XML 62 R44.htm IDEA: XBRL DOCUMENT v3.24.0.1
Long-Duration Insurance Contracts Targeted Improvements (Tables)
 12 Months Ended
Dec. 31, 2023
Long Term Duration Insurance Contracts [Abstract]  
Summary Of Adoption Of New Accounting Guidance Related To The Recognition And Measurement Of Long Duration Insurance Contracts
The following table presents the balances of and changes
in
the consolidated balance sheet
on
January 1, 2021 from the adoption of LDTI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of adopting LDTI
 
 
 
 
(Amounts in millions)
 
Balances as of
December 31,
2020
(as reported)
 
 
Eliminate
shadow
adjustments
 
 
Changes in
measurement
of assets and
liabilities
 
 
Change in
discount
rate
 
 
Recognize
MRBs
 
 
Balances as of
January 1,
2021
(as adjusted)
 
Assets
 
      
 
      
 
      
 
      
 
      
 
      
Total investments
 
$
74,701
 
 
$
— 
 
 
$
— 
 
 
$
— 
 
 
$
— 
 
 
$
74,701
 
Cash, cash equivalents and restricted cash
 
 
2,561
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
2,561
 
Accrued investment income
 
 
655
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
655
 
Deferred acquisition costs
 
 
1,487
 
 
 
1,322
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
2,809
 
Intangible assets
 
 
157
 
 
 
114
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
271
 
Reinsurance recoverable
 
 
16,864
 
 
 
—
 
 
 
1,214
 
 
 
10,149
 
 
 
(92
) 
 
 
28,135
 
Less: Allowance for credit losses
 
 
(45
) 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(45
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinsurance recoverable, net
 
 
16,819
 
 
 
— 
 
 
 
1,214
 
 
 
10,149
 
 
 
(92
) 
 
 
28,090
 
Other assets
 
 
404
 
 
 
— 
 
 
 
(89
) 
 
 
— 
 
 
 
248
 
 
 
563
 
Deferred tax asset
 
 
65
 
 
 
(1,515
) 
 
 
497
 
 
 
4,624
 
 
 
105
 
 
 
3,776
 
Market risk benefit assets
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
22
 
 
 
22
 
Separate account assets
 
 
6,081
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
6,081
 
Assets related to discontinued operations
 
 
2,817
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
2,817
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
105,747
 
 
$
(79
) 
 
$
1,622
 
 
$
14,773
 
 
$
283
 
 
$
122,346
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and equity
 
      
 
      
 
      
 
      
 
      
 
      
Liabilities:
 
      
 
      
 
      
 
      
 
      
 
      
Future policy benefits
 
$
42,695
 
 
$
(4,456
) 
 
$
14,654
 
 
$
31,893
 
 
$
— 
 
 
$
84,786
 
Policyholder account balances
 
 
21,503
 
 
 
(1,229
) 
 
 
— 
 
 
 
— 
 
 
 
(641
) 
 
 
19,633
 
Market risk benefit liabilities
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
1,310
 
 
 
1,310
 
Liability for policy and contract claims
 
 
11,486
 
 
 
— 
 
 
 
(10,725
) 
 
 
— 
 
 
 
— 
 
 
 
761
 
Unearned premiums
 
 
775
 
 
 
— 
 
 
 
(468
) 
 
 
— 
 
 
 
— 
 
 
 
307
 
Other liabilities
 
 
1,614
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
4
 
 
 
1,618
 
Long-term borrowings
 
 
3,403
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
3,403
 
Separate account liabilities
 
 
6,081
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
6,081
 
Liabilities related to discontinued operations
 
 
2,370
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
2,370
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
89,927
 
 
 
(5,685
) 
 
 
3,461
 
 
 
31,893
 
 
 
673
 
 
 
120,269
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and contingencies
 
      
 
      
 
      
 
      
 
      
 
      
             
Equity:
 
      
 
      
 
      
 
      
 
      
 
      
Class A common stock
 
 
1
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
1
 
Additional
paid-in
capital
 
 
12,008
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
12,008
 
Accumulated other comprehensive income (loss)
 
 
4,425
 
 
 
5,606
 
 
 
— 
 
 
 
(17,120
) 
 
 
(19
) 
 
 
(7,108
) 
Retained earnings
 
 
1,584
 
 
 
— 
 
 
 
(1,839
) 
 
 
— 
 
 
 
(371
) 
 
 
(626
) 
Treasury stock, at cost
 
 
(2,700
) 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
(2,700
) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Genworth Financial, Inc.’s stockholders’ equity
 
 
15,318
 
 
 
5,606
 
 
 
(1,839
) 
 
 
(17,120
) 
 
 
(390
) 
 
 
1,575
 
Noncontrolling interests
 
 
502
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
— 
 
 
 
502
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
 
 
15,820
 
 
 
5,606
 
 
 
(1,839
) 
 
 
(17,120
) 
 
 
(390
) 
 
 
2,077
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
105,747
 
 
$
(79
) 
 
$
1,622
 
 
$
14,773
 
 
$
283
 
 
$
122,346
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of the Transition Adjustments within Stockholders Equity
The following table summarizes the components of the transition adjustments within stockholders’ equity as of January 1, 2021 from the adoption of LDTI:
 
(Amounts in millions)
  
Accumulated
other
comprehensive
income (loss)
 
  
Retained
earnings
 
  
Total
stockholders’
equity
 
Deferred acquisition costs
    $ 1,322      $ —       $ 1,322  
Intangible assets
      114        —         114  
Reinsurance recoverable
      10,149        1,201        11,350  
Other assets
      —         156        156  
Future policy benefits
      (27,437 )       (3,537 )       (30,974 ) 
Policyholder account balances
      1,229        —         1,229  
Market risk benefits, net
      (24 )       (623 )       (647 ) 
Other liabilities
      —         (4 )       (4 ) 
Deferred taxes
      3,114        597        3,711  
    
 
 
     
 
 
     
 
 
  
Total
    $ (11,533 )     $ (2,210 )     $ (13,743 ) 
    
 
 
     
 
 
     
 
 
  
Summary of Changes in Deferred Acquisition Costs
The following table summarizes the balances of and changes in deferred acquisition costs on January 1, 2021 from the adoption of LDTI:
 
(Amounts in millions)
 
Long-term

care insurance
 
 
Life
insurance
 
 
Fixed
annuities
 
 
Variable
annuities
 
 
Total
 
Balances as of December 31, 2020
   $ —      $ 1,316     $ 3     $ 139     $ 1,458  
Adjustment for removal of related balances in accumulated other comprehensive income (loss)
     1,043       185       82       12       1,322  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Adjusted balances as of January 1, 2021
   $ 1,043     $ 1,501     $ 85     $ 151       2,780  
   
 
 
    
 
 
    
 
 
    
 
 
          
Enact segment
                                     29  
                                   
 
 
  
Total deferred acquisition costs as of January 1, 2021
                                   $ 2,809  
                                   
 
 
  
Summary of Changes in Intangible Assets
The following table summarizes the balances of and changes in intangible assets, including present value of future profits and deferred sales inducements, on January 1, 2021 from the adoption of LDTI:
 
(Amounts in millions)
 
Life
insurance
 
 
Fixed
annuities
 
 
Variable
annuities
 
 
Total
 
Balances as of December 31, 2020
   $ 73     $ 7     $ 3     $ 83  
Adjustment for removal of related balances in accumulated other comprehensive income (loss)
     81       33       —        114  
   
 
 
    
 
 
    
 
 
    
 
 
  
Adjusted balances as of January 1, 2021
   $ 154     $ 40     $ 3     $ 197  
   
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Changes in the Liability for Future Policy Benefits
The following table summarizes the balances of and changes in the liability for future policy benefits on January 1, 2021 from the adoption of LDTI:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Amounts in millions)
   
Long-term

care insurance
     
Life
insurance
     
Fixed
annuities
     
Total
  
Balances as of December 31, 2020
    $ 28,770      $ 2,101      $ 11,824      $ 42,695  
Reclassify liability for policy and contract claims, unearned premiums and due premiums
(1)
      10,918        189        10        11,117  
Change in discount rate assumptions
      24,253        361        7,279        31,893  
Change in cash flow assumptions
(2)
      3,319        (2 )       264        3,581  
Change in cash flow assumptions, effect of increase (decrease) of the deferred profit liability
(2)
      (173 )       —         129        (44 ) 
Adjustment for removal of related balances in accumulated other comprehensive income (loss)
      (3,716 )       —         (740 )       (4,456 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Adjusted balances as of January 1, 2021
      63,371        2,649        18,766        84,786  
Less: reinsurance recoverable
      11,476        834        13,699        26,009  
    
 
 
     
 
 
     
 
 
     
 
 
  
Adjusted balances as of January 1, 2021, net of reinsurance
    $ 51,895      $ 1,815      $ 5,067      $ 58,777  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
(1)
Upon adopting LDTI, we elected to combine our previously disclosed liability for policy and contract claims, unearned premiums and due premiums, excluding amounts related to mortgage insurance and certain life and annuity products not subject to the new accounting guidance, within the liability for future policy benefits and present the aggregate liability as one line item in our consolidated balance sheets.
(2)
For limited-payment contracts, if the remeasured liability for future policy benefits under LDTI is (less) greater than the carrying value immediately before the Transition Date, the deferred profit liability is increased (decreased) with a corresponding (decrease) increase to the liability for future policy benefits.
Summary of Changes in the Net Liability Position for Market Risk Benefits
The following table summarizes the balances of and changes in the net liability position for MRBs on January 1, 2021 from the adoption of LDTI:
 
(Amounts in millions)
   
Fixed
indexed
annuities
     
Variable
annuities
     
Total
  
Balances as of December 31, 2020
    $ 71      $ 570      $ 641  
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk
      39        584        623  
Adjustment for the cumulative effect of changes in the instrument-specific credit risk since issuance
      5        19        24  
    
 
 
     
 
 
     
 
 
  
Total adjustment for the difference between carrying amount and fair value
      44        603        647  
    
 
 
     
 
 
     
 
 
  
Adjusted balances as of January 1, 2021
      115        1,173        1,288  
Less: reinsurance recoverable
      —         244        244  
    
 
 
     
 
 
     
 
 
  
Adjusted balances as of January 1, 2021, net of reinsurance
    $ 115      $ 929      $ 1,044