cost component in the same line item or items as other compensation costs. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is not used, the line item used in the income statement to present the other components of net periodic benefit cost must be disclosed. In addition, the guidance allows only the service cost component to be eligible for capitalization when applicable. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to de-recognition of nonfinancial assets. The new guidance clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term, “in-substance nonfinancial asset.” The new guidance also adds guidance for partial sales of nonfinancial assets. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to restricted cash. The new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. As a result, the new guidance requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance does not provide a definition of restricted cash or restricted cash equivalents. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to tax accounting for intra-entity transfers of assets. Prior guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The new guidance requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company retrospectively adopted guidance relating to cash flow statement presentation. The new guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to recognition and measurement of financial instruments. The guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option (“FVO”) that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Effective January 1, 2018, there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Additionally, there will no longer be a requirement to assess equity securities for embedded derivatives requiring bifurcation. The adoption of this guidance resulted in a $101 million , net of income tax, increase to retained earnings largely offset by a decrease to AOCI that was primarily attributable to $925 million of equity securities previously classified and measured as equity securities AFS. The Company has included the required disclosures related to equity securities within Note 5 . Effective January 1, 2018, the Company adopted, using a modified retrospective approach, guidance relating to revenue recognition. The new guidance supersedes nearly all existing revenue recognition guidance under U.S. GAAP. However, it does not impact the accounting for insurance and investment contracts within the scope of Accounting Standards Codification Topic 944, Financial Services - Insurance , leases, financial instruments and certain guarantees. For those contracts that are impacted, the new guidance requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. For the three months and nine months ended September 30, 2018 , the Company identified $196 million and $598 million , respectively, of revenue streams within the scope of the guidance that are all included within other revenues on the interim condensed consolidated statements of operations and comprehensive income (loss). Such amounts primarily consisted of: (i) prepaid legal plans and administrative-only contracts within the U.S. segment of $120 million and $375 million for the three months and nine months ended September 30, 2018 , respectively, and (ii) distribution and administrative services fees within the MetLife Holdings segment of $56 million and $169 million for the three months and nine months ended September 30, 2018 , respectively. |
Other Revenues | Substantially all of the revenue from these services is recognized over time as the applicable services are provided or are made available to the customers and control is transferred continuously. The consideration received for these services is variable and constrained to the amount not probable of a significant revenue reversal. |
Investments | Maturities of Fixed Maturity Securities AFS Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Past Due and Nonaccrual Mortgage Loans The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Derivatives | Accounting for Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivative’s carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: Statement of Operations Presentation: Derivative: Policyholder benefits and claims • Economic hedges of variable annuity guarantees included in future policy benefits Net investment income • Economic hedges of equity method investments in joint ventures Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in estimated fair value of the hedged item attributable to the designated risk being hedged. • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash markets. The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities . The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. |
Employee Benefit Plans | Pension and Other Postretirement Benefit Plans The Company sponsors and administers various qualified and nonqualified defined benefit pension plans and other postretirement employee benefit plans covering employees who meet specified eligibility requirements. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. |
Closed Block | On April 7, 2000 (the “Demutualization Date”), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance approving Metropolitan Life Insurance Company’s plan of reorganization, as amended (the “Plan of Reorganization”). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company’s net income continues to be sensitive to the actual performance of the closed block. |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prior Period Adjustments [Table Text Block] | The impact of the revisions is shown in the tables below: Three Months Nine Months 2017 Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) As Revisions As As Revisions As (In millions) Expenses Policyholder benefits and claims $ 7,317 $ 55 $ 7,372 $ 19,561 $ 67 $ 19,628 Total expenses $ 9,356 $ 55 $ 9,411 $ 25,856 $ 67 $ 25,923 Income (loss) before provision for income tax $ 930 $ (55 ) $ 875 $ 2,417 $ (67 ) $ 2,350 Provision for income tax expense (benefit) $ 187 $ (20 ) $ 167 $ 475 $ (24 ) $ 451 Net income (loss) $ 743 $ (35 ) $ 708 $ 1,942 $ (43 ) $ 1,899 Net income (loss) attributable to Metropolitan Life Insurance Company $ 738 $ (35 ) $ 703 $ 1,934 $ (43 ) $ 1,891 Comprehensive income (loss) $ 914 $ (35 ) $ 879 $ 3,864 $ (43 ) $ 3,821 Comprehensive income (loss) attributable to Metropolitan Life Insurance Company $ 909 $ (35 ) $ 874 $ 3,856 $ (43 ) $ 3,813 Interim Condensed Consolidated Statements of Equity As Revisions As Revised (In millions) Retained Earnings Balance at December 31, 2016 $ 9,250 $ (217 ) $ 9,033 Net income (loss) $ 1,934 $ (43 ) $ 1,891 Balance at September 30, 2017 $ 9,184 $ (260 ) $ 8,924 Total Metropolitan Life Insurance Company Stockholder’s Equity Balance at December 31, 2016 $ 26,787 $ (217 ) $ 26,570 Balance at September 30, 2017 $ 28,379 $ (260 ) $ 28,119 Total Equity Balance at December 31, 2016 $ 26,977 $ (217 ) $ 26,760 Balance at September 30, 2017 $ 28,558 $ (260 ) $ 28,298 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Three Months Ended September 30, 2018 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 5,125 $ 783 $ 17 $ 5,925 $ — $ 5,925 Universal life and investment-type product policy fees 248 239 — 487 23 510 Net investment income 1,707 1,218 (53 ) 2,872 (86 ) 2,786 Other revenues 189 66 146 401 — 401 Net investment gains (losses) — — — — 205 205 Net derivative gains (losses) — — — — (76 ) (76 ) Total revenues 7,269 2,306 110 9,685 66 9,751 Expenses Policyholder benefits and claims and policyholder dividends 5,227 1,500 12 6,739 119 6,858 Interest credited to policyholder account balances 443 187 — 630 (2 ) 628 Capitalization of DAC (8 ) 1 — (7 ) — (7 ) Amortization of DAC and VOBA 27 (2 ) — 25 79 104 Interest expense on debt 3 2 22 27 — 27 Other expenses 700 254 285 1,239 (2 ) 1,237 Total expenses 6,392 1,942 319 8,653 194 8,847 Provision for income tax expense (benefit) 187 70 (142 ) 115 (27 ) 88 Adjusted earnings $ 690 $ 294 $ (67 ) 917 Adjustments to: Total revenues 66 Total expenses (194 ) Provision for income tax (expense) benefit 27 Net income (loss) $ 816 $ 816 Three Months Ended September 30, 2017 U.S. MetLife Holdings Corporate & Other Total Adjustments Total Consolidated (In millions) Revenues Premiums $ 5,820 $ 806 $ 3 $ 6,629 $ — $ 6,629 Universal life and investment-type product policy fees 245 286 — 531 25 556 Net investment income 1,554 1,228 (39 ) 2,743 (83 ) 2,660 Other revenues 191 36 144 371 — 371 Net investment gains (losses) — — — — 96 96 Net derivative gains (losses) — — — — (26 ) (26 ) Total revenues 7,810 2,356 108 10,274 12 10,286 Expenses Policyholder benefits and claims and policyholder dividends 6,018 1,491 — 7,509 130 7,639 Interest credited to policyholder account balances 373 195 — 568 (1 ) 567 Capitalization of DAC (15 ) (2 ) — (17 ) — (17 ) Amortization of DAC and VOBA 15 (79 ) — (64 ) 21 (43 ) Interest expense on debt 3 2 21 26 — 26 Other expenses 681 291 272 1,244 (5 ) 1,239 Total expenses 7,075 1,898 293 9,266 145 9,411 Provision for income tax expense (benefit) 257 146 (190 ) 213 (46 ) 167 Adjusted earnings $ 478 $ 312 $ 5 795 Adjustments to: Total revenues 12 Total expenses (145 ) Provision for income tax (expense) benefit 46 Net income (loss) $ 708 $ 708 Nine Months Ended September 30, 2018 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 19,425 $ 2,351 $ 18 $ 21,794 $ — $ 21,794 Universal life and investment-type product policy fees 758 742 — 1,500 70 1,570 Net investment income 4,945 3,599 (95 ) 8,449 (278 ) 8,171 Other revenues 581 199 423 1,203 — 1,203 Net investment gains (losses) — — — — (21 ) (21 ) Net derivative gains (losses) — — — — 289 289 Total revenues 25,709 6,891 346 32,946 60 33,006 Expenses Policyholder benefits and claims and policyholder dividends 19,970 4,331 3 24,304 150 24,454 Interest credited to policyholder account balances 1,262 562 — 1,824 (3 ) 1,821 Capitalization of DAC (30 ) 4 — (26 ) — (26 ) Amortization of DAC and VOBA 59 149 — 208 63 271 Interest expense on debt 9 6 66 81 — 81 Other expenses 2,124 754 797 3,675 (9 ) 3,666 Total expenses 23,394 5,806 866 30,066 201 30,267 Provision for income tax expense (benefit) 493 208 (425 ) 276 (32 ) 244 Adjusted earnings $ 1,822 $ 877 $ (95 ) 2,604 Adjustments to: Total revenues 60 Total expenses (201 ) Provision for income tax (expense) benefit 32 Net income (loss) $ 2,495 $ 2,495 Nine Months Ended September 30, 2017 U.S. MetLife Corporate Total Adjustments Total (In millions) Revenues Premiums $ 15,055 $ 2,530 $ 12 $ 17,597 $ — $ 17,597 Universal life and investment-type product policy fees 757 876 — 1,633 73 1,706 Net investment income 4,646 3,711 (103 ) 8,254 (299 ) 7,955 Other revenues 581 126 441 1,148 — 1,148 Net investment gains (losses) — — — — 184 184 Net derivative gains (losses) — — — — (317 ) (317 ) Total revenues 21,039 7,243 350 28,632 (359 ) 28,273 Expenses Policyholder benefits and claims and policyholder dividends 15,773 4,432 3 20,208 247 20,455 Interest credited to policyholder account balances 1,076 587 — 1,663 (3 ) 1,660 Capitalization of DAC (42 ) (15 ) — (57 ) — (57 ) Amortization of DAC and VOBA 44 165 — 209 (85 ) 124 Interest expense on debt 8 6 65 79 — 79 Other expenses 2,044 895 735 3,674 (12 ) 3,662 Total expenses 18,903 6,070 803 25,776 147 25,923 Provision for income tax expense (benefit) 745 368 (485 ) 628 (177 ) 451 Adjusted earnings $ 1,391 $ 805 $ 32 2,228 Adjustments to: Total revenues (359 ) Total expenses (147 ) Provision for income tax (expense) benefit 177 Net income (loss) $ 1,899 $ 1,899 The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: September 30, 2018 December 31, 2017 (In millions) U.S. $ 238,102 $ 245,750 MetLife Holdings 154,371 163,397 Corporate & Other 26,676 25,148 Total $ 419,149 $ 434,295 |
Insurance (Tables)
Insurance (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Guarantees related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure, which includes direct business, but excludes offsets from hedging or reinsurance, if any, was as follows at: September 30, 2018 December 31, 2017 In the At In the At (Dollars in millions) Annuity Contracts: Variable Annuity Guarantees: Total account value (1), (2) $ 53,096 $ 23,418 $ 56,136 $ 25,257 Separate account value (1) $ 42,881 $ 22,550 $ 45,431 $ 24,336 Net amount at risk $ 1,236 (3 ) $ 269 (4 ) $ 990 (3 ) $ 353 (4 ) Average attained age of contractholders 67 years 65 years 66 years 65 years Other Annuity Guarantees: Total account value (1), (2) N/A $ 143 N/A $ 141 Net amount at risk N/A $ 88 (5 ) N/A $ 92 (5 ) Average attained age of contractholders N/A 53 years N/A 52 years September 30, 2018 December 31, 2017 Secondary Paid-Up Secondary Paid-Up (Dollars in millions) Universal and Variable Life Contracts: Total account value (1), (2) $ 4,843 $ 947 $ 4,679 $ 977 Net amount at risk (6) $ 44,989 $ 6,394 $ 46,704 $ 6,713 Average attained age of policyholders 55 years 63 years 54 years 62 years __________________ (1) The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes the contractholder’s investments in the general account and separate account, if applicable. (3) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (4) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. (5) Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date. (6) Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. |
Liabilities for Unpaid Claims and Claim Expenses | Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows: Nine Months 2018 2017 (1) (In millions) Balance, beginning of period $ 12,090 $ 11,621 Less: Reinsurance recoverables 1,401 1,251 Net balance, beginning of period 10,689 10,370 Incurred related to: Current period 12,623 12,282 Prior periods (2) 118 204 Total incurred 12,741 12,486 Paid related to: Current period (8,566 ) (9,153 ) Prior periods (3,609 ) (2,914 ) Total paid (12,175 ) (12,067 ) Net balance, end of period 11,255 10,789 Add: Reinsurance recoverables 1,381 1,355 Balance, end of period (included in future policy benefits and other policy-related balances) $ 12,636 $ 12,144 __________________ (1) As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. As a result, at September 30, 2017, Total incurred increased by $712 million . Additionally, at September 30, 2017, the Net balance decreased by $199 million from the amount previously reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017. The adjustments to the Net balance, at September 30, 2017, are primarily to correct for improper classifications between components of the rollforward. (2) During the nine months ended September 30, 2018 , claims and claim adjustment expenses associated with prior years increased due to events incurred in prior years but reported during current year. During the nine months ended September 30, 2017, claims and claim adjustment expenses associated with prior periods increased due to unfavorable claims experience. |
Closed Block (Tables)
Closed Block (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Closed Block Disclosure [Abstract] | |
Closed block liabilities and assets | Information regarding the closed block liabilities and assets designated to the closed block was as follow s at: September 30, 2018 December 31, 2017 (In millions) Closed Block Liabilities Future policy benefits $ 40,106 $ 40,463 Other policy-related balances 287 222 Policyholder dividends payable 476 437 Policyholder dividend obligation 456 2,121 Deferred income tax liability 2 — Other liabilities 472 212 Total closed block liabilities 41,799 43,455 Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value 25,803 27,904 Equity securities, at estimated fair value 66 70 Mortgage loans 6,474 5,878 Policy loans 4,524 4,548 Real estate and real estate joint ventures 580 613 Other invested assets 686 731 Total investments 38,133 39,744 Accrued investment income 469 477 Premiums, reinsurance and other receivables; cash and cash equivalents 92 14 Current income tax recoverable 52 35 Deferred income tax asset — 36 Total assets designated to the closed block 38,746 40,306 Excess of closed block liabilities over assets designated to the closed block 3,053 3,149 Amounts included in AOCI: Unrealized investment gains (losses), net of income tax 1,110 1,863 Unrealized gains (losses) on derivatives, net of income tax 17 (7 ) Allocated to policyholder dividend obligation, net of income tax (360 ) (1,379 ) Total amounts included in AOCI 767 477 Maximum future earnings to be recognized from closed block assets and liabilities $ 3,820 $ 3,626 |
Closed block policyholder dividend obligation | Information regarding the closed block policyholder dividend obligation was as follows: Nine Months Year (In millions) Balance, beginning of period $ 2,121 $ 1,931 Change in unrealized investment and derivative gains (losses) (1,665 ) 190 Balance, end of period $ 456 $ 2,121 |
Closed block revenues and expenses | Information regarding the closed block revenues and expenses was as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Revenues Premiums $ 405 $ 413 $ 1,202 $ 1,247 Net investment income 443 450 1,318 1,368 Net investment gains (losses) 7 — (46 ) (10 ) Net derivative gains (losses) 2 (6 ) 12 (24 ) Total revenues 857 857 2,486 2,581 Expenses Policyholder benefits and claims 641 591 1,808 1,773 Policyholder dividends 241 235 723 732 Other expenses 29 30 88 94 Total expenses 911 856 2,619 2,599 Revenues, net of expenses before provision for income tax expense (benefit) (54 ) 1 (133 ) (18 ) Provision for income tax expense (benefit) (12 ) — (29 ) (8 ) Revenues, net of expenses and provision for income tax expense (benefit) $ (42 ) $ 1 $ (104 ) $ (10 ) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities AFS. Included within fixed maturity securities AFS are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). September 30, 2018 December 31, 2017 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) Fixed maturity securities AFS: U.S. corporate $ 56,474 $ 2,803 $ 1,022 $ — $ 58,255 $ 53,291 $ 5,037 $ 238 $ — $ 58,090 U.S. government and agency 33,094 2,217 604 — 34,707 35,021 3,755 231 — 38,545 Foreign corporate 25,021 756 913 — 24,864 24,367 1,655 426 — 25,596 RMBS 22,023 826 521 (35 ) 22,363 21,735 1,039 181 (41 ) 22,634 ABS 8,795 44 24 — 8,815 7,808 73 15 — 7,866 State and political subdivision 6,172 852 42 — 6,982 6,310 1,245 3 1 7,551 CMBS 5,529 26 97 — 5,458 5,390 124 26 — 5,488 Foreign government 4,060 433 90 — 4,403 3,887 641 26 — 4,502 Total fixed maturity securities AFS $ 161,168 $ 7,957 $ 3,313 $ (35 ) $ 165,847 $ 157,809 $ 13,569 $ 1,146 $ (40 ) $ 170,272 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” Equity securities are summarized as follows at: September 30, 2018 December 31, 2017 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Equity securities: Common stock $ 487 57.9 % $ 1,251 75.5 % Non-redeemable preferred stock 354 42.1 407 24.5 Total equity securities $ 841 100.0 % $ 1,658 100.0 % |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at September 30, 2018 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities AFS (In millions) Amortized cost $ 9,061 $ 30,339 $ 29,664 $ 55,757 $ 36,347 $ 161,168 Estimated fair value $ 9,022 $ 30,528 $ 30,003 $ 59,658 $ 36,636 $ 165,847 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: September 30, 2018 December 31, 2017 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) Fixed maturity securities AFS: U.S. corporate $ 19,006 $ 695 $ 2,913 $ 327 $ 3,727 $ 57 $ 2,523 $ 181 U.S. government and agency 13,510 171 5,332 433 13,905 76 3,018 155 Foreign corporate 9,817 564 2,036 349 1,677 43 3,912 383 RMBS 9,615 276 3,267 210 3,673 30 3,332 110 ABS 4,321 17 177 7 732 3 358 12 State and political subdivision 935 32 111 10 106 1 120 3 CMBS 3,245 63 357 34 844 6 193 20 Foreign government 1,110 64 156 26 247 6 265 20 Total fixed maturity securities AFS $ 61,559 $ 1,882 $ 14,349 $ 1,396 $ 24,911 $ 222 $ 13,721 $ 884 Total number of securities in an unrealized loss position 4,912 1,116 1,295 1,103 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: September 30, 2018 December 31, 2017 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 37,639 61.6 % $ 35,440 60.6 % Agricultural 13,190 21.6 12,712 21.8 Residential 10,271 16.8 10,058 17.2 Subtotal (1) 61,100 100.0 58,210 99.6 Valuation allowances (287 ) (0.5 ) (271 ) (0.5 ) Subtotal mortgage loans, net 60,813 99.5 57,939 99.1 Residential — FVO 323 0.5 520 0.9 Total mortgage loans, net $ 61,136 100.0 % $ 58,459 100.0 % __________________ (1) Purchases of mortgage loans, primarily residential mortgage loans, were $724 million and $1.7 billion for the three months and nine months ended September 30, 2018 , respectively, and $409 million and $1.9 billion for the three months and nine months ended September 30, 2017 , respectively. |
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) September 30, 2018 Commercial $ — $ — $ — $ — $ — $ 37,639 $ 186 $ — Agricultural 13 13 2 111 110 13,067 39 121 Residential — — — 420 377 9,894 60 377 Total $ 13 $ 13 $ 2 $ 531 $ 487 $ 60,600 $ 285 $ 498 December 31, 2017 Commercial $ — $ — $ — $ — $ — $ 35,440 $ 173 $ — Agricultural 22 21 2 27 27 12,664 38 46 Residential — — — 358 324 9,734 58 324 Total $ 22 $ 21 $ 2 $ 385 $ 351 $ 57,838 $ 269 $ 370 |
Allowance for Loan and Lease Losses, Provision for Loss, Net | The changes in the valuation allowance, by portfolio segment, were as follows: Nine Months 2018 2017 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 173 $ 40 $ 58 $ 271 $ 167 $ 38 $ 62 $ 267 Provision (release) 13 1 8 22 4 4 10 18 Charge-offs, net of recoveries — — (6 ) (6 ) — (2 ) (11 ) (13 ) Balance, end of period $ 186 $ 41 $ 60 $ 287 $ 171 $ 40 $ 61 $ 272 |
Schedule of Financing Receivables, Non Accrual Status | The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In millions) Commercial $ — $ — $ — $ — $ 167 $ — Agricultural 200 134 105 125 106 36 Residential 390 444 — — 390 444 Total $ 590 $ 578 $ 105 $ 125 $ 663 $ 480 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: September 30, 2018 December 31, 2017 (In millions) Fixed maturity securities AFS $ 4,572 $ 12,349 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 35 40 Total fixed maturity securities AFS 4,607 12,389 Equity securities — 119 Derivatives 1,096 1,396 Other 66 1 Subtotal 5,769 13,905 Amounts allocated from: Future policy benefits (3 ) (19 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) — DAC, VOBA and DSI (523 ) (790 ) Policyholder dividend obligation (456 ) (2,121 ) Subtotal (983 ) (2,930 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (7 ) (14 ) Deferred income tax benefit (expense) (992 ) (3,704 ) Net unrealized investment gains (losses) $ 3,787 $ 7,257 The changes in net unrealized investment gains (losses) were as follows: Nine Months (In millions) Balance, beginning of period $ 7,257 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 1,310 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized (5 ) Unrealized investment gains (losses) during the period (8,012 ) Unrealized investment gains (losses) relating to: Future policy benefits 16 DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) DAC, VOBA and DSI 267 Policyholder dividend obligation 1,665 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 7 Deferred income tax benefit (expense) 1,283 Balance, end of period $ 3,787 Change in net unrealized investment gains (losses) $ (3,470 ) |
Securities Lending | Elements of the Company’s securities lending program are presented below at: September 30, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 14,069 $ 13,887 Estimated fair value $ 14,435 $ 14,852 Cash collateral received from counterparties (2) $ 14,786 $ 15,170 Security collateral received from counterparties (3) $ — $ 11 Reinvestment portfolio — estimated fair value $ 14,808 $ 15,188 __________________ (1) Included within fixed maturity securities AFS and short-term investments. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: September 30, 2018 December 31, 2017 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,309 $ 6,007 $ 6,470 $ 14,786 $ 2,927 $ 5,279 $ 6,964 $ 15,170 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: September 30, 2018 December 31, 2017 (In millions) Invested assets on deposit (regulatory deposits) $ 47 $ 49 Invested assets pledged as collateral 20,753 20,775 Total invested assets on deposit and pledged as collateral $ 20,800 $ 20,824 |
The Components of Net Investment Income | The components of net investment income were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Investment income: Fixed maturity securities AFS $ 1,849 $ 1,764 $ 5,450 $ 5,274 Equity securities 8 20 29 68 Mortgage loans 728 697 2,087 1,989 Policy loans 79 77 224 230 Real estate and real estate joint ventures 118 104 371 327 Other limited partnership interests 153 163 388 506 Cash, cash equivalents and short-term investments 38 20 87 54 Operating joint venture 2 6 23 12 Other 63 49 206 154 Subtotal 3,038 2,900 8,865 8,614 Less: Investment expenses 252 240 694 659 Net investment income $ 2,786 $ 2,660 $ 8,171 $ 7,955 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Total gains (losses) on fixed maturity securities AFS: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Consumer $ — $ (5 ) $ — $ (5 ) Total U.S. and foreign corporate securities — (5 ) — (5 ) State and political subdivision — — — (1 ) OTTI losses on fixed maturity securities AFS recognized in earnings — (5 ) — (6 ) Fixed maturity securities AFS — net gains (losses) on sales and disposals 137 1 28 41 Total gains (losses) on fixed maturity securities AFS 137 (4 ) 28 35 Total gains (losses) on equity securities: OTTI losses recognized — by security type: Common stock — (4 ) — (16 ) Non-redeemable preferred stock — — — (1 ) Total OTTI losses on equity securities recognized in earnings — (4 ) — (17 ) Equity securities — net gains (losses) on sales and disposals 8 — 16 1 Change in estimated fair value of equity securities (1) 1 — (38 ) — Total gains (losses) on equity securities 9 (4 ) (22 ) (16 ) Mortgage loans 8 (16 ) (25 ) (44 ) Real estate and real estate joint ventures 39 169 139 436 Other limited partnership interests — (30 ) 8 (44 ) Other (2) 8 21 (171 ) (90 ) Subtotal 201 136 (43 ) 277 Change in estimated fair value of other limited partnership interests and real estate joint ventures 12 — 5 — Non-investment portfolio gains (losses) (8 ) (40 ) 17 (93 ) Subtotal 4 (40 ) 22 (93 ) Total net investment gains (losses) $ 205 $ 96 $ (21 ) $ 184 __________________ (1) C hanges in estimated fair value subsequent to purchase for equity securities still held as of the end of the period included in net investment gains (losses) were $5 million and ($22) million for the three months and nine months ended September 30, 2018 , respectively. See Note 1 . (2) Other gains (losses) included a renewable energy partnership realized loss of $0 and $83 million for the three months and nine months ended September 30, 2018 , respectively, and a leveraged lease impairment of $0 and $105 million for the three months and nine months ended September 30, 2018 , respectively. |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity securities AFS and the components of fixed maturity securities AFS net investment gains (losses) were as shown in the table below: Three Months Nine Months 2018 2017 2018 2017 (In millions) Proceeds $ 12,289 $ 5,888 $ 37,129 $ 22,256 Gross investment gains $ 206 $ 32 $ 297 $ 225 Gross investment losses (69 ) (31 ) (269 ) (184 ) OTTI losses — (5 ) — (6 ) Net investment gains (losses) $ 137 $ (4 ) $ 28 $ 35 |
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities AFS still held for which a portion of the OTTI loss was recognized in OCI: Three Months Nine Months 2018 2017 2018 2017 (In millions) Balance, beginning of period $ 92 $ 136 $ 110 $ 157 Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (4 ) (4 ) (21 ) (25 ) Increase in cash flows — accretion of previous credit loss OTTI — — (1 ) — Balance, end of period $ 88 $ 132 $ 88 $ 132 |
Schedule of Invested Assets Transferred To and From Affiliates | The Company transfers invested assets primarily consisting of fixed maturity securities AFS and mortgage loans to and from affiliates. Invested assets transferred to and from affiliates were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Estimated fair value of invested assets transferred to affiliates $ — $ — $ — $ 453 Amortized cost of invested assets transferred to affiliates $ — $ — $ — $ 416 Net investment gains (losses) recognized on transfers $ — $ — $ — $ 37 Estimated fair value of invested assets transferred from affiliates $ — $ — $ 77 $ 293 |
Variable Interest Entity [Line Items] | |
Schedule of Repurchase Agreements [Table Text Block] | Elements of the Company’s short-term repurchase agreements are presented below at: September 30, 2018 December 31, 2017 (In millions) Securities on loan: (1) Amortized cost $ 2,468 $ 900 Estimated fair value $ 2,508 $ 1,031 Cash collateral received from counterparties (2) $ 2,460 $ 1,000 Security collateral received from counterparties (3) $ 8 $ — Reinvestment portfolio — estimated fair value $ 2,462 $ 1,000 __________________ (1) Included within fixed maturity securities AFS, short-term investments and cash equivalents. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the interim condensed consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: September 30, 2018 December 31, 2017 Remaining Tenor of Repurchase Agreements Remaining Tenor of Repurchase Agreements 1 Month or Less Total 1 Month or Less Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 2,460 $ 2,460 $ 1,000 $ 1,000 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table presents the total assets and total liabilities relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: September 30, 2018 December 31, 2017 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,194 $ — $ 1,077 $ — Renewable energy partnership (2) 107 — 116 3 Investment fund (primarily mortgage loans) (3) 215 — — — Other investments 31 5 32 6 Total $ 1,547 $ 5 $ 1,225 $ 9 __________________ (1) The Company’s investment in these affiliated real estate joint ventures was $1.1 billion and $1.0 billion at September 30, 2018 and December 31, 2017 , respectively. Other affiliates’ investments in these affiliated real estate joint ventures was $113 million and $85 million at September 30, 2018 and December 31, 2017 , respectively. (2) Assets of the renewable energy partnership primarily consisted of other invested assets. (3) The Company’s investment in this affiliated investment fund was $175 million at September 30, 2018 . Other affiliates’ investments in this affiliated investment fund was $40 million at September 30, 2018 . |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: September 30, 2018 December 31, 2017 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 34,663 $ 34,663 $ 34,284 $ 34,284 U.S. and foreign corporate 915 915 1,166 1,166 Other limited partnership interests 3,778 6,149 3,561 5,765 Other invested assets 1,755 1,934 2,172 2,506 Real estate joint ventures 36 40 38 43 Total $ 41,147 $ 43,701 $ 41,221 $ 43,764 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $100 million and $117 million at September 30, 2018 and December 31, 2017 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Commercial Portfolio Segment [Member] | |
Variable Interest Entity [Line Items] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios % of > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) September 30, 2018 Loan-to-value ratios: Less than 65% $ 31,661 $ 724 $ 12 $ 32,397 86.1 % $ 32,455 86.3 % 65% to 75% 3,648 367 55 4,070 10.8 4,053 10.8 76% to 80% 260 210 56 526 1.4 504 1.3 Greater than 80% 479 167 — 646 1.7 611 1.6 Total $ 36,048 $ 1,468 $ 123 $ 37,639 100.0 % $ 37,623 100.0 % December 31, 2017 Loan-to-value ratios: Less than 65% $ 29,346 $ 1,359 $ 198 $ 30,903 87.2 % $ 31,563 87.5 % 65% to 75% 3,245 95 114 3,454 9.7 3,465 9.6 76% to 80% 149 171 57 377 1.1 363 1.0 Greater than 80% 400 159 147 706 2.0 665 1.9 Total $ 33,140 $ 1,784 $ 516 $ 35,440 100.0 % $ 36,056 100.0 % |
Agricultural Portfolio Segment [Member] | |
Variable Interest Entity [Line Items] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality of agricultural mortgage loans was as follows at: September 30, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 12,402 94.0 % $ 12,082 95.0 % 65% to 75% 751 5.7 581 4.6 76% to 80% 32 0.2 40 0.3 Greater than 80% 5 0.1 9 0.1 Total $ 13,190 100.0 % $ 12,712 100.0 % |
Residential Portfolio Segment [Member] | |
Variable Interest Entity [Line Items] | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The credit quality of residential mortgage loans was as follows at: September 30, 2018 December 31, 2017 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 9,881 96.2 % $ 9,614 95.6 % Nonperforming 390 3.8 444 4.4 Total $ 10,271 100.0 % $ 10,058 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the primary underlying risk exposure, gross notional amount, and estimated fair value of the Company’s derivatives, excluding embedded derivatives, held at: September 30, 2018 December 31, 2017 Primary Underlying Risk Exposure Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Fair value hedges: Interest rate swaps Interest rate $ 2,450 $ 1,997 $ 1 $ 3,826 $ 2,289 $ 3 Foreign currency swaps Foreign currency exchange rate 969 29 5 1,082 47 17 Subtotal 3,419 2,026 6 4,908 2,336 20 Cash flow hedges: Interest rate swaps Interest rate 3,121 113 9 3,337 234 — Interest rate forwards Interest rate 3,023 — 302 3,333 — 127 Foreign currency swaps Foreign currency exchange rate 25,655 928 1,232 22,287 795 1,078 Subtotal 31,799 1,041 1,543 28,957 1,029 1,205 Total qualifying hedges 35,218 3,067 1,549 33,865 3,365 1,225 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate swaps Interest rate 36,924 1,279 74 43,028 1,722 336 Interest rate floors Interest rate 12,701 53 — 7,201 91 — Interest rate caps Interest rate 63,044 259 1 53,079 78 2 Interest rate futures Interest rate 748 — — 2,257 1 2 Interest rate options Interest rate 20,775 78 1 7,525 142 11 Interest rate total return swaps Interest rate 1,048 — 25 1,048 8 2 Synthetic GICs Interest rate 16,868 — — 11,318 — — Foreign currency swaps Foreign currency exchange rate 6,783 675 110 6,739 547 164 Foreign currency forwards Foreign currency exchange rate 1,083 21 11 961 16 7 Credit default swaps — purchased Credit 941 27 5 980 7 8 Credit default swaps — written Credit 7,975 152 1 7,874 181 — Equity futures Equity market 1,129 — — 1,282 5 1 Equity index options Equity market 18,097 392 466 14,408 384 476 Equity variance swaps Equity market 3,530 47 175 3,530 45 169 Equity total return swaps Equity market 1,033 — 27 1,077 — 39 Total non-designated or nonqualifying derivatives 192,679 2,983 896 162,307 3,227 1,217 Total $ 227,897 $ 6,050 $ 2,445 $ 196,172 $ 6,592 $ 2,442 The following table presents earned income on derivatives: Three Months Nine Months 2018 2017 2018 2017 (In millions) Qualifying hedges: Net investment income $ 92 $ 73 $ 268 $ 220 Interest credited to policyholder account balances (27 ) (20 ) (79 ) (40 ) Nonqualifying hedges: Net derivative gains (losses) 87 93 253 327 Policyholder benefits and claims 2 2 6 4 Total $ 154 $ 148 $ 448 $ 511 |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) Freestanding derivative and hedging gains (losses) (1) $ (275 ) $ (167 ) $ (449 ) $ (634 ) Embedded derivative gains (losses) 199 141 738 317 Total net derivative gains (losses) $ (76 ) $ (26 ) $ 289 $ (317 ) __________________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and nonqualifying hedging relationships, which are not presented elsewhere in this note. |
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments | The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or not qualifying as hedging instruments: Net Derivative Gains (Losses) Net Investment Income (1) Policyholder Benefits and Claims (2) (In millions) Three Months Ended September 30, 2018 Interest rate derivatives $ (200 ) $ — $ — Foreign currency exchange rate derivatives 54 — — Credit derivatives — purchased (6 ) — — Credit derivatives — written 48 — — Equity derivatives (186 ) — (25 ) Total $ (290 ) $ — $ (25 ) Three Months Ended September 30, 2017 Interest rate derivatives $ (60 ) $ (2 ) $ — Foreign currency exchange rate derivatives (238 ) — — Credit derivatives — purchased (6 ) — — Credit derivatives — written 24 — — Equity derivatives (124 ) (2 ) (52 ) Total $ (404 ) $ (4 ) $ (52 ) Nine Months Ended September 30, 2018 Interest rate derivatives $ (541 ) $ 4 $ — Foreign currency exchange rate derivatives 234 — — Credit derivatives — purchased 6 — — Credit derivatives — written (7 ) — — Equity derivatives (287 ) 1 (40 ) Total $ (595 ) $ 5 $ (40 ) Nine Months Ended September 30, 2017 Interest rate derivatives $ (260 ) $ (2 ) $ — Foreign currency exchange rate derivatives (639 ) — — Credit derivatives — purchased (14 ) — — Credit derivatives — written 80 — — Equity derivatives (442 ) (4 ) (149 ) Total $ (1,275 ) $ (6 ) $ (149 ) __________________ (1) Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. (2) Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. |
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): Derivatives in Fair Value Hedging Relationships Hedged Items in Fair Value Hedging Relationships Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Ineffectiveness Recognized in Net Derivative Gains (Losses) (In millions) Three Months Ended September 30, 2018 Interest rate swaps: Fixed maturity securities AFS $ 1 $ (1 ) $ — Policyholder liabilities (1) (108 ) 109 1 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS and mortgage loans 4 (7 ) (3 ) Foreign-denominated policyholder account balances (2) — — — Total $ (103 ) $ 101 $ (2 ) Three Months Ended September 30, 2017 Interest rate swaps: Fixed maturity securities AFS $ 1 $ — $ 1 Policyholder liabilities (1) (13 ) 12 (1 ) Foreign currency swaps: Foreign-denominated fixed maturity securities AFS (8 ) 9 1 Foreign-denominated policyholder account balances (2) 15 (16 ) (1 ) Total $ (5 ) $ 5 $ — Nine Months Ended September 30, 2018 Interest rate swaps: Fixed maturity securities AFS $ 4 $ (4 ) $ — Policyholder liabilities (1) (389 ) 392 3 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS and mortgage loans 28 (32 ) (4 ) Foreign-denominated policyholder account balances (2) 23 (23 ) — Total $ (334 ) $ 333 $ (1 ) Nine Months Ended September 30, 2017 Interest rate swaps: Fixed maturity securities AFS $ 2 $ (2 ) $ — Policyholder liabilities (1) (15 ) 83 68 Foreign currency swaps: Foreign-denominated fixed maturity securities AFS (13 ) 14 1 Foreign-denominated policyholder account balances (2) 61 (40 ) 21 Total $ 35 $ 55 $ 90 __________________ (1) Fixed rate liabilities reported in policyholder account balances or future policy benefits. (2) Fixed rate or floating rate liabilities. |
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: September 30, 2018 December 31, 2017 Rating Agency Designation of Referenced Credit Obligations (1) Estimated Maximum Weighted Estimated Maximum Weighted (Dollars in millions) Aaa/Aa/A Single name credit default swaps (3) $ 2 $ 154 2.2 $ 3 $ 159 2.8 Credit default swaps referencing indices 38 2,384 2.1 42 2,193 2.7 Subtotal 40 2,538 2.2 45 2,352 2.7 Baa Single name credit default swaps (3) 2 277 1.9 4 416 1.5 Credit default swaps referencing indices 82 4,801 5.4 111 4,761 5.2 Subtotal 84 5,078 5.2 115 5,177 4.9 Ba Single name credit default swaps (3) — 10 1.7 1 105 3.4 Credit default swaps referencing indices — — — — — — Subtotal — 10 1.7 1 105 3.4 B Single name credit default swaps (3) — — — 2 20 3.5 Credit default swaps referencing indices 27 349 4.7 18 220 5.0 Subtotal 27 349 4.7 20 240 4.9 Total $ 151 $ 7,975 4.2 $ 181 $ 7,874 4.2 __________________ (1) The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), S &P Global Ratings (“ S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average gross notional amounts. (3) Single name credit default swaps may be referenced to the credit of corporations, foreign governments, or state and political subdivisions. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: September 30, 2018 December 31, 2017 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 6,019 $ 2,408 $ 6,478 $ 2,203 OTC-cleared (1), (6) 118 16 168 216 Exchange-traded — — 6 3 Total gross estimated fair value of derivatives (1) 6,137 2,424 6,652 2,422 Amounts offset on the interim condensed consolidated balance sheets — — — — Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6) 6,137 2,424 6,652 2,422 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,089 ) (2,089 ) (1,891 ) (1,891 ) OTC-cleared (6 ) (6 ) (31 ) (31 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (2,805 ) — (3,448 ) — OTC-cleared (112 ) — (131 ) (179 ) Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (1,040 ) (318 ) (954 ) (312 ) OTC-cleared — (10 ) — (6 ) Exchange-traded — — — (3 ) Net amount after application of master netting agreements and collateral $ 85 $ 1 $ 197 $ — __________________ (1) At September 30, 2018 and December 31, 2017 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $87 million and $60 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($21) million and ($20) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At September 30, 2018 and December 31, 2017 , the Company received excess cash collateral of $90 million and $122 million , respectively, and provided excess cash collateral of $0 and $9 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at September 30, 2018 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At September 30, 2018 and December 31, 2017 , the Company received excess securities collateral with an estimated fair value of $83 million and $30 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At September 30, 2018 and December 31, 2017 , the Company provided excess securities collateral with an estimated fair value of $147 million and $152 million , respectively, for its OTC-bilateral derivatives, and $216 million and $299 million , respectively, for its OTC-cleared derivatives, and $54 million and $50 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments. |
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: September 30, 2018 December 31, 2017 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 6,019 $ 2,408 $ 6,478 $ 2,203 OTC-cleared (1), (6) 118 16 168 216 Exchange-traded — — 6 3 Total gross estimated fair value of derivatives (1) 6,137 2,424 6,652 2,422 Amounts offset on the interim condensed consolidated balance sheets — — — — Estimated fair value of derivatives presented on the interim condensed consolidated balance sheets (1), (6) 6,137 2,424 6,652 2,422 Gross amounts not offset on the interim condensed consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral (2,089 ) (2,089 ) (1,891 ) (1,891 ) OTC-cleared (6 ) (6 ) (31 ) (31 ) Exchange-traded — — — — Cash collateral: (3), (4) OTC-bilateral (2,805 ) — (3,448 ) — OTC-cleared (112 ) — (131 ) (179 ) Exchange-traded — — — — Securities collateral: (5) OTC-bilateral (1,040 ) (318 ) (954 ) (312 ) OTC-cleared — (10 ) — (6 ) Exchange-traded — — — (3 ) Net amount after application of master netting agreements and collateral $ 85 $ 1 $ 197 $ — __________________ (1) At September 30, 2018 and December 31, 2017 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $87 million and $60 million , respectively, and derivative liabilities included (income) or expense accruals reported in accrued investment income or in other liabilities of ($21) million and ($20) million , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received by the Company for OTC-bilateral and OTC-cleared derivatives is included in cash and cash equivalents, short-term investments or in fixed maturity securities AFS, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. (4) The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At September 30, 2018 and December 31, 2017 , the Company received excess cash collateral of $90 million and $122 million , respectively, and provided excess cash collateral of $0 and $9 million , respectively, which is not included in the table above due to the foregoing limitation. (5) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at September 30, 2018 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities AFS on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At September 30, 2018 and December 31, 2017 , the Company received excess securities collateral with an estimated fair value of $83 million and $30 million , respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At September 30, 2018 and December 31, 2017 , the Company provided excess securities collateral with an estimated fair value of $147 million and $152 million , respectively, for its OTC-bilateral derivatives, and $216 million and $299 million , respectively, for its OTC-cleared derivatives, and $54 million and $50 million , respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. (6) Effective January 16, 2018, the LCH amended its rulebook, resulting in the characterization of variation margin transfers as settlement payments, as opposed to adjustments to collateral. See Note 1 for further information on the LCH amendments. |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the effects of derivatives in cash flow hedging relationships on the interim condensed consolidated statements of operations and comprehensive income (loss) and the interim condensed consolidated statements of equity: Derivatives in Cash Flow Amount of Gains Amount and Location Amount and Location (Effective Portion) (Effective Portion) (Ineffective Portion) Net Derivative Net Investment Net Derivative (In millions) Three Months Ended September 30, 2018 Interest rate swaps $ (89 ) $ 1 $ 4 $ 4 Interest rate forwards (87 ) (3 ) 1 1 Foreign currency swaps 22 24 (1 ) — Credit forwards — — — — Total $ (154 ) $ 22 $ 4 $ 5 Three Months Ended September 30, 2017 Interest rate swaps $ 15 $ 8 $ 4 $ (2 ) Interest rate forwards 2 (1 ) 1 — Foreign currency swaps (37 ) 282 (1 ) — Credit forwards — — — — Total $ (20 ) $ 289 $ 4 $ (2 ) Nine Months Ended September 30, 2018 Interest rate swaps $ (311 ) $ 18 $ 13 $ 5 Interest rate forwards (200 ) — 2 — Foreign currency swaps 28 (214 ) (2 ) 5 Credit forwards — — — — Total $ (483 ) $ (196 ) $ 13 $ 10 Nine Months Ended September 30, 2017 Interest rate swaps $ 90 $ 22 $ 12 $ 5 Interest rate forwards 138 (5 ) 2 (1 ) Foreign currency swaps (2 ) 882 (1 ) 1 Credit forwards — 1 — — Total $ 226 $ 900 $ 13 $ 5 |
Schedule of Derivative Instruments | September 30, 2018 December 31, 2017 Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total Derivatives Subject to Financial Strength- Contingent Provisions Derivatives Not Subject to Financial Strength- Contingent Provisions Total (In millions) Estimated Fair Value of Derivatives in a Net Liability Position (1) $ 318 $ — $ 318 $ 313 $ — $ 313 Estimated Fair Value of Collateral Provided: Fixed maturity securities AFS $ 392 $ — $ 392 $ 399 $ — $ 399 Cash $ — $ — $ — $ — $ — $ — __________________ (1) After taking into consideration the existence of netting agreements. |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents changes in estimated fair value related to embedded derivatives: Three Months Nine Months 2018 2017 2018 2017 (In millions) Net derivative gains (losses) (1), (2) $ 199 $ 141 $ 738 $ 317 __________________ (1) The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $0 and ($21) million for the three months and nine months ended September 30, 2018 , respectively, ($17) million and ($39) million for the three months and nine months ended September 30, 2017 , respectively. (2) See Note 13 for discussion of affiliated net derivative gains (losses). |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: Balance Sheet Location September 30, 2018 December 31, 2017 (In millions) Embedded derivatives within asset host contracts: Options embedded in debt or equity securities (1) Investments $ — $ (113 ) Embedded derivatives within asset host contracts $ — $ (113 ) Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (259 ) $ (94 ) Assumed guaranteed minimum benefits Policyholder account balances 2 3 Funds withheld on ceded reinsurance Other liabilities 445 898 Fixed annuities with equity indexed returns Policyholder account balances 102 69 Embedded derivatives within liability host contracts $ 290 $ 876 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at: September 30, 2018 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 55,241 $ 3,014 $ 58,255 U.S. government and agency 16,081 18,626 — 34,707 Foreign corporate — 20,861 4,003 24,864 RMBS — 19,419 2,944 22,363 ABS — 8,273 542 8,815 State and political subdivision — 6,982 — 6,982 CMBS — 5,389 69 5,458 Foreign government — 4,392 11 4,403 Total fixed maturity securities AFS 16,081 139,183 10,583 165,847 Equity securities 385 80 376 841 Other limited partnership interests — — 151 151 Short-term investments 999 1,270 649 2,918 Residential mortgage loans — FVO — — 323 323 Derivative assets: (1) Interest rate — 3,779 — 3,779 Foreign currency exchange rate — 1,653 — 1,653 Credit — 144 35 179 Equity market — 380 59 439 Total derivative assets — 5,956 94 6,050 Embedded derivatives within asset host contracts (3) — — — — Separate account assets (3) 21,276 95,654 1,009 117,939 Total assets $ 38,741 $ 242,143 $ 13,185 $ 294,069 Liabilities Derivative liabilities: (1) Interest rate $ — $ 86 $ 327 $ 413 Foreign currency exchange rate — 1,354 4 1,358 Credit — 6 — 6 Equity market — 493 175 668 Total derivative liabilities — 1,939 506 2,445 Embedded derivatives within liability host contracts (2) — — 290 290 Separate account liabilities (3) — 8 8 16 Total liabilities $ — $ 1,947 $ 804 $ 2,751 December 31, 2017 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In millions) Assets Fixed maturity securities AFS: U.S. corporate $ — $ 54,629 $ 3,461 $ 58,090 U.S. government and agency 18,802 19,743 — 38,545 Foreign corporate — 21,471 4,125 25,596 RMBS — 19,372 3,262 22,634 ABS — 7,079 787 7,866 State and political subdivision — 7,551 — 7,551 CMBS — 5,461 27 5,488 Foreign government — 4,471 31 4,502 Total fixed maturity securities AFS 18,802 139,777 11,693 170,272 Equity securities 399 893 366 1,658 Short-term investments 2,056 1,092 7 3,155 Residential mortgage loans — FVO — — 520 520 Derivative assets: (1) Interest rate 1 4,556 8 4,565 Foreign currency exchange rate — 1,405 — 1,405 Credit — 149 39 188 Equity market 5 363 66 434 Total derivative assets 6 6,473 113 6,592 Embedded derivatives within asset host contracts (2) — — — — Separate account assets (3) 23,571 106,294 960 130,825 Total assets $ 44,834 $ 254,529 $ 13,659 $ 313,022 Liabilities Derivative liabilities: (1) Interest rate $ 2 $ 351 $ 130 $ 483 Foreign currency exchange rate — 1,261 5 1,266 Credit — 8 — 8 Equity market 1 515 169 685 Total derivative liabilities 3 2,135 304 2,442 Embedded derivatives within liability host contracts (3) — — 876 876 Separate account liabilities (3) — 7 2 9 Total liabilities $ 3 $ 2,142 $ 1,182 $ 3,327 __________________ (1) Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the interim condensed consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets. At September 30, 2018 and December 31, 2017 , debt and equity securities also included embedded derivatives of $0 and ($113) million , respectively. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: September 30, 2018 December 31, 2017 Impact of Valuation Significant Unobservable Inputs Range Weighted Average (1) Range Weighted Average (1) Fixed maturity securities AFS (3) U.S. corporate and foreign corporate • Matrix pricing • Offered quotes (4) 85 - 126 105 83 - 142 111 Increase • Market pricing • Quoted prices (4) 37 - 703 131 10 - 443 123 Increase RMBS • Market pricing • Quoted prices (4) — - 107 94 — - 126 94 Increase (5) ABS • Market pricing • Quoted prices (4) 14 - 102 100 27 - 104 100 Increase (5) • Consensus pricing • Offered quotes (4) 100 - 100 100 100 - 101 100 Increase (5) Derivatives Interest rate • Present value techniques • Swap yield (6) 310 - 331 200 - 300 Increase (7) • Repurchase rates (8) (5) - 55 (5) - 5 Decrease (7) Foreign currency exchange rate • Present value techniques • Swap yield (6) (23) - 2 (14) - (3) Increase (7) Credit • Present value techniques • Credit spreads (9) 96 - 100 — - — Decrease (7) • Consensus pricing • Offered quotes (10) Equity market • Present value techniques or option pricing models • Volatility (11) 12% 26% 11% 31% Increase (7) • Correlation (12) 10% 30% 10% 30% Embedded derivatives Direct and assumed guaranteed • Option pricing • Mortality rates: Ages 0 - 40 0.01% - 0.18% 0% - 0.09% Decrease (13) Ages 41 - 60 0.04% - 0.57% 0.04% - 0.65% Decrease (13) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (13) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (14) Durations 11 - 20 3% - 100% 3% - 100% Decrease (14) Durations 21 - 116 2.5% - 100% 3% - 100% Decrease (14) • Utilization rates 0% - 25% 0% - 25% Increase (15) • Withdrawal rates 0.25% - 10% 0.25% - 10% (16) • Long-term equity 16.50% - 22% 17.40% - 25% Increase (17) • Nonperformance risk 0.03% - 0.48% 0.02% - 0.44% Decrease (18) __________________ (1) The weighted average for fixed maturity securities AFS is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par. (5) Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (6) Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (7) Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (8) Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points. (9) Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (10) At both September 30, 2018 and December 31, 2017 , independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (11) Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (12) Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations. (13) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (14) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (16) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (17) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (18) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities AFS Corporate (1) Foreign Structured Equity Securities Other Limited Partnership Interests (In millions) Three Months Ended September 30, 2018 Balance, beginning of period $ 7,064 $ 11 $ 3,870 $ 345 $ 163 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — — 28 — 11 Total realized/unrealized gains (losses) included in AOCI (119 ) — (6 ) — (3 ) Purchases (4) 285 — 528 — 1 Sales (4) (251 ) — (176 ) (6 ) (21 ) Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (5) 84 — 27 45 — Transfers out of Level 3 (5) (46 ) — (716 ) (8 ) — Balance, end of period $ 7,017 $ 11 $ 3,555 $ 376 $ 151 Three Months Ended September 30, 2017 Balance, beginning of period $ 8,458 $ 14 $ 4,133 $ 416 $ — Total realized/unrealized gains (losses) included in net income (loss) (2), (3) (4 ) — 21 — — Total realized/unrealized gains (losses) included in AOCI 121 — 17 (3 ) — Purchases (4) 420 — 220 4 — Sales (4) (255 ) — (303 ) (52 ) — Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (5) 117 — — — — Transfers out of Level 3 (5) (110 ) — (270 ) — — Balance, end of period $ 8,747 $ 14 $ 3,818 $ 365 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6) $ — $ — $ 26 $ — $ 11 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6) $ (3 ) $ — $ 21 $ (2 ) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Residential Net Net Embedded Separate (In millions) Three Months Ended September 30, 2018 Balance, beginning of period $ 552 $ 405 $ (275 ) $ (437 ) $ 1,138 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — 4 (47 ) 199 2 Total realized/unrealized gains (losses) included in AOCI (2 ) — (107 ) — — Purchases (4) 101 — — — 148 Sales (4) (2 ) (70 ) — — (215 ) Issuances (4) — — — — — Settlements (4) — (16 ) 17 (52 ) — Transfers into Level 3 (5) — — — — 5 Transfers out of Level 3 (5) — — — — (77 ) Balance, end of period $ 649 $ 323 $ (412 ) $ (290 ) $ 1,001 Three Months Ended September 30, 2017 Balance, beginning of period $ 821 $ 615 $ (277 ) $ (1,008 ) $ 975 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — 32 (5 ) 131 6 Total realized/unrealized gains (losses) included in AOCI — — 1 — — Purchases (4) — 10 — — 136 Sales (4) (247 ) (72 ) — — (35 ) Issuances (4) — — — — 1 Settlements (4) — (21 ) (16 ) (54 ) (1 ) Transfers into Level 3 (5) 2 — — — 56 Transfers out of Level 3 (5) (174 ) — — — (101 ) Balance, end of period $ 402 $ 564 $ (297 ) $ (931 ) $ 1,037 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6) $ — $ (5 ) $ (34 ) $ 202 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30 2017 (6) $ — $ 32 $ (9 ) $ 59 $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities AFS Corporate (1) Foreign Structured Equity Securities Other Limited Partnership Interests (In millions) Nine Months Ended September 30, 2018 Balance, beginning of period $ 7,586 $ 31 $ 4,076 $ 366 $ — Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 11 — 70 (10 ) 5 Total realized/unrealized gains (losses) included in AOCI (390 ) — 5 — — Purchases (4) 1,020 — 563 5 2 Sales (4) (964 ) (2 ) (580 ) (20 ) (68 ) Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (5) 87 — 50 45 212 Transfers out of Level 3 (5) (333 ) (18 ) (629 ) (10 ) — Balance, end of period $ 7,017 $ 11 $ 3,555 $ 376 $ 151 Nine Months Ended September 30, 2017 Balance, beginning of period $ 8,839 $ 21 $ 4,541 $ 420 $ — Total realized/unrealized gains (losses) included in net income (loss) (2), (3) 5 — 76 (14 ) — Total realized/unrealized gains (losses) included in AOCI 394 — 94 27 — Purchases (4) 1,853 — 465 10 — Sales (4) (1,229 ) (1 ) (1,038 ) (74 ) — Issuances (4) — — — — — Settlements (4) — — — — — Transfers into Level 3 (5) 58 — 10 — — Transfers out of Level 3 (5) (1,173 ) (6 ) (330 ) (4 ) — Balance, end of period $ 8,747 $ 14 $ 3,818 $ 365 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6) $ (2 ) $ — $ 65 $ — $ 5 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6) $ (1 ) $ — $ 66 $ (12 ) $ — Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Short-term Residential Net Net Embedded Separate (In millions) Nine Months Ended September 30, 2018 Balance, beginning of period $ 7 $ 520 $ (191 ) $ (876 ) $ 958 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — 7 (123 ) 738 2 Total realized/unrealized gains (losses) included in AOCI (4 ) — (200 ) — — Purchases (4) 652 — 4 — 200 Sales (4) (1 ) (151 ) — — (161 ) Issuances (4) — — — — (3 ) Settlements (4) — (53 ) 98 (152 ) — Transfers into Level 3 (5) — — — — 81 Transfers out of Level 3 (5) (5 ) — — — (76 ) Balance, end of period $ 649 $ 323 $ (412 ) $ (290 ) $ 1,001 Nine Months Ended September 30, 2017 Balance, beginning of period $ 25 $ 566 $ (559 ) $ (893 ) $ 1,141 Total realized/unrealized gains (losses) included in net income (loss) (2), (3) — 38 7 343 (22 ) Total realized/unrealized gains (losses) included in AOCI — — 136 — — Purchases (4) 400 184 — — 269 Sales (4) — (155 ) — — (78 ) Issuances (4) — — — — 1 Settlements (4) — (69 ) 119 (381 ) (62 ) Transfers into Level 3 (5) 2 — — — 21 Transfers out of Level 3 (5) (25 ) — — — (233 ) Balance, end of period $ 402 $ 564 $ (297 ) $ (931 ) $ 1,037 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2018 (6) $ — $ (13 ) $ (41 ) $ 744 $ — Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2017 (6) $ — $ 38 $ (19 ) $ 343 $ — __________________ (1) Comprised of U.S. and foreign corporate securities. (2) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (3) Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (4) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (5) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (6) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses). (7) Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (9) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward. |
Fair Value Option | Fair Value Option The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The following table presents information for residential mortgage loans, which are accounted for under the FVO, and were initially measured at fair value. September 30, 2018 December 31, 2017 (In millions) Unpaid principal balance $ 401 $ 650 Difference between estimated fair value and unpaid principal balance (78 ) (130 ) Carrying value at estimated fair value $ 323 $ 520 Loans in nonaccrual status $ 104 $ 198 Loans more than 90 days past due $ 49 $ 94 Loans in nonaccrual status or more than 90 days past due, or both - difference between aggregate estimated fair value and unpaid principal balance $ (56 ) $ (102 ) |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: September 30, 2018 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 60,813 $ — $ — $ 61,316 $ 61,316 Policy loans $ 6,050 $ — $ 271 $ 6,596 $ 6,867 Other invested assets $ 2,880 $ — $ 2,618 $ 169 $ 2,787 Premiums, reinsurance and other receivables $ 14,864 $ — $ 607 $ 14,776 $ 15,383 Liabilities Policyholder account balances $ 74,269 $ — $ — $ 74,156 $ 74,156 Long-term debt $ 1,619 $ — $ 1,877 $ — $ 1,877 Other liabilities $ 14,390 $ — $ 1,188 $ 13,210 $ 14,398 Separate account liabilities $ 51,304 $ — $ 51,304 $ — $ 51,304 December 31, 2017 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 57,939 $ — $ — $ 59,465 $ 59,465 Policy loans $ 6,006 $ — $ 261 $ 6,797 $ 7,058 Other limited partnership interests $ 214 $ — $ — $ 212 $ 212 Other invested assets $ 2,260 $ — $ 2,028 $ 154 $ 2,182 Premiums, reinsurance and other receivables $ 15,024 $ — $ 679 $ 14,859 $ 15,538 Liabilities Policyholder account balances $ 75,323 $ — $ — $ 76,452 $ 76,452 Long-term debt $ 1,661 $ — $ 2,021 $ — $ 2,021 Other liabilities $ 13,954 $ — $ 547 $ 13,490 $ 14,037 Separate account liabilities $ 61,757 $ — $ 61,757 $ — $ 61,757 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Dividend Payment Restrictions | The table below sets forth the dividends permitted to be paid in 2018 by Metropolitan Life Insurance Company to MetLife, Inc. without insurance regulatory approval and the dividends paid during the nine months ended September 30, 2018 : Company Paid (1) Permitted Without (In millions) Metropolitan Life Insurance Company $ 2,424 (2 ) $ 3,075 __________________ (1) Reflects all amounts paid, including those requiring regulatory approval. (2) Represents ordinary dividends of $1.7 billion and an extraordinary dividend of $705 million that was paid with regulatory approval. The extraordinary dividend was paid in cash with proceeds from the sale to an affiliate of certain property, equipment, leasehold improvements and computer software that were non-admitted by Metropolitan Life Insurance Company for statutory accounting purposes. The affiliate received a capital contribution in cash from MetLife, Inc. to fund the purchase. |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI attributable to Metropolitan Life Insurance Company, was as follows: Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 3,933 $ 1,013 $ (47 ) $ (2,112 ) $ 2,787 OCI before reclassifications (1,212 ) (154 ) (35 ) 130 (1,271 ) Deferred income tax benefit (expense) 252 38 7 (27 ) 270 AOCI before reclassifications, net of income tax 2,973 897 (75 ) (2,009 ) 1,786 Amounts reclassified from AOCI (73 ) (26 ) — 31 (68 ) Deferred income tax benefit (expense) 16 — — (7 ) 9 Amounts reclassified from AOCI, net of income tax (57 ) (26 ) — 24 (59 ) Balance, end of period $ 2,916 $ 871 $ (75 ) $ (1,985 ) $ 1,727 Three Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 5,549 $ 1,216 $ (82 ) $ (1,813 ) $ 4,870 OCI before reclassifications 560 (20 ) 29 2 571 Deferred income tax benefit (expense) (214 ) 7 (7 ) (1 ) (215 ) AOCI before reclassifications, net of income tax 5,895 1,203 (60 ) (1,812 ) 5,226 Amounts reclassified from AOCI (30 ) (293 ) — 40 (283 ) Deferred income tax benefit (expense) 10 102 — (14 ) 98 Amounts reclassified from AOCI, net of income tax (20 ) (191 ) — 26 (185 ) Balance, end of period $ 5,875 $ 1,012 $ (60 ) $ (1,786 ) $ 5,041 Nine Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 6,351 $ 906 $ (47 ) $ (1,782 ) $ 5,428 OCI before reclassifications (5,796 ) (483 ) (23 ) 130 (6,172 ) Deferred income tax benefit (expense) 1,237 93 2 (27 ) 1,305 AOCI before reclassifications, net of income tax 1,792 516 (68 ) (1,679 ) 561 Amounts reclassified from AOCI 26 183 — 93 302 Deferred income tax benefit (expense) (5 ) (35 ) — (20 ) (60 ) Amounts reclassified from AOCI, net of income tax 21 148 — 73 242 Cumulative effects of changes in accounting principles (119 ) — — — (119 ) Deferred income tax benefit (expense), cumulative effects of changes in accounting principles 1,222 207 (7 ) (379 ) 1,043 Cumulative effects of changes in accounting principles, net of income tax (2) 1,103 207 (7 ) (379 ) 924 Balance, end of period $ 2,916 $ 871 $ (75 ) $ (1,985 ) $ 1,727 Nine Months Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Foreign Currency Translation Adjustments Defined Benefit Plans Adjustment Total (In millions) Balance, beginning of period $ 3,592 $ 1,459 $ (67 ) $ (1,865 ) $ 3,119 OCI before reclassifications 3,434 226 9 5 3,674 Deferred income tax benefit (expense) (1,215 ) (79 ) (2 ) (2 ) (1,298 ) AOCI before reclassifications, net of income tax 5,811 1,606 (60 ) (1,862 ) 5,495 Amounts reclassified from AOCI 98 (913 ) — 118 (697 ) Deferred income tax benefit (expense) (34 ) 319 — (42 ) 243 Amounts reclassified from AOCI, net of income tax 64 (594 ) — 76 (454 ) Balance, end of period $ 5,875 $ 1,012 $ (60 ) $ (1,786 ) $ 5,041 __________________ (1) See Note 5 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation. (2) See Note 1 for further information on adoption of new accounting pronouncements. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Consolidated Statements of Three Months Nine Months 2018 2017 2018 2017 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 136 $ (5 ) $ 31 $ 30 Net investment gains (losses) Net unrealized investment gains (losses) 6 (3 ) 16 (5 ) Net investment income Net unrealized investment gains (losses) (69 ) 38 (73 ) (123 ) Net derivative gains (losses) Net unrealized investment gains (losses), before income tax 73 30 (26 ) (98 ) Income tax (expense) benefit (16 ) (10 ) 5 34 Net unrealized investment gains (losses), net of income tax 57 20 (21 ) (64 ) Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps 1 8 18 22 Net derivative gains (losses) Interest rate swaps 4 4 13 12 Net investment income Interest rate forwards (3 ) (1 ) — (5 ) Net derivative gains (losses) Interest rate forwards 1 1 2 2 Net investment income Foreign currency swaps 24 282 (214 ) 882 Net derivative gains (losses) Foreign currency swaps (1 ) (1 ) (2 ) (1 ) Net investment income Credit forwards — — — 1 Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 26 293 (183 ) 913 Income tax (expense) benefit — (102 ) 35 (319 ) Gains (losses) on cash flow hedges, net of income tax 26 191 (148 ) 594 Defined benefit plans adjustment: (1) Amortization of net actuarial gains (losses) (36 ) (45 ) (107 ) (134 ) Amortization of prior service (costs) credit 5 5 14 16 Amortization of defined benefit plan items, before income tax (31 ) (40 ) (93 ) (118 ) Income tax (expense) benefit 7 14 20 42 Amortization of defined benefit plan items, net of income tax (24 ) (26 ) (73 ) (76 ) Total reclassifications, net of income tax $ 59 $ 185 $ (242 ) $ 454 __________________ (1) These AOCI components are included in the computation of net periodic benefit costs. See Note 10 . |
Other Expenses (Tables)
Other Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Three Months Nine Months 2018 2017 2018 2017 (In millions) General and administrative expenses $ 678 $ 689 $ 2,018 $ 1,943 Pension, postretirement and postemployment benefit costs 18 51 52 138 Premium taxes, other taxes, and licenses & fees 96 63 279 212 Commissions and other variable expenses 445 436 1,317 1,369 Capitalization of DAC (7 ) (17 ) (26 ) (57 ) Amortization of DAC and VOBA 104 (43 ) 271 124 Interest expense on debt 27 26 81 79 Total other expenses $ 1,361 $ 1,205 $ 3,992 $ 3,808 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net periodic benefit costs | The components of net periodic benefit costs, reported in other expenses, were as follows: Three Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 40 $ 1 $ 40 $ — Interest costs 93 13 98 16 Divestitures — — 3 2 Expected return on plan assets (131 ) (18 ) (121 ) (16 ) Amortization of net actuarial (gains) losses 45 (9 ) 45 — Amortization of prior service costs (credit) — (5 ) — (5 ) Allocated to affiliates (20 ) 6 (9 ) — Net periodic benefit costs (credit) $ 27 $ (12 ) $ 56 $ (3 ) Nine Months 2018 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits (In millions) Service costs $ 119 $ 4 $ 120 $ 3 Interest costs 279 38 295 50 Divestitures — — 3 2 Expected return on plan assets (394 ) (54 ) (362 ) (48 ) Amortization of net actuarial (gains) losses 133 (26 ) 134 — Amortization of prior service costs (credit) — (14 ) (1 ) (15 ) Allocated to affiliates (58 ) 19 (26 ) (1 ) Net periodic benefit costs (credit) $ 79 $ (33 ) $ 163 $ (9 ) See Note 14 for information on benefit plan transfers to an affiliate. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Effects of reinsurance | Information regarding the significant effects of affiliated reinsurance included on the interim condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Nine Months 2018 2017 2018 (1) 2017 (1) (In millions) Premiums Reinsurance assumed $ 2 $ 5 $ 7 $ 118 Reinsurance ceded (24 ) (32 ) (87 ) (101 ) Net premiums $ (22 ) $ (27 ) $ (80 ) $ 17 Universal life and investment-type product policy fees Reinsurance assumed $ — $ (2 ) $ (2 ) $ 16 Reinsurance ceded (4 ) (6 ) (14 ) (16 ) Net universal life and investment-type product policy fees $ (4 ) $ (8 ) $ (16 ) $ — Other revenues Reinsurance assumed $ (2 ) $ 4 $ 3 $ 30 Reinsurance ceded 138 139 401 421 Net other revenues $ 136 $ 143 $ 404 $ 451 Policyholder benefits and claims Reinsurance assumed $ 1 $ 4 $ 5 $ 63 Reinsurance ceded (33 ) (26 ) (90 ) (90 ) Net policyholder benefits and claims $ (32 ) $ (22 ) $ (85 ) $ (27 ) Interest credited to policyholder account balances Reinsurance assumed $ 8 $ 12 $ 30 $ 36 Reinsurance ceded (3 ) (3 ) (9 ) (9 ) Net interest credited to policyholder account balances $ 5 $ 9 $ 21 $ 27 Other expenses Reinsurance assumed $ — $ (4 ) $ 10 $ 33 Reinsurance ceded 154 139 412 459 Net other expenses $ 154 $ 135 $ 422 $ 492 __________________ (1) Includes the following amounts for reinsurance transactions with Brighthouse, which effective July 1, 2018 was no longer considered a related party: Nine Months 2018 2017 (In millions) Premiums Reinsurance assumed $ 1 $ 112 Universal life and investment-type product policy fees Reinsurance assumed $ (2 ) $ 15 Other revenues Reinsurance assumed $ 7 $ 30 Policyholder benefits and claims Reinsurance assumed $ 2 $ 60 Interest credited to policyholder account balances Reinsurance assumed $ 7 $ 12 Other expenses Reinsurance assumed $ 10 $ 9 Reinsurance ceded — 27 Net other expenses $ 10 $ 36 Information regarding the significant effects of affiliated reinsurance included on the interim condensed consolidated balance sheets was as follows at: September 30, 2018 December 31, 2017 Assumed Ceded Assumed (1) Ceded (In millions) Assets Premiums, reinsurance and other receivables $ — $ 12,672 $ 47 $ 12,762 Deferred policy acquisition costs and value of business acquired — (181 ) — (180 ) Total assets $ — $ 12,491 $ 47 $ 12,582 Liabilities Future policy benefits $ 64 $ (1 ) $ 380 $ (4 ) Policyholder account balances 154 — 166 — Other policy-related balances 1 13 104 15 Other liabilities 836 12,371 1,858 12,970 Total liabilities $ 1,055 $ 12,383 $ 2,508 $ 12,981 __________________ (1) Includes the following amounts for reinsurance transactions with Brighthouse, which effective July 1, 2018 was no longer considered a related party: December 31, 2017 Assumed (In millions) Assets Premiums, reinsurance and other receivables $ 47 Liabilities Future policy benefits $ 313 Other policy-related balances 101 Other liabilities 1,028 Total liabilities $ 1,442 |
Business, Basis of Presentati_4
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 2 |
Business, Basis of Presentati_5
Business, Basis of Presentation and Summary of Significant Accounting Policies (Restatement Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Related Disclosures [Abstract] | ||||||
Policyholder benefits and claims | $ 6,576 | $ 7,372 | $ 23,642 | $ 19,628 | ||
Total expenses | 8,847 | 9,411 | 30,267 | 25,923 | ||
Income (loss) before provision for income tax | 904 | 875 | 2,739 | 2,350 | ||
Provision for income tax expense (benefit) | 88 | 167 | 244 | 451 | ||
Net income (loss) | 816 | 708 | 2,495 | 1,899 | ||
Net income (loss) attributable to Metropolitan Life Insurance Company | 814 | 703 | 2,485 | 1,891 | ||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (244) | 879 | (2,130) | 3,821 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Metropolitan Life Insurance Company | (246) | 874 | (2,140) | 3,813 | ||
Statement of Stockholders' Equity [Abstract] | ||||||
Retained Earnings (Accumulated Deficit) | 9,179 | 8,924 | 9,179 | 8,924 | $ 10,035 | $ 9,033 |
Net income (loss) attributable to Metropolitan Life Insurance Company | 814 | 703 | 2,485 | 1,891 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 25,329 | 28,298 | 25,329 | 28,298 | 29,761 | 26,760 |
Total Metropolitan Life Insurance Company Stockholder’s Equity | ||||||
Statement of Stockholders' Equity [Abstract] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 25,132 | 28,119 | $ 25,132 | 28,119 | $ 29,618 | 26,570 |
Previously Reported | ||||||
Income Statement Related Disclosures [Abstract] | ||||||
Policyholder benefits and claims | 7,317 | 19,561 | ||||
Total expenses | 9,356 | 25,856 | ||||
Income (loss) before provision for income tax | 930 | 2,417 | ||||
Provision for income tax expense (benefit) | 187 | 475 | ||||
Net income (loss) | 743 | 1,942 | ||||
Net income (loss) attributable to Metropolitan Life Insurance Company | 738 | 1,934 | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 914 | 3,864 | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Metropolitan Life Insurance Company | 909 | 3,856 | ||||
Statement of Stockholders' Equity [Abstract] | ||||||
Retained Earnings (Accumulated Deficit) | 9,184 | 9,184 | 9,250 | |||
Net income (loss) attributable to Metropolitan Life Insurance Company | 738 | 1,934 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 28,558 | 28,558 | 26,977 | |||
Previously Reported | Total Metropolitan Life Insurance Company Stockholder’s Equity | ||||||
Statement of Stockholders' Equity [Abstract] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 28,379 | 28,379 | 26,787 | |||
Restatement Adjustment | ||||||
Income Statement Related Disclosures [Abstract] | ||||||
Policyholder benefits and claims | 55 | 67 | ||||
Total expenses | 55 | 67 | ||||
Income (loss) before provision for income tax | (55) | (67) | ||||
Provision for income tax expense (benefit) | (20) | (24) | ||||
Net income (loss) | (35) | (43) | ||||
Net income (loss) attributable to Metropolitan Life Insurance Company | (35) | (43) | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (35) | (43) | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Metropolitan Life Insurance Company | (35) | (43) | ||||
Statement of Stockholders' Equity [Abstract] | ||||||
Retained Earnings (Accumulated Deficit) | (260) | (260) | (217) | |||
Net income (loss) attributable to Metropolitan Life Insurance Company | (35) | (43) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (260) | (260) | (217) | |||
Restatement Adjustment | Total Metropolitan Life Insurance Company Stockholder’s Equity | ||||||
Statement of Stockholders' Equity [Abstract] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (260) | $ (260) | $ (217) |
Business, Basis of Presentati_6
Business, Basis of Presentation and Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained Earnings (Accumulated Deficit) | $ 9,179 | $ 10,035 | $ 8,924 | $ 9,033 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,727 | $ 2,787 | 5,428 | $ 5,041 | $ 4,870 | $ 3,119 | ||
Equity securities | 841 | 1,658 | ||||||
Derivative assets | 6,050 | 6,592 | ||||||
Derivative liabilities | 2,445 | 2,442 | ||||||
Accrued Investment Income Receivable | 2,140 | 2,042 | ||||||
Premiums and Other Receivables, Net | 22,623 | $ 22,098 | ||||||
Adjustments for New Accounting Pronouncement | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained Earnings (Accumulated Deficit) | $ (1,000) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,000 | |||||||
Accounting Standards Update 2016-01 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Retained Earnings (Accumulated Deficit) | 101 | |||||||
Equity securities | $ 925 | |||||||
LCH update impact | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Derivative assets | $ (2) | |||||||
Derivative liabilities | (182) | |||||||
Accrued Investment Income Receivable | (4) | |||||||
Premiums and Other Receivables, Net | $ (176) | |||||||
Accounting Standards Update 2017-12 | Retained Earnings | Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (100) | |||||||
Accounting Standards Update 2017-12 | Retained Earnings | Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (250) |
Business, Basis of Presentati_7
Business, Basis of Presentation and Summary of Significant Accounting Policies (Other Revenues) (Details) - Accounting Standards Update 2014-09 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 196 | $ 598 |
Prepaid legal plans and administrative-only contracts | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 120 | 375 |
Distribution and administrative services fee | MetLife Holdings | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 56 | $ 169 |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Premiums | $ 5,925 | $ 6,629 | $ 21,794 | $ 17,597 |
Universal life and investment-type product policy fees | 510 | 556 | 1,570 | 1,706 |
Net investment income | 2,786 | 2,660 | 8,171 | 7,955 |
Other revenues | 401 | 371 | 1,203 | 1,148 |
Net investment gains (losses) | 205 | 96 | (21) | 184 |
Net derivative gains (losses) | (76) | (26) | 289 | (317) |
Total revenues | 9,751 | 10,286 | 33,006 | 28,273 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 6,858 | 7,639 | 24,454 | 20,455 |
Interest credited to policyholder account balances | 628 | 567 | 1,821 | 1,660 |
Capitalization of DAC | (7) | (17) | (26) | (57) |
Amortization of DAC and VOBA | 104 | (43) | 271 | 124 |
Interest expense on debt | 27 | 26 | 81 | 79 |
Other expenses | 1,237 | 1,239 | 3,666 | 3,662 |
Total expenses | 8,847 | 9,411 | 30,267 | 25,923 |
Provision for income tax expense (benefit) | 88 | 167 | 244 | 451 |
Net income (loss) | 816 | 708 | 2,495 | 1,899 |
Operating Segments | ||||
Revenues | ||||
Premiums | 5,925 | 6,629 | 21,794 | 17,597 |
Universal life and investment-type product policy fees | 487 | 531 | 1,500 | 1,633 |
Net investment income | 2,872 | 2,743 | 8,449 | 8,254 |
Other revenues | 401 | 371 | 1,203 | 1,148 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 9,685 | 10,274 | 32,946 | 28,632 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 6,739 | 7,509 | 24,304 | 20,208 |
Interest credited to policyholder account balances | 630 | 568 | 1,824 | 1,663 |
Capitalization of DAC | (7) | (17) | (26) | (57) |
Amortization of DAC and VOBA | 25 | (64) | 208 | 209 |
Interest expense on debt | 27 | 26 | 81 | 79 |
Other expenses | 1,239 | 1,244 | 3,675 | 3,674 |
Total expenses | 8,653 | 9,266 | 30,066 | 25,776 |
Provision for income tax expense (benefit) | 115 | 213 | 276 | 628 |
Adjusted earnings | 917 | 795 | 2,604 | 2,228 |
Operating Segments | U.S. | ||||
Revenues | ||||
Premiums | 5,125 | 5,820 | 19,425 | 15,055 |
Universal life and investment-type product policy fees | 248 | 245 | 758 | 757 |
Net investment income | 1,707 | 1,554 | 4,945 | 4,646 |
Other revenues | 189 | 191 | 581 | 581 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 7,269 | 7,810 | 25,709 | 21,039 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 5,227 | 6,018 | 19,970 | 15,773 |
Interest credited to policyholder account balances | 443 | 373 | 1,262 | 1,076 |
Capitalization of DAC | (8) | (15) | (30) | (42) |
Amortization of DAC and VOBA | 27 | 15 | 59 | 44 |
Interest expense on debt | 3 | 3 | 9 | 8 |
Other expenses | 700 | 681 | 2,124 | 2,044 |
Total expenses | 6,392 | 7,075 | 23,394 | 18,903 |
Provision for income tax expense (benefit) | 187 | 257 | 493 | 745 |
Adjusted earnings | 690 | 478 | 1,822 | 1,391 |
Operating Segments | MetLife Holdings | ||||
Revenues | ||||
Premiums | 783 | 806 | 2,351 | 2,530 |
Universal life and investment-type product policy fees | 239 | 286 | 742 | 876 |
Net investment income | 1,218 | 1,228 | 3,599 | 3,711 |
Other revenues | 66 | 36 | 199 | 126 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 2,306 | 2,356 | 6,891 | 7,243 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 1,500 | 1,491 | 4,331 | 4,432 |
Interest credited to policyholder account balances | 187 | 195 | 562 | 587 |
Capitalization of DAC | 1 | (2) | 4 | (15) |
Amortization of DAC and VOBA | (2) | (79) | 149 | 165 |
Interest expense on debt | 2 | 2 | 6 | 6 |
Other expenses | 254 | 291 | 754 | 895 |
Total expenses | 1,942 | 1,898 | 5,806 | 6,070 |
Provision for income tax expense (benefit) | 70 | 146 | 208 | 368 |
Adjusted earnings | 294 | 312 | 877 | 805 |
Operating Segments | Corporate & Other | ||||
Revenues | ||||
Premiums | 17 | 3 | 18 | 12 |
Universal life and investment-type product policy fees | 0 | 0 | 0 | 0 |
Net investment income | (53) | (39) | (95) | (103) |
Other revenues | 146 | 144 | 423 | 441 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 110 | 108 | 346 | 350 |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 12 | 0 | 3 | 3 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Capitalization of DAC | 0 | 0 | 0 | 0 |
Amortization of DAC and VOBA | 0 | 0 | 0 | 0 |
Interest expense on debt | 22 | 21 | 66 | 65 |
Other expenses | 285 | 272 | 797 | 735 |
Total expenses | 319 | 293 | 866 | 803 |
Provision for income tax expense (benefit) | (142) | (190) | (425) | (485) |
Adjusted earnings | (67) | 5 | (95) | 32 |
Significant Reconciling Items | ||||
Revenues | ||||
Premiums | 0 | 0 | 0 | 0 |
Universal life and investment-type product policy fees | 23 | 25 | 70 | 73 |
Net investment income | (86) | (83) | (278) | (299) |
Other revenues | 0 | 0 | 0 | 0 |
Net investment gains (losses) | 205 | 96 | (21) | 184 |
Net derivative gains (losses) | (76) | (26) | 289 | (317) |
Total revenues | 66 | 12 | 60 | (359) |
Expenses | ||||
Policyholder benefits and claims and policyholder dividends | 119 | 130 | 150 | 247 |
Interest credited to policyholder account balances | (2) | (1) | (3) | (3) |
Capitalization of DAC | 0 | 0 | 0 | 0 |
Amortization of DAC and VOBA | 79 | 21 | 63 | (85) |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | (2) | (5) | (9) | (12) |
Total expenses | 194 | 145 | 201 | 147 |
Provision for income tax expense (benefit) | $ (27) | $ (46) | $ (32) | $ (177) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 419,149 | $ 434,295 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total assets | 238,102 | 245,750 |
MetLife Holdings | ||
Segment Reporting Information [Line Items] | ||
Total assets | 154,371 | 163,397 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 26,676 | $ 25,148 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||
Number of segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 9,751 | $ 10,286 | $ 33,006 | $ 28,273 | |
Concentration Risk, Percentage | 10.00% | 10.00% | |||
First U.S. Customer | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 6,000 | ||||
Second U.S. Customer | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 730 | $ 685 | $ 2,400 | $ 2,100 | |
Premiums, universal life and investment-type product policy fees and other revenues | First U.S. Customer | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 24.00% | ||||
Premiums, universal life and investment-type product policy fees and other revenues | Second U.S. Customer | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | 9.00% | 10.00% | 10.00% |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Variable Annuity Guarantees: | Guaranteed Death Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 53,096 | $ 56,136 |
Separate account value (1) | 42,881 | 45,431 |
Net amount at risk | $ 1,236 | $ 990 |
Average attained age of contractholders | 67 years | 66 years |
Variable Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 23,418 | $ 25,257 |
Separate account value (1) | 22,550 | 24,336 |
Net amount at risk | $ 269 | $ 353 |
Average attained age of contractholders | 65 years | 65 years |
Other Annuity Guarantees: | Guaranteed Annuitization Benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value | $ 143 | $ 141 |
Net amount at risk | $ 88 | $ 92 |
Average attained age of contractholders | 53 years | 52 years |
Insurance (Guarantees Related_2
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) - Universal and Variable Life Contracts - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Secondary Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (2) | $ 4,843 | $ 4,679 |
Net amount at risk (6) | $ 44,989 | $ 46,704 |
Average attained age of policyholders | 55 years | 54 years |
Paid-Up Guarantees | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (1), (2) | $ 947 | $ 977 |
Net amount at risk (6) | $ 6,394 | $ 6,713 |
Average attained age of policyholders | 63 years | 62 years |
Insurance (Rollforward of Unpai
Insurance (Rollforward of Unpaid Claims) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Balance, beginning of period | $ 12,090 | $ 11,621 |
Less: Reinsurance recoverables | 1,401 | 1,251 |
Net balance, beginning of period | 10,689 | 10,370 |
Incurred related to: | ||
Current period | 12,623 | 12,282 |
Prior periods (2) | 118 | 204 |
Total incurred | 12,741 | 12,486 |
Paid related to: | ||
Current period | (8,566) | (9,153) |
Prior periods | (3,609) | (2,914) |
Total paid | (12,175) | (12,067) |
Net balance, end of period | 11,255 | 10,789 |
Add: Reinsurance recoverables | 1,381 | 1,355 |
Balance, end of period (included in future policy benefits and other policy-related balances) | $ 12,636 | 12,144 |
Restatement Adjustment | ||
Incurred related to: | ||
Total incurred | 712 | |
Paid related to: | ||
Net balance, end of period | $ (199) |
Closed Block (Liabilities and A
Closed Block (Liabilities and Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Closed Block Liabilities | |||
Future policy benefits | $ 40,106 | $ 40,463 | |
Other policy-related balances | 287 | 222 | |
Policyholder dividends payable | 476 | 437 | |
Policyholder dividend obligation | 456 | 2,121 | $ 1,931 |
Closed Block Liabilities, Income Tax Payable | 2 | 0 | |
Other liabilities | 472 | 212 | |
Total closed block liabilities | 41,799 | 43,455 | |
Assets Designated to the Closed Block | |||
Fixed maturity securities available-for-sale, at estimated fair value | 25,803 | 27,904 | |
Equity securities, at estimated fair value | 66 | 70 | |
Mortgage loans | 6,474 | 5,878 | |
Policy loans | 4,524 | 4,548 | |
Real estate and real estate joint ventures | 580 | 613 | |
Other invested assets | 686 | 731 | |
Total investments | 38,133 | 39,744 | |
Accrued investment income | 469 | 477 | |
Premiums, reinsurance and other receivables; cash and cash equivalents designated to the closed block | 92 | 14 | |
Current income tax recoverable | 52 | 35 | |
Deferred income tax asset | 0 | 36 | |
Total assets designated to the closed block | 38,746 | 40,306 | |
Excess of closed block liabilities over assets designated to the closed block | 3,053 | 3,149 | |
Amounts included in AOCI: | |||
Unrealized investment gains (losses), net of income tax | 1,110 | 1,863 | |
Unrealized gains (losses) on derivatives, net of income tax | 17 | (7) | |
Allocated to policyholder dividend obligation, net of income tax | (360) | (1,379) | |
Total amounts included in AOCI | 767 | 477 | |
Maximum future earnings to be recognized from closed block assets and liabilities | $ 3,820 | $ 3,626 |
Closed Block (Policyholder Divi
Closed Block (Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Closed block policyholder dividend obligation | ||
Balance, beginning of period | $ 2,121 | $ 1,931 |
Change in unrealized investment and derivative gains (losses) | (1,665) | 190 |
Balance, end of period | $ 456 | $ 2,121 |
Closed Block (Revenues and Expe
Closed Block (Revenues and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Premiums | $ 405 | $ 413 | $ 1,202 | $ 1,247 |
Net investment income | 443 | 450 | 1,318 | 1,368 |
Net investment gains (losses) | 7 | 0 | (46) | (10) |
Net derivative gains (losses) | 2 | (6) | 12 | (24) |
Total revenues | 857 | 857 | 2,486 | 2,581 |
Expenses | ||||
Policyholder benefits and claims | 641 | 591 | 1,808 | 1,773 |
Policyholder dividends | 241 | 235 | 723 | 732 |
Other expenses | 29 | 30 | 88 | 94 |
Total expenses | 911 | 856 | 2,619 | 2,599 |
Revenues, net of expenses before provision for income tax expense (benefit) | (54) | 1 | (133) | (18) |
Provision for income tax expense (benefit) | (12) | 0 | (29) | (8) |
Revenues, net of expenses and provision for income tax expense (benefit) | $ (42) | $ 1 | $ (104) | $ (10) |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 161,168 | $ 157,809 |
Gross Unrealized OTTI Loss | 35 | 40 |
Debt Securities, Available-for-sale | 165,847 | 170,272 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gain | 7,957 | 13,569 |
Gross Unrealized Temporary Loss | 3,313 | 1,146 |
Gross Unrealized OTTI Loss | (35) | (40) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 56,474 | 53,291 |
Gross Unrealized Gain | 2,803 | 5,037 |
Gross Unrealized Temporary Loss | 1,022 | 238 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | 58,255 | 58,090 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 33,094 | 35,021 |
Gross Unrealized Gain | 2,217 | 3,755 |
Gross Unrealized Temporary Loss | 604 | 231 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | 34,707 | 38,545 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 25,021 | 24,367 |
Gross Unrealized Gain | 756 | 1,655 |
Gross Unrealized Temporary Loss | 913 | 426 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | 24,864 | 25,596 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 22,023 | 21,735 |
Gross Unrealized Gain | 826 | 1,039 |
Gross Unrealized Temporary Loss | 521 | 181 |
Gross Unrealized OTTI Loss | (35) | (41) |
Debt Securities, Available-for-sale | 22,363 | 22,634 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 8,795 | 7,808 |
Gross Unrealized Gain | 44 | 73 |
Gross Unrealized Temporary Loss | 24 | 15 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | 8,815 | 7,866 |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 6,172 | 6,310 |
Gross Unrealized Gain | 852 | 1,245 |
Gross Unrealized Temporary Loss | 42 | 3 |
Gross Unrealized OTTI Loss | 0 | 1 |
Debt Securities, Available-for-sale | 6,982 | 7,551 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 5,529 | 5,390 |
Gross Unrealized Gain | 26 | 124 |
Gross Unrealized Temporary Loss | 97 | 26 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | 5,458 | 5,488 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 4,060 | 3,887 |
Gross Unrealized Gain | 433 | 641 |
Gross Unrealized Temporary Loss | 90 | 26 |
Gross Unrealized OTTI Loss | 0 | 0 |
Debt Securities, Available-for-sale | $ 4,403 | $ 4,502 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 9,061 | |
Amortized Cost, Due after one year through five years | 30,339 | |
Amortized Cost, Due after five years through ten years | 29,664 | |
Amortized Cost, Due after ten years | 55,757 | |
Amortized Cost, Structured Securities | 36,347 | |
Amortized Cost, Subtotal | 161,168 | $ 157,809 |
Estimated Fair Value, Due in one year or less | 9,022 | |
Estimated Fair Value, Due after one year through five years | 30,528 | |
Estimated Fair Value, Due after five years through ten years | 30,003 | |
Estimated Fair Value, Due after ten years | 59,658 | |
Estimated Fair Value, Structured Securities | 36,636 | |
Debt Securities, Available-for-sale | $ 165,847 | $ 170,272 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Equity Securities | $ 841 | $ 1,658 |
Percentage of Available-for-sale Equity Securities | 100.00% | 100.00% |
Total number of securities in an unrealized loss position less than 12 months | 4,912 | 1,295 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 1,116 | 1,103 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | $ 61,559 | $ 24,911 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,882 | 222 |
Equal to or Greater than 12 Months Estimated Fair Value | 14,349 | 13,721 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,396 | 884 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 19,006 | 3,727 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 695 | 57 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,913 | 2,523 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 327 | 181 |
U.S. government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 13,510 | 13,905 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 171 | 76 |
Equal to or Greater than 12 Months Estimated Fair Value | 5,332 | 3,018 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 433 | 155 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 9,817 | 1,677 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 564 | 43 |
Equal to or Greater than 12 Months Estimated Fair Value | 2,036 | 3,912 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 349 | 383 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 9,615 | 3,673 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 276 | 30 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,267 | 3,332 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 210 | 110 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 4,321 | 732 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 3 |
Equal to or Greater than 12 Months Estimated Fair Value | 177 | 358 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 7 | 12 |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 935 | 106 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 32 | 1 |
Equal to or Greater than 12 Months Estimated Fair Value | 111 | 120 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 10 | 3 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 3,245 | 844 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 63 | 6 |
Equal to or Greater than 12 Months Estimated Fair Value | 357 | 193 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 34 | 20 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months Estimated Fair Value | 1,110 | 247 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 64 | 6 |
Equal to or Greater than 12 Months Estimated Fair Value | 156 | 265 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 26 | 20 |
Equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Equity Securities | 841 | 1,658 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Equity Securities | $ 487 | $ 1,251 |
Percentage of Available-for-sale Equity Securities | 57.90% | 75.50% |
Non-redeemable preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Equity Securities | $ 354 | $ 407 |
Percentage of Available-for-sale Equity Securities | 42.10% | 24.50% |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans (net of valuation allowances of $287 and $271, respectively; includes $210 and $0, respectively, relating to variable interest entities; includes $323 and $520, respectively, under the fair value option) | $ 61,136 | $ 58,459 | ||
Percentage Of Mortgage Loans On Real Estate To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | 100.00% | ||
Percentage Of Loans And Leases Receivable Consumer Other To Mortgage Loans On Real Estate Commercial And Consumer Net | 0.50% | 0.90% | ||
Loans and Leases Receivable, Net Amount | $ 60,813 | $ 57,939 | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 37,639 | $ 35,440 | ||
Percentage Of Loans Receivable Commercial Mortgage To Mortgage Loans On Real Estate Commercial And Consumer Net | 61.60% | 60.60% | ||
Loans Receivable, Gross, Commercial, Agricultural | $ 13,190 | $ 12,712 | ||
Percentage Of Loans Receivable Commercial Agricultural To Mortgage Loans On Real Estate Commercial And Consumer Net | 21.60% | 21.80% | ||
Loans and Leases Receivable, Gross, Consumer, Mortgage | $ 10,271 | $ 10,058 | ||
Percentage Of Loans And Leases Receivable Consumer Mortgage To Mortgage Loans On Real Estate Commercial And Consumer Net | 16.80% | 17.20% | ||
Mortgage Loans Held For Investment | $ 61,100 | $ 58,210 | ||
Percentage Of Mortgage Loans Held For Investment To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | 99.60% | ||
Allowance for Loan and Lease Losses, Real Estate | $ 287 | $ 271 | $ 272 | $ 267 |
Percentage Of Allowance For Loan And Lease Losses Real Estate To Mortgage Loans On Real Estate Commercial And Consumer Net | (0.50%) | (0.50%) | ||
Percentage Of Mortgage Loans Held For Investment Net To Mortgage Loans On Real Estate Commercial And Consumer Net | 99.50% | 99.10% | ||
Residential Loans Held For Investment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans (net of valuation allowances of $287 and $271, respectively; includes $210 and $0, respectively, relating to variable interest entities; includes $323 and $520, respectively, under the fair value option) | $ 323 | $ 520 |
Investments (Mortgage Loans and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | $ 531 | $ 385 |
Impaired Financing Receivable, Recorded Investment | 498 | 370 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 13 | 22 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 13 | 21 |
Impaired Financing Receivable, Related Allowance | 2 | 2 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 487 | 351 |
Financing Receivable, Collectively Evaluated for Impairment | 60,600 | 57,838 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 285 | 269 |
Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 420 | 358 |
Impaired Financing Receivable, Recorded Investment | 377 | 324 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 377 | 324 |
Financing Receivable, Collectively Evaluated for Impairment | 9,894 | 9,734 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 60 | 58 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 |
Financing Receivable, Collectively Evaluated for Impairment | 37,639 | 35,440 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 186 | 173 |
Agricultural Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 111 | 27 |
Impaired Financing Receivable, Recorded Investment | 121 | 46 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 13 | 22 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 13 | 21 |
Impaired Financing Receivable, Related Allowance | 2 | 2 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 110 | 27 |
Financing Receivable, Collectively Evaluated for Impairment | 13,067 | 12,664 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | $ 39 | $ 38 |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan and Lease Losses, Real Estate | $ 287 | $ 272 | $ 271 | $ 267 |
Provision for Loan and Lease Losses | (22) | (18) | ||
Allowance for Loan and Lease Losses, Write-offs | 6 | 13 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan and Lease Losses, Real Estate | 186 | 171 | 173 | 167 |
Provision for Loan and Lease Losses | (13) | (4) | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | ||
Agricultural Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan and Lease Losses, Real Estate | 41 | 40 | 40 | 38 |
Provision for Loan and Lease Losses | (1) | (4) | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | 2 | ||
Residential Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loan and Lease Losses, Real Estate | 60 | 61 | $ 58 | $ 62 |
Provision for Loan and Lease Losses | (8) | (10) | ||
Allowance for Loan and Lease Losses, Write-offs | $ 6 | $ 11 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated Fair Value Commercial Mortgage | $ 37,623 | $ 36,056 |
Estimated Fair Value Commercial Mortgage Percentage | 100.00% | 100.00% |
Loans Receivable, Gross, Commercial, Mortgage | $ 37,639 | $ 35,440 |
Loans Receivable Commercial Mortgage Percentage | 100.00% | 100.00% |
Debt Service Coverage Ratio Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 36,048 | $ 33,140 |
Debt Service Coverage Ratio Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 1,468 | 1,784 |
Debt Service Coverage Ratio Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 123 | 516 |
Mortgage Loans By Credit Quality Indicator Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated Fair Value Commercial Mortgage | $ 32,455 | $ 31,563 |
Estimated Fair Value Commercial Mortgage Percentage | 86.30% | 87.50% |
Loans Receivable, Gross, Commercial, Mortgage | $ 32,397 | $ 30,903 |
Loans Receivable Commercial Mortgage Percentage | 86.10% | 87.20% |
Mortgage Loans By Credit Quality Indicator Range One [Member] | Debt Service Coverage Ratio Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 31,661 | $ 29,346 |
Mortgage Loans By Credit Quality Indicator Range One [Member] | Debt Service Coverage Ratio Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 724 | 1,359 |
Mortgage Loans By Credit Quality Indicator Range One [Member] | Debt Service Coverage Ratio Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 12 | 198 |
Mortgage Loans By Credit Quality Indicator Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated Fair Value Commercial Mortgage | $ 4,053 | $ 3,465 |
Estimated Fair Value Commercial Mortgage Percentage | 10.80% | 9.60% |
Loans Receivable, Gross, Commercial, Mortgage | $ 4,070 | $ 3,454 |
Loans Receivable Commercial Mortgage Percentage | 10.80% | 9.70% |
Mortgage Loans By Credit Quality Indicator Range Two [Member] | Debt Service Coverage Ratio Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 3,648 | $ 3,245 |
Mortgage Loans By Credit Quality Indicator Range Two [Member] | Debt Service Coverage Ratio Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 367 | 95 |
Mortgage Loans By Credit Quality Indicator Range Two [Member] | Debt Service Coverage Ratio Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 55 | 114 |
Mortgage Loans By Credit Quality Indicator Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated Fair Value Commercial Mortgage | $ 504 | $ 363 |
Estimated Fair Value Commercial Mortgage Percentage | 1.30% | 1.00% |
Loans Receivable, Gross, Commercial, Mortgage | $ 526 | $ 377 |
Loans Receivable Commercial Mortgage Percentage | 1.40% | 1.10% |
Mortgage Loans By Credit Quality Indicator Range Three [Member] | Debt Service Coverage Ratio Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 260 | $ 149 |
Mortgage Loans By Credit Quality Indicator Range Three [Member] | Debt Service Coverage Ratio Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 210 | 171 |
Mortgage Loans By Credit Quality Indicator Range Three [Member] | Debt Service Coverage Ratio Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 56 | 57 |
Mortgage Loans By Credit Quality Indicator Range Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Estimated Fair Value Commercial Mortgage | $ 611 | $ 665 |
Estimated Fair Value Commercial Mortgage Percentage | 1.60% | 1.90% |
Loans Receivable, Gross, Commercial, Mortgage | $ 646 | $ 706 |
Loans Receivable Commercial Mortgage Percentage | 1.70% | 2.00% |
Mortgage Loans By Credit Quality Indicator Range Four [Member] | Debt Service Coverage Ratio Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 479 | $ 400 |
Mortgage Loans By Credit Quality Indicator Range Four [Member] | Debt Service Coverage Ratio Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | 167 | 159 |
Mortgage Loans By Credit Quality Indicator Range Four [Member] | Debt Service Coverage Ratio Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable, Gross, Commercial, Mortgage | $ 0 | $ 147 |
Investments (Credit Quality o_2
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable Consumer Mortgage Percentage | 100.00% | 100.00% |
Loans and Leases Receivable, Gross, Consumer, Mortgage | $ 10,271 | $ 10,058 |
Loans Receivable Commercial Agricultural Mortgage Percentage | 100.00% | 100.00% |
Loans Receivable, Gross, Commercial, Agricultural | $ 13,190 | $ 12,712 |
Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable Consumer Mortgage Percentage | 96.20% | 95.60% |
Loans and Leases Receivable, Gross, Consumer, Mortgage | $ 9,881 | $ 9,614 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans And Leases Receivable Consumer Mortgage Percentage | 3.80% | 4.40% |
Loans and Leases Receivable, Gross, Consumer, Mortgage | $ 390 | $ 444 |
Mortgage Loans By Credit Quality Indicator Range One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Agricultural Mortgage Percentage | 94.00% | 95.00% |
Loans Receivable, Gross, Commercial, Agricultural | $ 12,402 | $ 12,082 |
Mortgage Loans By Credit Quality Indicator Range Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Agricultural Mortgage Percentage | 5.70% | 4.60% |
Loans Receivable, Gross, Commercial, Agricultural | $ 751 | $ 581 |
Mortgage Loans By Credit Quality Indicator Range Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Agricultural Mortgage Percentage | 0.20% | 0.30% |
Loans Receivable, Gross, Commercial, Agricultural | $ 32 | $ 40 |
Mortgage Loans By Credit Quality Indicator Range Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Receivable Commercial Agricultural Mortgage Percentage | 0.10% | 0.10% |
Loans Receivable, Gross, Commercial, Agricultural | $ 5 | $ 9 |
Investments (Past Due and Inter
Investments (Past Due and Interest Accrual Status of Mortgage Loan) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 590 | $ 578 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 105 | 125 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 663 | 480 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 167 | 0 |
Agricultural Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 200 | 134 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 105 | 125 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 106 | 36 |
Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 390 | 444 |
Loans and Leases Receivable, Nonperforming, Accrual of Interest | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 390 | $ 444 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ||
Fixed maturity securities AFS | $ 4,572 | $ 12,349 |
Fixed maturity securities AFS with noncredit OTTI losses included in AOCI | 35 | 40 |
Total fixed maturity securities AFS | 4,607 | 12,389 |
Equity securities | 0 | 119 |
Derivatives | 1,096 | 1,396 |
Other | 66 | 1 |
Subtotal | 5,769 | 13,905 |
Future policy benefits | (3) | (19) |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1) | 0 |
DAC, VOBA and DSI | (523) | (790) |
Policyholder dividend obligation | (456) | (2,121) |
Subtotal | (983) | (2,930) |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (7) | (14) |
Deferred income tax benefit (expense) | (992) | (3,704) |
Net unrealized investment gains (losses) | $ 3,787 | $ 7,257 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |
Balance, beginning of period | $ 7,257 |
Changes In Net Unrealized Investment Gains Losses Related To Cumulative Effects Of Changes In Accounting Principles, Net Of Income Tax | 1,310 |
Fixed maturity securities AFS on which noncredit OTTI losses have been recognized | (5) |
Unrealized investment gains (losses) during the period | (8,012) |
Unrealized investment gains (losses) relating to: | |
Future policy benefits | 16 |
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1) |
DAC, VOBA and DSI | 267 |
Policyholder dividend obligation | 1,665 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 7 |
Deferred income tax benefit (expense) | 1,283 |
Balance, end of period | 3,787 |
Change in net unrealized investment gains (losses) | $ (3,470) |
Investments (Securities Lending
Investments (Securities Lending) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Cash collateral received from counterparties (2) | $ 14,786 | $ 15,170 |
Security collateral on deposit from counterparties | 0 | 11 |
Reinvestment portfolio — estimated fair value | 14,808 | 15,188 |
Amortized cost | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | 14,069 | 13,887 |
Estimated fair value | ||
Securities Financing Transaction [Line Items] | ||
Securities loaned | $ 14,435 | $ 14,852 |
Investments (Securities Lendi_2
Investments (Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Total | $ 14,786 | $ 15,170 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 14,786 | 15,170 |
U.S. government and agency | Maturity Overnight | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,309 | 2,927 |
U.S. government and agency | Maturity Less than 30 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,007 | 5,279 |
U.S. government and agency | Maturity 30 to 180 Days | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 6,470 | $ 6,964 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements - Securities Lending) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Total | $ 14,786 | $ 15,170 |
Securities Received as Collateral | 0 | 11 |
Reinvestment portfolio — estimated fair value | 14,808 | 15,188 |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,460 | 1,000 |
Securities Received as Collateral | 8 | 0 |
Reinvestment portfolio — estimated fair value | 2,462 | 1,000 |
Amortized cost | Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | 2,468 | 900 |
Estimated fair value | Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Securities Sold under Agreements to Repurchase | $ 2,508 | $ 1,031 |
Investments (Repurchase Agree_2
Investments (Repurchase Agreements - Securities Lending Remaining Tenor) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Total | $ 14,786 | $ 15,170 |
U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 14,786 | 15,170 |
Repurchase Agreements | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,460 | 1,000 |
Repurchase Agreements | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 2,460 | 1,000 |
Maturity Less than 30 Days | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | 6,007 | 5,279 |
Maturity Less than 30 Days | Repurchase Agreements | U.S. government and agency | ||
Securities Financing Transaction [Line Items] | ||
Total | $ 2,460 | $ 1,000 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 47 | $ 49 |
Invested assets pledged as collateral | 20,753 | 20,775 |
Total invested assets on deposit and pledged as collateral | $ 20,800 | $ 20,824 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,547 | $ 1,225 |
Total Liabilities | 5 | 9 |
Real estate joint ventures (1) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,194 | 1,077 |
Total Liabilities | 0 | 0 |
Partnership [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 107 | 116 |
Total Liabilities | 0 | 3 |
Consolidated Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 215 | 0 |
Total Liabilities | 0 | 0 |
Other | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 31 | 32 |
Total Liabilities | $ 5 | $ 6 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Proceeds From Securitizations of Loans Held-for-Investment, Carry Value | $ 451 | |
Carrying Amount Asset | 41,147 | $ 41,221 |
Carrying Amount Liability | 43,701 | 43,764 |
Proceeds from Securitizations of Loans Held-for-investment | 478 | |
Gain (Loss) on Securitization of Financial Assets | 27 | |
Transfers Of Financial Assets Accounted For As Sale Initial Fair Value Of Assets Obtained As Proceeds In Period | 102 | |
Real estate joint ventures (1) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 36 | 38 |
Carrying Amount Liability | 40 | 43 |
Other limited partnership interests | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 3,778 | 3,561 |
Carrying Amount Liability | 6,149 | 5,765 |
Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 1,755 | 2,172 |
Carrying Amount Liability | 1,934 | 2,506 |
Structured securities (RMBS, CMBS, and ABS) | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 34,663 | 34,284 |
Carrying Amount Liability | 34,663 | 34,284 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 915 | 1,166 |
Carrying Amount Liability | $ 915 | $ 1,166 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Investment Income [Line Items] | ||||
Less: Investment expenses | $ 252 | $ 240 | $ 694 | $ 659 |
Subtotal | 2,786 | 2,660 | 8,171 | 7,955 |
Equity Method Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 98 | 106 | 288 | 293 |
Fixed maturity securities AFS | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 1,849 | 1,764 | 5,450 | 5,274 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 8 | 20 | 29 | 68 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 728 | 697 | 2,087 | 1,989 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 79 | 77 | 224 | 230 |
Real estate and real estate joint ventures | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 118 | 104 | 371 | 327 |
Other limited partnership interests | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 153 | 163 | 388 | 506 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 38 | 20 | 87 | 54 |
Operating joint venture | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 2 | 6 | 23 | 12 |
Other | ||||
Net Investment Income [Line Items] | ||||
Subtotal | 63 | 49 | 206 | 154 |
Securities investment | ||||
Net Investment Income [Line Items] | ||||
Subtotal | $ 3,038 | $ 2,900 | $ 8,865 | $ 8,614 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Changes In Estimated Fair Value Subsequent To Purchase For Equity Securities | $ 5 | $ (22) | ||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Fixed maturity securities AFS — net gains (losses) on sales and disposals | 137 | $ 1 | 28 | $ 41 |
Equity securities — net gains (losses) on sales and disposals | 8 | 0 | 16 | 1 |
Change In Estimated Fair Value Of Equity Securities | 1 | 0 | (38) | |
Other net investment gains (losses): | ||||
Mortgage loans | 8 | (16) | (25) | (44) |
Other limited partnership interests | 0 | (30) | 8 | (44) |
Real estate and real estate joint ventures | 39 | 169 | 139 | 436 |
Other (2) | 8 | 21 | (171) | (90) |
Subtotal | 201 | 136 | (43) | 277 |
Change In Estimated Fair Value Of Other Limited Partnership Interests And Real Estate Joint Ventures | 12 | 0 | 5 | 0 |
Non-investment portfolio gains (losses) | (8) | (40) | 17 | (93) |
Subtotal | 4 | (40) | 22 | (93) |
Total net investment gains (losses) | 205 | 96 | (21) | 184 |
Consumer Domestic Corporate Debt Securities [Member] | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (5) | 0 | (5) |
Corporate Debt Securities [Member] | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (5) | 0 | (5) |
Fixed Maturity Securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (5) | 0 | (6) |
Net investment gains (losses) | 137 | (4) | 28 | 35 |
State and political subdivision | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | 0 | (1) |
Equity securities | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (4) | 0 | (17) |
Net investment gains (losses) | 9 | (4) | (22) | (16) |
Common Stock | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | (105) | ||
Non-redeemable preferred stock | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | 0 | 0 | (1) |
Common Stock [Member] | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | 0 | $ (4) | 0 | $ (16) |
Renewable Energy Investment [Member] | ||||
Marketable Securities, Gain (Loss) [Abstract] | ||||
Total OTTI losses recognized in earnings | $ 0 | $ (83) |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fixed Maturity Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 12,289 | $ 5,888 | $ 37,129 | $ 22,256 |
Gross investment gains | 206 | 32 | 297 | 225 |
Gross investment losses | (69) | (31) | (269) | (184) |
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | 0 | (5) | 0 | (6) |
Net investment gains (losses) | 137 | (4) | 28 | 35 |
Equity securities | ||||
Total OTTI losses recognized in earnings: | ||||
Total OTTI losses recognized in earnings | 0 | (4) | 0 | (17) |
Net investment gains (losses) | $ 9 | $ (4) | $ (22) | $ (16) |
Investments (Credit Loss Rollfo
Investments (Credit Loss Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 92 | $ 136 | $ 110 | $ 157 |
Reductions: | ||||
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI | (4) | (4) | (21) | (25) |
Balance, end of period | 88 | 132 | 88 | 132 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | $ 0 | $ 0 | $ (1) | $ 0 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions) (Details) - Affiliated Entity [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Invested Assets Transferred To And From Affiliates | |||||
Estimated fair value of invested assets transferred to affiliates | $ 0 | $ 0 | $ 0 | $ 453 | |
Amortized cost of invested assets transferred to affiliates | 0 | 0 | 0 | 416 | |
Net investment gains (losses) recognized on transfers | 0 | 0 | 0 | 37 | |
Estimated fair value of invested assets transferred from affiliates | $ 292 | $ 0 | $ 0 | $ 77 | $ 293 |
Investments (Fixed Maturity a_2
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | $ 165,847 | $ 170,272 |
Non-income producing fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 23 | 4 |
Gross Unrealized Gain loss | $ 0 | $ (3) |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)Contracts | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Federal Home Loan Bank Stock | $ 733 | |
Debt Securities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage | 20.00% | |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Change in Gross Unrealized Temporary Loss | $ (2,200) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 3,300 | |
20% or more | Six months or greater | Fixed Maturity Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 65 | |
Number of Securities | Contracts | 18 | |
20% or more | Six months or greater | Fixed Maturity Securities | Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 10 | |
Number of Securities | Contracts | 3 | |
Percentage of gross unrealized loss | 15.00% | |
20% or more | Six months or greater | Fixed Maturity Securities | Below Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 55 | |
Number of Securities | Contracts | 15 | |
Percentage of gross unrealized loss | 85.00% |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of Mortgage Loans Classified as Performing | 99.00% | 99.00% | 99.00% | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 42 | $ 42 | $ 44 | ||
Financing Receivable, Significant Purchases | 724 | $ 409 | 1,700 | $ 1,900 | |
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 6 | |
Agricultural Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Net | 13,000 | 13,000 | 12,800 | ||
Impaired Financing Receivable, Average Recorded Investment | 124 | 31 | 104 | 28 | |
Residential Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Net | 10,700 | 10,700 | $ 10,600 | ||
Impaired Financing Receivable, Average Recorded Investment | $ 369 | $ 297 | $ 350 | $ 275 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 3.9 | $ 3.1 |
Investments (Changes in Fixed M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses- Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Other Than Temporary Impairments On Debt Securities Transferred To Other Comprehensive Income Loss | $ 35 | $ 40 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 |
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | 10.00% |
Investments (Securities Lendi_3
Investments (Securities Lending Remaining Tenor - Narrative) (Details) - Estimated fair value $ in Billions | Sep. 30, 2018USD ($) |
Securities Investment | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 67.00% |
U.S. government and agency | |
Securities Financing Transaction [Line Items] | |
Cash collateral on deposit from counterparties | $ 2.3 |
Investments (Repurchase Agree_3
Investments (Repurchase Agreements - Narrative) (Details) | Sep. 30, 2018 |
Securities Financing Transaction [Line Items] | |
Percentage of securities on loan related to cash collateral in Fixed Maturity Securities | 99.00% |
Repurchase Agreements | |
Securities Financing Transaction [Line Items] | |
Percentage of Reinvestment Portfolio in Fixed Maturity Securities | 68.00% |
Investments (Consolidated Var_2
Investments (Consolidated Variable Interest Entities - Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 1,547 | $ 1,225 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 5 | 9 |
Tax credits guaranteed by third parties that reduce maximum exposure to loss related to other invested assets | 100 | 117 |
Partnership [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 107 | 116 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 0 | 3 |
Real estate joint ventures (1) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,194 | 1,077 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 0 | 0 |
Parent Company [Member] | Real estate joint ventures (1) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 1,100 | 1,000 |
Parent Company [Member] | Mortgages [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 175 | |
Affiliated Entity [Member] | Real estate joint ventures (1) | ||
Variable Interest Entity [Line Items] | ||
Total Assets | 113 | $ 85 |
Affiliated Entity [Member] | Mortgages [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | $ 40 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gains (losses) from foreign currency transactions | $ (11) | $ (30) | $ 7 | $ (139) |
Investments (Related Party In_2
Investments (Related Party Investment Transactions - Narrative) (Details) $ in Millions, ¥ in Billions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018JPY (¥) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||||||
Cash and Cash Equivalents, at Carrying Value | $ 5,474 | $ 5,474 | $ 5,069 | |||||
Other Investments | 14,213 | 14,213 | 14,911 | |||||
Payments to Acquire Interest in Joint Venture | $ 286 | |||||||
Related party investment administrative services | $ 18 | 19 | $ 54 | |||||
Related Party Transaction, Purchases from Related Party | 71 | 140 | ||||||
Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Assets Transferred To Affiliates, Estimated Fair Value | 0 | 0 | 0 | 453 | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 292 | 0 | 0 | 77 | 293 | |||
Cash and Cash Equivalents, at Carrying Value | $ 275 | |||||||
Debt Instrument, Face Amount | 1,800 | 1,800 | 1,800 | |||||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | 0 | 0 | 0 | 416 | ||||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale, Gain (Loss) on Sale | 0 | 0 | 0 | 37 | ||||
Affiliated Entity [Member] | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Carrying value of related party loans | 1,800 | 1,800 | 1,800 | |||||
Related party net investment income | 8 | 19 | 23 | 58 | ||||
Related Party Loan Two [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | 500 | 500 | ||||||
Related Party Loan One [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | 250 | 250 | ||||||
Related Party Loan Three [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | 250 | 250 | ||||||
Surplus Notes, Affiliated | American Life Insurance Company Alico And Delaware American Life Insurance Delam | Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Carrying value of related party loans | 100 | 100 | 100 | |||||
Related party net investment income | $ 0 | 1 | $ 2 | 3 | ||||
Related Party Loan Six [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | ¥ | ¥ 53.3 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.45% | 1.45% | 1.45% | |||||
Debt Instrument, Maturity Date | Jun. 30, 2019 | |||||||
Related Party Loan Seven [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | ¥ | ¥ 26.5 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.72% | 1.72% | 1.72% | |||||
Debt Instrument, Maturity Date | Oct. 31, 2019 | |||||||
Related Party Loan Eight [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | ¥ | ¥ 26.5 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.82% | 0.82% | 0.82% | |||||
Debt Instrument, Maturity Date | Sep. 30, 2020 | |||||||
Related Party Loan Eleven [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 825 | $ 825 | ||||||
Related Party Loan Nine [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | ¥ | ¥ 38.5 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.97% | 2.97% | 2.97% | |||||
Debt Instrument, Maturity Date | Jul. 31, 2021 | |||||||
Related Party Loan Ten [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt Instrument, Face Amount | ¥ | ¥ 51 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.14% | 3.14% | 3.14% | |||||
Debt Instrument, Maturity Date | Dec. 31, 2021 | |||||||
Metropolitan Property And Casualty Insurance Company [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party net investment income | $ 3 | $ 1 | $ 7 | $ 4 | ||||
Other Investments | $ 315 | $ 315 | $ 315 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 227,897 | $ 196,172 |
Estimated Fair Value Assets | 6,050 | 6,592 |
Estimated Fair Value Liabilities | 2,445 | 2,442 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 35,218 | 33,865 |
Estimated Fair Value Assets | 3,067 | 3,365 |
Estimated Fair Value Liabilities | 1,549 | 1,225 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,419 | 4,908 |
Estimated Fair Value Assets | 2,026 | 2,336 |
Estimated Fair Value Liabilities | 6 | 20 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,450 | 3,826 |
Estimated Fair Value Assets | 1,997 | 2,289 |
Estimated Fair Value Liabilities | 1 | 3 |
Derivatives Designated as Hedging Instruments: | Fair Value Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 969 | 1,082 |
Estimated Fair Value Assets | 29 | 47 |
Estimated Fair Value Liabilities | 5 | 17 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 31,799 | 28,957 |
Estimated Fair Value Assets | 1,041 | 1,029 |
Estimated Fair Value Liabilities | 1,543 | 1,205 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,121 | 3,337 |
Estimated Fair Value Assets | 113 | 234 |
Estimated Fair Value Liabilities | 9 | 0 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Interest rate forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,023 | 3,333 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 302 | 127 |
Derivatives Designated as Hedging Instruments: | Cash Flow Hedges [Member] | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 25,655 | 22,287 |
Estimated Fair Value Assets | 928 | 795 |
Estimated Fair Value Liabilities | 1,232 | 1,078 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 192,679 | 162,307 |
Estimated Fair Value Assets | 2,983 | 3,227 |
Estimated Fair Value Liabilities | 896 | 1,217 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 36,924 | 43,028 |
Estimated Fair Value Assets | 1,279 | 1,722 |
Estimated Fair Value Liabilities | 74 | 336 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate floors | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 12,701 | 7,201 |
Estimated Fair Value Assets | 53 | 91 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 63,044 | 53,079 |
Estimated Fair Value Assets | 259 | 78 |
Estimated Fair Value Liabilities | 1 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 748 | 2,257 |
Estimated Fair Value Assets | 0 | 1 |
Estimated Fair Value Liabilities | 0 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Interest rate options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 20,775 | 7,525 |
Estimated Fair Value Assets | 78 | 142 |
Estimated Fair Value Liabilities | 1 | 11 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Synthetic GICs | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 16,868 | 11,318 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 6,783 | 6,739 |
Estimated Fair Value Assets | 675 | 547 |
Estimated Fair Value Liabilities | 110 | 164 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,083 | 961 |
Estimated Fair Value Assets | 21 | 16 |
Estimated Fair Value Liabilities | 11 | 7 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — purchased | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 941 | 980 |
Estimated Fair Value Assets | 27 | 7 |
Estimated Fair Value Liabilities | 5 | 8 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Credit default swaps — written | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 7,975 | 7,874 |
Estimated Fair Value Assets | 152 | 181 |
Estimated Fair Value Liabilities | 1 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,129 | 1,282 |
Estimated Fair Value Assets | 0 | 5 |
Estimated Fair Value Liabilities | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 18,097 | 14,408 |
Estimated Fair Value Assets | 392 | 384 |
Estimated Fair Value Liabilities | 466 | 476 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity variance swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,530 | 3,530 |
Estimated Fair Value Assets | 47 | 45 |
Estimated Fair Value Liabilities | 175 | 169 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity Total Return Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,033 | 1,077 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 27 | 39 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,048 | 1,048 |
Estimated Fair Value Assets | 0 | 8 |
Estimated Fair Value Liabilities | $ 25 | $ 2 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components of Net Derivatives Gains (Losses) | ||||
Derivatives and hedging gains (losses) | $ (275) | $ (167) | $ (449) | $ (634) |
Embedded derivative gains (losses) | 199 | 141 | 738 | 317 |
Total net derivative gains (losses) | (76) | (26) | 289 | (317) |
Nonperformance Risk [Member] | ||||
Components of Net Derivatives Gains (Losses) | ||||
Embedded derivative gains (losses) | $ 0 | $ (17) | $ (21) | $ (39) |
Derivatives (Earned Income On D
Derivatives (Earned Income On Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | $ 154 | $ 148 | $ 448 | $ 511 |
Derivatives Designated as Hedging Instruments: | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | 92 | 73 | 268 | 220 |
Derivatives Designated as Hedging Instruments: | Interest credited to policyholder account balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | (27) | (20) | (79) | (40) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | 87 | 93 | 253 | 327 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder benefits and claims | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total earned income | $ 2 | $ 2 | $ 6 | $ 4 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (103) | $ (5) | $ (334) | $ 35 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (290) | (404) | (595) | (1,275) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (200) | (60) | (541) | (260) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 54 | (238) | 234 | (639) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Credit derivatives — purchased | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (6) | (6) | 6 | (14) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Credit derivatives — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 48 | 24 | (7) | 80 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net derivative gains (losses) | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (186) | (124) | (287) | (442) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | (4) | 5 | (6) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | (2) | 4 | (2) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | Credit derivatives — purchased | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | Credit derivatives — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Net Investment Gains (Losses) [Member] | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | (2) | 1 | (4) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (25) | (52) | (40) | (149) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | Foreign currency exchange rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | Credit derivatives — purchased | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | Credit derivatives — written | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | Policyholder Benefit And Claim [Member] | Equity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (25) | $ (52) | $ (40) | $ (149) |
Derivatives (Fair Value Hedges)
Derivatives (Fair Value Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | $ (103) | $ (5) | $ (334) | $ 35 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 101 | 5 | 333 | 55 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (2) | 0 | (1) | 90 |
Interest rate swaps | Fixed maturity securities AFS | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 1 | 1 | 4 | 2 |
Net Derivative Gains (Losses) Recognized for Hedged Items | (1) | 0 | (4) | (2) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 0 | 1 | 0 | 0 |
Interest rate swaps | Policyholder account balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | (108) | (13) | (389) | (15) |
Net Derivative Gains (Losses) Recognized for Hedged Items | 109 | 12 | 392 | 83 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | 1 | (1) | 3 | 68 |
Foreign currency swaps | Foreign-denominated fixed maturity securities AFS and mortgage loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 4 | (8) | 28 | (13) |
Net Derivative Gains (Losses) Recognized for Hedged Items | (7) | 9 | (32) | 14 |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | (3) | 1 | (4) | 1 |
Foreign currency swaps | Foreign-denominated policyholder account balances [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Derivative Gains (Losses) Recognized for Derivatives | 0 | 15 | 23 | 61 |
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | (16) | (23) | (40) |
Ineffectiveness Recognized in Net Derivative Gains (Losses) | $ 0 | $ (1) | $ 0 | $ 21 |
Derivatives (Cash Flow Hedges)
Derivatives (Cash Flow Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 0 | $ 0 | $ 1 | $ 20 |
Cash Flow Hedges [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | (154) | (20) | (483) | 226 |
Cash Flow Hedges [Member] | Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | (89) | 15 | (311) | 90 |
Cash Flow Hedges [Member] | Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 22 | (37) | 28 | (2) |
Cash Flow Hedges [Member] | Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount of Gains (Losses) Deferred in AOCI on Derivatives | (87) | 2 | (200) | 138 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 22 | 289 | (196) | 900 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 5 | (2) | 10 | 5 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 1 | 8 | 18 | 22 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 4 | (2) | 5 | 5 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 24 | 282 | (214) | 882 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 5 | 1 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 0 | 0 | 0 | 1 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Net derivative gains (losses) | Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | (3) | (1) | 0 | (5) |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 0 | 0 | (1) |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 4 | 4 | 13 | 13 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Interest rate swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 4 | 4 | 13 | 12 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Foreign currency swaps | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | (1) | (1) | (2) | (1) |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Credit forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | 0 | 0 | 0 | 0 |
Cash Flow Hedges [Member] | Net Investment Gains (Losses) [Member] | Interest rate forwards | ||||
Derivatives in cash flow hedging relationships | ||||
Amount and Location of Gains (Losses) Reclassified from AOCI into Income (Loss) | $ 1 | $ 1 | $ 2 | $ 2 |
Derivatives (Credit Derivatives
Derivatives (Credit Derivatives) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 151 | $ 181 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 7,975 | $ 7,874 |
Weighted Average Years to Maturity | 4 years 2 months | 4 years 2 months |
Credit Derivative Purchase Protection Offset | $ 16 | $ 27 |
Aaa/Aa/A | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | 40 | 45 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,538 | $ 2,352 |
Weighted Average Years to Maturity | 2 years 2 months | 2 years 8 months |
Aaa/Aa/A | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 2 | $ 3 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 154 | $ 159 |
Weighted Average Years to Maturity | 2 years 2 months | 2 years 10 months |
Aaa/Aa/A | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 38 | $ 42 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 2,384 | $ 2,193 |
Weighted Average Years to Maturity | 2 years 1 month | 2 years 8 months |
Baa | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 84 | $ 115 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 5,078 | $ 5,177 |
Weighted Average Years to Maturity | 5 years 2 months | 4 years 11 months |
Baa | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 2 | $ 4 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 277 | $ 416 |
Weighted Average Years to Maturity | 1 year 11 months | 1 year 6 months |
Baa | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 82 | $ 111 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 4,801 | $ 4,761 |
Weighted Average Years to Maturity | 5 years 5 months | 5 years 2 months |
Ba | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 10 | $ 105 |
Weighted Average Years to Maturity | 1 year 8 months | 3 years 5 months |
Ba | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 1 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 10 | $ 105 |
Weighted Average Years to Maturity | 1 year 8 months | 3 years 5 months |
Ba | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 0 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 0 |
Weighted Average Years to Maturity | 0 years | 0 years |
B [Member] | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 27 | $ 20 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 349 | $ 240 |
Weighted Average Years to Maturity | 4 years 8 months | 4 years 11 months |
B [Member] | Single name credit default swaps (3) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 0 | $ 2 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 0 | $ 20 |
Weighted Average Years to Maturity | 0 years | 3 years 6 months |
B [Member] | Credit default swaps referencing indices | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Credit Default Swaps | $ 27 | $ 18 |
Maximum Amount of Future Payments under Credit Default Swaps | $ 349 | $ 220 |
Weighted Average Years to Maturity | 4 years 8 months | 5 years |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 6,137 | $ 6,652 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,424 | 2,422 |
Amounts offset in the consolidated balance sheet, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheet, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 6,137 | 6,652 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 2,424 | 2,422 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 85 | 197 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 1 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 6,019 | 6,478 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 2,408 | 2,203 |
Gross estimated fair value of derivative assets | (2,089) | (1,891) |
Gross estimated fair value of derivative liabilities | (2,089) | (1,891) |
Cash collateral on derivative assets | (2,805) | (3,448) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | (1,040) | (954) |
Securities collateral on derivative liabilities | (318) | (312) |
Exchange Traded [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 0 | 6 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 0 | 3 |
Gross estimated fair value of derivative assets | 0 | 0 |
Gross estimated fair value of derivative liabilities | 0 | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | (3) |
Cleared [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 118 | 168 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 16 | 216 |
Gross estimated fair value of derivative assets | (6) | (31) |
Gross estimated fair value of derivative liabilities | (6) | (31) |
Cash collateral on derivative assets | (112) | (131) |
Cash collateral on derivative liabilities | 0 | (179) |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | $ (10) | $ (6) |
Derivatives (Credit Risk on Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Credit Derivatives [Line Items] | ||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | $ 0 | |
Estimated Fair Value of Derivatives in Net Liability Position | 318 | $ 313 |
Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 392 | 399 |
Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 318 | 313 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 392 | 399 |
Estimated Fair Value of Derivatives in a Net Liability Position (1) | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Estimated Fair Value of Collateral Provided: | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Derivatives in Net Liability Position | 0 | 0 |
Estimated Fair Value of Collateral Provided: | Fixed Maturity Securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | 0 | 0 |
Estimated Fair Value of Collateral Provided: | Cash | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Embedded derivative gains (losses) | $ 199 | $ 141 | $ 738 | $ 317 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 | $ (113) | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 290 | 290 | 876 | ||
Direct guaranteed minimum benefits | Policyholder account balances | |||||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (259) | (259) | (94) | ||
Assumed guaranteed minimum benefits | Other policy-related balances [Member] | |||||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 2 | 2 | 3 | ||
Funds withheld on ceded reinsurance | Other liabilities | |||||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 445 | 445 | 898 | ||
Fixed annuities with equity indexed returns | Policyholder account balances | |||||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 102 | 102 | 69 | ||
Options embedded in debt or equity securities [Member] | Investments | |||||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 | $ (113) | ||
Nonperformance Risk [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Embedded derivative gains (losses) | $ 0 | $ (17) | $ (21) | $ (39) |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ 199 | $ 141 | $ 738 | $ 317 |
Net derivatives gains (losses) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivatives gains (losses) | $ 199 | $ 141 | $ 738 | $ 317 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | $ 6,050 | $ 6,050 | $ 6,592 | ||
Estimated Fair Value Liabilities | 2,445 | 2,445 | 2,442 | ||
Maximum Amount of Future Payments under Credit Default Swaps | 7,975 | 7,975 | 7,874 | ||
Estimated Fair Value of Credit Default Swaps | 151 | 151 | $ 181 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Embedded derivative gains (losses) | 199 | $ 141 | 738 | $ 317 | |
Derivative Instrument Detail [Abstract] | |||||
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | 0 | 0 | $ 1 | 20 | |
Hedging exposure to variability in future cash flows for specific length of time | 4 years | 5 years | |||
Accumulated Other Comprehensive Income Loss | 1,100 | $ 1,100 | $ 1,400 | ||
Deferred net gains (losses) expected to be reclassified to earnings | 200 | ||||
Potential future recoveries available to offset maximum amount of future payments under credit default swaps | 16 | 16 | 27 | ||
Excess cash collateral received on derivatives | 90 | 90 | 122 | ||
Excess cash collateral provided on derivatives | 0 | 0 | 9 | ||
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | 0 | |||
Over the Counter [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | (2,805) | (2,805) | (3,448) | ||
Excess securities collateral received on derivatives | 83 | 83 | 30 | ||
Excess securities collateral provided on derivatives | 147 | 147 | 152 | ||
Exchange Traded [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Cash collateral on derivative assets | 0 | 0 | 0 | ||
Excess securities collateral received on derivatives | 216 | 216 | 299 | ||
Excess securities collateral provided on derivatives | 54 | 54 | 50 | ||
Nonperformance Risk [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Embedded derivative gains (losses) | 0 | $ (17) | (21) | $ (39) | |
Accrued Liabilities [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Estimated Fair Value Assets | 87 | 87 | 60 | ||
Estimated Fair Value Liabilities | $ (21) | $ (21) | $ (20) |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Debt Securities, Available-for-sale | $ 165,847 | $ 170,272 |
Available-for-sale Securities, Equity Securities | 841 | 1,658 |
Short-term investments | 2,918 | 3,155 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 61,136 | 58,459 |
Derivative assets | 6,050 | 6,592 |
Embedded derivatives within asset host contracts | 0 | (113) |
Separate account assets | 117,939 | 130,825 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,445 | 2,442 |
Embedded derivatives within liability host contracts | 290 | 876 |
Separate account liabilities | 117,939 | 130,825 |
Net Embedded Derivatives | ||
Assets [Abstract] | ||
Debt and equity securities also included in embedded derivatives | 0 | (113) |
Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 323 | 520 |
Recurring | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 165,847 | 170,272 |
Available-for-sale Securities, Equity Securities | 841 | 1,658 |
Other limited partnership interests | 151 | |
Short-term investments | 2,918 | 3,155 |
Derivative assets | 6,050 | 6,592 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 117,939 | 130,825 |
Total assets | 294,069 | 313,022 |
Liabilities [Abstract] | ||
Derivative liabilities | 2,445 | 2,442 |
Embedded derivatives within liability host contracts | 290 | 876 |
Total liabilities | 2,751 | 3,327 |
Recurring | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 3,779 | 4,565 |
Liabilities [Abstract] | ||
Derivative liabilities | 413 | 483 |
Recurring | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,653 | 1,405 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,358 | 1,266 |
Recurring | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 179 | 188 |
Liabilities [Abstract] | ||
Derivative liabilities | 6 | 8 |
Recurring | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 439 | 434 |
Liabilities [Abstract] | ||
Derivative liabilities | 668 | 685 |
Recurring | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 16 | 9 |
Recurring | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 323 | 520 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 58,255 | 58,090 |
Recurring | U.S. government and agency | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 34,707 | 38,545 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 24,864 | 25,596 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 22,363 | 22,634 |
Recurring | ABS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 8,815 | 7,866 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 6,982 | 7,551 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 5,458 | 5,488 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 4,403 | 4,502 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 16,081 | 18,802 |
Available-for-sale Securities, Equity Securities | 385 | 399 |
Other limited partnership interests | 0 | |
Short-term investments | 999 | 2,056 |
Derivative assets | 0 | 6 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 21,276 | 23,571 |
Total assets | 38,741 | 44,834 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 3 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 3 |
Recurring | Level 1 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 1 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 2 |
Recurring | Level 1 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 5 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 1 |
Recurring | Level 1 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 0 | 0 |
Recurring | Level 1 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | U.S. government and agency | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 16,081 | 18,802 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 139,183 | 139,777 |
Available-for-sale Securities, Equity Securities | 80 | 893 |
Other limited partnership interests | 0 | |
Short-term investments | 1,270 | 1,092 |
Derivative assets | 5,956 | 6,473 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 95,654 | 106,294 |
Total assets | 242,143 | 254,529 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,939 | 2,135 |
Embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1,947 | 2,142 |
Recurring | Level 2 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 3,779 | 4,556 |
Liabilities [Abstract] | ||
Derivative liabilities | 86 | 351 |
Recurring | Level 2 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 1,653 | 1,405 |
Liabilities [Abstract] | ||
Derivative liabilities | 1,354 | 1,261 |
Recurring | Level 2 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 144 | 149 |
Liabilities [Abstract] | ||
Derivative liabilities | 6 | 8 |
Recurring | Level 2 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 380 | 363 |
Liabilities [Abstract] | ||
Derivative liabilities | 493 | 515 |
Recurring | Level 2 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 8 | 7 |
Recurring | Level 2 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 0 | 0 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 55,241 | 54,629 |
Recurring | Level 2 | U.S. government and agency | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 18,626 | 19,743 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 20,861 | 21,471 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 19,419 | 19,372 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 8,273 | 7,079 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 6,982 | 7,551 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 5,389 | 5,461 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 4,392 | 4,471 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 10,583 | 11,693 |
Available-for-sale Securities, Equity Securities | 376 | 366 |
Other limited partnership interests | 151 | |
Short-term investments | 649 | 7 |
Derivative assets | 94 | 113 |
Embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 1,009 | 960 |
Total assets | 13,185 | 13,659 |
Liabilities [Abstract] | ||
Derivative liabilities | 506 | 304 |
Embedded derivatives within liability host contracts | 290 | 876 |
Total liabilities | 804 | 1,182 |
Recurring | Level 3 | Interest rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 8 |
Liabilities [Abstract] | ||
Derivative liabilities | 327 | 130 |
Recurring | Level 3 | Foreign currency exchange rate contracts | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 4 | 5 |
Recurring | Level 3 | Credit contracts | ||
Assets [Abstract] | ||
Derivative assets | 35 | 39 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Equity market contracts | ||
Assets [Abstract] | ||
Derivative assets | 59 | 66 |
Liabilities [Abstract] | ||
Derivative liabilities | 175 | 169 |
Recurring | Level 3 | Derivative Liabilities Within Separate Accounts | ||
Liabilities [Abstract] | ||
Separate account liabilities | 8 | 2 |
Recurring | Level 3 | Residential mortgage loans - FVO | ||
Assets [Abstract] | ||
Mortgage loans, at estimated fair value, relating to variable interest entities | 323 | 520 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 3,014 | 3,461 |
Recurring | Level 3 | U.S. government and agency | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 4,003 | 4,125 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 2,944 | 3,262 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 542 | 787 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | 69 | 27 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Debt Securities, Available-for-sale | $ 11 | $ 31 |
Fair Value (Transfers Between L
Fair Value (Transfers Between Levels) (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) | Sep. 30, 2018 | Dec. 31, 2017 |
Minimum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 310 | 200 |
Minimum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (5) | (5) |
Minimum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | (23) | (14) |
Minimum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 96 | 0 |
Minimum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.12 | 0.11 |
Minimum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.10 | 0.10 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0 | 0 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0025 | 0.0025 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.1650 | 0.1740 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0003 | 0.0002 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0025 | 0.0025 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0300 | 0.0300 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0250 | 0.0300 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0001 | 0 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0004 | 0.0004 |
Minimum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0026 | 0.0026 |
Minimum | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 85 | 83 |
Minimum | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 37 | 10 |
Minimum | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Minimum | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 14 | 27 |
Minimum | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 100 |
Maximum | Interest rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 331 | 300 |
Maximum | Interest rate contracts | Measurement Input, Repurchase Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 55 | 5 |
Maximum | Foreign currency exchange rate contracts | Measurement Input, Swap Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 2 | (3) |
Maximum | Credit contracts | Measurement Input, Credit Spread | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 100 | 0 |
Maximum | Equity market contracts | Measurement Input, Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.26 | 0.31 |
Maximum | Equity market contracts | Measurement Input, Correlation | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Asset (Liability) Net, Measurement Input | 0.30 | 0.30 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Utilization Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.2500 | 0.2500 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Withdrawal Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.1000 | 0.1000 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Long-Term Equity Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.2200 | 0.2500 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Measurement Input, Counterparty Credit Risk | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0048 | 0.0044 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 1 - 10 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 11 - 20 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Durations 21 - 116 | Measurement Input, Lapse Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 0 - 40 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0018 | 0.0009 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 41 - 60 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 0.0057 | 0.0065 |
Maximum | Embedded derivatives direct, assumed and ceded guaranteed minimum benefits | Ages 61 - 115 | Measurement Input, Mortality Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Embedded Derivative Asset (Liability) Net, Measurement Input | 1 | 1 |
Maximum | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 126 | 142 |
Maximum | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 703 | 443 |
Maximum | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 107 | 126 |
Maximum | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 102 | 104 |
Maximum | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 101 |
Weighted Average | U.S. and foreign corporate | Valuation Technique, Matrix Pricing | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 105 | 111 |
Weighted Average | U.S. and foreign corporate | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 131 | 123 |
Weighted Average | RMBS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 94 | 94 |
Weighted Average | ABS | Valuation, Market Approach | Measurement Input, Quoted Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 100 |
Weighted Average | ABS | Valuation Technique, Consensus Pricing Model | Measurement Input, Offered Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 100 | 100 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Residential mortgage loans - FVO | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 405 | $ 615 | $ 520 | $ 566 |
Total realized/unrealized gains (losses) included in net income (loss) | 4 | 32 | 7 | 38 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 10 | 0 | 184 |
Sales | (70) | (72) | (151) | (155) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (16) | (21) | (53) | (69) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 323 | 564 | 323 | 564 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 32 | (13) | 38 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (5) | 32 | (13) | 38 |
Net Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (34) | (9) | (41) | (19) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (275) | (277) | (191) | (559) |
Total realized/unrealized gains (losses) included in net income (loss) | (47) | (5) | (123) | 7 |
Total realized/unrealized gains (losses) included in AOCI | (107) | 1 | (200) | 136 |
Purchases | 0 | 0 | 4 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 17 | (16) | 98 | 119 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (412) | (297) | (412) | (297) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (34) | (9) | (41) | (19) |
Net Embedded Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 202 | 59 | 744 | 343 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | (437) | (1,008) | (876) | (893) |
Total realized/unrealized gains (losses) included in net income (loss) | 199 | 131 | 738 | 343 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (52) | (54) | (152) | (381) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (290) | (931) | (290) | (931) |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 202 | 59 | 744 | 343 |
Corporate fixed maturity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 7,064 | 8,458 | 7,586 | 8,839 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | (4) | 11 | 5 |
Total realized/unrealized gains (losses) included in AOCI | (119) | 121 | (390) | 394 |
Purchases | 285 | 420 | 1,020 | 1,853 |
Sales | (251) | (255) | (964) | (1,229) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 84 | 117 | 87 | 58 |
Transfers out of Level 3 | (46) | (110) | (333) | (1,173) |
Balance, end of period | 7,017 | 8,747 | 7,017 | 8,747 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (3) | (2) | (1) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (3) | (2) | (1) |
Foreign government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 11 | 14 | 31 | 21 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | (2) | (1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (18) | (6) |
Balance, end of period | 11 | 14 | 11 | 14 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Structured Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 3,870 | 4,133 | 4,076 | 4,541 |
Total realized/unrealized gains (losses) included in net income (loss) | 28 | 21 | 70 | 76 |
Total realized/unrealized gains (losses) included in AOCI | (6) | 17 | 5 | 94 |
Purchases | 528 | 220 | 563 | 465 |
Sales | (176) | (303) | (580) | (1,038) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 27 | 0 | 50 | 10 |
Transfers out of Level 3 | (716) | (270) | (629) | (330) |
Balance, end of period | 3,555 | 3,818 | 3,555 | 3,818 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 26 | 21 | 65 | 66 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 26 | 21 | 65 | 66 |
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 345 | 416 | 366 | 420 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | (10) | (14) |
Total realized/unrealized gains (losses) included in AOCI | 0 | (3) | 0 | 27 |
Purchases | 0 | 4 | 5 | 10 |
Sales | (6) | (52) | (20) | (74) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 45 | 0 | 45 | 0 |
Transfers out of Level 3 | (8) | 0 | (10) | (4) |
Balance, end of period | 376 | 365 | 376 | 365 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (2) | 0 | (12) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | (2) | 0 | (12) |
Other limited partnership interests | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 163 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in net income (loss) | 11 | 0 | 5 | 0 |
Total realized/unrealized gains (losses) included in AOCI | (3) | 0 | 0 | 0 |
Purchases | 1 | 0 | 2 | 0 |
Sales | (21) | 0 | (68) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 212 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | 151 | 0 | 151 | 0 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 0 | 5 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 11 | 0 | 5 | 0 |
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 552 | 821 | 7 | 25 |
Total realized/unrealized gains (losses) included in net income (loss) | 0 | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | (2) | 0 | (4) | 0 |
Purchases | 101 | 0 | 652 | 400 |
Sales | (2) | (247) | (1) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 2 | 0 | 2 |
Transfers out of Level 3 | 0 | (174) | (5) | (25) |
Balance, end of period | 649 | 402 | 649 | 402 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Separate Accounts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 1,138 | 975 | 958 | 1,141 |
Total realized/unrealized gains (losses) included in net income (loss) | 2 | 6 | 2 | (22) |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 | 0 |
Purchases | 148 | 136 | 200 | 269 |
Sales | (215) | (35) | (161) | (78) |
Issuances | 0 | 1 | (3) | 1 |
Settlements | 0 | (1) | 0 | (62) |
Transfers into Level 3 | 5 | 56 | 81 | 21 |
Transfers out of Level 3 | (77) | (101) | (76) | (233) |
Balance, end of period | 1,001 | 1,037 | 1,001 | 1,037 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value (Fair Value Option f
Fair Value (Fair Value Option for Residential Mortgage Loans) (Details) - Residential mortgage loans - FVO - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unpaid principal balance | $ 401 | $ 650 |
Difference between estimated fair value and unpaid principal balance | (78) | (130) |
Carrying value at estimated fair value | 323 | 520 |
Loans in nonaccrual status | 104 | 198 |
Loans more than 90 Days past due | 49 | 94 |
Loans in nonaccrual status or more than 90 days past due, or both | $ (56) | $ (102) |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Policy loans | $ 6,050 | $ 6,006 |
Liabilities | ||
Separate account liabilities | 117,939 | 130,825 |
Carrying Value | ||
Assets | ||
Mortgage loans | 60,813 | 57,939 |
Policy loans | 6,050 | 6,006 |
Other limited partnership interests | 214 | |
Other invested assets | 2,880 | 2,260 |
Premiums, reinsurance and other receivables | 14,864 | 15,024 |
Liabilities | ||
Policyholder account balances | 74,269 | 75,323 |
Long-term debt | 1,619 | 1,661 |
Other liabilities | 14,390 | 13,954 |
Separate account liabilities | 51,304 | 61,757 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 61,316 | 59,465 |
Policy loans | 6,867 | 7,058 |
Other limited partnership interests | 212 | |
Other invested assets | 2,787 | 2,182 |
Premiums, reinsurance and other receivables | 15,383 | 15,538 |
Liabilities | ||
Policyholder account balances | 74,156 | 76,452 |
Long-term debt | 1,877 | 2,021 |
Other liabilities | 14,398 | 14,037 |
Separate account liabilities | 51,304 | 61,757 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other limited partnership interests | 0 | |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 271 | 261 |
Other limited partnership interests | 0 | |
Other invested assets | 2,618 | 2,028 |
Premiums, reinsurance and other receivables | 607 | 679 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Long-term debt | 1,877 | 2,021 |
Other liabilities | 1,188 | 547 |
Separate account liabilities | 51,304 | 61,757 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 61,316 | 59,465 |
Policy loans | 6,596 | 6,797 |
Other limited partnership interests | 212 | |
Other invested assets | 169 | 154 |
Premiums, reinsurance and other receivables | 14,776 | 14,859 |
Liabilities | ||
Policyholder account balances | 74,156 | 76,452 |
Long-term debt | 0 | 0 |
Other liabilities | 13,210 | 13,490 |
Separate account liabilities | $ 0 | $ 0 |
Equity (Dividend Restrictions)
Equity (Dividend Restrictions) (Details) - Metropolitan Life Insurance Company - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | |
Statutory Accounting Practices [Line Items] | ||
Dividends | $ 2,424 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 1,700 | |
Extraordinary dividend paid to parent | $ 705 | |
Scenario, Forecast | ||
Statutory Accounting Practices [Line Items] | ||
Permitted w/o Approval | $ 3,075 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | $ 2,787 | $ 4,870 | $ 5,428 | $ 3,119 |
OCI before reclassifications | (1,271) | 571 | (6,172) | 3,674 |
Deferred income tax benefit (expense) | 270 | (215) | 1,305 | (1,298) |
AOCI before reclassifications, net of income tax | 1,786 | 5,226 | 561 | 5,495 |
Amounts reclassified from AOCI | (68) | (283) | 302 | (697) |
Deferred income tax benefit (expense) | 9 | 98 | (60) | 243 |
Amounts reclassified from AOCI, net of income tax | (59) | (185) | 242 | (454) |
Balance, end of period | 1,727 | 5,041 | 1,727 | 5,041 |
Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 3,933 | 5,549 | 6,351 | 3,592 |
OCI before reclassifications | (1,212) | 560 | (5,796) | 3,434 |
Deferred income tax benefit (expense) | 252 | (214) | 1,237 | (1,215) |
AOCI before reclassifications, net of income tax | 2,973 | 5,895 | 1,792 | 5,811 |
Amounts reclassified from AOCI | (73) | (30) | 26 | 98 |
Deferred income tax benefit (expense) | 16 | 10 | (5) | (34) |
Amounts reclassified from AOCI, net of income tax | (57) | (20) | 21 | 64 |
Balance, end of period | 2,916 | 5,875 | 2,916 | 5,875 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | 1,013 | 1,216 | 906 | 1,459 |
OCI before reclassifications | (154) | (20) | (483) | 226 |
Deferred income tax benefit (expense) | 38 | 7 | 93 | (79) |
AOCI before reclassifications, net of income tax | 897 | 1,203 | 516 | 1,606 |
Amounts reclassified from AOCI | (26) | (293) | 183 | (913) |
Deferred income tax benefit (expense) | 0 | 102 | (35) | 319 |
Amounts reclassified from AOCI, net of income tax | (26) | (191) | 148 | (594) |
Balance, end of period | 871 | 1,012 | 871 | 1,012 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (47) | (82) | (47) | (67) |
OCI before reclassifications | (35) | 29 | (23) | 9 |
Deferred income tax benefit (expense) | 7 | (7) | 2 | (2) |
AOCI before reclassifications, net of income tax | (75) | (60) | (68) | (60) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | (75) | (60) | (75) | (60) |
Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period | (2,112) | (1,813) | (1,782) | (1,865) |
OCI before reclassifications | 130 | 2 | 130 | 5 |
Deferred income tax benefit (expense) | (27) | (1) | (27) | (2) |
AOCI before reclassifications, net of income tax | (2,009) | (1,812) | (1,679) | (1,862) |
Amounts reclassified from AOCI | 31 | 40 | 93 | 118 |
Deferred income tax benefit (expense) | (7) | (14) | (20) | (42) |
Amounts reclassified from AOCI, net of income tax | 24 | 26 | 73 | 76 |
Balance, end of period | $ (1,985) | $ (1,786) | (1,985) | $ (1,786) |
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | (119) | |||
Deferred income tax benefit (expense) | 1,043 | |||
Amounts reclassified from AOCI, net of income tax | 924 | |||
Accounting Standards Update 2016-01 | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | (119) | |||
Deferred income tax benefit (expense) | 1,222 | |||
Amounts reclassified from AOCI, net of income tax | 1,103 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | 207 | |||
Amounts reclassified from AOCI, net of income tax | 207 | |||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | (7) | |||
Amounts reclassified from AOCI, net of income tax | (7) | |||
Accounting Standards Update 2016-01 | Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCI | 0 | |||
Deferred income tax benefit (expense) | (379) | |||
Amounts reclassified from AOCI, net of income tax | $ (379) |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | $ 205 | $ 96 | $ (21) | $ 184 |
Net derivative gains (losses) | (76) | (26) | 289 | (317) |
Net investment income | 2,786 | 2,660 | 8,171 | 7,955 |
Income (loss) before provision for income tax | 904 | 875 | 2,739 | 2,350 |
Provision for income tax expense (benefit) | 88 | 167 | 244 | 451 |
Net income (loss) | 816 | 708 | 2,495 | 1,899 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | 59 | 185 | (242) | 454 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Investment Gains (Losses), Net of Related Offsets | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net investment gains (losses) | 136 | (5) | 31 | 30 |
Net derivative gains (losses) | (69) | 38 | (73) | (123) |
Net investment income | 6 | (3) | 16 | (5) |
Income (loss) before provision for income tax | 73 | 30 | (26) | (98) |
Provision for income tax expense (benefit) | 16 | 10 | (5) | (34) |
Net income (loss) | 57 | 20 | (21) | (64) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before provision for income tax | 26 | 293 | (183) | 913 |
Provision for income tax expense (benefit) | 0 | 102 | (35) | 319 |
Net income (loss) | 26 | 191 | (148) | 594 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | 1 | 8 | 18 | 22 |
Net investment income | 4 | 4 | 13 | 12 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Interest rate forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | (3) | (1) | 0 | (5) |
Net investment income | 1 | 1 | 2 | 2 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Foreign currency swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | 24 | 282 | (214) | 882 |
Net investment income | (1) | (1) | (2) | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivatives | Credit forwards | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net derivative gains (losses) | 0 | 0 | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial gains (losses) | (36) | (45) | (107) | (134) |
Amortization of prior service (costs) credit | 5 | 5 | 14 | 16 |
Income (loss) before provision for income tax | (31) | (40) | (93) | (118) |
Provision for income tax expense (benefit) | (7) | (14) | (20) | (42) |
Net income (loss) | $ (24) | $ (26) | $ (73) | $ (76) |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
General and administrative expenses | $ 678 | $ 689 | $ 2,018 | $ 1,943 |
Pension, postretirement and postemployment benefit costs | 18 | 51 | 52 | 138 |
Premium taxes, other taxes, and licenses & fees | 96 | 63 | 279 | 212 |
Commissions and other variable expenses | 445 | 436 | 1,317 | 1,369 |
Capitalization of DAC | (7) | (17) | (26) | (57) |
Amortization of DAC and VOBA | 104 | (43) | 271 | 124 |
Interest expense on debt | 27 | 26 | 81 | 79 |
Total other expenses | $ 1,361 | $ 1,205 | $ 3,992 | $ 3,808 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Domestic Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | $ 40 | $ 40 | $ 119 | $ 120 |
Interest costs | 93 | 98 | 279 | 295 |
Divestitures | 0 | 3 | 0 | 3 |
Expected return on plan assets | (131) | (121) | (394) | (362) |
Amortization of net actuarial (gains) losses | 45 | 45 | 133 | 134 |
Amortization of prior service costs (credit) | 0 | 0 | 0 | (1) |
Allocated to affiliates | 27 | 56 | 79 | 163 |
Net periodic benefit costs (credit) | 27 | 56 | 79 | 163 |
Pension Benefits | Affiliated Entity [Member] | ||||
Net periodic benefit costs [Abstract] | ||||
Allocated to affiliates | (20) | (9) | (58) | (26) |
Net periodic benefit costs (credit) | (20) | (9) | (58) | (26) |
Other Postretirement Benefits | ||||
Net periodic benefit costs [Abstract] | ||||
Service costs | 1 | 0 | 4 | 3 |
Interest costs | 13 | 16 | 38 | 50 |
Divestitures | 0 | 2 | 0 | 2 |
Expected return on plan assets | (18) | (16) | (54) | (48) |
Amortization of net actuarial (gains) losses | (9) | 0 | (26) | 0 |
Amortization of prior service costs (credit) | (5) | (5) | (14) | (15) |
Allocated to affiliates | (12) | (3) | (33) | (9) |
Net periodic benefit costs (credit) | (12) | (3) | (33) | (9) |
Other Postretirement Benefits | Affiliated Entity [Member] | ||||
Net periodic benefit costs [Abstract] | ||||
Allocated to affiliates | 6 | 0 | 19 | (1) |
Net periodic benefit costs (credit) | $ 6 | $ 0 | $ 19 | $ (1) |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Other Reconciling Items | $ (36) |
Prior Year Income Taxes | $ 25 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Federal corporate income tax rate | 21.00% | 35.00% | |||
Other Assets | |||||
Transition tax rate | 8.00% | ||||
Cash and Cash Equivalents | |||||
Transition tax rate | 15.50% | ||||
Other limited partnership interests | |||||
Gross Investment Income, Operating | $ 153 | $ 163 | $ 388 | $ 506 | |
Impact of U.S. Tax Reform | Other limited partnership interests | |||||
Gross Investment Income, Operating | $ 32 | $ 32 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Contingencies - Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($)Claims | Sep. 30, 2017Claims | Dec. 31, 2017USD ($)Claims | |
Loss Contingencies | |||
Reserves for Group Annuity products | $ 510,000 | ||
Minimum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 | ||
Maximum | |||
Loss Contingencies | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 475,000 | ||
Asbestos Related Claims | |||
Loss Contingencies | |||
Asbestos-Related Claims | Claims | 2,558 | 2,742 | 3,514 |
Superfund Site Settlement Agreements | |||
Loss Contingencies | |||
Number of regulatory matters and other claims | Claims | 2 | ||
Superfund Site Settlement Agreements | Maximum | |||
Loss Contingencies | |||
Maximum estimate of aggregate costs to resolve matter | $ 300 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Liabilities for indemnities, guarantees and commitments | $ 4 | $ 4 |
Cumulative maximum indemnities and guarantees contractual limitation | 839 | |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 1 | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Indemnities and guarantees contractual limitation range | 453 | |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 3,900 | 3,300 |
Commitments to Fund Partnership Investments, Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 3,800 | $ 3,900 |
Related Party Transactions (Ser
Related Party Transactions (Service Agreements - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Other expenses | $ 1,361 | $ 1,205 | $ 3,992 | $ 3,808 | |
Revenues | 9,751 | 10,286 | 33,006 | 28,273 | |
Net receivables (payables) due from (to) affiliates | (152) | (152) | $ (205) | ||
Affiliated Entity [Member] | Services Necessary To Conduct The Company's Activities | |||||
Related Party Transaction [Line Items] | |||||
Other expenses | 471 | 575 | 1,500 | 1,700 | |
Revenues | 18 | 58 | 133 | 175 | |
Affiliated Entity [Member] | Services Necessary To Conduct The Affiliates' Activities | |||||
Related Party Transaction [Line Items] | |||||
Other expenses | $ 328 | $ 378 | $ 1,000 | $ 1,100 |
Related Party Transactions (Eff
Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Premiums: | ||||
Net premiums | $ 5,925 | $ 6,629 | $ 21,794 | $ 17,597 |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | 510 | 556 | 1,570 | 1,706 |
Other revenues: | ||||
Net other revenues | 401 | 371 | 1,203 | 1,148 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | 6,576 | 7,372 | 23,642 | 19,628 |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Net interest credited to policyholder account balances | 628 | 567 | 1,821 | 1,660 |
Other expenses: | ||||
Net other expenses | 1,361 | 1,205 | 3,992 | 3,808 |
Affiliated Entity [Member] | Assumed Reinsurance [Member] | ||||
Premiums: | ||||
Reinsurance assumed | 2 | 5 | 7 | 118 |
Universal life and investment-type product policy fees: | ||||
Reinsurance assumed | 0 | (2) | (2) | 16 |
Other revenues: | ||||
Reinsurance assumed | (2) | 4 | 3 | 30 |
Policyholder benefits and claims: | ||||
Reinsurance assumed | 1 | 4 | 5 | 63 |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Reinsurance assumed | 8 | 12 | 30 | 36 |
Other expenses: | ||||
Reinsurance assumed | 0 | (4) | 10 | 33 |
Affiliated Entity [Member] | Ceded Reinsurance [Member] | ||||
Premiums: | ||||
Reinsurance ceded | (24) | (32) | (87) | (101) |
Universal life and investment-type product policy fees: | ||||
Reinsurance ceded | (4) | (6) | (14) | (16) |
Other revenues: | ||||
Reinsurance ceded | 138 | 139 | 401 | 421 |
Policyholder benefits and claims: | ||||
Reinsurance ceded | (33) | (26) | (90) | (90) |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Reinsurance ceded | (3) | (3) | (9) | (9) |
Other expenses: | ||||
Reinsurance ceded | 154 | 139 | 412 | 459 |
Affiliated Entity [Member] | Reinsurance [Member] | ||||
Premiums: | ||||
Net premiums | (22) | (27) | (80) | 17 |
Universal life and investment-type product policy fees: | ||||
Net universal life and investment-type product policy fees | (4) | (8) | (16) | 0 |
Other revenues: | ||||
Net other revenues | 136 | 143 | 404 | 451 |
Policyholder benefits and claims: | ||||
Net policyholder benefits and claims | (32) | (22) | (85) | (27) |
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Net interest credited to policyholder account balances | 5 | 9 | 21 | 27 |
Other expenses: | ||||
Net other expenses | $ 154 | $ 135 | 422 | 492 |
Brighthouse Financial, Inc [Member] | Assumed Reinsurance [Member] | ||||
Premiums: | ||||
Reinsurance assumed | 1 | 112 | ||
Universal life and investment-type product policy fees: | ||||
Reinsurance assumed | (2) | 15 | ||
Other revenues: | ||||
Reinsurance assumed | 7 | 30 | ||
Policyholder benefits and claims: | ||||
Reinsurance assumed | 2 | 60 | ||
Interest Credited To Policyholder Account Balances [Abstract] | ||||
Reinsurance assumed | 7 | 12 | ||
Other expenses: | ||||
Reinsurance assumed | 10 | 9 | ||
Brighthouse Financial, Inc [Member] | Ceded Reinsurance [Member] | ||||
Other expenses: | ||||
Reinsurance ceded | 0 | 27 | ||
Brighthouse Financial, Inc [Member] | Reinsurance [Member] | ||||
Other expenses: | ||||
Net other expenses | $ 10 | $ 36 |
Related Party Transactions (E_2
Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Premiums, reinsurance and other receivables | $ 22,623 | $ 22,098 |
Deferred policy acquisition costs and value of business acquired | 4,356 | 4,348 |
Liabilities: | ||
Liability for Future Policy Benefits | 125,969 | 119,415 |
Policyholder account balances | 92,085 | 93,939 |
Other policy-related balances | 7,289 | 7,176 |
Other Liabilities | 27,533 | 27,409 |
Assumed Reinsurance [Member] | Affiliated Entity [Member] | ||
Assets | ||
Premiums, reinsurance and other receivables | 0 | 47 |
Deferred policy acquisition costs and value of business acquired | 0 | 0 |
Total assets | 0 | 47 |
Liabilities: | ||
Liability for Future Policy Benefits | 64 | 380 |
Policyholder account balances | 154 | 166 |
Other policy-related balances | 1 | 104 |
Other Liabilities | 836 | 1,858 |
Total liabilities | 1,055 | 2,508 |
Assumed Reinsurance [Member] | Brighthouse Financial, Inc [Member] | ||
Assets | ||
Premiums, reinsurance and other receivables | 47 | |
Liabilities: | ||
Liability for Future Policy Benefits | 313 | |
Other policy-related balances | 101 | |
Other Liabilities | 1,028 | |
Total liabilities | 1,442 | |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | ||
Assets | ||
Premiums, reinsurance and other receivables | 12,672 | 12,762 |
Deferred policy acquisition costs and value of business acquired | (181) | (180) |
Total assets | 12,491 | 12,582 |
Liabilities: | ||
Liability for Future Policy Benefits | (1) | (4) |
Policyholder account balances | 0 | 0 |
Other policy-related balances | 13 | 15 |
Other Liabilities | 12,371 | 12,970 |
Total liabilities | $ 12,383 | $ 12,981 |
Related Party Transactions (Rei
Related Party Transactions (Reinsurance Transactions - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 290 | $ 290 | $ 876 | ||
Net derivatives gains (losses) | 199 | $ 141 | 738 | $ 317 | |
Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities) | 22,623 | 22,623 | 22,098 | ||
Liability for Future Policy Benefits | 125,969 | 125,969 | 119,415 | ||
Policyholder Contract Deposits | 92,085 | 92,085 | 93,939 | ||
Other Liabilities | $ 27,533 | $ 27,533 | 27,409 | ||
Affiliated Entity [Member] | Funds Withheld On Ceded Reinsurance [Member] | |||||
Reinsurance Disclosures [Abstract] | |||||
Coinsurance Funds Withheld Basis, Percent | 75.00% | 75.00% | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 3 | $ 3 | 16 | ||
Net derivatives gains (losses) | 3 | 0 | 13 | (6) | |
Affiliated Entity [Member] | Closed Block Liabilities Ceded To MetLife Reinsurance Of Charleston [Member] | |||||
Reinsurance Disclosures [Abstract] | |||||
Embedded Derivative, Fair Value of Embedded Derivative Liability | 442 | 442 | 882 | ||
Net derivatives gains (losses) | 77 | $ (1) | 440 | $ (124) | |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | |||||
Reinsurance Disclosures [Abstract] | |||||
Premiums, reinsurance and other receivables (includes $3 and $3, respectively, relating to variable interest entities) | 12,672 | 12,672 | 12,762 | ||
Liability for Future Policy Benefits | (1) | (1) | (4) | ||
Policyholder Contract Deposits | 0 | 0 | 0 | ||
Other Liabilities | $ 12,371 | $ 12,371 | $ 12,970 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsequent Event [Line Items] | |||||
Total Equity Impact | $ 25,329 | $ 28,298 | $ 29,761 | $ 26,760 | |
Adjustments to APIC | (2) | (20) | |||
Adjustments to AOCI | (4,625) | 1,922 | |||
Additional Paid-in Capital | |||||
Subsequent Event [Line Items] | |||||
Total Equity Impact | 14,221 | 14,149 | 14,150 | 14,413 | |
Adjustments to APIC | (2) | (20) | |||
AOCI Attributable to Parent | |||||
Subsequent Event [Line Items] | |||||
Total Equity Impact | 1,727 | 5,041 | $ 5,428 | $ 3,119 | |
Adjustments to AOCI | $ (4,625) | $ 1,922 | |||
Subsequent Events | Plan Amendment | |||||
Subsequent Event [Line Items] | |||||
Total Equity Impact | $ (100) | ||||
Subsequent Events | Plan Amendment | Additional Paid-in Capital | |||||
Subsequent Event [Line Items] | |||||
Adjustments to APIC | (1,800) | ||||
Subsequent Events | Plan Amendment | AOCI Attributable to Parent | |||||
Subsequent Event [Line Items] | |||||
Adjustments to AOCI | $ 1,700 |