XML 51 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investments  
Fixed Maturities and Equity Securities Available-for-Sale (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other-than-

 

 

 

 

 

Gross

 

Gross

 

 

 

 

temporary

 

 

Amortized

 

unrealized

 

unrealized

 

 

 

 

impairments in

 

    

cost

    

gains

    

losses

    

Fair value

    

AOCI (1)

 

 

(in millions)

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

1,441.6

 

$

16.4

 

$

17.0

 

$

1,441.0

 

$

—

Non-U.S. governments

 

 

833.4

 

 

71.7

 

 

14.6

 

 

890.5

 

 

—

States and political subdivisions

 

 

6,125.0

 

 

196.0

 

 

95.3

 

 

6,225.7

 

 

—

Corporate

 

 

35,134.6

 

 

1,249.9

 

 

845.2

 

 

35,539.3

 

 

 —

Residential mortgage-backed pass-through securities

 

 

2,488.5

 

 

21.9

 

 

49.8

 

 

2,460.6

 

 

—

Commercial mortgage-backed securities

 

 

4,023.1

 

 

17.1

 

 

94.6

 

 

3,945.6

 

 

16.3

Collateralized debt obligations (2)

 

 

2,451.3

 

 

 —

 

 

30.5

 

 

2,420.8

 

 

1.2

Other debt obligations

 

 

7,228.3

 

 

39.4

 

 

82.7

 

 

7,185.0

 

 

36.1

Total fixed maturities, available-for-sale

 

$

59,725.8

 

$

1,612.4

 

$

1,229.7

 

$

60,108.5

 

$

53.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

1,314.5

 

$

44.9

 

$

7.7

 

$

1,351.7

 

$

—

Non-U.S. governments

 

 

820.5

 

 

84.6

 

 

3.6

 

 

901.5

 

 

—

States and political subdivisions

 

 

6,446.1

 

 

371.4

 

 

15.9

 

 

6,801.6

 

 

—

Corporate

 

 

34,673.0

 

 

2,464.2

 

 

104.1

 

 

37,033.1

 

 

0.5

Residential mortgage-backed pass-through securities

 

 

2,493.8

 

 

50.8

 

 

21.3

 

 

2,523.3

 

 

—

Commercial mortgage-backed securities

 

 

3,734.0

 

 

32.7

 

 

58.4

 

 

3,708.3

 

 

50.6

Collateralized debt obligations (2)

 

 

1,372.1

 

 

2.7

 

 

15.5

 

 

1,359.3

 

 

0.3

Other debt obligations

 

 

5,708.1

 

 

42.0

 

 

40.5

 

 

5,709.6

 

 

41.9

Total fixed maturities, available-for-sale

 

$

56,562.1

 

$

3,093.3

 

$

267.0

 

$

59,388.4

 

$

93.3

Total equity securities, available-for-sale

 

$

94.0

 

$

7.4

 

$

5.4

 

$

96.0

 

 

 

(1)

Excludes $64.2 million and $103.0 million as of December 31, 2018 and December 31, 2017, respectively, of net unrealized gains on impaired fixed maturities, available-for-sale related to changes in fair value subsequent to the impairment date, which are included in gross unrealized gains and gross unrealized losses.

(2)

Primarily consists of collateralized loan obligations backed by secured corporate loans.
Fixed Maturities Available-for-Sale by Contractual Maturity (Table)

The amortized cost and fair value of fixed maturities, available-for-sale as of December 31, 2018, by expected maturity, were as follows:

 

 

 

 

 

 

 

 

 

    

Amortized cost

    

Fair value

 

 

(in millions)

Due in one year or less

 

$

 2,747.4

 

$

 2,753.5

Due after one year through five years

 

 

 10,602.1

 

 

 10,631.7

Due after five years through ten years

 

 

 10,511.7

 

 

 10,389.7

Due after ten years

 

 

 19,673.4

 

 

 20,321.6

Subtotal

 

 

 43,534.6

 

 

 44,096.5

Mortgage-backed and other asset-backed securities

 

 

 16,191.2

 

 

 16,012.0

Total

 

$

 59,725.8

 

$

 60,108.5

 

Net Investment Income (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

    

2018

    

2017

    

2016

 

 

(in millions)

Fixed maturities, available-for-sale

 

$

 2,479.9

 

$

2,342.3

 

$

2,253.8

Fixed maturities, trading

 

 

 26.4

 

 

12.6

 

 

20.2

Equity securities, available-for-sale

 

 

—

 

 

21.7

 

 

20.1

Equity securities, trading

 

 

—

 

 

46.1

 

 

31.4

Equity securities

 

 

 38.8

 

 

—

 

 

—

Mortgage loans

 

 

 641.4

 

 

605.9

 

 

573.9

Real estate

 

 

 158.8

 

 

129.4

 

 

127.9

Policy loans

 

 

 45.0

 

 

45.6

 

 

46.3

Cash and cash equivalents

 

 

 56.2

 

 

28.6

 

 

14.2

Derivatives (1)

 

 

 0.1

 

 

(3.2)

 

 

(36.1)

Other

 

 

 285.0

 

 

319.6

 

 

329.2

Total

 

 

 3,731.6

 

 

3,548.6

 

 

3,380.9

Investment expenses

 

 

(102.4)

 

 

(89.3)

 

 

(84.4)

Net investment income

 

$

 3,629.2

 

$

3,459.3

 

$

3,296.5

(1)

Relates to periodic settlements of derivatives used in fair value and cash flow hedges of fixed maturities, available-for-sale. See Note 5, Derivative Financial Instruments, for further details.
Net Realized Capital Gains and Losses (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

    

2018

    

2017

    

2016

 

 

(in millions)

Fixed maturities, available-for-sale:

 

 

 

 

 

 

 

 

 

Gross gains

 

$

40.2

 

$

14.7

 

$

74.6

Gross losses

 

 

(74.8)

 

 

(27.2)

 

 

(28.6)

Net impairment losses

 

 

(29.1)

 

 

(81.7)

 

 

(96.7)

Hedging, net

 

 

(39.6)

 

 

(28.5)

 

 

(37.9)

Fixed maturities, trading (1)

 

 

(9.0)

 

 

(8.0)

 

 

4.1

Equity securities, available-for-sale:

 

 

 

 

 

 

 

 

 

Gross gains

 

 

 —

 

 

0.2

 

 

 —

Net impairment losses

 

 

 —

 

 

(0.1)

 

 

(1.7)

Equity securities, trading (2)

 

 

 —

 

 

65.0

 

 

6.8

Equity securities (3)

 

 

(17.7)

 

 

 —

 

 

 —

Mortgage loans

 

 

6.2

 

 

9.0

 

 

4.5

Derivatives

 

 

11.7

 

 

(149.8)

 

 

210.1

Other (4)

 

 

36.7

 

 

730.6

 

 

35.9

Net realized capital gains (losses)

 

$

(75.4)

 

$

524.2

 

$

171.1

(1)

Unrealized gains (losses) on fixed maturities, trading still held at the reporting date were $(12.2) million, $(7.5) million and $6.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.

(2)

Unrealized gains (losses) on equity securities, trading still held at the reporting date were $45.3 million and $(0.8) million for the years ended December 31, 2017 and 2016, respectively. This excludes $34.9 million and $18.8 million of unrealized gains (losses) on equity securities, trading still held at the reporting date for the years ended December 31, 2017 and 2016, respectively, that were reported in net investment income.

(3)

Unrealized gains (losses) on equity securities still held at the reporting date were $(39.9) million for the year ended December 31, 2018. This excludes $4.9 million of unrealized gains (losses) on equity securities still held at the reporting date for the year ended December 31, 2018, that was reported in net investment income.

(4)

Further details relating to other gains in 2017 are included under the caption “ Real Estate Transactions."
Other-Than-Temporary Impairment Losses, Net of Recoveries (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

    

2018

    

2017

    

2016

 

 

(in millions)

Fixed maturities, available-for-sale

 

$

10.6

 

$

(28.6)

 

$

(97.1)

Equity securities, available-for-sale

 

 

 —

 

 

(0.1)

 

 

(1.7)

Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities

 

 

10.6

 

 

(28.7)

 

 

(98.8)

Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) OCI (1)

 

 

(39.7)

 

 

(53.1)

 

 

0.4

Net impairment losses on available-for-sale securities

 

$

(29.1)

 

$

(81.8)

 

$

(98.4)

(1)

Represents the net impact of (a) gains resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI and (b) losses resulting from reclassification of previously recognized noncredit impairment losses from OCI to net realized capital gains (losses) for fixed maturities with bifurcated OTTI that had additional credit losses or fixed maturities that previously had bifurcated OTTI that have now been sold or are intended to be sold.
Other-Than-Temporary Impairment, Credit Losses Recognized in Earnings (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31, 

 

    

2018

    

2017

    

2016

 

 

(in millions)

Beginning balance

 

$

(124.3)

 

$

(139.9)

 

$

(131.5)

Credit losses for which an other-than-temporary impairment was not previously recognized

 

 

(11.3)

 

 

(15.0)

 

 

(43.4)

Credit losses for which an other-than-temporary impairment was previously recognized

 

 

(20.0)

 

 

(42.5)

 

 

(31.7)

Reduction for credit losses previously recognized on fixed maturities now sold, paid down or intended to be sold

 

 

29.5

 

 

63.3

 

 

60.5

Net reduction for positive changes in cash flows expected to be collected and amortization (1)

 

 

8.6

 

 

10.0

 

 

6.4

Foreign currency translation adjustment

 

 

 —

 

 

(0.2)

 

 

(0.2)

Ending balance

 

$

(117.5)

 

$

(124.3)

 

$

(139.9)

(1)

Amounts are recognized in net investment income.
Gross Unrealized Losses for Fixed Maturities and Equity Securities (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

December 31, 2018

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

Less than

 

or equal to

 

 

 

 

 

 

 

    

twelve months

 

twelve months

 

Total

 

    

    

 

Gross

 

    

 

Gross

 

    

 

Gross

 

 

Fair

 

unrealized

 

Fair

 

unrealized

 

Fair

 

unrealized

 

 

value

 

losses

    

value

    

losses

    

value

    

losses

 

 

(in millions)

Fixed maturities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

101.8

 

$

1.6

 

$

500.3

 

$

15.4

 

$

602.1

 

$

17.0

Non-U.S. governments

 

 

210.2

 

 

4.7

 

 

191.5

 

 

9.9

 

 

401.7

 

 

14.6

States and political subdivisions

 

 

1,359.9

 

 

33.9

 

 

1,590.3

 

 

61.4

 

 

2,950.2

 

 

95.3

Corporate

 

 

13,198.4

 

 

476.0

 

 

6,865.0

 

 

369.2

 

 

20,063.4

 

 

845.2

Residential mortgage-backed pass- through securities

 

 

236.7

 

 

1.0

 

 

1,410.2

 

 

48.8

 

 

1,646.9

 

 

49.8

Commercial mortgage-backed securities

 

 

790.3

 

 

11.6

 

 

2,223.2

 

 

83.0

 

 

3,013.5

 

 

94.6

Collateralized debt obligations (1)

 

 

2,233.3

 

 

24.0

 

 

162.6

 

 

6.5

 

 

2,395.9

 

 

30.5

Other debt obligations

 

 

985.5

 

 

4.9

 

 

3,665.1

 

 

77.8

 

 

4,650.6

 

 

82.7

Total fixed maturities, available-for-sale

 

$

19,116.1

 

$

557.7

 

$

16,608.2

 

$

672.0

 

$

35,724.3

 

$

1,229.7

 

(1)      Primarily consists of collateralized loan obligations backed by secured corporate loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

Greater than or

 

 

    

 

 

 

Less than

 

equal to twelve

 

 

 

 

 

 

twelve months

 

months

 

Total

 

 

    

 

Gross

 

    

 

Gross

 

    

 

Gross

 

 

Fair

 

unrealized

 

Fair

 

unrealized

 

Fair

 

unrealized

 

    

value

    

losses

    

value

    

losses

    

value

    

losses

 

 

(in millions)

Fixed maturities, available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agencies

 

$

294.2

 

$

2.2

 

$

180.9

 

$

5.5

 

$

475.1

 

$

7.7

Non-U.S. governments

 

 

111.0

 

 

1.7

 

 

22.1

 

 

1.9

 

 

133.1

 

 

3.6

States and political subdivisions

 

 

720.0

 

 

5.0

 

 

437.7

 

 

10.9

 

 

1,157.7

 

 

15.9

Corporate

 

 

3,871.5

 

 

43.4

 

 

1,644.3

 

 

60.7

 

 

5,515.8

 

 

104.1

Residential mortgage-backed pass- through securities

 

 

354.4

 

 

2.0

 

 

734.5

 

 

19.3

 

 

1,088.9

 

 

21.3

Commercial mortgage-backed securities

 

 

1,342.7

 

 

19.9

 

 

820.3

 

 

38.5

 

 

2,163.0

 

 

58.4

Collateralized debt obligations (1)

 

 

460.9

 

 

2.1

 

 

38.3

 

 

13.4

 

 

499.2

 

 

15.5

Other debt obligations

 

 

2,667.6

 

 

16.0

 

 

956.8

 

 

24.5

 

 

3,624.4

 

 

40.5

Total fixed maturities, available-for-sale

 

$

9,822.3

 

$

92.3

 

$

4,834.9

 

$

174.7

 

$

14,657.2

 

$

267.0

Total equity securities, available-for-sale

 

$

—

 

$

—

 

$

40.4

 

$

5.4

 

$

40.4

 

$

5.4

 

(1)      Primarily consists of collateralized loan obligations backed by  secured corporate loans.

Net Unrealized Gains and Losses on Available-for-Sale Securities and Derivative Instruments (Table)

 

 

 

 

 

 

 

 

 

    

December 31, 2018

    

December 31, 2017

 

 

(in millions)

Net unrealized gains on fixed maturities, available-for-sale (1)

 

$

 400.8

 

$

2,898.5

Noncredit component of impairment losses on fixed maturities, available-for-sale

 

 

(53.6)

 

 

(93.3)

Net unrealized gains on equity securities, available-for-sale

 

 

—

 

 

2.0

Net unrealized gains on derivative instruments

 

 

 118.5

 

 

108.2

Adjustments for assumed changes in amortization patterns

 

 

 30.3

 

 

(150.6)

Adjustments for assumed changes in policyholder liabilities

 

 

(293.7)

 

 

(645.5)

Net unrealized gains on other investments and noncontrolling interest adjustments

 

 

 68.8

 

 

31.3

Provision for deferred income taxes

 

 

(63.8)

 

 

(695.5)

Net unrealized gains on available-for-sale securities and derivative instruments

 

$

 207.3

 

$

1,455.1

(1)

Excludes net unrealized gains (losses) on fixed maturities, available-for-sale included in fair value hedging relationships.
Mortgage Loans (Table)

 

 

 

 

 

 

 

 

 

    

December 31, 2018

    

December 31, 2017

 

 

(in millions)

Commercial mortgage loans

 

$

13,996.3

 

$

12,897.3

Residential mortgage loans

 

 

1,368.0

 

 

1,285.9

Total amortized cost

 

 

15,364.3

 

 

14,183.2

Valuation allowance

 

 

(27.4)

 

 

(32.7)

Total carrying value

 

$

15,336.9

 

$

14,150.5

 

Mortgage Loans Purchased and Sold (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended

 

 

December 31,

 

    

2018

    

2017

    

2016

 

 

(in millions)

Commercial mortgage loans:

 

 

 

 

 

 

 

 

 

Purchased

 

$

 127.5

 

$

 144.2

 

$
163.3

Sold

 

 

 2.2

 

 

 28.9

 

 
0.3

Residential mortgage loans:

 

 

 

 

 

 

 

 

 

Purchased

 

 

 394.2

 

 

 346.0

 

 
290.3

Sold

 

 

 80.3

 

 

 152.2

 

 
48.4

 

Commercial Mortgage Loans by Geographic Distribution and Property Type Distribution (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

December 31, 2018

 

December 31, 2017

 

 

 

Amortized

 

Percent

 

Amortized

 

Percent

 

 

    

cost

    

of total

    

cost

    

of total

   

 

 

($ in millions)

 

Geographic distribution

 

 

 

 

 

 

 

 

 

 

 

New England

 

$

640.6

 

4.6

%  

$

591.8

 

4.6

%

Middle Atlantic

 

 

3,927.3

 

28.0

 

 

3,623.0

 

28.1

 

East North Central

 

 

592.8

 

4.2

 

 

675.2

 

5.2

 

West North Central

 

 

205.8

 

1.5

 

 

174.9

 

1.4

 

South Atlantic

 

 

2,206.5

 

15.8

 

 

2,325.3

 

18.0

 

East South Central

 

 

422.5

 

3.0

 

 

375.7

 

2.9

 

West South Central

 

 

1,213.8

 

8.7

 

 

1,072.4

 

8.3

 

Mountain

 

 

968.6

 

6.9

 

 

1,039.3

 

8.1

 

Pacific

 

 

3,567.6

 

25.5

 

 

2,849.0

 

22.1

 

International

 

 

250.8

 

1.8

 

 

170.7

 

1.3

 

Total

 

$

13,996.3

 

100.0

%  

$

12,897.3

 

100.0

%

Property type distribution

 

 

 

 

 

 

 

 

 

 

 

Office

 

$

4,625.8

 

33.0

%

$

4,700.2

 

36.4

%

Retail

 

 

2,305.6

 

16.5

 

 

2,612.7

 

20.3

 

Industrial

 

 

2,312.9

 

16.5

 

 

1,881.5

 

14.6

 

Apartments

 

 

4,250.5

 

30.4

 

 

3,301.9

 

25.6

 

Hotel

 

 

99.8

 

0.7

 

 

130.9

 

1.0

 

Mixed use/other

 

 

401.7

 

2.9

 

 

270.1

 

2.1

 

Total

 

$

13,996.3

 

100.0

%  

$

12,897.3

 

100.0

%

 

Commercial Mortgage Loan Portfolio by Credit Risk (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

    

Brick and mortar

    

CTL

    

Total

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

A- and above

 

$

 12,735.2

 

$

 84.3

 

$

 12,819.5

BBB+ thru BBB-

 

 

 977.3

 

 

 105.7

 

 

 1,083.0

BB+ thru BB-

 

 

 88.3

 

 

—

 

 

 88.3

B+ and below

 

 

 5.5

 

 

—

 

 

 5.5

Total

 

$

 13,806.3

 

$

 190.0

 

$

 13,996.3

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

    

Brick and mortar

    

CTL

    

Total

 

 

(in millions)

A- and above

 

$

11,636.2

 

$

129.0

 

$

11,765.2

BBB+ thru BBB-

 

 

934.1

 

 

102.4

 

 

1,036.5

BB+ thru BB-

 

 

89.0

 

 

 —

 

 

89.0

B+ and below

 

 

6.3

 

 

0.3

 

 

6.6

Total

 

$

12,665.6

 

$

231.7

 

$

12,897.3

 

Performing and Non-Performing Residential Mortgage Loans (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

    

First liens

    

Home equity

    

Total

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

Performing

 

$

 1,340.3

 

$

 10.8

 

$

 1,351.1

Non-performing

 

 

 12.6

 

 

 4.3

 

 

 16.9

Total

 

$

 1,352.9

 

$

 15.1

 

$

 1,368.0

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

    

First liens

    

Home equity

    

Total

 

 

(in millions)

Performing

 

$

1,251.4

 

$

16.5

 

$

1,267.9

Non-performing

 

 

11.5

 

 

6.5

 

 

18.0

Total

 

$

1,262.9

 

$

23.0

 

$

1,285.9

 

Non-Accrual Mortgage Loans (Table)

 

 

 

 

 

 

 

 

 

    

December 31, 2018

    

December 31, 2017

 

 

(in millions)

Residential:

 

 

 

 

 

 

First liens

 

$

10.1

 

$

3.9

Home equity

 

 

4.3

 

 

6.5

Total

 

$

14.4

 

$

10.4

 

Mortgage Loans Aging (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 2018

 

    

 

 

    

 

 

 

 

 

    

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment

 

 

 

 

 

 

 

 

90 days or

 

 

 

 

 

 

 

 

 

 

90 days or

 

 

30-59 days

 

60-89 days

 

more past

 

Total

 

 

 

 

 

 

 

more and

 

    

past due

    

past due

    

due

    

past due

    

Current

    

Total loans

    

accruing

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial-brick and mortar

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

13,806.3

 

$

13,806.3

 

$

 —

Commercial-CTL

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

190.0

 

 

190.0

 

 

 —

Residential-first liens

 

 

44.3

 

 

8.4

 

 

12.1

 

 

64.8

 

 

1,288.1

 

 

1,352.9

 

 

2.5

Residential-home equity

 

 

0.8

 

 

0.6

 

 

0.4

 

 

1.8

 

 

13.3

 

 

15.1

 

 

 —

Total

 

$

45.1

 

$

9.0

 

$

12.5

 

$

66.6

 

$

15,297.7

 

$

15,364.3

 

$

2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investment

 

 

 

 

 

 

 

 

90 days or

 

 

 

 

 

 

 

 

 

 

90 days or

 

 

30-59 days

 

60-89 days

 

more past

 

Total

 

 

 

 

 

 

 

more and

 

    

past due

    

past due

    

due

    

past due

    

Current

    

Total loans

    

accruing

 

 

(in millions)

Commercial-brick and mortar

 

$

—

 

$

—

 

$

—

 

$

—

 

$

 12,665.6

 

$

 12,665.6

 

$

—

Commercial-CTL

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 231.7

 

 

 231.7

 

 

—

Residential-first liens

 

 

 37.2

 

 

 7.9

 

 

 10.6

 

 

 55.7

 

 

 1,207.2

 

 

 1,262.9

 

 

 7.6

Residential-home equity

 

 

 1.9

 

 

 0.7

 

 

 0.8

 

 

 3.4

 

 

 19.6

 

 

 23.0

 

 

—

Total

 

$

 39.1

 

$

 8.6

 

$

 11.4

 

$

 59.1

 

$

 14,124.1

 

$

 14,183.2

 

$

 7.6

 

Mortgage Loan Valuation Allowance (Table)

 

 

 

 

 

 

 

 

 

 

 

 

    

Commercial

    

Residential

    

Total

 

 

(in millions)

For the year ended December 31, 2018

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

25.8

 

$

6.9

 

$

32.7

Provision

 

 

(1.5)

 

 

(4.5)

 

 

(6.0)

Charge-offs

 

 

 —

 

 

(2.4)

 

 

(2.4)

Recoveries

 

 

 —

 

 

3.1

 

 

3.1

Ending balance

 

$

24.3

 

$

3.1

 

$

27.4

Allowance ending balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

1.4

 

$

1.4

Collectively evaluated for impairment

 

 

24.3

 

 

1.7

 

 

26.0

Allowance ending balance

 

$

24.3

 

$

3.1

 

$

27.4

Loan balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

9.2

 

$

9.2

Collectively evaluated for impairment

 

 

13,996.3

 

 

1,358.8

 

 

15,355.1

Loan ending balance

 

$

13,996.3

 

$

1,368.0

 

$

15,364.3

For the year ended December 31, 2017

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

27.4

 

$

17.5

 

$

44.9

Provision

 

 

(1.6)

 

 

(10.4)

 

 

(12.0)

Charge-offs

 

 

 —

 

 

(5.1)

 

 

(5.1)

Recoveries

 

 

 —

 

 

4.9

 

 

4.9

Ending balance

 

$

25.8

 

$

6.9

 

$

32.7

Allowance ending balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

4.5

 

$

4.5

Collectively evaluated for impairment

 

 

25.8

 

 

2.4

 

 

28.2

Allowance ending balance

 

$

25.8

 

$

6.9

 

$

32.7

Loan balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

12.5

 

$

12.5

Collectively evaluated for impairment

 

 

12,897.3

 

 

1,273.4

 

 

14,170.7

Loan ending balance

 

$

12,897.3

 

$

1,285.9

 

$

14,183.2

For the year ended December 31, 2016

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

27.5

 

$

24.1

 

$

51.6

Provision

 

 

1.4

 

 

(5.6)

 

 

(4.2)

Charge-offs

 

 

(1.5)

 

 

(4.6)

 

 

(6.1)

Recoveries

 

 

 —

 

 

3.6

 

 

3.6

Ending balance

 

$

27.4

 

$

17.5

 

$

44.9

Allowance ending balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

5.9

 

$

5.9

Collectively evaluated for impairment

 

 

27.4

 

 

11.6

 

 

39.0

Allowance ending balance

 

$

27.4

 

$

17.5

 

$

44.9

Loan balance by basis of impairment method:

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

 —

 

$

19.2

 

$

19.2

Collectively evaluated for impairment

 

 

12,055.2

 

 

1,200.7

 

 

13,255.9

Loan ending balance

 

$

12,055.2

 

$

1,219.9

 

$

13,275.1

 

Impaired Mortgage Loans (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

Unpaid

 

 

 

 

 

Recorded

 

principal

 

Related

 

    

investment

    

balance

    

allowance

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

Residential-first liens

 

$

1.6

 

$

1.6

 

$

 —

With an allowance recorded:

 

 

 

 

 

 

 

 

 

Residential-first liens

 

 

2.2

 

 

2.2

 

 

 —

Residential-home equity

 

 

5.4

 

 

6.5

 

 

1.4

Total:

 

 

 

 

 

 

 

 

 

Residential

 

$

9.2

 

$

10.3

 

$

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

Unpaid

 

 

 

 

 

Recorded

 

principal

 

Related

 

    

investment

    

balance

    

allowance

 

 

(in millions)

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

Residential-first liens

 

$

0.9

 

$

0.8

 

$

 —

With an allowance recorded:

 

 

 

 

 

 

 

 

 

Residential-first liens

 

 

4.0

 

 

4.0

 

 

0.2

Residential-home equity

 

 

7.6

 

 

8.6

 

 

4.3

Total:

 

 

 

 

 

 

 

 

 

Residential

 

$

12.5

 

$

13.4

 

$

4.5

 

 

 

 

 

 

 

 

 

  

Average

 

    

 

 

recorded

 

Interest income

 

    

investment

    

recognized

 

 

(in millions)

For the year ended December 31, 2018

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

$

1.3

 

$

 —

With an allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

 

3.2

 

 

0.1

Residential-home equity

 

 

6.5

 

 

0.2

Total:

 

 

 

 

 

 

Residential

 

$

11.0

 

$

0.3

For the year ended December 31, 2017

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

$

1.2

 

$

 —

With an allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

 

4.4

 

 

0.2

Residential-home equity

 

 

10.3

 

 

0.2

Total:

 

 

 

 

 

 

Residential

 

$

15.9

 

$

0.4

For the year ended December 31, 2016

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

$

2.6

 

$

 —

With an allowance recorded:

 

 

 

 

 

 

Residential-first liens

 

 

5.3

 

 

0.1

Residential-home equity

 

 

13.4

 

 

0.3

Total:

 

 

 

 

 

 

Residential

 

$

21.3

 

$

0.4

 

Real Estate Transactions (Table)

The following consolidated statement of financial position line items were most significantly impacted by the transactions, each having a net increase as of September 30, 2017, (in millions):

 

 

 

 

 

Real estate

    

$

293.4

Other investments

 

 

222.4

Cash and cash equivalents

 

 

219.6

Long-term debt

 

 

49.4

Income taxes currently payable

 

 

179.1

Deferred income taxes

 

 

101.0

 

Minority Interests in Unconsolidated Entities-Balance Sheet (Table)

 

 

 

 

 

 

 

 

 

 

December 31, 

 

    

2018

    

2017

 

 

(in millions)

Total assets

 

$

135,355.6

 

$

136,171.8

Total liabilities

 

 

80,265.4

 

 

83,815.2

Total equity

 

$

55,090.2

 

$

52,356.6

Net investment in unconsolidated entities (1)

 

$

1,723.7

 

$

1,616.2

(1)Our most significant equity investee is Brasilprev Seguros e Previdencia, a co-managed joint venture in Brazil.

 

Minority Interests in Unconsolidated Entities-Income Statement (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended

 

 

December 31, 

 

    

2018

    

2017

    

2016

 

 

(in millions)

Total revenues

 

$

15,389.4

 

$

15,020.9

 

$

14,376.4

Net income

 

 

6,542.1

 

 

4,530.1

 

 

3,455.3

Our share of net income of unconsolidated entities (1)

 

 

161.6

 

 

232.7

 

 

232.7

(1)Our most significant equity investee is Brasilprev Seguros e Previdencia, a co-managed joint venture in Brazil.

 

Financial Assets Subject to Netting Agreements (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amounts not offset in

 

 

 

 

 

 

 

 

the consolidated statements

 

 

 

 

 

 

 

 

of financial position

 

 

 

 

 

Gross amount

 

    

 

 

    

 

 

    

 

 

 

of recognized

 

Financial

 

Collateral

 

 

 

    

assets (1)

    

instruments (2)

    

received

    

Net amount

 

 

(in millions)

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

$

186.3

 

$

(70.5)

 

$

(108.1)

 

$

7.7

Reverse repurchase agreements

 

 

53.0

 

 

 —

 

 

(53.0)

 

 

 —

Total

 

$

239.3

 

$

(70.5)

 

$

(161.1)

 

$

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

$

287.0

 

$

(116.3)

 

$

(149.5)

 

$

21.2

Reverse repurchase agreements

 

 

17.6

 

 

 —

 

 

(17.6)

 

 

 —

Total

 

$

304.6

 

$

(116.3)

 

$

(167.1)

 

$

21.2

(1)

The gross amount of recognized derivative and reverse repurchase agreement assets are reported with other investments and cash and cash equivalents, respectively, on the consolidated statements of financial position. The above excludes $7.7 million and $17.0 million of derivative assets as of December 31, 2018 and December 31, 2017, respectively, that are not subject to master netting agreements or similar agreements. The gross amounts of derivative and reverse repurchase agreement assets are not netted against offsetting liabilities for presentation on the consolidated statements of financial position.

 

(2)

Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated statements of financial position.
Financial Liabilities Subject to Netting Agreements (Table)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amounts not offset in

 

 

 

 

 

 

 

 

the consolidated statements

 

 

 

 

 

 

 

 

of financial position

 

 

 

 

    

Gross amount

 

    

 

 

    

 

 

    

 

 

 

of recognized

 

Financial

 

Collateral

 

 

 

 

    

liabilities (1)

    

instruments (2)

    

pledged

    

Net amount

 

 

(in millions)

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$

153.4

 

$

(70.5)

 

$

(52.3)

 

$

30.6

Total

 

$

153.4

 

$

(70.5)

 

$

(52.3)

 

$

30.6

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$

272.5

 

$

(116.3)

 

$

(143.5)

 

$

12.7

Total

 

$

272.5

 

$

(116.3)

 

$

(143.5)

 

$

12.7

(1)

The gross amount of recognized derivative liabilities is reported with other liabilities on the consolidated statements of financial position. The above excludes $138.3 million and $415.6 million of derivative liabilities as of December 31, 2018 and December 31, 2017, respectively, which are primarily embedded derivatives that are not subject to master netting agreements or similar agreements. The gross amounts of derivative liabilities are not netted against offsetting assets for presentation on the consolidated statements of financial position.

 

(2)

Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated statements of financial position.